Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | DNB FINANCIAL CORP /PA/ | |
Entity Central Index Key | 713,671 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,262,589 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 36,189 | $ 22,103 |
Cash and cash equivalents | 36,189 | 22,103 |
Available-for-sale investment securities at fair value (amortized cost of $111,319 and $116,830) | 109,900 | 115,184 |
Held-to-maturity investment securities (fair value of $67,388 and $66,124) | 67,249 | 67,022 |
Total investments securities | 177,149 | 182,206 |
Loans | 816,525 | 817,529 |
Allowance for credit losses | (5,267) | (5,373) |
Net loans | 811,258 | 812,156 |
Restricted stock | 6,566 | 5,381 |
Office property and equipment, net | 9,099 | 9,243 |
Accrued interest receivable | 3,558 | 3,567 |
Other real estate owned & other repossessed property | 5,351 | 2,767 |
Bank owned life insurance (BOLI) | 9,432 | 9,552 |
Core deposit intangible | 485 | 537 |
Goodwill | 15,525 | 15,590 |
Net deferred taxes | 4,882 | 5,250 |
Other assets | 1,966 | 2,333 |
Total assets | 1,081,460 | 1,070,685 |
Liabilities | ||
Non-interest-bearing deposits | 181,529 | 173,467 |
Interest-bearing deposits: | ||
NOW | 209,355 | 224,219 |
Money market | 240,434 | 184,783 |
Savings | 84,820 | 86,176 |
Time | 147,110 | 187,256 |
Brokered deposits | 29,811 | 29,286 |
Total deposits | 893,059 | 885,187 |
Federal Home Loan Bank of Pittsburgh (FHLBP) advances | 49,869 | 55,332 |
Repurchase agreements | 15,700 | 11,889 |
Junior subordinated debentures | 9,279 | 9,279 |
Subordinated debt | 9,750 | 9,750 |
Other borrowings | 393 | 418 |
Total borrowings | 84,991 | 86,668 |
Accrued interest payable | 552 | 534 |
Other liabilities | 3,453 | 3,456 |
Total liabilities | 982,055 | 975,845 |
Stockholders' Equity | ||
Common stock, $1.00 par value; 20,000,000 shares authorized; 4,343,484 and 4,334,352 issued, respectively; 4,258,073 and 4,240,778 outstanding, respectively | 4,368 | 4,351 |
Treasury stock, at cost; 85,411 and 93,574 shares, respectively | (1,582) | (1,730) |
Surplus | 69,088 | 68,973 |
Retained earnings | 29,651 | 25,520 |
Accumulated other comprehensive loss | (2,120) | (2,274) |
Total stockholders' equity | 99,405 | 94,840 |
Total liabilities and stockholders' equity | $ 1,081,460 | $ 1,070,685 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Consolidated Statements of Financial Condition [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 111,319 | $ 116,830 |
Held-to-maturity Securities, Fair Value | $ 67,388 | $ 66,124 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 4,343,484 | 4,334,352 |
Common Stock, Shares, Outstanding | 4,258,073 | 4,240,778 |
Treasury Stock, Shares | 85,411 | 93,574 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Income: | ||||
Interest and fees on loans | $ 9,574 | $ 5,091 | $ 19,095 | $ 10,159 |
Interest and dividends on investment securities: Taxable | 757 | 752 | 1,454 | 1,434 |
Interest and dividends on investment securities: Exempt from federal taxes | 236 | 294 | 478 | 628 |
Interest on cash and cash equivalents | 94 | 43 | 128 | 64 |
Total interest and dividend income | 10,661 | 6,180 | 21,155 | 12,285 |
Interest Expense: | ||||
Interest on NOW, money market and savings | 588 | 194 | 1,072 | 358 |
Interest on time deposits | 313 | 140 | 614 | 257 |
Interest on brokered deposits | 94 | 71 | 186 | 133 |
Interest on FHLB advances | 168 | 90 | 337 | 184 |
Interest on repurchase agreements | 7 | 10 | 13 | 21 |
Interest on junior subordinated debentures | 95 | 84 | 187 | 165 |
Interest on subordinated debt | 103 | 103 | 207 | 207 |
Interest on other borrowings | 14 | 16 | 28 | 33 |
Total interest expense | 1,382 | 708 | 2,644 | 1,358 |
Net interest income | 9,279 | 5,472 | 18,511 | 10,927 |
Provision for credit losses | 585 | 200 | 910 | 530 |
Net interest income after provision for credit losses | 8,694 | 5,272 | 17,601 | 10,397 |
Non-interest Income: | ||||
Service charges | 291 | 240 | 654 | 547 |
Wealth management | 471 | 441 | 845 | 838 |
Mortgage banking | 14 | 81 | 50 | 113 |
Increase in cash surrender value of BOLI | 55 | 55 | 110 | 110 |
Gains on sale of investment securities, net | 25 | 203 | 25 | 234 |
Gain on sale of loans | 97 | 97 | 39 | |
Gains from insurance proceeds | 80 | 1,150 | ||
Other fees | 469 | 367 | 867 | 685 |
Total non-interest income | 1,422 | 1,387 | 2,728 | 3,716 |
Non-interest Expense: | ||||
Salaries and employee benefits | 3,724 | 2,693 | 7,365 | 5,819 |
Furniture and equipment | 505 | 342 | 1,001 | 671 |
Occupancy | 656 | 467 | 1,375 | 935 |
Professional and consulting | 456 | 333 | 849 | 642 |
Advertising and marketing | 274 | 166 | 440 | 349 |
Printing and supplies | 86 | 60 | 136 | 93 |
FDIC insurance | 150 | 121 | 345 | 250 |
PA shares tax | 233 | 157 | 458 | 319 |
Telecommunications | 88 | 61 | 178 | 122 |
Postage | 27 | 21 | 62 | 42 |
Loss on sale or write down of OREO, net | 115 | 4 | 114 | 4 |
Due diligence and merger expense | 26 | 275 | 77 | 463 |
Other expenses | 744 | 472 | 1,429 | 881 |
Total non-interest expense | 7,084 | 5,172 | 13,829 | 10,590 |
Income before income tax expense | 3,032 | 1,487 | 6,500 | 3,523 |
Income tax expense | 746 | 378 | 1,773 | 858 |
Net income | $ 2,286 | $ 1,109 | $ 4,727 | $ 2,665 |
Earnings per common share: | ||||
Basic | $ 0.54 | $ 0.39 | $ 1.11 | $ 0.94 |
Diluted | 0.53 | 0.39 | 1.10 | 0.93 |
Cash dividends per common share | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.14 |
Weighted average common shares outstanding: | ||||
Basic | 4,257,633 | 2,848,648 | 4,252,207 | 2,840,677 |
Diluted | 4,292,411 | 2,882,729 | 4,283,424 | 2,876,016 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 2,286 | $ 1,109 | $ 4,727 | $ 2,665 |
Other Comprehensive Income: | ||||
Unrealized holding gains arising during the period, Before tax amount | 85 | 605 | 236 | 2,074 |
Unrealized holding gains arising during the period, Tax effect | (29) | (207) | (80) | (706) |
Unrealized holding gains arising during the period | 56 | 398 | 156 | 1,368 |
Accretion of discount on AFS to HTM reclassification, Before tax amount | 5 | 1 | 7 | 3 |
Accretion of discount on AFS to HTM reclassification, Tax effect | (1) | (3) | (1) | |
Accretion of discount on AFS to HTM reclassification | 4 | 1 | 4 | 2 |
Less reclassification for gains on sales of AFS investment securities included in net income, Before Tax amount | (9) | (203) | (9) | (234) |
Less reclassification for gains on sales of AFS investment securities included in net income, Tax effect | 3 | 70 | 3 | 80 |
Less reclassification for gains on sales of AFS investment securities included in net income | (6) | (133) | (6) | (154) |
Total other comprehensive income | 54 | 266 | 154 | 1,216 |
Total comprehensive income | $ 2,340 | $ 1,375 | $ 4,881 | $ 3,881 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2015 | $ 2,955 | $ (2,015) | $ 35,097 | $ 21,436 | $ (1,985) | $ 55,488 |
Net income | 2,665 | 2,665 | ||||
Other comprehensive income | 1,216 | 1,216 | ||||
Restricted stock compensation expense | 32 | 698 | 730 | |||
Taxes on exercise of stock options and share award vest | (15) | (421) | (436) | |||
Tax benefit for restricted stock vest | 64 | 64 | ||||
Cash dividends - common | (398) | (398) | ||||
Sale of treasury shares to 401(k) | 78 | 52 | 130 | |||
Sale of treasury shares to deferred comp. plan | 47 | 31 | 78 | |||
Balance at Jun. 30, 2016 | 2,972 | (1,890) | 35,521 | 23,703 | (769) | 59,537 |
Balance at Dec. 31, 2016 | 4,351 | (1,730) | 68,973 | 25,520 | (2,274) | 94,840 |
Net income | 4,727 | 4,727 | ||||
Other comprehensive income | 154 | 154 | ||||
Restricted stock compensation expense | 8 | 206 | 214 | |||
Exercise of stock options | 9 | (9) | ||||
Taxes on exercise of stock options and share award vest | (187) | (187) | ||||
Cash dividends - common | (596) | (596) | ||||
Sale of treasury shares to 401(k) | 98 | 37 | 135 | |||
Sale of treasury shares to deferred comp. plan | 50 | 68 | 118 | |||
Balance at Jun. 30, 2017 | $ 4,368 | $ (1,582) | $ 69,088 | $ 29,651 | $ (2,120) | $ 99,405 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Stockholders' Equity [Abstract] | ||
Restricted stock compensation, shares | 18,079 | |
Exercise of stock options, shares | 9,132 | |
Cash dividends- common stock per share | $ 0.14 | $ 0.14 |
Sale of treasury shares to 401(k), shares | 5,390 | 4,288 |
Sale of treasury shares to deferred compensation plan, shares | 2,773 | 2,566 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows From Operating Activities: | ||
Net income | $ 4,727 | $ 2,665 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 846 | 743 |
Provision for credit losses | 910 | 530 |
Stock based compensation | 214 | 730 |
Net gain on sale of securities | (25) | (234) |
Net loss on sale or write down of OREO and other repossessed property | 114 | 4 |
Gain on insurance proceeds | (80) | (1,150) |
Earnings from investment in BOLI | (110) | (110) |
Deferred tax expense | 289 | 176 |
Proceeds from sales of mortgage loans | 1,657 | 5,020 |
Mortgage loans originated for sale | (1,607) | (4,907) |
Mortgage banking income | (50) | (113) |
Proceeds from sales of loans | 1,742 | 525 |
Loans originated for sale | (1,645) | (486) |
Gain on sale of loans | (97) | (39) |
Decrease in accrued interest receivable | 9 | 20 |
Decrease in other assets | 369 | 226 |
Increase in accrued interest payable | 18 | 32 |
(Decrease) increase in other liabilities | (3) | 394 |
Net Cash Provided By Operating Activities | 7,278 | 4,026 |
Cash Flows From Investing Activities: | ||
Activity in available-for-sale securities: Sales | 3,030 | 28,215 |
Activity in available-for-sale securities: Maturities, repayments and calls | 14,341 | 28,147 |
Activity in available-for-sale securities: Purchases | (12,086) | (50,573) |
Activity in held-to-maturity securities: Sales | 737 | |
Activity in held-to-maturity securities: Maturities, repayments and calls | 507 | 6,533 |
Activity in held-to-maturity securities: Purchases | (1,407) | (13,507) |
Net (increase) decrease in restricted stock | (1,185) | 129 |
Net increase in loans | (2,798) | (12,877) |
Proceeds from insurance | 1,150 | |
Death benefit proceeds | 310 | |
Purchases of property and equipment | (459) | (2,158) |
Costs capitalized in OREO and other repossessed property | (15) | (735) |
Proceeds from sale of OREO and other repossessed property | 168 | 360 |
Net Cash Provided by (Used in) Investing Activities | 1,143 | (15,316) |
Cash Flows From Financing Activities: | ||
Net increase in deposits | 7,872 | 35,569 |
Repayment of FHLBP advances | (13,311) | (10,000) |
Funding of FHLBP advances | 7,848 | |
Net increase (decrease) in repurchase agreements | 3,811 | (14,668) |
Repayment of other borrowings | (25) | (22) |
Dividends paid | (596) | (398) |
Taxes on exercise of stock options | (187) | (436) |
Tax benefit for stock option exercises | 64 | |
Sale of treasury stock | 253 | 208 |
Net Cash Provided by Financing Activities | 5,665 | 10,317 |
Net Change in Cash and Cash Equivalents | 14,086 | (973) |
Cash and Cash Equivalents at Beginning of Period | 22,103 | 21,119 |
Cash and Cash Equivalents at End of Period | 36,189 | 20,146 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for: Interest | 2,626 | 1,326 |
Cash paid during the period for: Income taxes | 1,886 | $ 250 |
Supplemental Disclosure of Non-cash Flow Information: | ||
Net decrease in goodwill | 65 | |
Transfers from loans to real estate owned and other repossessed property | $ 2,851 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | NOTE 1: BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of DNB Financial Corporation (referred to herein as the "Corporation" or "DNB") and its subsidiary, DNB First, National Association (the "Bank") have been prepared in accordance with the instructions for Form 10-Q and therefore do not include certain information or footnotes necessary for the presentation of financial condition, statement of operations and statement of cash flows required by generally accepted accounting principles. However, in the opinion of management, the consolidated financial statements reflect all adjustments (which consist of normal recurring adjustments) necessary for a fair presentation of the results for the unaudited periods. Prior amounts not affecting net income are reclassified when necessary to conform to current period classifications. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results which may be expected for the entire year. The consolidated financial statements should be read in conjunction with the Annual Report and report on Form 10-K for the year ended December 31, 2016. Subsequent Events-- Management has evaluated events and transactions occurring subsequent to June 30 , 2017 for items that should potentially be recognized or disclosed in these Consolidated Financial Statements. The evaluation was conducted through the date these financial statements were issued. Recent Accounting Pronouncements - Accounting Developments Affecting DNB In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016, the FASB issued ASU Nos. 2016-10, 2016-12 and 2016-20 that provide additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. ASU 2014-09 will become effective for the Company for the annual period beginning after December 15, 2017 and for interim periods within the annual period. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. DNB is evaluating the anticipated effects of these ASUs on the Consolidated Financial Statements and related disclosures. DNB is in the process of determining the revenue streams that are in the scope of these updates. Preliminary results indicate that certain noninterest income financial statement line items, including service charges on deposit accounts, card fees, other charges and fees, investment banking income, trust and investment management income, retail investment services, and other noninterest income, contain revenue streams that are in scope of these updates. Preliminary findings indicate that there may be some changes in the presentation of certain revenues and expenses based on the principal versus agent guidance within these updates; the materiality of these changes is still being assessed. DNB plans to adopt the standards beginning January 1, 2018 and expects to use the modified retrospective method of adoption. DNB adopted ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments on a prospective basis. This amendment eliminates the requirement to account for adjustments to provisional amounts recognized in a business combination retrospectively. Instead, the acquirer will recognize the adjustments to provisional amounts during the period in which the adjustments are determined, including the effect on earnings of any amounts the acquirer would have recorded in previous periods if the accounting had been completed at the acquisition date. DNB evaluated the impact of this guidance and does not anticipate a material impact to the consolidated financial statements at this time. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, the guidance revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with fair value of financial instruments. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As of June 30, 2017, DNB did not hold any equity investments (excluding restricted investments in bank stocks). DNB does not expect to make significant purchases of equity investments; therefore, the adoption of this ASU is not expected to be material to DNB's consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. DNB has evaluated the provisions of ASU 2016-02 to determine the potential impact of the new standard and has determined that it is not expected to have a material impact on DNB’s financial position, results of operations or cash flows. DNB has determined that the provisions of ASU No. 2016-02 may result in an increase in assets to recognize the present value of the lease obligations with a corresponding increase in liabilities. DNB is still in the process of determining the impact on DNB’s financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, " Improvements to Employee Share-Based Payment Accounting ." This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Accordingly, effective January of 2017, DNB adopted the pronouncement. The a doption of this pronouncement was immaterial to DNB’s consolidated financial statements. During the three and six month periods ended June 30, 2017, DNB had a $2,000 and $153,000 tax benefit for stock option exercises, respectively. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," (ASU 2016-13), which addresses concerns regarding the perceived delay in recognition of credit losses under the existing incurred loss model. The amendment introduces a new, single model for recognizing credit losses on all financial instruments presented on cost basis. Under the new model, entities must estimate current expected credit losses by considering all available relevant information, including historical and current information, as well as reasonable and supportable forecasts of future events. The update also requires additional qualitative and quantitative information to allow users to better understand the credit risk within the portfolio and the methodologies for determining allowance. ASU 2016-13 is effective for DNB on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted. While DNB is currently in the process of evaluating the impact of the amended guidance on its consolidated financial statements, it currently expects the ALLL to increase upon adoption given that the allowance will be required to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP. The extent of this increase is still being evaluated and will depend on economic conditions and the composition of DNB’s loan portfolio at the time of adoption. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The amendments in this update provide guidance for eight specific cash flow classification issues for which current guidance is unclear or does not exist, thereby reducing diversity in practice. For public companies, the update is effective for annual periods beginning after December 15, 2017. DNB is currently evaluating this ASU, particularly related to cash payments for debt prepayment costs and cash proceeds received from the settlement of BOLI policies as these areas might affect DNB in the future. This ASU, however, is not expected to have a material impact on DNB's consolidated financial statements because the guidance only affects the classification within the statement of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The new guidance narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs, as defined by the ASU. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, and should be applied prospectively. Early adoption is permitted. DNB will apply this guidance to applicable transactions after the adoption date. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under the amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value with its carrying amount. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The update also eliminated the requirements for zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. DNB plans to early adopt this ASU for its annual goodwill impairment test at the end of 2017 by comparing its fair value to its carrying value. The adoption of this ASU is not expected to have a material impact on DNB’s consolidated financial statements. Goodwill was reduced by $65,000 to $15,525,000 during the first quarter of 2017 due to the sale of an ASC 310-30 acquired comm ercial mortgage with credit deterioration . In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, however, DNB has decided not to early adopt. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. ASU No. 2017-07 is not expected to have a material impact on DNB Consolidated Financial Statements because the Pension plan has been frozen to new accruals since December 31, 2003, and thus, generated no service cost in any subsequent year). In March of 2017, the FASB issued ASU No. 2017-08, “ Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ” ( “ ASU 2017-08 ” ). This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date (with an explicit, non-contingent call feature that is callable at a fixed price and on a preset dates), rather than contractual maturity date as currently required under GAAP. The ASU does not impact instruments without preset call dates such as mortgage-backed securities. For instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the ASU. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early adoption is permitted. Accordingly, effective January of 2017, DNB early adopted the pronouncement. DNB’s current accounting treatment is consistent with the provisions in ASU-2017-08. As a result, there was no impact to the consolidated financial statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities [Abstract] | |
Investment Securities | NOTE 2: INVESTMENT SECURITIES The amortized cost and fair values of investment securities, as of the dates indicated, are summarized as follows: June 30, 2017 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,352 $ 276 $ - $ 8,628 Government Sponsored Entities (GSE) mortgage-backed securities 547 14 - 561 Corporate bonds 14,108 270 (1) 14,377 Collateralized mortgage obligations GSE 1,693 3 (15) 1,681 State and municipal taxable 1,008 3 - 1,011 State and municipal tax-exempt 41,541 90 (501) 41,130 Total $ 67,249 $ 656 $ (517) $ 67,388 Available For Sale US Government agency obligations $ 53,301 $ - $ (222) $ 53,079 GSE mortgage-backed securities 31,719 - (587) 31,132 Collateralized mortgage obligations GSE 13,270 - (386) 12,884 Corporate bonds 11,033 5 (150) 10,888 State and municipal tax-exempt 1,996 - (79) 1,917 Total $ 111,319 $ 5 $ (1,424) $ 109,900 December 31, 2016 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,224 $ 309 $ - $ 8,533 Government Sponsored Entities (GSE) mortgage-backed securities 1,440 38 - 1,478 Corporate bonds 12,825 230 (63) 12,992 Collateralized mortgage obligations GSE 1,966 2 (22) 1,946 State and municipal taxable 1,008 6 - 1,014 State and municipal tax-exempt 41,559 8 (1,406) 40,161 Total $ 67,022 $ 593 $ (1,491) $ 66,124 Available For Sale US Government agency obligations $ 52,428 $ 31 $ (150) $ 52,309 GSE mortgage-backed securities 30,861 2 (723) 30,140 Collateralized mortgage obligations GSE 12,957 3 (387) 12,573 Corporate bonds 15,474 5 (299) 15,180 State and municipal tax-exempt 5,084 - (128) 4,956 Asset-backed security 26 - - 26 Total $ 116,830 $ 41 $ (1,687) $ 115,184 Included in unrealized losses are market losses on securities that have been in a continuous unrealized loss position for twelve months or more and those securities that have been in a continuous unrealized loss position for less than twelve months. The following table details the aggregate unrealized losses and aggregate fair value of the underlying securities whose fair values are below their amortized cost at June 30, 2017 and December 31, 2016. June 30, 2017 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Corporate bonds $ 500 $ (1) $ 500 $ (1) $ - $ - Collateralized mortgage obligations GSE 957 (15) 957 (15) - - State and municipal tax-exempt 17,163 (501) 17,163 (501) - - Total $ 18,620 $ (517) $ 18,620 $ (517) $ - $ - Available For Sale US Government agency obligations $ 50,079 $ (222) $ 50,079 $ (222) $ - $ - GSE mortgage-backed securities 31,132 (587) 31,132 (587) - - Collateralized mortgage obligations GSE 12,884 (386) 5,920 (98) 6,964 (288) Corporate bonds 8,260 (150) 3,801 (92) 4,459 (58) State and municipal tax-exempt 1,917 (79) 1,917 (79) - - Total $ 104,272 $ (1,424) $ 92,849 $ (1,078) $ 11,423 $ (346) December 31, 2016 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Corporate bonds $ 5,962 $ (63) $ 3,992 $ (39) $ 1,970 $ (24) Collateralized mortgage obligations GSE 1,104 (22) 1,104 (22) - - State and municipal tax-exempt 32,690 (1,406) 32,690 (1,406) - - Total $ 39,756 $ (1,491) $ 37,786 $ (1,467) $ 1,970 $ (24) Available For Sale US Government agency obligations $ 27,270 $ (150) $ 27,270 $ (150) $ - $ - GSE mortgage-backed securities 29,145 (723) 29,145 (723) - - Collateralized mortgage obligations GSE 12,116 (387) 4,868 (94) 7,248 (293) Corporate bonds 13,031 (299) 7,593 (218) 5,438 (81) State and municipal tax-exempt 4,956 (128) 4,956 (128) - - Asset-backed security 26 - 26 - - - Total $ 86,544 $ (1,687) $ 73,858 $ (1,313) $ 12,686 $ (374) As of June 30, 2017, there were eighteen collateralized mortgage obligations GSE, seventeen GSE mortgage-backed securities, ten U.S. agency obligations, twenty-eight tax-exempt municipalities, and six corporate bonds which were in an unrealized loss position. DNB does not intend to sell these securities and management of DNB does not expect to be required to sell any of these securities prior to a recovery of its cost basis. Management has reviewed all of these securities and believes that DNB will collect all principal and interest that is due on debt securities on a timely basis. Management does not believe any individual unrealized loss as of June 30, 2017 represents an other-than-temporary impairment (OTTI). DNB reviews its investment portfolio on a quarterly basis reviewing each investment for OTTI. The OTTI analysis focuses on condition of the issuers as well as duration and severity of impairment in determining OTTI. As of June 30, 2017, the following securities were reviewed: Collateralized mortgage obligations GSE There are eighteen impaired securities classified as collateralized mortgage obligations, ten of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 5.11% of its book value. All of these securities were issued and insured by FNMA, FHLMC or GNMA. DNB receives monthly principal and interest payments on all of these securities on a timely basis and none of these agencies have ever defaulted on mortgage-backed principal or interest. DNB anticipates a recovery in the market value as the securities approach their maturity dates or if interest rates decline from June 30, 2017 levels. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2017 . GSE mortgage-backed securities There are seventeen impaired securities classified as GSE mortgage-backed securities, all of which have been impaired for less than 12 months. The largest unrealized loss of a security in this group is 2.58% of its book value. These securities were issued and insured by FNMA, FHLMC or GNMA. DNB receives monthly principal and interest payments on these securities on a timely basis and none of these have ever defaulted on mortgage-backed principal or interest. DNB anticipates a recover in the market value as the securities approach their maturity dates or if interest rates decline from June 30, 2017 levels. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2017. US Government agency obligations There are ten impaired securities classified as agencies, none of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 1.83% of its book value. All of these securities were issued and insured by FHLB, FNMA, or FHLMC. DNB has received timely interest payments on all of these securities and none of these agencies have ever defaulted on their bonds. DNB anticipates a recovery in the market value as the securities approach their maturity dates. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2017. State and municipal tax-exempt There are twenty-eight impaired securities in this category, which are comprised of intermediate to long-term municipal bonds, all of which have been impaired for less than 12 months. The largest unrealized loss of a security in this group is 4.96% of its book value. All of the issues carry a “BBB-” or better underlying credit rating and/or have strong underlying fundamentals; included but not limited to annual financial reports, geographic location, population and debt ratios. In certain cases, options for calls reduce the effective duration and in turn, future market value fluctuations. All issues are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. There have not been disruptions of any payments associated with any of these municipal securities. These bonds are investment grade and the value decline is related to the changes in interest rates. Of the twenty-eight municipal securities, there are eight insured school districts, nine uninsured school districts, four insured townships, and seven uninsured townships, all of which have strong underlying ratings. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2017 . Corporate bonds There are six impaired bonds classified as corporate bonds, three of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 4.17% of its book value. The bonds are investment grade and the value decline is related to the changes in interest rates that occurred since the time of purchase and subsequent changes in spreads affecting the market prices. All of the issues carry a "BBB+" or better underlying credit support and were evaluated on the basis on their underlying fundamentals; included but not limited to annual financial reports, rating agency reports, capital strength and debt ratios. DNB anticipates a recovery in the market value as the securities approach their maturity dates or if interest rates decline from June 30, 2017 levels. Management concluded that these securities were not other-than-temporarily impaired at June 30, 2017. The amortized cost and fair value of investment securities as of June 30, 2017, by final contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid without penalties. Held to Maturity Available for Sale (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ - $ - $ 15,222 $ 15,214 Due after one year through five years 26,086 26,585 42,350 42,134 Due after five years through ten years 27,031 27,055 11,921 11,728 Due after ten years 14,132 13,748 41,826 40,824 Total investment securities $ 67,249 $ 67,388 $ 111,319 $ 109,900 The HTM security sold during the six months ended June 30, 2017 was sold in accordance with GAAP, as DNB collected greater than 85% of the original recorded investment on the HTM security prior to the sale. As a result, it is appropriate to continue to carry the remaining HTM portfolio as currently classified. Gains and losses resulting from investment sales, redemptions or calls were as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2017 2016 2017 2016 Gross realized gains-AFS $ 10 $ 203 $ 10 $ 264 Gross realized gains-HTM 16 - 16 - Gross realized losses-AFS (1) - (1) (30) Net realized gain $ 25 $ 203 $ 25 $ 234 At June 30, 2017 and December 31, 2016, investment securities with a carrying value of approximately $118.2 million and $ 116.7 million, respectively, were pledged to secure public funds, repurchase agreements and for other purposes as required by law. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2017 | |
Loans [Abstract] | |
Loans | NOTE 3: LOANS The following table sets forth information concerning the composition of total loans outstanding, as of the dates indicated. (Dollars in thousands) June 30, 2017 December 31, 2016 Residential mortgage $ 86,632 $ 87,581 Commercial mortgage 453,453 465,486 Commercial: Commercial term 118,490 123,175 Commercial construction 92,157 72,755 Consumer: Home equity 59,829 62,560 Other 5,964 5,972 Total loans $ 816,525 $ 817,529 Less allowance for credit losses (5,267) (5,373) Net loans $ 811,258 $ 812,156 Information concerning non-accrual loans is shown in the following tables: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in thousands) June 30, 2017 December 31, 2016 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 1,815 $ 1,770 $ 21 $ - $ 21 $ 42 $ - $ 42 Commercial mortgage 2,375 4,593 36 - 36 77 - 77 Commercial: Commercial term 1,510 198 28 - 28 66 - 66 Commercial construction 447 1,242 46 - 46 91 - 91 Consumer: Home equity 404 442 6 - 6 12 - 12 Other 311 256 7 - 7 12 - 12 Total non-accrual loans $ 6,862 $ 8,501 $ 144 $ - $ 144 $ 300 $ - $ 300 Loans 90 days past due and accruing - - - - - - - - Total non-performing loans $ 6,862 $ 8,501 $ 144 $ - $ 144 $ 300 $ - $ 300 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (Dollars in thousands) June 30, 2016 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 1,772 $ 17 $ - $ 17 $ 36 $ - $ 36 Commercial mortgage 3,140 45 - 45 65 - 65 Commercial: Commercial term 207 3 - 3 6 - 6 Commercial construction 1,524 47 - 47 88 - 88 Consumer: Home equity 564 8 - - 16 - 16 Other 222 4 - 4 9 - 9 Total non-accrual loans $ 7,429 $ 124 $ - $ 116 $ 220 $ - $ 220 Loans 90 days past due and accruing 162 1 1 - 2 2 - Total non-performing loans $ 7,591 $ 125 $ 1 $ 116 $ 222 $ 2 $ 220 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2017 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | NOTE 4: ALLOWANCE FOR CREDIT LOSSES The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a scheduled payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of June 30, 2017 and December 31, 2016. Age Analysis of Past Due Loans Receivable June 30, 2017 Loans Receivable 30-59 60-89 Greater Total > 90 Days Past Days Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage (less acquired with credit deterioration) $ 1,626 $ 164 $ 861 $ 2,651 $ 83,970 $ 86,621 $ - Acquired residential mortgage with credit deterioration - - 11 11 - 11 - Commercial mortgage (less acquired with credit deterioration) - - 985 985 451,133 452,118 - Acquired commercial mortgage with credit deterioration - - 620 620 715 1,335 - Commercial: Commercial term - - 1,378 1,378 117,112 118,490 - Commercial construction 1,041 - 447 1,488 90,669 92,157 - Consumer: Home equity 222 87 300 609 59,220 59,829 - Other 8 99 173 280 5,684 5,964 - Total $ 2,897 $ 350 $ 4,775 $ 8,022 $ 808,503 $ 816,525 $ - December 31, 2016 Loans Receivable 30-59 60-89 Greater Total > 90 Days Past Days Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage (less acquired with credit deterioration) $ 728 $ 374 $ 491 $ 1,593 $ 85,977 $ 87,570 $ - Acquired residential mortgage with credit deterioration - - 11 11 - 11 - Commercial mortgage (less acquired with credit deterioration) 1,202 762 2,169 4,133 459,679 463,812 - Acquired commercial mortgage with credit deterioration 389 83 673 1,145 529 1,674 - Commercial: Commercial term 747 377 23 1,147 122,028 123,175 - Commercial construction 112 - 1,242 1,354 71,401 72,755 - Consumer: Home equity 263 - 300 563 61,997 62,560 - Other 27 65 151 243 5,729 5,972 - Total $ 3,468 $ 1,661 $ 5,060 $ 10,189 $ 807,340 $ 817,529 $ - DNB had $479,000 of residential mortgage loans in the process of foreclosure and $92,000 of residential mortgage loans in other real estate owned as of June 30, 2017. DNB had no residential mortgage loans in the process of foreclosure and $170,000 of residential mortgage loans in other real estate owned as of December 31, 2016. The following tables summarize information in regards to impaired loans by loan portfolio class as of and for the three and six months ended June 30, 2017 and 2016 and as of December 31, 2016. Impaired Loans June 30, 2017 December 31, 2016 Recorded Unpaid Related Recorded Unpaid Related Investment Principal Allowance Investment Principal Allowance (Dollars in thousands) Balance Balance With no related allowance recorded: Residential mortgage $ 1,595 $ 1,894 $ - $ 653 $ 680 $ - Acquired residential mortgage with credit deterioration 11 11 - 11 11 Commercial mortgage 1,753 1,994 - 2,919 3,330 - Acquired commercial mortgage with credit deterioration 1,140 1,140 - 1,674 1,680 Commercial: Commercial term 1,510 1,944 - 22 24 - Commercial construction 447 2,833 - 795 795 - Consumer: Home equity 552 571 - 544 595 - Other 75 75 - 114 122 - Total $ 7,083 $ 10,462 $ - $ 6,732 $ 7,237 $ - With allowance recorded: Residential mortgage 209 209 38 1,107 1,368 143 Commercial: Commercial term - - - 176 196 97 Commercial construction - - - 447 2,833 89 Consumer: Other 236 236 29 142 142 5 Total $ 445 $ 445 $ 67 $ 1,872 $ 4,539 $ 334 Total: Residential mortgage 1,804 2,103 38 1,760 2,048 143 Acquired residential mortgage with credit deterioration 11 11 - 11 11 - Commercial mortgage 1,753 1,994 - 2,919 3,330 - Acquired commercial mortgage with credit deterioration 1,140 1,140 - 1,674 1,680 - Commercial: Commercial term 1,510 1,944 - 198 220 97 Commercial construction 447 2,833 - 1,242 3,628 89 Consumer: Home equity 552 571 - 544 595 - Other 311 311 29 256 264 5 Total $ 7,528 $ 10,907 $ 67 $ 8,604 $ 11,776 $ 334 Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Residential mortgage $ 1,610 $ - $ 1,284 $ - $ 1,291 $ - $ 1,396 $ - Acquired residential mortgage with credit deterioration 11 - - 11 - - Commercial mortgage 1,253 - 2,083 - 1,808 - 1,782 - Acquired commercial mortgage with credit deterioration 1,137 - - 1,316 - - Commercial: Commercial term 1,192 - 24 - 802 - 16 - Commercial construction 848 - 934 - 830 - 1,002 - Consumer: Home equity 580 2 671 1 568 4 678 2 Other 94 - 104 - 100 - 97 - Total $ 6,725 $ 2 $ 5,100 $ 1 $ 6,726 $ 4 $ 4,971 $ 2 With allowance recorded: Residential mortgage 210 - 493 - 509 - 329 - Commercial: Commercial term 557 - 185 - 430 - 190 - Commercial construction - - 447 - 149 - 298 - Consumer: Other 189 - 107 - 173 - 107 - Total $ 956 $ - $ 1,232 $ - $ 1,261 $ - $ 924 $ - Total: Residential mortgage 1,820 - 1,777 - 1,800 - 1,725 - Acquired residential mortgage with credit deterioration 11 - - - 11 - - - Commercial mortgage 1,253 - 2,083 - 1,808 - 1,782 - Acquired commercial mortgage with credit deterioration 1,137 - - - 1,316 - - - Commercial: Commercial term 1,749 - 209 - 1,232 - 206 - Commercial construction 848 - 1,381 - 979 - 1,300 - Consumer: Home equity 580 2 671 1 568 4 678 2 Other 283 - 211 - 273 - 204 - Total $ 7,681 $ 2 $ 6,332 $ 1 $ 7,987 $ 4 $ 5,895 $ 2 The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within DNB’s internal risk rating system as of June 30, 2017 and December 31, 2016. Credit Quality Indicators June 30, 2017 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 84,751 $ - $ 1,881 $ - $ 86,632 Commercial mortgage 443,866 3,697 5,890 - 453,453 Commercial: Commercial term 114,330 657 3,503 - 118,490 Commercial construction 91,597 - 560 - 92,157 Consumer: Home equity 59,129 - 700 - 59,829 Other 5,653 - 311 - 5,964 Total $ 799,326 $ 4,354 $ 12,845 $ - $ 816,525 December 31, 2016 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 85,259 $ - $ 2,322 $ - $ 87,581 Commercial mortgage 450,124 3,763 11,599 - 465,486 Commercial: Commercial term 116,522 591 6,062 - 123,175 Commercial construction 71,400 - 1,355 - 72,755 Consumer: Home equity 61,782 - 778 - 62,560 Other 5,716 - 256 - 5,972 Total $ 790,803 $ 4,354 $ 22,372 $ - $ 817,529 Troubled Debt Restructurings Loans whose terms are modified are classified as troubled debt restructurings (“TDR”) if DNB grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. The recorded investments in troubled debt restructured loans at June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 709 Consumer: Home equity 148 148 147 Other 40 42 39 Total $ 942 $ 1,073 $ 895 December 31, 2016 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 726 Consumer: Home equity 148 148 148 Other 40 42 40 Total $ 942 $ 1,073 $ 914 At June 30, 2017, DNB had five TDRs with recorded investment totaling $895,000 , one of which totaled $102,000 , represented an accruing impaired home equity loan in compliance with the terms of the modification. The remaining $793,000 represents four loans that were nonaccrual impaired loans and resulted in collateral evaluations. As a result of the evaluations, specific reserves and charge-offs have been taken where appropriate. DNB recognized partial charge-offs totaling $ 151,000 on two residential loans prior to their restructuring and $2, 000 on o ne consumer installment loan after its restructuring. DNB did not recognize any charge-off on the last remaining TDR. As of June 30, 2017, there were no defaulted TDRs as all TDRs were current with respect to their associated forbearance agreements. There were no defaults on TDRs during the six months ended June 30, 2017. At December 31, 2016, DNB had five TDRs with recorded investment totaling $914,000 , one of which totaled $102,000 , represented an accruing impaired home equity loan in compliance with the terms of the modification. The remaining $812,000 represents four loans that were nonaccrual impaired loans and resulted in collateral evaluations. As a result of the evaluations, specific reserves and charge-offs have been taken where appropriate. As of December 31, 2016, DNB recognized partial charge-offs totaling $151,000 on two residential loans prior to their restructuring and $2,000 on one consumer installment loan after its restructuring. DNB did not recognize any charge-off on the last remaining TDR. As of December 31, 2016, there were no defaulted TDRs as all TDRs were current with respect to their associated forbearance agreements. There were no defaults on TDRs within twelve months of restructure during the six months ended June 30, 2016 . The following tables set forth the composition of DNB’s allowance for credit losses as of June 30, 2017 and December 31, 2016, the activity for the three and six months ended June 30, 2017 and 2016 and as of and for the year ended December 31, 2016. Allowance for Credit Losses and Recorded Investment in Loans Receivables Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2017 $ 247 $ 2,597 $ 774 $ 1,059 $ - $ 196 $ 63 $ 482 $ 5,418 Charge-offs - (249) (491) - - - - - (740) Recoveries - - 3 - - - 1 - 4 Provisions (2) 286 339 149 - (7) 20 (200) 585 Ending balance - June 30, 2017 $ 245 $ 2,634 $ 625 $ 1,208 $ - $ 189 $ 84 $ 282 $ 5,267 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2017 $ 349 $ 2,531 $ 709 $ 969 $ - $ 196 $ 61 $ 558 $ 5,373 Charge-offs - (483) (596) - - - (10) - (1,089) Recoveries 2 50 19 - 1 - 1 - 73 Provisions (106) 536 493 239 (1) (7) 32 (276) 910 Ending balance - June 30, 2017 $ 245 $ 2,634 $ 625 $ 1,208 $ - $ 189 $ 84 $ 282 $ 5,267 Ending balance: individually evaluated for impairment $ 38 $ - $ - $ - $ - $ - $ 29 $ - $ 67 Ending balance: collectively evaluated for impairment $ 207 $ 2,634 $ 625 $ 1,208 $ - $ 189 $ 55 $ 282 $ 5,200 Loans receivables: Ending balance $ 86,632 $ 453,453 $ 118,490 $ 92,157 $ - $ 59,829 $ 5,964 $ 816,525 Ending balance: individually evaluated for impairment $ 1,804 $ 1,753 $ 1,510 $ 447 $ - $ 552 $ 311 $ 6,377 Ending balance: acquired with credit deterioration $ 11 $ 1,140 $ - $ - $ - $ - $ - $ 1,151 Ending balance: collectively evaluated for impairment $ 84,817 $ 450,560 $ 116,980 $ 91,710 $ - $ 59,277 $ 5,653 $ 808,997 Reserve for unfunded loan commitments included in other liabilities $ - $ 9 $ 140 $ 173 $ - $ 18 $ - $ 340 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2016 $ 220 $ 2,376 $ 948 $ 765 $ - $ 188 $ 67 $ 608 $ 5,172 Charge-offs (122) - (11) - - - - - (133) Recoveries 7 - - - - - 1 - 8 Provisions 209 (6) (46) 101 - 3 (4) (57) 200 Ending balance - June 30, 2016 $ 314 $ 2,370 $ 891 $ 866 $ - $ 191 $ 64 $ 551 $ 5,247 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2016 $ 216 $ 2,375 $ 989 $ 569 $ - $ 195 $ 64 $ 527 $ 4,935 Charge-offs (206) - (24) - - - - - (230) Recoveries 8 - 1 1 1 - 1 - 12 Provisions 296 (5) (75) 296 (1) (4) (1) 24 530 Ending balance - June 30, 2016 $ 314 $ 2,370 $ 891 $ 866 $ - $ 191 $ 64 $ 551 $ 5,247 Reserve for unfunded loan commitments included in other liabilities $ - $ 3 $ 117 $ 57 $ - $ 13 $ - $ 190 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Ending balance - December 31, 2016 $ 349 $ 2,531 $ 709 $ 969 $ - $ 196 $ 61 $ 558 $ 5,373 Ending balance: individually evaluated for impairment $ 143 $ - $ 97 $ 89 $ - $ - $ 5 $ - $ 334 Ending balance: collectively evaluated for impairment $ 206 $ 2,531 $ 612 $ 880 $ - $ 196 $ 56 $ 558 $ 5,039 Loans receivables: Ending balance $ 87,581 $ 465,486 $ 123,175 $ 72,755 $ - $ 62,560 $ 5,972 $ 817,529 Ending balance: individually evaluated for impairment $ 1,760 $ 2,919 $ 198 $ 1,242 $ - $ 544 $ 256 $ 6,919 Ending balance: acquired with credit deterioration $ 11 $ 1,674 $ - $ - $ - $ - $ - $ 1,685 Ending balance: collectively evaluated for impairment $ 85,810 $ 460,893 $ 122,977 $ 71,513 $ - $ 62,016 $ 5,716 $ 808,925 Reserve for unfunded loan commitments included in other liabilities $ - $ 4 $ 135 $ 190 $ - $ 16 $ - $ 345 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 5: EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed based on the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the treasury stock method and reflects the potential dilution that could occur from the exercise of stock options, and warrants and the amortized portion of unvested stock awards. Stock options and unvested stock awards for which the exercise or the grant price exceeds the average market price over the period have an anti-dilutive effect on EPS and, accordingly, are excluded from the calculation. Treasury shares are not deemed outstanding for calculations. There were no outstanding stock warrants, no anti-dilutive stock options outstanding, and no anti-dilutive stock awards outstanding at June 30, 2017 or 2016. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 2,286 4,258 $ 0.54 $ 4,727 4,252 $ 1.11 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 34 (0.01) - 31 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 2,286 4,292 $ 0.53 $ 4,727 4,283 $ 1.10 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 1,109 2,849 $ 0.39 $ 2,665 2,841 $ 0.94 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 34 - - 35 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 1,109 2,883 $ 0.39 $ 2,665 2,876 $ 0.93 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 6: ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss included in stockholders' equity are as follows: Accumulated Other Comprehensive Loss Before-Tax Tax Net-of-Tax (Dollars in thousands) Amount Effect Amount June 30, 2017 Net unrealized loss on AFS securities $ (1,419) $ 483 $ (936) Discount on AFS to HTM reclassification (1) - (1) Unrealized actuarial losses-pension (1,792) 609 (1,183) $ (3,212) $ 1,092 $ (2,120) December 31, 2016 Net unrealized loss on AFS securities $ (1,646) $ 560 $ (1,086) Discount on AFS to HTM reclassification (8) 3 (5) Unrealized actuarial losses-pension (1,792) 609 (1,183) $ (3,446) $ 1,172 $ (2,274) |
Subordinated Debentures, Notes,
Subordinated Debentures, Notes, And Other Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Subordinated Debentures, Notes, And Other Borrowings [Abstract] | |
Subordinated Debentures, Notes, And Other Borrowings | NOTE 7: SUBORDINATED DEBENTURES, NOTES, AND OTHER BORROWINGS DNB has two issuances of junior subordinated debentures (the “debentures”) as follows. The majority of the proceeds of each issuance were invested in DNB’s subsidiary, DNB First, National Association, to increase the Bank’s capital levels. The junior subordinated debentures issued in each case qualify as a component of capital for regulatory purposes. DNB Capital Trust I and II are special purpose Delaware business trusts, which are not consolidated. DNB Capital Trust I DNB’s first issuance of junior subordinated debentures was on July 20, 2001 . These debentures are floating rate and were issued to DNB Capital Trust I, a Delaware business trust in which DNB owns all of the common equity. DNB Capital Trust I issued $ 5.0 million of floating rate ( 6 month Libor plus 3.75 %, with a cap of 12 %) capital preferred securities to a qualified institutional buyer. The proceeds of these securities were used by the Trust, along with DNB’s capital contribution, to purchase $ 5.2 million principal amount of DNB’s floating rate junior subordinated debentures. The preferred securities have been redeemable since July 25, 2006 and must be redeemed upon maturity of the debentures on July 25, 2031 . DNB Capital Trust II DNB’s second issuance of junior subordinated debentures was on March 30, 2005 . These are floating rate and were issued to DNB Capital Trust II, a Delaware business trust in which DNB owns all of the common equity. DNB Capital Trust II issued $ 4.0 million of floating rate (the rate was fixed at 6.56 % for the first 5 years and is now adjusting at a rate of 3 -month LIBOR plus 1.77 %) capital preferred securities. The proceeds of these securities were used by the Trust, along with DNB’s capital contribution, to purchase $ 4.1 million principal amount of DNB’s floating rate junior subordinated debentures. The preferred securities have been redeemable since May 23, 2010 . The preferred securities must be redeemed upon maturity of the debentures on May 23, 2035 . Subordinated Note On March 5, 2015, DNB Financial Corporation entered into a Subordinated Note Purchase Agreement (the “Agreement”) with an accredited investor under which DNB issued a $9.75 million subordinated note (the “Note”) to the investor. The Note has a maturity date of March 6, 2025 , and bears interest at a fixed rate of 4.25% per annum for the first 5 years and then will float at the Wall Street Journal Prime rate plus 1.00% , provided that the interest rate applicable to the outstanding principal balance will at no time be less than 3.0% and more than 5.75% per annum. DNB may, at its option, beginning with the first interest payment date after March 6, 2019, and on any interest payment date thereafter, redeem the Note, in whole or in part, at par plus accrued and unpaid interest to the date of redemption. The Note is not subject to repayment at the option of the noteholder. The Note is unsecured and ranks junior in right of payment to DNB’s senior indebtedness and to DNB’s obligations to its general creditors and qualifies as Tier 2 capital for regulatory purposes. Repurchase Agreements Accounted for as Secured Borrowings Repurchase agreements accounted for as secured borrowings are shown in the following table. (Dollars in thousands) Overnight and Continuous Up to 30 days 30 - 90 days Greater than 90 days Total June 30, 2017 Repurchase agreements and repurchase-to-maturity transactions $ 15,700 $ - $ - $ - $ 15,700 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 15,700 $ 15,700 December 31, 2016 Repurchase agreements and repurchase-to-maturity transactions $ 11,889 $ - $ - $ - $ 11,889 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 11,889 $ 11,889 As of June 30, 2017 and December 31, 2016, DNB had $15.7 million and $11.9 million of repurchase agreements, respectively. In conjunction with these repurchase agreements, $16.0 million and $ 12.1 million of state and municipal securities were sold on an overnight basis as of June 30, 2017 and December 31, 2016, respectively, which represents 102% of the repurchase agreement amounts. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 8: STOCK-BASED COMPENSATION Stock Option Plan DNB has a Stock Option Plan for employees and directors. Under the plan, options (both qualified and non-qualified) to purchase a maximum of 793,368 (as adjusted for subsequent stock dividends) shares of DNB’s common stock could be issued to employees and directors. Under the plan, option exercise prices must equal the fair market value of the shares on the date of option grant and the option exercise period may not exceed ten years. Vesting of options under the plan is determined by the Plan Committee. There were 354,090 shares available for grant at June 30, 2017. All options are immediately exercisable. During the three and six months ended June 30, 2017 and 2016, DNB had no expenses related to the plan. DNB has no anticipated additional expense related to the plan. Under the Stock Option Plan, 18,850 shares were exercised during the six months ended June 30, 2017. The shares awarded from the NQ cashless exercises resulted in an increase in shares outstanding of 9,132 shares. There was a cash equivalent of 9,718 shares used to pay all applicable taxes on the transactions. Stock option activity is indicated below. Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2017 49,700 $ 9.18 Issued - - Exercised 18,850 7.34 Forfeited - - Expired - - Outstanding June 30, 2017 30,850 $ 10.31 Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2016 64,500 $ 8.67 Issued - - Exercised - - Forfeited - - Expired - - Outstanding June 30, 2016 64,500 $ 8.67 The weighted-average price and weighted average remaining contractual life for the outstanding options are listed in the following table for the dates indicated. June 30, 2017 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 -10.99 30,850 30,850 $ 10.31 1.45 years $ 678,000 December 31, 2016 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 -10.99 49,700 49,700 $ 9.18 1.40 years $ 955,000 Other Stock-Based Compensation DNB maintains an Incentive Equity and Deferred Compensation Plan (the "Plan"). The Plan provides that up to 243,101 (as adjusted for subsequent stock dividends) shares of common stock may be granted, at the discretion of the Board, to individuals of the Corporation. Shares already granted are issuable on the earlier of three or four years (cliff vesting period) after the date of the grant or a change in control of DNB if the recipients are then employed by DNB (“Vest Date”). Upon issuance of the shares, resale of the shares is restricted for an additional one year, during which the shares may not be sold, pledged or otherwise disposed of. Prior to the Vest Date and in the event the recipient terminates association with DNB for reasons other than death, disability or change in control, the recipient forfeits all rights to the shares that would otherwise be issued under the grant. Share awards granted by the Plan were recorded at the date of award based on the market value of shares. Awards are being amortized to expense over a three or four year cliff-vesting period. DNB records compensation expense equal to the value of the shares being amortized. For the three and six month period ended June 30, 2017, $107,000 and $214,000 was amortized to expense. For the three and six month period ended June 30, 2016, $ 70,000 and $730,000 was amortized to expense. DNB issued 3,000 restricted stock awards during the first quarter of 2016 and 26,595 restricted stock awards in December 2015 that required the award recipient to hold the shares for one additional year after vesting. These awards cliff vest in three years. For these shares, DNB adopted the Chaffe Model to measure the fair value by applying a 9.1% discount due to the lack of marketability when these transactions took place. The input assumptions used and resulting fair values were an expected life of 5 years, volatility of 19.37% , annual rate of quarterly dividends of 1.01% , and bond equivalent yield of 1.742% . As of June 30, 2017, there was approximately $ 815,000 in additional compensation that will be recognized over the remaining service period of approximately 1.75 years. At June 30, 2017, 64,929 shares were reserved for future grants under the Plan. During the six months ended June 30, 2016, the shares awarded from the vesting resulted in an increase in shares outstanding of 18,079 . There was a cash equivalent of 15,621 shares used to pay all applicable taxes on the transactions. There were no such transactions during the six months ended June 30, 2017. Stock grant activity is indicated below: Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2017 55,775 $ 25.63 Granted 500 34.00 Forfeited 90 23.99 Vested - - Non-vested stock awards—June 30, 2017 56,185 $ 25.70 Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2016 77,255 $ 22.71 Granted 3,000 28.75 Forfeited - - Vested 33,700 23.66 Non-vested stock awards—June 30, 2016 46,555 $ 22.42 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 9: INCOME TAXES As of June 30, 2017, DNB had no material unrecognized tax benefits or accrued interest and penalties. It is DNB’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Federal and state tax years 2013 through 2016 were open for examination as of June 30, 2017. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 10: FAIR VALUE OF FINANCIAL INSTRUMENTS FASB ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy based on the nature of data inputs for fair value determinations, under which DNB is required to value each asset within its scope using assumptions that market participations would utilize to value that asset. When DNB uses its own assumptions, it is required to disclose additional information about the assumptions used and the effect of the measurement on earnings or the net change in assets for the period. The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1—Quoted prices in active markets for identical securities. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Instruments whose significant value drivers are unobservable. A description of the valuation methodologies used for assets measured at fair value is set forth below: DNB’s available-for-sale investment securities, which generally include U.S. government agencies and mortgage backed securities, collateralized mortgage obligations, corporate bonds and equity securities are reported at fair value. These securities are valued by an independent third party (“preparer”). The preparer’s evaluations are based on market data. They utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their evaluated pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. U.S. Government agencies are evaluated and priced using multi ‑dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other securities are evaluated using a broker-quote based application, including quotes from issuers. Impaired loans are those loans that the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. OREO assets are adjusted to fair value less estimated selling costs upon transfer of the loans to OREO establishing a new cost basis. Subsequently, OREO assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. There assets are included as Level 3 fair values. The following table summarizes the assets at June 30, 2017 and December 31, 2016 that are recognized on DNB’s statement of financial condition using fair value measurement determined based on the differing levels of input: June 30, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 53,079 $ - $ 53,079 GSE mortgage-backed securities - 31,132 - 31,132 Collateralized mortgage obligations GSE - 12,884 - 12,884 Corporate bonds - 10,888 - 10,888 State and municipal tax-exempt - 1,917 - 1,917 Total $ - $ 109,900 $ - $ 109,900 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,867 $ 1,867 OREO and other repossessed property - - 1,175 1,175 Total $ - $ - $ 3,042 $ 3,042 December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 52,309 $ - $ 52,309 GSE mortgage-backed securities - 30,140 - 30,140 Collateralized mortgage obligations GSE - 12,573 - 12,573 Corporate bonds - 15,180 - 15,180 State and municipal tax-exempt - 4,956 - 4,956 Asset-backed security - 26 - 26 Total $ - $ 115,184 $ - $ 115,184 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,538 $ 1,538 OREO and other repossessed property - - 2,485 2,485 Total $ - $ - $ 4,023 $ 4,023 The following table presents additional information about assets measured at fair value on a nonrecurring basis and for which DNB has utilized Level 3 inputs to determine fair value: June 30, 2017 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Residential mortgage $ 171 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial term 1,489 Appraisal of Appraisal adj. (2) 0% to -50% (-7%) collateral (1) Disposal costs (2) 0% to -9% (-8%) Impaired loans - Consumer other 207 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,867 Other real estate owned $ 1,175 Disposal costs (2) 8% to 8% (-8%) (1) (2) December 31, 2016 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Residential mortgage $ 964 Appraisal of Appraisal adj. (2) 0% to -25% (-22%) collateral (1) Disposal costs (2) -8% to -12% (-9%) Impaired loans - Commercial term 79 Appraisal of Appraisal adj. (2) -72% to -72% (-72%) collateral (1) Disposal costs (2) -11% to -11% (-11%) Impaired loans - Commercial construction 358 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Consumer other 137 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,538 Other real estate owned $ 2,485 Disposal costs (2) -8% to -8% (-8%) (1) Fair value is generally determined through independent appraisals or sales contracts of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals are adjusted by management for qualitative factors and disposal costs. Impaired loans. Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $7.5 million at June 30 , 2017. Of this, $445,000 had specific valuation allowances of $67,000 , leaving a fair value of $387,000 as of June 30, 2017. In addition, DNB had $1.9 million in impaired loans that were partially charged down by $406,000 , leaving $1.5 million at fair value as of June 30, 2017. Impaired loans had a carrying amount of $8.6 million at December 31, 2016. Of this, $1.9 million had specific valuation allowances of $334,000 , leaving a fair value of $1.5 million at December 31, 2016. DNB did no t have any impaired loans that were partially charged down during the year ended December 31, 2016. Other Real Estate Owned & other repossessed property. Other real estate owned (“OREO”) consists of properties acquired as a result of, or in-lieu-of, foreclosure. Properties or other assets are classified as OREO and other repossessed property are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense. DNB had $5.4 million of such assets at June 30, 2017, $ 5.2 million of which was OREO and $107,000 was in other repossessed property. DNB had $ 2.8 million of such assets at December 31, 2016, which consisted of $ 2.6 million in OREO and $ 191,000 in other repossessed property. Subsequent to the repossession of these assets, DNB wrote down the carrying value of one OREO property by $102,000 to $1.2 million during the six month period ended June 30, 2017. DNB did no t write down the carrying values of OREO during the six month period ended June 30, 2016. DNB's policy is to recognize transfer between levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between Level 1 and 2 for the six months ended June 30, 2017. Below is management’s estimate of the fair value of all financial instruments, whether carried at cost or fair value on the Company’s consolidated balance sheet. The carrying amounts and fair values of financial instruments at June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 36,189 $ 36,189 $ 36,189 $ - $ - AFS investment securities 109,900 109,900 - 109,900 - HTM investment securities 67,249 67,388 - 65,388 2,000 Restricted stock 6,566 6,566 - 6,566 - Loans, net of allowance, including impaired 811,258 791,963 - - 791,963 Accrued interest receivable 3,558 3,558 - 3,558 - Financial liabilities Deposits: Non-interest-bearing deposits 181,529 181,529 - 181,529 - Interest-bearing deposits 534,609 534,609 - 534,609 - Time deposits 147,110 146,425 - 146,425 - Brokered deposits 29,811 30,659 - 30,659 - Repurchase agreements 15,700 15,700 - 15,700 - FHLBP advances 49,869 49,845 - 49,845 - Junior subordinated debentures and other borrowings 9,279 9,012 - 9,012 - Subordinated debt 9,750 11,295 - 11,295 - Accrued interest payable 552 552 - 552 - Off-balance sheet instruments - - - - - December 31, 2016 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 22,103 $ 22,103 $ 22,103 $ - $ - AFS investment securities 115,184 115,184 - 115,184 - HTM investment securities 67,022 66,124 - 64,124 2,000 Restricted stock 5,381 5,381 - 5,381 - Loans, net of allowance, including impaired 812,156 792,190 - - 792,190 Accrued interest receivable 3,567 3,567 - 3,567 - Financial liabilities Deposits: Non-interest-bearing deposits 173,467 173,467 - 173,467 - Interest-bearing deposits 495,178 495,178 - 495,178 - Time deposits 187,256 186,012 - 186,012 - Brokered deposits 29,286 28,873 - 28,873 - Repurchase agreements 11,889 11,889 - 11,889 - FHLBP advances 55,332 54,734 - 54,734 - Junior subordinated debentures and other borrowings 9,279 8,637 - 8,637 - Subordinated debt 9,750 10,493 - 10,493 - Accrued interest payable 534 534 - 534 - Off-balance sheet instruments - - - - - The specific estimation methods and assumptions used can have a substantial impact on the resulting fair values of financial instruments. Following is a brief summary of the significant assumptions, methods, and estimates used in estimating fair value. Limitations Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time DNB’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of DNB’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Cash and Cash Equivalents, Accrued Interest Receivable and Accrued Interest Payable The carrying amounts for short-term investments (cash and cash equivalents) and accrued interest receivable and payable approximate fair value. Investment Securities The fair value of investment securities are determined by an independent third party (“preparer”). The preparer’s evaluations are based on market data. They utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their evaluated pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. U.S. Government agencies are evaluated and priced using multi ‑dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other investments are evaluated using a broker ‑ quote based application, including quotes from issuers. The carrying amount of non-readily marketable equity securities approximates liquidation value. Restricted Stock The carrying amount of restricted investment in Federal Home Loan Bank stock, Federal Reserve stock and ACBB stock approximates fair value, and considers the limited marketability of such securities. Loans Held-for-Sale (Carried at Lower of Cost or Fair Value) The fair value of loans held-for-sale is determined, when possible, using quoted secondary-market prices. If no such quotes prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial mortgages, residential mortgages, consumer and non-accrual loans. The fair value of performing loans is calculated by discounting expected cash flows using an estimated market discount rate. Expected cash flows include both contractual cash flows and prepayments of loan balances. Prepayments on consumer loans were determined using the median of estimates of securities dealers for mortgage-backed investment pools. The estimated discount rate considers credit and interest rate risk inherent in the loan portfolios and other factors such as liquidity premiums and incremental servicing costs to an investor. Management has made estimates of fair value discount rates that it believes to be reasonable. However, because there is no market for many of these financial instruments, management has no basis to determine whether the fair value presented would be indicative of the value negotiated in an actual sale. The fair value for non-accrual loans not based on fair value of collateral is derived through a discounted cash flow analysis, which includes the opportunity costs of carrying a non-performing asset. An estimated discount rate was used for these non-accrual loans, based on the probability of loss and the expected time to recovery. Deposits The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate money market accounts, savings accounts, and interest checking accounts approximate their fair values at the reporting date. Fair values for fixed-rate CDs and brokered deposits (all of which are CDs) are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Of the $29.8 million in brokered deposits at June 30, 2017 , $2.5 million matures in 2017, $4.0 million matures in 2018, $5.9 million matures in 2019, $7.3 million matures in 2020, $ 5.0 million matures in 2021, and $5.1 million matures in 2022. Federal Home Loan Bank of Pittsburgh advances The fair value of the FHLBP advances is obtained from the FHLB and is calculated by discounting contractual cash flows using an estimated interest rate based on the current rates available for debt of similar remaining maturities and collateral terms. Repurchase agreements Fair value approximates the carrying value of such liabilities due to their short-term nature. Junior subordinated debentures The fair value for subordinated debentures is calculated using discounted cash flows based upon current market spreads to LIBOR for debt of similar remaining maturities and collateral terms. Subordinated debt The fair value of the subordinated debt was estimated using either a discounted cash flow analysis based on current market interest rates for debt with similar maturities and credit quality or estimated using market quotes. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Off-balance-sheet Instruments (Disclosed at Cost) Off-balance-sheet instruments are primarily comprised of loan commitments, which are generally priced at market at the time of funding. Fees on commitments to extend credit and stand-by letters of credit are deemed to be immaterial and these instruments are expected to be settled at face value or expire unused. It is impractical to assign any fair value to these instruments. At June 30, 2017, un-funded loan commitments totaled $ 178.3 million and stand-by letters of credit totaled $ 3.2 million. At December 31, 2016, un-funded loan commitments totaled $ 185.8 million and stand-by letters of credit totaled $ 2.8 million. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation [Abstract] | |
Principles of Consolidation | The accompanying unaudited consolidated financial statements of DNB Financial Corporation (referred to herein as the "Corporation" or "DNB") and its subsidiary, DNB First, National Association (the "Bank") have been prepared in accordance with the instructions for Form 10-Q and therefore do not include certain information or footnotes necessary for the presentation of financial condition, statement of operations and statement of cash flows required by generally accepted accounting principles. However, in the opinion of management, the consolidated financial statements reflect all adjustments (which consist of normal recurring adjustments) necessary for a fair presentation of the results for the unaudited periods. Prior amounts not affecting net income are reclassified when necessary to conform to current period classifications. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results which may be expected for the entire year. The consolidated financial statements should be read in conjunction with the Annual Report and report on Form 10-K for the year ended December 31, 2016. |
Subsequent Events | Subsequent Events-- Management has evaluated events and transactions occurring subsequent to June 30 , 2017 for items that should potentially be recognized or disclosed in these Consolidated Financial Statements. The evaluation was conducted through the date these financial statements were issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - Accounting Developments Affecting DNB In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016, the FASB issued ASU Nos. 2016-10, 2016-12 and 2016-20 that provide additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. ASU 2014-09 will become effective for the Company for the annual period beginning after December 15, 2017 and for interim periods within the annual period. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. DNB is evaluating the anticipated effects of these ASUs on the Consolidated Financial Statements and related disclosures. DNB is in the process of determining the revenue streams that are in the scope of these updates. Preliminary results indicate that certain noninterest income financial statement line items, including service charges on deposit accounts, card fees, other charges and fees, investment banking income, trust and investment management income, retail investment services, and other noninterest income, contain revenue streams that are in scope of these updates. Preliminary findings indicate that there may be some changes in the presentation of certain revenues and expenses based on the principal versus agent guidance within these updates; the materiality of these changes is still being assessed. DNB plans to adopt the standards beginning January 1, 2018 and expects to use the modified retrospective method of adoption. DNB adopted ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments on a prospective basis. This amendment eliminates the requirement to account for adjustments to provisional amounts recognized in a business combination retrospectively. Instead, the acquirer will recognize the adjustments to provisional amounts during the period in which the adjustments are determined, including the effect on earnings of any amounts the acquirer would have recorded in previous periods if the accounting had been completed at the acquisition date. DNB evaluated the impact of this guidance and does not anticipate a material impact to the consolidated financial statements at this time. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities . The guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, the guidance revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The guidance also amends certain disclosure requirements associated with fair value of financial instruments. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. As of June 30, 2017, DNB did not hold any equity investments (excluding restricted investments in bank stocks). DNB does not expect to make significant purchases of equity investments; therefore, the adoption of this ASU is not expected to be material to DNB's consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. DNB has evaluated the provisions of ASU 2016-02 to determine the potential impact of the new standard and has determined that it is not expected to have a material impact on DNB’s financial position, results of operations or cash flows. DNB has determined that the provisions of ASU No. 2016-02 may result in an increase in assets to recognize the present value of the lease obligations with a corresponding increase in liabilities. DNB is still in the process of determining the impact on DNB’s financial position, results of operations and cash flows. In March 2016, the FASB issued ASU 2016-09, " Improvements to Employee Share-Based Payment Accounting ." This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Accordingly, effective January of 2017, DNB adopted the pronouncement. The a doption of this pronouncement was immaterial to DNB’s consolidated financial statements. During the three and six month periods ended June 30, 2017, DNB had a $2,000 and $153,000 tax benefit for stock option exercises, respectively. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," (ASU 2016-13), which addresses concerns regarding the perceived delay in recognition of credit losses under the existing incurred loss model. The amendment introduces a new, single model for recognizing credit losses on all financial instruments presented on cost basis. Under the new model, entities must estimate current expected credit losses by considering all available relevant information, including historical and current information, as well as reasonable and supportable forecasts of future events. The update also requires additional qualitative and quantitative information to allow users to better understand the credit risk within the portfolio and the methodologies for determining allowance. ASU 2016-13 is effective for DNB on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted. While DNB is currently in the process of evaluating the impact of the amended guidance on its consolidated financial statements, it currently expects the ALLL to increase upon adoption given that the allowance will be required to cover the full remaining expected life of the portfolio upon adoption, rather than the incurred loss model under current U.S. GAAP. The extent of this increase is still being evaluated and will depend on economic conditions and the composition of DNB’s loan portfolio at the time of adoption. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The amendments in this update provide guidance for eight specific cash flow classification issues for which current guidance is unclear or does not exist, thereby reducing diversity in practice. For public companies, the update is effective for annual periods beginning after December 15, 2017. DNB is currently evaluating this ASU, particularly related to cash payments for debt prepayment costs and cash proceeds received from the settlement of BOLI policies as these areas might affect DNB in the future. This ASU, however, is not expected to have a material impact on DNB's consolidated financial statements because the guidance only affects the classification within the statement of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The new guidance narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs, as defined by the ASU. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods, and should be applied prospectively. Early adoption is permitted. DNB will apply this guidance to applicable transactions after the adoption date. In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under the amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value with its carrying amount. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount when measuring the goodwill impairment loss, if applicable. The update also eliminated the requirements for zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments are effective for public business entities for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. DNB plans to early adopt this ASU for its annual goodwill impairment test at the end of 2017 by comparing its fair value to its carrying value. The adoption of this ASU is not expected to have a material impact on DNB’s consolidated financial statements. Goodwill was reduced by $65,000 to $15,525,000 during the first quarter of 2017 due to the sale of an ASC 310-30 acquired comm ercial mortgage with credit deterioration . In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, however, DNB has decided not to early adopt. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. ASU No. 2017-07 is not expected to have a material impact on DNB Consolidated Financial Statements because the Pension plan has been frozen to new accruals since December 31, 2003, and thus, generated no service cost in any subsequent year). In March of 2017, the FASB issued ASU No. 2017-08, “ Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ” ( “ ASU 2017-08 ” ). This guidance shortens the amortization period for premiums on certain callable debt securities to the earliest call date (with an explicit, non-contingent call feature that is callable at a fixed price and on a preset dates), rather than contractual maturity date as currently required under GAAP. The ASU does not impact instruments without preset call dates such as mortgage-backed securities. For instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the ASU. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early adoption is permitted. Accordingly, effective January of 2017, DNB early adopted the pronouncement. DNB’s current accounting treatment is consistent with the provisions in ASU-2017-08. As a result, there was no impact to the consolidated financial statements. |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Measurement | FASB ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy based on the nature of data inputs for fair value determinations, under which DNB is required to value each asset within its scope using assumptions that market participations would utilize to value that asset. When DNB uses its own assumptions, it is required to disclose additional information about the assumptions used and the effect of the measurement on earnings or the net change in assets for the period. The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1—Quoted prices in active markets for identical securities. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Instruments whose significant value drivers are unobservable. A description of the valuation methodologies used for assets measured at fair value is set forth below: DNB’s available-for-sale investment securities, which generally include U.S. government agencies and mortgage backed securities, collateralized mortgage obligations, corporate bonds and equity securities are reported at fair value. These securities are valued by an independent third party (“preparer”). The preparer’s evaluations are based on market data. They utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their evaluated pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. U.S. Government agencies are evaluated and priced using multi ‑dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other securities are evaluated using a broker-quote based application, including quotes from issuers. Impaired loans are those loans that the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. OREO assets are adjusted to fair value less estimated selling costs upon transfer of the loans to OREO establishing a new cost basis. Subsequently, OREO assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. There assets are included as Level 3 fair values. |
Fair Value of Financial Instruments | Limitations Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time DNB’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of DNB’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Cash and Cash Equivalents, Accrued Interest Receivable and Accrued Interest Payable The carrying amounts for short-term investments (cash and cash equivalents) and accrued interest receivable and payable approximate fair value. Investment Securities The fair value of investment securities are determined by an independent third party (“preparer”). The preparer’s evaluations are based on market data. They utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their evaluated pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. U.S. Government agencies are evaluated and priced using multi ‑dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other investments are evaluated using a broker ‑ quote based application, including quotes from issuers. The carrying amount of non-readily marketable equity securities approximates liquidation value. Restricted Stock The carrying amount of restricted investment in Federal Home Loan Bank stock, Federal Reserve stock and ACBB stock approximates fair value, and considers the limited marketability of such securities. Loans Held-for-Sale (Carried at Lower of Cost or Fair Value) The fair value of loans held-for-sale is determined, when possible, using quoted secondary-market prices. If no such quotes prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial mortgages, residential mortgages, consumer and non-accrual loans. The fair value of performing loans is calculated by discounting expected cash flows using an estimated market discount rate. Expected cash flows include both contractual cash flows and prepayments of loan balances. Prepayments on consumer loans were determined using the median of estimates of securities dealers for mortgage-backed investment pools. The estimated discount rate considers credit and interest rate risk inherent in the loan portfolios and other factors such as liquidity premiums and incremental servicing costs to an investor. Management has made estimates of fair value discount rates that it believes to be reasonable. However, because there is no market for many of these financial instruments, management has no basis to determine whether the fair value presented would be indicative of the value negotiated in an actual sale. The fair value for non-accrual loans not based on fair value of collateral is derived through a discounted cash flow analysis, which includes the opportunity costs of carrying a non-performing asset. An estimated discount rate was used for these non-accrual loans, based on the probability of loss and the expected time to recovery. Deposits The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate money market accounts, savings accounts, and interest checking accounts approximate their fair values at the reporting date. Fair values for fixed-rate CDs and brokered deposits (all of which are CDs) are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Of the $29.8 million in brokered deposits at June 30, 2017 , $2.5 million matures in 2017, $4.0 million matures in 2018, $5.9 million matures in 2019, $7.3 million matures in 2020, $ 5.0 million matures in 2021, and $5.1 million matures in 2022. Federal Home Loan Bank of Pittsburgh advances The fair value of the FHLBP advances is obtained from the FHLB and is calculated by discounting contractual cash flows using an estimated interest rate based on the current rates available for debt of similar remaining maturities and collateral terms. Repurchase agreements Fair value approximates the carrying value of such liabilities due to their short-term nature. Junior subordinated debentures The fair value for subordinated debentures is calculated using discounted cash flows based upon current market spreads to LIBOR for debt of similar remaining maturities and collateral terms. Subordinated debt The fair value of the subordinated debt was estimated using either a discounted cash flow analysis based on current market interest rates for debt with similar maturities and credit quality or estimated using market quotes. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Off-balance-sheet Instruments (Disclosed at Cost) Off-balance-sheet instruments are primarily comprised of loan commitments, which are generally priced at market at the time of funding. Fees on commitments to extend credit and stand-by letters of credit are deemed to be immaterial and these instruments are expected to be settled at face value or expire unused. It is impractical to assign any fair value to these instruments. At June 30, 2017, un-funded loan commitments totaled $ 178.3 million and stand-by letters of credit totaled $ 3.2 million. At December 31, 2016, un-funded loan commitments totaled $ 185.8 million and stand-by letters of credit totaled $ 2.8 million. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities [Abstract] | |
Amortized Cost and Estimated Fair Values of Investment Securities | June 30, 2017 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,352 $ 276 $ - $ 8,628 Government Sponsored Entities (GSE) mortgage-backed securities 547 14 - 561 Corporate bonds 14,108 270 (1) 14,377 Collateralized mortgage obligations GSE 1,693 3 (15) 1,681 State and municipal taxable 1,008 3 - 1,011 State and municipal tax-exempt 41,541 90 (501) 41,130 Total $ 67,249 $ 656 $ (517) $ 67,388 Available For Sale US Government agency obligations $ 53,301 $ - $ (222) $ 53,079 GSE mortgage-backed securities 31,719 - (587) 31,132 Collateralized mortgage obligations GSE 13,270 - (386) 12,884 Corporate bonds 11,033 5 (150) 10,888 State and municipal tax-exempt 1,996 - (79) 1,917 Total $ 111,319 $ 5 $ (1,424) $ 109,900 December 31, 2016 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,224 $ 309 $ - $ 8,533 Government Sponsored Entities (GSE) mortgage-backed securities 1,440 38 - 1,478 Corporate bonds 12,825 230 (63) 12,992 Collateralized mortgage obligations GSE 1,966 2 (22) 1,946 State and municipal taxable 1,008 6 - 1,014 State and municipal tax-exempt 41,559 8 (1,406) 40,161 Total $ 67,022 $ 593 $ (1,491) $ 66,124 Available For Sale US Government agency obligations $ 52,428 $ 31 $ (150) $ 52,309 GSE mortgage-backed securities 30,861 2 (723) 30,140 Collateralized mortgage obligations GSE 12,957 3 (387) 12,573 Corporate bonds 15,474 5 (299) 15,180 State and municipal tax-exempt 5,084 - (128) 4,956 Asset-backed security 26 - - 26 Total $ 116,830 $ 41 $ (1,687) $ 115,184 |
Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities | June 30, 2017 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Corporate bonds $ 500 $ (1) $ 500 $ (1) $ - $ - Collateralized mortgage obligations GSE 957 (15) 957 (15) - - State and municipal tax-exempt 17,163 (501) 17,163 (501) - - Total $ 18,620 $ (517) $ 18,620 $ (517) $ - $ - Available For Sale US Government agency obligations $ 50,079 $ (222) $ 50,079 $ (222) $ - $ - GSE mortgage-backed securities 31,132 (587) 31,132 (587) - - Collateralized mortgage obligations GSE 12,884 (386) 5,920 (98) 6,964 (288) Corporate bonds 8,260 (150) 3,801 (92) 4,459 (58) State and municipal tax-exempt 1,917 (79) 1,917 (79) - - Total $ 104,272 $ (1,424) $ 92,849 $ (1,078) $ 11,423 $ (346) December 31, 2016 Fair Value Unrealized Fair Value Unrealized Total Impaired Loss Impaired Loss Total Unrealized Less Than Less Than More Than More Than (Dollars in thousands) Fair Value Loss 12 Months 12 Months 12 Months 12 Months Held To Maturity Corporate bonds $ 5,962 $ (63) $ 3,992 $ (39) $ 1,970 $ (24) Collateralized mortgage obligations GSE 1,104 (22) 1,104 (22) - - State and municipal tax-exempt 32,690 (1,406) 32,690 (1,406) - - Total $ 39,756 $ (1,491) $ 37,786 $ (1,467) $ 1,970 $ (24) Available For Sale US Government agency obligations $ 27,270 $ (150) $ 27,270 $ (150) $ - $ - GSE mortgage-backed securities 29,145 (723) 29,145 (723) - - Collateralized mortgage obligations GSE 12,116 (387) 4,868 (94) 7,248 (293) Corporate bonds 13,031 (299) 7,593 (218) 5,438 (81) State and municipal tax-exempt 4,956 (128) 4,956 (128) - - Asset-backed security 26 - 26 - - - Total $ 86,544 $ (1,687) $ 73,858 $ (1,313) $ 12,686 $ (374) |
Investments Classified by Contractual Maturity Date | Held to Maturity Available for Sale (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ - $ - $ 15,222 $ 15,214 Due after one year through five years 26,086 26,585 42,350 42,134 Due after five years through ten years 27,031 27,055 11,921 11,728 Due after ten years 14,132 13,748 41,826 40,824 Total investment securities $ 67,249 $ 67,388 $ 111,319 $ 109,900 |
Gains and Losses Resulting from Investment Sales, Redemptions or Calls | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2017 2016 2017 2016 Gross realized gains-AFS $ 10 $ 203 $ 10 $ 264 Gross realized gains-HTM 16 - 16 - Gross realized losses-AFS (1) - (1) (30) Net realized gain $ 25 $ 203 $ 25 $ 234 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans [Abstract] | |
Composition of Total Loans Outstanding | (Dollars in thousands) June 30, 2017 December 31, 2016 Residential mortgage $ 86,632 $ 87,581 Commercial mortgage 453,453 465,486 Commercial: Commercial term 118,490 123,175 Commercial construction 92,157 72,755 Consumer: Home equity 59,829 62,560 Other 5,964 5,972 Total loans $ 816,525 $ 817,529 Less allowance for credit losses (5,267) (5,373) Net loans $ 811,258 $ 812,156 |
Information on Non-Accrual Loans | Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (Dollars in thousands) June 30, 2017 December 31, 2016 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 1,815 $ 1,770 $ 21 $ - $ 21 $ 42 $ - $ 42 Commercial mortgage 2,375 4,593 36 - 36 77 - 77 Commercial: Commercial term 1,510 198 28 - 28 66 - 66 Commercial construction 447 1,242 46 - 46 91 - 91 Consumer: Home equity 404 442 6 - 6 12 - 12 Other 311 256 7 - 7 12 - 12 Total non-accrual loans $ 6,862 $ 8,501 $ 144 $ - $ 144 $ 300 $ - $ 300 Loans 90 days past due and accruing - - - - - - - - Total non-performing loans $ 6,862 $ 8,501 $ 144 $ - $ 144 $ 300 $ - $ 300 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (Dollars in thousands) June 30, 2016 Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Interest income that would have been recorded under original terms Interest income recorded during the period Net impact on interest income Non-accrual loans: Residential mortgage $ 1,772 $ 17 $ - $ 17 $ 36 $ - $ 36 Commercial mortgage 3,140 45 - 45 65 - 65 Commercial: Commercial term 207 3 - 3 6 - 6 Commercial construction 1,524 47 - 47 88 - 88 Consumer: Home equity 564 8 - - 16 - 16 Other 222 4 - 4 9 - 9 Total non-accrual loans $ 7,429 $ 124 $ - $ 116 $ 220 $ - $ 220 Loans 90 days past due and accruing 162 1 1 - 2 2 - Total non-performing loans $ 7,591 $ 125 $ 1 $ 116 $ 222 $ 2 $ 220 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Allowance for Credit Losses [Abstract] | |
Age Analysis Of Past Due Loans Receivables | Age Analysis of Past Due Loans Receivable June 30, 2017 Loans Receivable 30-59 60-89 Greater Total > 90 Days Past Days Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage (less acquired with credit deterioration) $ 1,626 $ 164 $ 861 $ 2,651 $ 83,970 $ 86,621 $ - Acquired residential mortgage with credit deterioration - - 11 11 - 11 - Commercial mortgage (less acquired with credit deterioration) - - 985 985 451,133 452,118 - Acquired commercial mortgage with credit deterioration - - 620 620 715 1,335 - Commercial: Commercial term - - 1,378 1,378 117,112 118,490 - Commercial construction 1,041 - 447 1,488 90,669 92,157 - Consumer: Home equity 222 87 300 609 59,220 59,829 - Other 8 99 173 280 5,684 5,964 - Total $ 2,897 $ 350 $ 4,775 $ 8,022 $ 808,503 $ 816,525 $ - December 31, 2016 Loans Receivable 30-59 60-89 Greater Total > 90 Days Past Days Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage (less acquired with credit deterioration) $ 728 $ 374 $ 491 $ 1,593 $ 85,977 $ 87,570 $ - Acquired residential mortgage with credit deterioration - - 11 11 - 11 - Commercial mortgage (less acquired with credit deterioration) 1,202 762 2,169 4,133 459,679 463,812 - Acquired commercial mortgage with credit deterioration 389 83 673 1,145 529 1,674 - Commercial: Commercial term 747 377 23 1,147 122,028 123,175 - Commercial construction 112 - 1,242 1,354 71,401 72,755 - Consumer: Home equity 263 - 300 563 61,997 62,560 - Other 27 65 151 243 5,729 5,972 - Total $ 3,468 $ 1,661 $ 5,060 $ 10,189 $ 807,340 $ 817,529 $ - |
Impaired Loans By Loan Portfolio | June 30, 2017 December 31, 2016 Recorded Unpaid Related Recorded Unpaid Related Investment Principal Allowance Investment Principal Allowance (Dollars in thousands) Balance Balance With no related allowance recorded: Residential mortgage $ 1,595 $ 1,894 $ - $ 653 $ 680 $ - Acquired residential mortgage with credit deterioration 11 11 - 11 11 Commercial mortgage 1,753 1,994 - 2,919 3,330 - Acquired commercial mortgage with credit deterioration 1,140 1,140 - 1,674 1,680 Commercial: Commercial term 1,510 1,944 - 22 24 - Commercial construction 447 2,833 - 795 795 - Consumer: Home equity 552 571 - 544 595 - Other 75 75 - 114 122 - Total $ 7,083 $ 10,462 $ - $ 6,732 $ 7,237 $ - With allowance recorded: Residential mortgage 209 209 38 1,107 1,368 143 Commercial: Commercial term - - - 176 196 97 Commercial construction - - - 447 2,833 89 Consumer: Other 236 236 29 142 142 5 Total $ 445 $ 445 $ 67 $ 1,872 $ 4,539 $ 334 Total: Residential mortgage 1,804 2,103 38 1,760 2,048 143 Acquired residential mortgage with credit deterioration 11 11 - 11 11 - Commercial mortgage 1,753 1,994 - 2,919 3,330 - Acquired commercial mortgage with credit deterioration 1,140 1,140 - 1,674 1,680 - Commercial: Commercial term 1,510 1,944 - 198 220 97 Commercial construction 447 2,833 - 1,242 3,628 89 Consumer: Home equity 552 571 - 544 595 - Other 311 311 29 256 264 5 Total $ 7,528 $ 10,907 $ 67 $ 8,604 $ 11,776 $ 334 Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Residential mortgage $ 1,610 $ - $ 1,284 $ - $ 1,291 $ - $ 1,396 $ - Acquired residential mortgage with credit deterioration 11 - - 11 - - Commercial mortgage 1,253 - 2,083 - 1,808 - 1,782 - Acquired commercial mortgage with credit deterioration 1,137 - - 1,316 - - Commercial: Commercial term 1,192 - 24 - 802 - 16 - Commercial construction 848 - 934 - 830 - 1,002 - Consumer: Home equity 580 2 671 1 568 4 678 2 Other 94 - 104 - 100 - 97 - Total $ 6,725 $ 2 $ 5,100 $ 1 $ 6,726 $ 4 $ 4,971 $ 2 With allowance recorded: Residential mortgage 210 - 493 - 509 - 329 - Commercial: Commercial term 557 - 185 - 430 - 190 - Commercial construction - - 447 - 149 - 298 - Consumer: Other 189 - 107 - 173 - 107 - Total $ 956 $ - $ 1,232 $ - $ 1,261 $ - $ 924 $ - Total: Residential mortgage 1,820 - 1,777 - 1,800 - 1,725 - Acquired residential mortgage with credit deterioration 11 - - - 11 - - - Commercial mortgage 1,253 - 2,083 - 1,808 - 1,782 - Acquired commercial mortgage with credit deterioration 1,137 - - - 1,316 - - - Commercial: Commercial term 1,749 - 209 - 1,232 - 206 - Commercial construction 848 - 1,381 - 979 - 1,300 - Consumer: Home equity 580 2 671 1 568 4 678 2 Other 283 - 211 - 273 - 204 - Total $ 7,681 $ 2 $ 6,332 $ 1 $ 7,987 $ 4 $ 5,895 $ 2 |
Credit Quality Indicators | June 30, 2017 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 84,751 $ - $ 1,881 $ - $ 86,632 Commercial mortgage 443,866 3,697 5,890 - 453,453 Commercial: Commercial term 114,330 657 3,503 - 118,490 Commercial construction 91,597 - 560 - 92,157 Consumer: Home equity 59,129 - 700 - 59,829 Other 5,653 - 311 - 5,964 Total $ 799,326 $ 4,354 $ 12,845 $ - $ 816,525 December 31, 2016 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 85,259 $ - $ 2,322 $ - $ 87,581 Commercial mortgage 450,124 3,763 11,599 - 465,486 Commercial: Commercial term 116,522 591 6,062 - 123,175 Commercial construction 71,400 - 1,355 - 72,755 Consumer: Home equity 61,782 - 778 - 62,560 Other 5,716 - 256 - 5,972 Total $ 790,803 $ 4,354 $ 22,372 $ - $ 817,529 |
Recorded Investments in Troubled Debt Restructured Loans | June 30, 2017 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 709 Consumer: Home equity 148 148 147 Other 40 42 39 Total $ 942 $ 1,073 $ 895 December 31, 2016 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 726 Consumer: Home equity 148 148 148 Other 40 42 40 Total $ 942 $ 1,073 $ 914 |
Allowance For Credit Losses And Recorded Investments In Loans Receivables | Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2017 $ 247 $ 2,597 $ 774 $ 1,059 $ - $ 196 $ 63 $ 482 $ 5,418 Charge-offs - (249) (491) - - - - - (740) Recoveries - - 3 - - - 1 - 4 Provisions (2) 286 339 149 - (7) 20 (200) 585 Ending balance - June 30, 2017 $ 245 $ 2,634 $ 625 $ 1,208 $ - $ 189 $ 84 $ 282 $ 5,267 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2017 $ 349 $ 2,531 $ 709 $ 969 $ - $ 196 $ 61 $ 558 $ 5,373 Charge-offs - (483) (596) - - - (10) - (1,089) Recoveries 2 50 19 - 1 - 1 - 73 Provisions (106) 536 493 239 (1) (7) 32 (276) 910 Ending balance - June 30, 2017 $ 245 $ 2,634 $ 625 $ 1,208 $ - $ 189 $ 84 $ 282 $ 5,267 Ending balance: individually evaluated for impairment $ 38 $ - $ - $ - $ - $ - $ 29 $ - $ 67 Ending balance: collectively evaluated for impairment $ 207 $ 2,634 $ 625 $ 1,208 $ - $ 189 $ 55 $ 282 $ 5,200 Loans receivables: Ending balance $ 86,632 $ 453,453 $ 118,490 $ 92,157 $ - $ 59,829 $ 5,964 $ 816,525 Ending balance: individually evaluated for impairment $ 1,804 $ 1,753 $ 1,510 $ 447 $ - $ 552 $ 311 $ 6,377 Ending balance: acquired with credit deterioration $ 11 $ 1,140 $ - $ - $ - $ - $ - $ 1,151 Ending balance: collectively evaluated for impairment $ 84,817 $ 450,560 $ 116,980 $ 91,710 $ - $ 59,277 $ 5,653 $ 808,997 Reserve for unfunded loan commitments included in other liabilities $ - $ 9 $ 140 $ 173 $ - $ 18 $ - $ 340 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - April 1, 2016 $ 220 $ 2,376 $ 948 $ 765 $ - $ 188 $ 67 $ 608 $ 5,172 Charge-offs (122) - (11) - - - - - (133) Recoveries 7 - - - - - 1 - 8 Provisions 209 (6) (46) 101 - 3 (4) (57) 200 Ending balance - June 30, 2016 $ 314 $ 2,370 $ 891 $ 866 $ - $ 191 $ 64 $ 551 $ 5,247 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Beginning balance - January 1, 2016 $ 216 $ 2,375 $ 989 $ 569 $ - $ 195 $ 64 $ 527 $ 4,935 Charge-offs (206) - (24) - - - - - (230) Recoveries 8 - 1 1 1 - 1 - 12 Provisions 296 (5) (75) 296 (1) (4) (1) 24 530 Ending balance - June 30, 2016 $ 314 $ 2,370 $ 891 $ 866 $ - $ 191 $ 64 $ 551 $ 5,247 Reserve for unfunded loan commitments included in other liabilities $ - $ 3 $ 117 $ 57 $ - $ 13 $ - $ 190 Residential Commercial Commercial Commercial Lease Consumer Consumer (Dollars in thousands) Mortgage Mortgage Term Construction Financing Home Equity Other Unallocated Total Allowance for credit losses: Ending balance - December 31, 2016 $ 349 $ 2,531 $ 709 $ 969 $ - $ 196 $ 61 $ 558 $ 5,373 Ending balance: individually evaluated for impairment $ 143 $ - $ 97 $ 89 $ - $ - $ 5 $ - $ 334 Ending balance: collectively evaluated for impairment $ 206 $ 2,531 $ 612 $ 880 $ - $ 196 $ 56 $ 558 $ 5,039 Loans receivables: Ending balance $ 87,581 $ 465,486 $ 123,175 $ 72,755 $ - $ 62,560 $ 5,972 $ 817,529 Ending balance: individually evaluated for impairment $ 1,760 $ 2,919 $ 198 $ 1,242 $ - $ 544 $ 256 $ 6,919 Ending balance: acquired with credit deterioration $ 11 $ 1,674 $ - $ - $ - $ - $ - $ 1,685 Ending balance: collectively evaluated for impairment $ 85,810 $ 460,893 $ 122,977 $ 71,513 $ - $ 62,016 $ 5,716 $ 808,925 Reserve for unfunded loan commitments included in other liabilities $ - $ 4 $ 135 $ 190 $ - $ 16 $ - $ 345 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 2,286 4,258 $ 0.54 $ 4,727 4,252 $ 1.11 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 34 (0.01) - 31 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 2,286 4,292 $ 0.53 $ 4,727 4,283 $ 1.10 Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 (In thousands, except per-share data) Income Shares Amount Income Shares Amount Basic EPS Income available to common stockholders $ 1,109 2,849 $ 0.39 $ 2,665 2,841 $ 0.94 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 34 - - 35 (0.01) Diluted EPS Income available to common stockholders after assumed conversions $ 1,109 2,883 $ 0.39 $ 2,665 2,876 $ 0.93 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Before-Tax Tax Net-of-Tax (Dollars in thousands) Amount Effect Amount June 30, 2017 Net unrealized loss on AFS securities $ (1,419) $ 483 $ (936) Discount on AFS to HTM reclassification (1) - (1) Unrealized actuarial losses-pension (1,792) 609 (1,183) $ (3,212) $ 1,092 $ (2,120) December 31, 2016 Net unrealized loss on AFS securities $ (1,646) $ 560 $ (1,086) Discount on AFS to HTM reclassification (8) 3 (5) Unrealized actuarial losses-pension (1,792) 609 (1,183) $ (3,446) $ 1,172 $ (2,274) |
Subordinated Debentures, Note26
Subordinated Debentures, Notes, And Other Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Subordinated Debentures, Notes, And Other Borrowings [Abstract] | |
Repurchase Agreements Accounted for as Secured Borrowings | (Dollars in thousands) Overnight and Continuous Up to 30 days 30 - 90 days Greater than 90 days Total June 30, 2017 Repurchase agreements and repurchase-to-maturity transactions $ 15,700 $ - $ - $ - $ 15,700 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 15,700 $ 15,700 December 31, 2016 Repurchase agreements and repurchase-to-maturity transactions $ 11,889 $ - $ - $ - $ 11,889 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 11,889 $ 11,889 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock Option Activity | Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2017 49,700 $ 9.18 Issued - - Exercised 18,850 7.34 Forfeited - - Expired - - Outstanding June 30, 2017 30,850 $ 10.31 Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2016 64,500 $ 8.67 Issued - - Exercised - - Forfeited - - Expired - - Outstanding June 30, 2016 64,500 $ 8.67 |
Weighted Average Price And Weighted Average Remaining Contractual Life | June 30, 2017 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 -10.99 30,850 30,850 $ 10.31 1.45 years $ 678,000 December 31, 2016 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 -10.99 49,700 49,700 $ 9.18 1.40 years $ 955,000 |
Stock Grant Activity | Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2017 55,775 $ 25.63 Granted 500 34.00 Forfeited 90 23.99 Vested - - Non-vested stock awards—June 30, 2017 56,185 $ 25.70 Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2016 77,255 $ 22.71 Granted 3,000 28.75 Forfeited - - Vested 33,700 23.66 Non-vested stock awards—June 30, 2016 46,555 $ 22.42 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Measurements on Differing Levels | June 30, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 53,079 $ - $ 53,079 GSE mortgage-backed securities - 31,132 - 31,132 Collateralized mortgage obligations GSE - 12,884 - 12,884 Corporate bonds - 10,888 - 10,888 State and municipal tax-exempt - 1,917 - 1,917 Total $ - $ 109,900 $ - $ 109,900 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,867 $ 1,867 OREO and other repossessed property - - 1,175 1,175 Total $ - $ - $ 3,042 $ 3,042 December 31, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets Measured at Fair Value on a Recurring Basis AFS Investment Securities: US Government agency obligations $ - $ 52,309 $ - $ 52,309 GSE mortgage-backed securities - 30,140 - 30,140 Collateralized mortgage obligations GSE - 12,573 - 12,573 Corporate bonds - 15,180 - 15,180 State and municipal tax-exempt - 4,956 - 4,956 Asset-backed security - 26 - 26 Total $ - $ 115,184 $ - $ 115,184 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,538 $ 1,538 OREO and other repossessed property - - 2,485 2,485 Total $ - $ - $ 4,023 $ 4,023 |
Quantitative Information About Level 3 Fair Value Measurements | June 30, 2017 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Residential mortgage $ 171 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial term 1,489 Appraisal of Appraisal adj. (2) 0% to -50% (-7%) collateral (1) Disposal costs (2) 0% to -9% (-8%) Impaired loans - Consumer other 207 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,867 Other real estate owned $ 1,175 Disposal costs (2) 8% to 8% (-8%) (1) (2) December 31, 2016 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Residential mortgage $ 964 Appraisal of Appraisal adj. (2) 0% to -25% (-22%) collateral (1) Disposal costs (2) -8% to -12% (-9%) Impaired loans - Commercial term 79 Appraisal of Appraisal adj. (2) -72% to -72% (-72%) collateral (1) Disposal costs (2) -11% to -11% (-11%) Impaired loans - Commercial construction 358 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Consumer other 137 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,538 Other real estate owned $ 2,485 Disposal costs (2) -8% to -8% (-8%) (1) Fair value is generally determined through independent appraisals or sales contracts of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals are adjusted by management for qualitative factors and disposal costs. |
Carrying Amounts and Estimated Fair Values of Financial Instruments | June 30, 2017 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 36,189 $ 36,189 $ 36,189 $ - $ - AFS investment securities 109,900 109,900 - 109,900 - HTM investment securities 67,249 67,388 - 65,388 2,000 Restricted stock 6,566 6,566 - 6,566 - Loans, net of allowance, including impaired 811,258 791,963 - - 791,963 Accrued interest receivable 3,558 3,558 - 3,558 - Financial liabilities Deposits: Non-interest-bearing deposits 181,529 181,529 - 181,529 - Interest-bearing deposits 534,609 534,609 - 534,609 - Time deposits 147,110 146,425 - 146,425 - Brokered deposits 29,811 30,659 - 30,659 - Repurchase agreements 15,700 15,700 - 15,700 - FHLBP advances 49,869 49,845 - 49,845 - Junior subordinated debentures and other borrowings 9,279 9,012 - 9,012 - Subordinated debt 9,750 11,295 - 11,295 - Accrued interest payable 552 552 - 552 - Off-balance sheet instruments - - - - - December 31, 2016 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 22,103 $ 22,103 $ 22,103 $ - $ - AFS investment securities 115,184 115,184 - 115,184 - HTM investment securities 67,022 66,124 - 64,124 2,000 Restricted stock 5,381 5,381 - 5,381 - Loans, net of allowance, including impaired 812,156 792,190 - - 792,190 Accrued interest receivable 3,567 3,567 - 3,567 - Financial liabilities Deposits: Non-interest-bearing deposits 173,467 173,467 - 173,467 - Interest-bearing deposits 495,178 495,178 - 495,178 - Time deposits 187,256 186,012 - 186,012 - Brokered deposits 29,286 28,873 - 28,873 - Repurchase agreements 11,889 11,889 - 11,889 - FHLBP advances 55,332 54,734 - 54,734 - Junior subordinated debentures and other borrowings 9,279 8,637 - 8,637 - Subordinated debt 9,750 10,493 - 10,493 - Accrued interest payable 534 534 - 534 - Off-balance sheet instruments - - - - - |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2007 | Jun. 30, 2017 | Dec. 31, 2016 | |
Tax benefit for stock option exercises | $ 2 | $ 153 | ||
Goodwill, Period Increase (Decrease) | 65 | |||
Goodwill | $ 15,525 | $ 15,525 | $ 15,590 | |
Accounting Standards Update 2017-04 [Member] | Sale of ASC 310-30 Acquired Commercial Mortgage With Credit Deterioration [Member] | ||||
Goodwill, Period Increase (Decrease) | $ 65 | |||
Goodwill | $ 15,525 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($) | |
Securities [Line Items] | ||
Available-for-sale securities pledged as collateral | $ | $ 118.2 | $ 116.7 |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 18 | |
Number of securities, impaired for more than 12 months | 10 | |
Unrealized loss of security from book value | 5.11% | |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 17 | |
Unrealized loss of security from book value | 2.58% | |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 10 | |
Number of securities, impaired for more than 12 months | 0 | |
Unrealized loss of security from book value | 1.83% | |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 28 | |
Number of impaired municipal securities, insured school districts | 8 | |
Number of impaired municipal securities, unisured school districts | 9 | |
Number of impaired municipal securities, townships insured | 4 | |
Number of impaired municipal securities, townships uninsured | 7 | |
Unrealized loss of security from book value | 4.96% | |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 6 | |
Number of securities, impaired for more than 12 months | 3 | |
Unrealized loss of security from book value | 4.17% |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | $ 67,249 | $ 67,022 |
Held-to-maturity Securities, Unrealized Gains | 656 | 593 |
Held-to-maturity Securities, Unrealized Losses | (517) | (1,491) |
Held-to-maturity Securities, Fair Value | 67,388 | 66,124 |
Available-for-sale Securities, Amortized Cost | 111,319 | 116,830 |
Available-for-sale Securities, Unrealized Gains | 5 | 41 |
Available-for-sale Securities, Unrealized Losses | (1,424) | (1,687) |
AFS investment securities | 109,900 | 115,184 |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 8,352 | 8,224 |
Held-to-maturity Securities, Unrealized Gains | 276 | 309 |
Held-to-maturity Securities, Fair Value | 8,628 | 8,533 |
Available-for-sale Securities, Amortized Cost | 53,301 | 52,428 |
Available-for-sale Securities, Unrealized Gains | 31 | |
Available-for-sale Securities, Unrealized Losses | (222) | (150) |
AFS investment securities | 53,079 | 52,309 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 547 | 1,440 |
Held-to-maturity Securities, Unrealized Gains | 14 | 38 |
Held-to-maturity Securities, Fair Value | 561 | 1,478 |
Available-for-sale Securities, Amortized Cost | 31,719 | 30,861 |
Available-for-sale Securities, Unrealized Gains | 2 | |
Available-for-sale Securities, Unrealized Losses | (587) | (723) |
AFS investment securities | 31,132 | 30,140 |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 14,108 | 12,825 |
Held-to-maturity Securities, Unrealized Gains | 270 | 230 |
Held-to-maturity Securities, Unrealized Losses | (1) | (63) |
Held-to-maturity Securities, Fair Value | 14,377 | 12,992 |
Available-for-sale Securities, Amortized Cost | 11,033 | 15,474 |
Available-for-sale Securities, Unrealized Gains | 5 | 5 |
Available-for-sale Securities, Unrealized Losses | (150) | (299) |
AFS investment securities | 10,888 | 15,180 |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 1,693 | 1,966 |
Held-to-maturity Securities, Unrealized Gains | 3 | 2 |
Held-to-maturity Securities, Unrealized Losses | (15) | (22) |
Held-to-maturity Securities, Fair Value | 1,681 | 1,946 |
Available-for-sale Securities, Amortized Cost | 13,270 | 12,957 |
Available-for-sale Securities, Unrealized Gains | 3 | |
Available-for-sale Securities, Unrealized Losses | (386) | (387) |
AFS investment securities | 12,884 | 12,573 |
State and Municipal Taxable [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 1,008 | 1,008 |
Held-to-maturity Securities, Unrealized Gains | 3 | 6 |
Held-to-maturity Securities, Fair Value | 1,011 | 1,014 |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 41,541 | 41,559 |
Held-to-maturity Securities, Unrealized Gains | 90 | 8 |
Held-to-maturity Securities, Unrealized Losses | (501) | (1,406) |
Held-to-maturity Securities, Fair Value | 41,130 | 40,161 |
Available-for-sale Securities, Amortized Cost | 1,996 | 5,084 |
Available-for-sale Securities, Unrealized Losses | (79) | (128) |
AFS investment securities | $ 1,917 | 4,956 |
Asset-Backed Security [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 26 | |
AFS investment securities | $ 26 |
Investment Securities (Aggregat
Investment Securities (Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | $ 18,620 | $ 39,756 |
Held-to-maturity Securities, Unrealized Losses | (517) | (1,491) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 18,620 | 37,786 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (517) | (1,467) |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 1,970 | |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (24) | |
Available-for-sale Securities, Fair Value, Total | 104,272 | 86,544 |
Available-for-sale Securities, Unrealized Loss, Total | (1,424) | (1,687) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 92,849 | 73,858 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (1,078) | (1,313) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 11,423 | 12,686 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (346) | (374) |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value, Total | 50,079 | 27,270 |
Available-for-sale Securities, Unrealized Loss, Total | (222) | (150) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 50,079 | 27,270 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (222) | (150) |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value, Total | 31,132 | 29,145 |
Available-for-sale Securities, Unrealized Loss, Total | (587) | (723) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 31,132 | 29,145 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (587) | (723) |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 957 | 1,104 |
Held-to-maturity Securities, Unrealized Losses | (15) | (22) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 957 | 1,104 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (15) | (22) |
Available-for-sale Securities, Fair Value, Total | 12,884 | 12,116 |
Available-for-sale Securities, Unrealized Loss, Total | (386) | (387) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 5,920 | 4,868 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (98) | (94) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 6,964 | 7,248 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (288) | (293) |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 500 | 5,962 |
Held-to-maturity Securities, Unrealized Losses | (1) | (63) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 500 | 3,992 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (1) | (39) |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 1,970 | |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (24) | |
Available-for-sale Securities, Fair Value, Total | 8,260 | 13,031 |
Available-for-sale Securities, Unrealized Loss, Total | (150) | (299) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 3,801 | 7,593 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (92) | (218) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 4,459 | 5,438 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (58) | (81) |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 17,163 | 32,690 |
Held-to-maturity Securities, Unrealized Losses | (501) | (1,406) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 17,163 | 32,690 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (501) | (1,406) |
Available-for-sale Securities, Fair Value, Total | 1,917 | 4,956 |
Available-for-sale Securities, Unrealized Loss, Total | (79) | (128) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 1,917 | 4,956 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | $ (79) | (128) |
Asset-Backed Security [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value, Total | 26 | |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | $ 26 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment Securities [Abstract] | ||
Held to Maturity, Due after one year through five years, Amortized Cost | $ 26,086 | |
Held to Maturity, Due after five years through ten years, Amortized Cost | 27,031 | |
Held to Maturity, Due after ten years, Amortized Cost | 14,132 | |
Held-to-maturity Securities, Amortized Cost | 67,249 | $ 67,022 |
Held to Maturity, Due after one year through five years, Fair Value | 26,585 | |
Held to Maturity, Due after five years through ten years, Fair Value | 27,055 | |
Held to Maturity, Due after ten years, Fair Value | 13,748 | |
Held-to-maturity, Total investment securities, Fair Value | 67,388 | 66,124 |
Available for Sale, Due in one year or less, Amortized Cost | 15,222 | |
Available for Sale, Due after one year through five years, Amortized Cost | 42,350 | |
Available for Sale, Due after five years through ten years, Amortized Cost | 11,921 | |
Available for Sale, Due after ten years, Amortized Cost | 41,826 | |
Available-for-sale Securities, Amortized Cost | 111,319 | 116,830 |
Available for Sale, Due in one year or less, Fair Value | 15,214 | |
Available for Sale, Due after one year through five years, Fair Value | 42,134 | |
Available for Sale, Due after five years through ten years, Fair Value | 11,728 | |
Available for Sale, Due after ten years, Fair Value | 40,824 | |
Available for Sale, Total investment securities, Fair Value | $ 109,900 | $ 115,184 |
Investment Securities (Gains an
Investment Securities (Gains and Losses Resulting from Investment Sales, Redemptions or Calls) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investment Securities [Abstract] | ||||
Gross realized gains-AFS | $ 10 | $ 203 | $ 10 | $ 264 |
Gross realized gains-HTM | 16 | 16 | ||
Gross realized losses-AFS | (1) | (1) | (30) | |
Net realized gain | $ 25 | $ 203 | $ 25 | $ 234 |
Loans (Composition of Total Loa
Loans (Composition of Total Loans Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 816,525 | $ 817,529 | ||||
Less allowance for credit losses | (5,267) | $ (5,418) | (5,373) | $ (5,247) | $ (5,172) | $ (4,935) |
Net loans | 811,258 | 812,156 | ||||
Residential Mortgage [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 86,632 | 87,581 | ||||
Less allowance for credit losses | (245) | (247) | (349) | (314) | (220) | (216) |
Commercial Mortgage [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 453,453 | 465,486 | ||||
Less allowance for credit losses | (2,634) | (2,597) | (2,531) | (2,370) | (2,376) | (2,375) |
Commercial Term [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 118,490 | 123,175 | ||||
Less allowance for credit losses | (625) | (774) | (709) | (891) | (948) | (989) |
Commercial Construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 92,157 | 72,755 | ||||
Less allowance for credit losses | (1,208) | (1,059) | (969) | (866) | (765) | (569) |
Consumer: Home Equity [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 59,829 | 62,560 | ||||
Less allowance for credit losses | (189) | (196) | (196) | (191) | (188) | (195) |
Consumer: Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 5,964 | 5,972 | ||||
Less allowance for credit losses | $ (84) | $ (63) | $ (61) | $ (64) | $ (67) | $ (64) |
Loans (Information on Non-Accru
Loans (Information on Non-Accrual Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | $ 6,862 | $ 7,429 | $ 6,862 | $ 7,429 | $ 8,501 |
Loans 90 day past due and accruing | 162 | 162 | |||
Total non-performing loans | 6,862 | 7,591 | 6,862 | 7,591 | 8,501 |
Interest income that would have been recorded under original terms, non-accrual loans | 144 | 124 | 300 | 220 | |
Interest income that would have been recorded under original terms, 90 days past due and accruing | 1 | 2 | |||
Interest income that would have been recorded under original terms | 144 | 125 | 300 | 222 | |
Interest income recorded during the period, 90 days past due and accruing | 1 | 2 | |||
Interest income recorded during the period | 1 | 2 | |||
Net impact on interest income, non-accrual loans | 144 | 116 | 300 | 220 | |
Net impact on interest income | 144 | 116 | 300 | 220 | |
Residential Mortgage [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 1,815 | 1,772 | 1,815 | 1,772 | 1,770 |
Interest income that would have been recorded under original terms, non-accrual loans | 21 | 17 | 42 | 36 | |
Net impact on interest income, non-accrual loans | 21 | 17 | 42 | 36 | |
Commercial Mortgage [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 2,375 | 3,140 | 2,375 | 3,140 | 4,593 |
Interest income that would have been recorded under original terms, non-accrual loans | 36 | 45 | 77 | 65 | |
Net impact on interest income, non-accrual loans | 36 | 45 | 77 | 65 | |
Commercial Term [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 1,510 | 207 | 1,510 | 207 | 198 |
Interest income that would have been recorded under original terms, non-accrual loans | 28 | 3 | 66 | 6 | |
Net impact on interest income, non-accrual loans | 28 | 3 | 66 | 6 | |
Commercial Construction [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 447 | 1,524 | 447 | 1,524 | 1,242 |
Interest income that would have been recorded under original terms, non-accrual loans | 46 | 47 | 91 | 88 | |
Net impact on interest income, non-accrual loans | 46 | 47 | 91 | 88 | |
Consumer: Home Equity [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 404 | 564 | 404 | 564 | 442 |
Interest income that would have been recorded under original terms, non-accrual loans | 6 | 8 | 12 | 16 | |
Net impact on interest income, non-accrual loans | 6 | 12 | 16 | ||
Consumer: Other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Non-accrual loans | 311 | 222 | 311 | 222 | $ 256 |
Interest income that would have been recorded under original terms, non-accrual loans | 7 | 4 | 12 | 9 | |
Net impact on interest income, non-accrual loans | $ 7 | $ 4 | $ 12 | $ 9 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 5 | 5 | |||
TDR recorded investment | $ 895 | $ 895 | $ 914 | ||
Partial charge-off of loan amount | 740 | $ 133 | $ 1,089 | $ 230 | |
Number of defaulted TDRs | loan | 0 | 0 | |||
Loan defaults on TDRs | $ 0 | $ 0 | |||
Accruing Impaired Home Equity Loan [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 1 | 1 | |||
TDR recorded investment | 102 | $ 102 | $ 102 | ||
Nonaccrual Impaired Loans [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 4 | 4 | |||
TDR recorded investment | 793 | $ 793 | $ 812 | ||
Residential Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 2 | 2 | |||
Partial charge-off of loan amount | $ 151 | $ 151 | |||
Real estate loans in process of foreclosure | 479 | $ 479 | $ 0 | ||
Consumer Installment Loan [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of TDR loans | loan | 1 | 1 | |||
Partial charge-off of loan amount | $ 2 | $ 2 | |||
Other Real Estate Owned [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Real estate loans in process of foreclosure | $ 92 | $ 92 | $ 170 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Age Analysis Of Past Due Loans Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | $ 8,022 | $ 10,189 | |
Current | 808,503 | 807,340 | |
Total Loans Receivables | 816,525 | 817,529 | |
Loans Receivable >90 Days and Accruing | $ 162 | ||
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 2,897 | 3,468 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 350 | 1,661 | |
Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 4,775 | 5,060 | |
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 2,651 | 1,593 | |
Current | 83,970 | 85,977 | |
Total Loans Receivables | 86,621 | 87,570 | |
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,626 | 728 | |
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 164 | 374 | |
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 861 | 491 | |
Acquired Residential Mortgage With Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 11 | 11 | |
Total Loans Receivables | 11 | 11 | |
Acquired Residential Mortgage With Credit Deterioration [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 11 | 11 | |
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 985 | 4,133 | |
Current | 451,133 | 459,679 | |
Total Loans Receivables | 452,118 | 463,812 | |
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,202 | ||
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 762 | ||
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 985 | 2,169 | |
Acquired Commercial Mortgage With Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 620 | 1,145 | |
Current | 715 | 529 | |
Total Loans Receivables | 1,335 | 1,674 | |
Acquired Commercial Mortgage With Credit Deterioration [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 389 | ||
Acquired Commercial Mortgage With Credit Deterioration [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 83 | ||
Acquired Commercial Mortgage With Credit Deterioration [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 620 | 673 | |
Commercial Term [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,378 | 1,147 | |
Current | 117,112 | 122,028 | |
Total Loans Receivables | 118,490 | 123,175 | |
Commercial Term [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 747 | ||
Commercial Term [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 377 | ||
Commercial Term [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,378 | 23 | |
Commercial Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,488 | 1,354 | |
Current | 90,669 | 71,401 | |
Total Loans Receivables | 92,157 | 72,755 | |
Commercial Construction [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 1,041 | 112 | |
Commercial Construction [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 447 | 1,242 | |
Consumer: Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 609 | 563 | |
Current | 59,220 | 61,997 | |
Total Loans Receivables | 59,829 | 62,560 | |
Consumer: Home Equity [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 222 | 263 | |
Consumer: Home Equity [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 87 | ||
Consumer: Home Equity [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 300 | 300 | |
Consumer: Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 280 | 243 | |
Current | 5,684 | 5,729 | |
Total Loans Receivables | 5,964 | 5,972 | |
Consumer: Other [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 8 | 27 | |
Consumer: Other [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | 99 | 65 | |
Consumer: Other [Member] | Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past due loans receivables | $ 173 | $ 151 |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impaired Loans By Loan Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | $ 7,083 | $ 7,083 | $ 6,732 | ||
Unpaid Principal Balance, With no related allowance recorded | 10,462 | 10,462 | 7,237 | ||
Average Recorded Investment, With no related allowance recorded | 6,725 | $ 5,100 | 6,726 | $ 4,971 | |
Interest Income Recognized, With no related allowance recorded | 2 | 1 | 4 | 2 | |
Recorded Investment, with allowance recorded | 445 | 445 | 1,872 | ||
Unpaid Principal Balance, With allowance recorded | 445 | 445 | 4,539 | ||
Related Allowance | 67 | 67 | 334 | ||
Average Recorded Investment, With allowance recorded | 956 | 1,232 | 1,261 | 924 | |
Recorded Investment, Total | 7,528 | 7,528 | 8,604 | ||
Unpaid Principal Balance, Total | 10,907 | 10,907 | 11,776 | ||
Average Recorded Investment, Total | 7,681 | 6,332 | 7,987 | 5,895 | |
Interest Income Recognized, Total | 2 | 1 | 4 | 2 | |
Residential Mortgage [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,595 | 1,595 | 653 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,894 | 1,894 | 680 | ||
Average Recorded Investment, With no related allowance recorded | 1,610 | 1,284 | 1,291 | 1,396 | |
Recorded Investment, with allowance recorded | 209 | 209 | 1,107 | ||
Unpaid Principal Balance, With allowance recorded | 209 | 209 | 1,368 | ||
Related Allowance | 38 | 38 | 143 | ||
Average Recorded Investment, With allowance recorded | 210 | 493 | 509 | 329 | |
Recorded Investment, Total | 1,804 | 1,804 | 1,760 | ||
Unpaid Principal Balance, Total | 2,103 | 2,103 | 2,048 | ||
Average Recorded Investment, Total | 1,820 | 1,777 | 1,800 | 1,725 | |
Acquired Residential Mortgage With Credit Deterioration [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 11 | 11 | 11 | ||
Unpaid Principal Balance, With no related allowance recorded | 11 | 11 | 11 | ||
Average Recorded Investment, With no related allowance recorded | 11 | 11 | |||
Recorded Investment, Total | 11 | 11 | 11 | ||
Unpaid Principal Balance, Total | 11 | 11 | 11 | ||
Average Recorded Investment, Total | 11 | 11 | |||
Commercial Mortgage [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,753 | 1,753 | 2,919 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,994 | 1,994 | 3,330 | ||
Average Recorded Investment, With no related allowance recorded | 1,253 | 2,083 | 1,808 | 1,782 | |
Recorded Investment, Total | 1,753 | 1,753 | 2,919 | ||
Unpaid Principal Balance, Total | 1,994 | 1,994 | 3,330 | ||
Average Recorded Investment, Total | 1,253 | 2,083 | 1,808 | 1,782 | |
Acquired Commercial Mortgage With Credit Deterioration [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,140 | 1,140 | 1,674 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,140 | 1,140 | 1,680 | ||
Average Recorded Investment, With no related allowance recorded | 1,137 | 1,316 | |||
Recorded Investment, Total | 1,140 | 1,140 | 1,674 | ||
Unpaid Principal Balance, Total | 1,140 | 1,140 | 1,680 | ||
Average Recorded Investment, Total | 1,137 | 1,316 | |||
Commercial Term [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 1,510 | 1,510 | 22 | ||
Unpaid Principal Balance, With no related allowance recorded | 1,944 | 1,944 | 24 | ||
Average Recorded Investment, With no related allowance recorded | 1,192 | 24 | 802 | 16 | |
Recorded Investment, with allowance recorded | 176 | ||||
Unpaid Principal Balance, With allowance recorded | 196 | ||||
Related Allowance | 97 | ||||
Average Recorded Investment, With allowance recorded | 557 | 185 | 430 | 190 | |
Recorded Investment, Total | 1,510 | 1,510 | 198 | ||
Unpaid Principal Balance, Total | 1,944 | 1,944 | 220 | ||
Average Recorded Investment, Total | 1,749 | 209 | 1,232 | 206 | |
Commercial Construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 447 | 447 | 795 | ||
Unpaid Principal Balance, With no related allowance recorded | 2,833 | 2,833 | 795 | ||
Average Recorded Investment, With no related allowance recorded | 848 | 934 | 830 | 1,002 | |
Recorded Investment, with allowance recorded | 447 | ||||
Unpaid Principal Balance, With allowance recorded | 2,833 | ||||
Related Allowance | 89 | ||||
Average Recorded Investment, With allowance recorded | 447 | 149 | 298 | ||
Recorded Investment, Total | 447 | 447 | 1,242 | ||
Unpaid Principal Balance, Total | 2,833 | 2,833 | 3,628 | ||
Average Recorded Investment, Total | 848 | 1,381 | 979 | 1,300 | |
Consumer: Home Equity [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 552 | 552 | 544 | ||
Unpaid Principal Balance, With no related allowance recorded | 571 | 571 | 595 | ||
Average Recorded Investment, With no related allowance recorded | 580 | 671 | 568 | 678 | |
Interest Income Recognized, With no related allowance recorded | 2 | 1 | 4 | 2 | |
Recorded Investment, Total | 552 | 552 | 544 | ||
Unpaid Principal Balance, Total | 571 | 571 | 595 | ||
Average Recorded Investment, Total | 580 | 671 | 568 | 678 | |
Interest Income Recognized, Total | 2 | 1 | 4 | 2 | |
Consumer: Other [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With no related allowance recorded | 75 | 75 | 114 | ||
Unpaid Principal Balance, With no related allowance recorded | 75 | 75 | 122 | ||
Average Recorded Investment, With no related allowance recorded | 94 | 104 | 100 | 97 | |
Recorded Investment, with allowance recorded | 236 | 236 | 142 | ||
Unpaid Principal Balance, With allowance recorded | 236 | 236 | 142 | ||
Related Allowance | 29 | 29 | 5 | ||
Average Recorded Investment, With allowance recorded | 189 | 107 | 173 | 107 | |
Recorded Investment, Total | 311 | 311 | 256 | ||
Unpaid Principal Balance, Total | 311 | 311 | $ 264 | ||
Average Recorded Investment, Total | $ 283 | $ 211 | $ 273 | $ 204 |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 816,525 | $ 817,529 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 799,326 | 790,803 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 4,354 | 4,354 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 12,845 | 22,372 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 86,632 | 87,581 |
Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 84,751 | 85,259 |
Residential Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,881 | 2,322 |
Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 453,453 | 465,486 |
Commercial Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 443,866 | 450,124 |
Commercial Mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,697 | 3,763 |
Commercial Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 5,890 | 11,599 |
Commercial Term [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 118,490 | 123,175 |
Commercial Term [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 114,330 | 116,522 |
Commercial Term [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 657 | 591 |
Commercial Term [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,503 | 6,062 |
Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 92,157 | 72,755 |
Commercial Construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 91,597 | 71,400 |
Commercial Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 560 | 1,355 |
Consumer: Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 59,829 | 62,560 |
Consumer: Home Equity [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 59,129 | 61,782 |
Consumer: Home Equity [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 700 | 778 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 5,964 | 5,972 |
Consumer: Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 5,653 | 5,716 |
Consumer: Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 311 | $ 256 |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investments in Troubled Debt Restructured Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Pre-modification outstanding recorded investment | $ 942 | $ 942 |
Post-modification outstanding recorded investment | 1,073 | 1,073 |
Recorded Investment | 895 | 914 |
Residential Mortgage [Member] | ||
Pre-modification outstanding recorded investment | 754 | 754 |
Post-modification outstanding recorded investment | 883 | 883 |
Recorded Investment | 709 | 726 |
Consumer: Home Equity [Member] | ||
Pre-modification outstanding recorded investment | 148 | 148 |
Post-modification outstanding recorded investment | 148 | 148 |
Recorded Investment | 147 | 148 |
Consumer: Other [Member] | ||
Pre-modification outstanding recorded investment | 40 | 40 |
Post-modification outstanding recorded investment | 42 | 42 |
Recorded Investment | $ 39 | $ 40 |
Allowance for Credit Losses (Al
Allowance for Credit Losses (Allowance For Credit Losses And Recorded Investments In Loans Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 5,418 | $ 5,172 | $ 5,373 | $ 4,935 | $ 4,935 |
Charge-offs | (740) | (133) | (1,089) | (230) | |
Recoveries | 4 | 8 | 73 | 12 | |
Provisions | 585 | 200 | 910 | 530 | |
Ending balance | 5,267 | 5,247 | 5,267 | 5,247 | 5,373 |
Ending balance: individually evaluated for impairment | 67 | 67 | 334 | ||
Ending balance: collectively evaluated for impairment | 5,200 | 5,200 | 5,039 | ||
Ending balance: Loans receivables | 816,525 | 816,525 | 817,529 | ||
Ending Balance: individually evaluated for impairment | 6,377 | 6,377 | 6,919 | ||
Ending Balance: collectively evaluated for impairment | 808,997 | 808,997 | 808,925 | ||
Reserve for unfunded loan commitments included in other liabilities | 340 | 190 | 345 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance: Loans receivables | 1,151 | 1,151 | 1,685 | ||
Residential Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 247 | 220 | 349 | 216 | 216 |
Charge-offs | (122) | (206) | |||
Recoveries | 7 | 2 | 8 | ||
Provisions | (2) | 209 | (106) | 296 | |
Ending balance | 245 | 314 | 245 | 314 | 349 |
Ending balance: individually evaluated for impairment | 38 | 38 | 143 | ||
Ending balance: collectively evaluated for impairment | 207 | 207 | 206 | ||
Ending balance: Loans receivables | 86,632 | 86,632 | 87,581 | ||
Ending Balance: individually evaluated for impairment | 1,804 | 1,804 | 1,760 | ||
Ending Balance: collectively evaluated for impairment | 84,817 | 84,817 | 85,810 | ||
Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance: Loans receivables | 11 | 11 | 11 | ||
Commercial Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 2,597 | 2,376 | 2,531 | 2,375 | 2,375 |
Charge-offs | (249) | (483) | |||
Recoveries | 50 | ||||
Provisions | 286 | (6) | 536 | (5) | |
Ending balance | 2,634 | 2,370 | 2,634 | 2,370 | 2,531 |
Ending balance: collectively evaluated for impairment | 2,634 | 2,634 | 2,531 | ||
Ending balance: Loans receivables | 453,453 | 453,453 | 465,486 | ||
Ending Balance: individually evaluated for impairment | 1,753 | 1,753 | 2,919 | ||
Ending Balance: collectively evaluated for impairment | 450,560 | 450,560 | 460,893 | ||
Reserve for unfunded loan commitments included in other liabilities | 9 | 3 | 4 | ||
Commercial Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance: Loans receivables | 1,140 | 1,140 | 1,674 | ||
Commercial Term [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 774 | 948 | 709 | 989 | 989 |
Charge-offs | (491) | (11) | (596) | (24) | |
Recoveries | 3 | 19 | 1 | ||
Provisions | 339 | (46) | 493 | (75) | |
Ending balance | 625 | 891 | 625 | 891 | 709 |
Ending balance: individually evaluated for impairment | 97 | ||||
Ending balance: collectively evaluated for impairment | 625 | 625 | 612 | ||
Ending balance: Loans receivables | 118,490 | 118,490 | 123,175 | ||
Ending Balance: individually evaluated for impairment | 1,510 | 1,510 | 198 | ||
Ending Balance: collectively evaluated for impairment | 116,980 | 116,980 | 122,977 | ||
Reserve for unfunded loan commitments included in other liabilities | 140 | 117 | 135 | ||
Commercial Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 1,059 | 765 | 969 | 569 | 569 |
Charge-offs | |||||
Recoveries | 1 | ||||
Provisions | 149 | 101 | 239 | 296 | |
Ending balance | 1,208 | 866 | 1,208 | 866 | 969 |
Ending balance: individually evaluated for impairment | 89 | ||||
Ending balance: collectively evaluated for impairment | 1,208 | 1,208 | 880 | ||
Ending balance: Loans receivables | 92,157 | 92,157 | 72,755 | ||
Ending Balance: individually evaluated for impairment | 447 | 447 | 1,242 | ||
Ending Balance: collectively evaluated for impairment | 91,710 | 91,710 | 71,513 | ||
Reserve for unfunded loan commitments included in other liabilities | 173 | 57 | 190 | ||
Leases Financing [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Charge-offs | |||||
Recoveries | 1 | 1 | |||
Provisions | (1) | (1) | |||
Consumer: Home Equity [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 196 | 188 | 196 | 195 | 195 |
Charge-offs | |||||
Provisions | (7) | 3 | (7) | (4) | |
Ending balance | 189 | 191 | 189 | 191 | 196 |
Ending balance: collectively evaluated for impairment | 189 | 189 | 196 | ||
Ending balance: Loans receivables | 59,829 | 59,829 | 62,560 | ||
Ending Balance: individually evaluated for impairment | 552 | 552 | 544 | ||
Ending Balance: collectively evaluated for impairment | 59,277 | 59,277 | 62,016 | ||
Reserve for unfunded loan commitments included in other liabilities | 18 | 13 | 16 | ||
Consumer: Other [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 63 | 67 | 61 | 64 | 64 |
Charge-offs | (10) | ||||
Recoveries | 1 | 1 | 1 | 1 | |
Provisions | 20 | (4) | 32 | (1) | |
Ending balance | 84 | 64 | 84 | 64 | 61 |
Ending balance: individually evaluated for impairment | 29 | 29 | 5 | ||
Ending balance: collectively evaluated for impairment | 55 | 55 | 56 | ||
Ending balance: Loans receivables | 5,964 | 5,964 | 5,972 | ||
Ending Balance: individually evaluated for impairment | 311 | 311 | 256 | ||
Ending Balance: collectively evaluated for impairment | 5,653 | 5,653 | 5,716 | ||
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 482 | 608 | 558 | 527 | 527 |
Charge-offs | |||||
Provisions | (200) | (57) | (276) | 24 | |
Ending balance | 282 | $ 551 | 282 | $ 551 | 558 |
Ending balance: collectively evaluated for impairment | $ 282 | $ 282 | $ 558 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders, Income | $ 2,286 | $ 1,109 | $ 4,727 | $ 2,665 |
Income available to common stockholders after assumed conversions, Income | $ 2,286 | $ 1,109 | $ 4,727 | $ 2,665 |
Net income available to common stockholders, Shares | 4,257,633 | 2,848,648 | 4,252,207 | 2,840,677 |
Effect of potential dilutive common stock equivalents– stock options and restricted shares, Shares | 34,000 | 34,000 | 31,000 | 35,000 |
Income available to common stockholders after assumed conversions, Shares | 4,292,411 | 2,882,729 | 4,283,424 | 2,876,016 |
Net income available to common stockholders, Amount | $ 0.54 | $ 0.39 | $ 1.11 | $ 0.94 |
Effect of potential dilutive common stock equivalents– stock options and restricted shares, Amount | (0.01) | (0.01) | (0.01) | |
Income available to common stockholders after assumed conversions, Amount | $ 0.53 | $ 0.39 | $ 1.10 | $ 0.93 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Net unrealized loss on AFS securities, Before-Tax Amount | $ (1,419) | $ (1,646) |
Net unrealized loss on AFS securities, Tax Effect | 483 | 560 |
Net unrealized loss on AFS securities, Net-of-Tax Amount | (936) | (1,086) |
Discount on AFS to HTM reclassification, Before-Tax Amount | (1) | (8) |
Discount on AFS to HTM reclassification, Tax Effect | 3 | |
Discount on AFS to HTM reclassification, Net-of-Tax Amount | (1) | (5) |
Unrealized actuarial losses-pension, Before-Tax Amount | (1,792) | (1,792) |
Unrealized actuarial losses-pension, Tax Effect | 609 | 609 |
Unrealized actuarial losses-pension, Net-of-Tax Amount | (1,183) | (1,183) |
Total of all items above, Before-Tax Amount | (3,212) | (3,446) |
Total of all items above, Tax Effect | 1,092 | 1,172 |
Total of all items above, Net-of-Tax Effect | $ (2,120) | $ (2,274) |
Subordinated Debentures, Note46
Subordinated Debentures, Notes, And Other Borrowings (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)item | Dec. 31, 2016USD ($) | Mar. 05, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Number of issuances of junior subordinated debentures | item | 2 | ||
Repurchase agreements | $ 15,700,000 | $ 11,889,000 | |
State and municipal securites sold | $ 16,000,000 | $ 12,100,000 | |
Repurchase agreement amount, percentage | 102.00% | 102.00% | |
Subordinated Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 9,750,000 | ||
Debt maturity date | Mar. 6, 2025 | ||
Subordinated Note [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 5.75% | ||
Subordinated Note [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 3.00% | ||
Fixed Rate, First 5 Years [Member] | Subordinated Note [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.25% | ||
Interest rate period, in years | 5 years | ||
Prime Rate [Member] | Subordinated Note [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
DNB Capital Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Jul. 20, 2001 | ||
Floating rate capital preferred securities | $ 5,000,000 | ||
LIBOR rate, borrowing period, in months | 6 months | ||
Basis spread on variable rate | 3.75% | ||
Fixed interest rate | 12.00% | ||
Principal amount, floating rate junior subordinated debentures | $ 5,200,000 | ||
Maturity date range, start | Jul. 25, 2006 | ||
Maturity date range, end | Jul. 25, 2031 | ||
DNB Capital Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Issuance date | Mar. 30, 2005 | ||
Floating rate capital preferred securities | $ 4,000,000 | ||
LIBOR rate, borrowing period, in months | 3 months | ||
Basis spread on variable rate | 1.77% | ||
Fixed interest rate | 6.56% | ||
Interest rate period, in years | 5 years | ||
Principal amount, floating rate junior subordinated debentures | $ 4,100,000 | ||
Maturity date range, start | May 23, 2010 | ||
Maturity date range, end | May 23, 2035 |
Subordinated Debentures, Note47
Subordinated Debentures, Notes, And Other Borrowings (Repurchase Agreements Accounted for as Secured Borrowings) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements and repurchase-to-maturity transactions | $ 15,700 | $ 11,889 |
Gross amount of recognized liabilities for repurchase agreements in statement of condition | 15,700 | 11,889 |
Maturity Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements and repurchase-to-maturity transactions | 15,700 | 11,889 |
Gross amount of recognized liabilities for repurchase agreements in statement of condition | $ 15,700 | $ 11,889 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted shares issued | 500 | 3,000 | ||||
Exercise of stock options, shares | 18,850 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cliff-vesting period | 3 years | |||||
Restricted shares issued | 3,000 | 26,595 | ||||
Share-based compensation fair value assumption discount rate | 9.10% | |||||
Share-based compensation fair value assumption expected term | 5 years | |||||
Share-based compensation fair value assumption volatility rate | 19.37% | |||||
Share-based compensation fair value assumption dividend yield | 1.01% | |||||
Share-based compensation fair value assumption bond equivalent yield | 1.742% | |||||
Incentive Equity And Deferred Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares | 243,101 | 243,101 | ||||
Share issuance, restricted sale period | 1 year | |||||
Shares available for future grants | 64,929 | 64,929 | ||||
Stock based compensation | $ 107,000 | $ 70,000 | $ 214,000 | $ 730,000 | ||
Share based compensation cost not yet recognized | $ 815,000 | $ 815,000 | ||||
Share based compensation cost not yet recognized, period for recognition | 1 year 9 months | |||||
Increase (decrease) in shares outstanding | 0 | 18,079 | ||||
Cash equivalent shares used to pay taxes | 0 | 15,621 | ||||
Employees And Directors Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares | 793,368 | 793,368 | ||||
Shares available for future grants | 354,090 | 354,090 | ||||
Stock based compensation | $ 0 | $ 0 | $ 0 | $ 0 | ||
Increase (decrease) in shares outstanding | 9,132 | |||||
Cash equivalent shares used to pay taxes | 9,718 | |||||
Maximum [Member] | Incentive Equity And Deferred Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award issuable period after date of grant | 4 years | |||||
Cliff-vesting period | 4 years | |||||
Maximum [Member] | Employees And Directors Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum option exercise period | 10 years | |||||
Minimum [Member] | Incentive Equity And Deferred Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award issuable period after date of grant | 3 years | |||||
Cliff-vesting period | 3 years |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-Based Compensation [Abstract] | ||
Beginning balance, Outstanding | 49,700 | 64,500 |
Beginning balance, Weighted Average Exercise Price | $ 9.18 | $ 8.67 |
Issued | ||
Issued, Weighted Average Exercise Price | ||
Exercised | 18,850 | |
Exercised, Weighted Average Exercise Price | $ 7.34 | |
Forfeited | ||
Forfeited, Weighted Average Exercise Price | ||
Expired | ||
Expired, Weighted Average Exercise Price | ||
Ending balance, Outstanding | 30,850 | 64,500 |
Ending balance, Weighted Average Exercise Price | $ 10.31 | $ 8.67 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Price And Weighted Average Remaining Contractual Life) (Details) - Range of Exercise Prices 6.93-10.99 [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, Lower Limit | $ 6.93 | $ 6.93 |
Range of Exercise Prices, Upper Limit | $ 10.99 | $ 10.99 |
Number Outstanding | 30,850 | 49,700 |
Number Exercisable | 30,850 | 49,700 |
Weighted Average Exercise Price | $ 10.31 | $ 9.18 |
Weighted Average Remaining Contractual Life | 1 year 5 months 12 days | 1 year 4 months 24 days |
Intrinsic Value | $ 678 | $ 955 |
Stock-Based Compensation (Sto51
Stock-Based Compensation (Stock Grant Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-Based Compensation [Abstract] | ||
Non-vested stock awards, Shares, beginning balance | 55,775 | 77,255 |
Granted | 500 | 3,000 |
Forfeited | 90 | |
Vested | 33,700 | |
Non-vested stock awards, Shares, ending balance | 56,185 | 46,555 |
Non-vested stock awards, Weighted Average Stock Price | $ 25.63 | $ 22.71 |
Granted, Weighted Average Stock Price | 34 | 28.75 |
Forfeited, Weighted Average Stock Price | 23.99 | |
Vested, Weighted Average Stock Price | 23.66 | |
Non-vested stock awards, Weighted Average Stock Price | $ 25.70 | $ 22.42 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - Federal And State [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year for examinations | 2,013 |
Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year for examinations | 2,016 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total recorded investment | $ 7,528 | $ 8,604 | |
Recorded Investment, with allowance recorded | 445 | 1,872 | |
Impaired Financing Receivable, Related Allowance | 67 | 334 | |
Additional impaired financing receivable | 1,900 | ||
Partial charge down loans | 406 | 0 | |
Other real estate owned & other repossessed property | 5,351 | 2,767 | |
OREO | 5,200 | 2,600 | |
Other repossessed assets | 107 | 191 | |
Transfers from level 1 to level 2 | 0 | ||
Transfers from level 2 to level 1 | 0 | ||
Interest-bearing domestic deposit, brokered | 29,811 | 29,286 | |
Brokered deposits maturing in 2017 | 2,500 | ||
Brokered deposits maturing in 2018 | 4,000 | ||
Brokered deposits maturing in 2019 | 5,900 | ||
Brokered deposits maturing in 2020 | 7,300 | ||
Brokered deposits maturing in 2021 | 5,000 | ||
Brokered deposits maturing in 2022 | 5,100 | ||
Un-funded Loan Commitments [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks liability amount | 178,300 | 185,800 | |
Stand-by Letters of Credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks liability amount | 3,200 | 2,800 | |
Estimated Fair Value [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Recorded Investment, with allowance recorded | 1,500 | 1,500 | |
Interest-bearing domestic deposit, brokered | 30,659 | $ 28,873 | |
Other Real Estate Owned [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Amount wrote down of carrying value of OREO property | $ 0 | ||
One OREO Property [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
OREO | 1,200 | ||
Amount wrote down of carrying value of OREO property | 102 | ||
Collateral Dependent Loans [Member] | Estimated Fair Value [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Recorded Investment, with allowance recorded | $ 387 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments (Fair Value Measurements on Differing Levels) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | $ 109,900 | $ 115,184 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 109,900 | 115,184 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,867 | 1,538 |
OREO & other repossessed property | 1,175 | 2,485 |
Total | 3,042 | 4,023 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 109,900 | 115,184 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 109,900 | 115,184 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,867 | 1,538 |
OREO & other repossessed property | 1,175 | 2,485 |
Total | 3,042 | 4,023 |
US Government Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 53,079 | 52,309 |
US Government Agency Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 53,079 | 52,309 |
US Government Agency Obligations [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 53,079 | 52,309 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 31,132 | 30,140 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 31,132 | 30,140 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 31,132 | 30,140 |
Collateralized Mortgage Obligations GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 12,884 | 12,573 |
Collateralized Mortgage Obligations GSE [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 12,884 | 12,573 |
Collateralized Mortgage Obligations GSE [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 12,884 | 12,573 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 10,888 | 15,180 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 10,888 | 15,180 |
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 10,888 | 15,180 |
State and Municipal Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 1,917 | 4,956 |
State and Municipal Tax-Exempt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 1,917 | 4,956 |
State and Municipal Tax-Exempt [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | $ 1,917 | 4,956 |
Asset-Backed Security [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 26 | |
Asset-Backed Security [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 26 | |
Asset-Backed Security [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | $ 26 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 1,867 | $ 1,538 | |
Other real estate owned, fair value | 1,175 | 2,485 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 1,867 | 1,538 | |
Other real estate owned, fair value | 1,175 | 2,485 | |
Level 3 [Member] | Residential Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 171 | 964 | |
Level 3 [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 1,489 | 79 | |
Level 3 [Member] | Commercial Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 358 | ||
Level 3 [Member] | Consumer: Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 207 | $ 137 | |
Level 3 [Member] | Minimum [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Disposal costs | [1],[2] | 8.00% | (8.00%) |
Level 3 [Member] | Minimum [Member] | Residential Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | 0.00% |
Disposal costs | [1],[2] | (8.00%) | (8.00%) |
Level 3 [Member] | Minimum [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | (72.00%) |
Disposal costs | [1],[2] | 0.00% | (11.00%) |
Level 3 [Member] | Minimum [Member] | Commercial Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | |
Disposal costs | [1],[2] | (8.00%) | |
Level 3 [Member] | Minimum [Member] | Consumer: Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | 0.00% |
Disposal costs | [1],[2] | (8.00%) | (8.00%) |
Level 3 [Member] | Maximum [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Disposal costs | [1],[2] | 8.00% | (8.00%) |
Level 3 [Member] | Maximum [Member] | Residential Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | (25.00%) |
Disposal costs | [1],[2] | (8.00%) | (12.00%) |
Level 3 [Member] | Maximum [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | (50.00%) | (72.00%) |
Disposal costs | [1],[2] | (9.00%) | (11.00%) |
Level 3 [Member] | Maximum [Member] | Commercial Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | |
Disposal costs | [1],[2] | (8.00%) | |
Level 3 [Member] | Maximum [Member] | Consumer: Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | 0.00% |
Disposal costs | [1],[2] | (8.00%) | (8.00%) |
Level 3 [Member] | Weighted Average [Member] | Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Disposal costs | [1],[2] | (8.00%) | (8.00%) |
Level 3 [Member] | Weighted Average [Member] | Residential Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | (22.00%) |
Disposal costs | [1],[2] | (8.00%) | (9.00%) |
Level 3 [Member] | Weighted Average [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | (7.00%) | (72.00%) |
Disposal costs | [1],[2] | (8.00%) | (11.00%) |
Level 3 [Member] | Weighted Average [Member] | Commercial Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | |
Disposal costs | [1],[2] | (8.00%) | |
Level 3 [Member] | Weighted Average [Member] | Consumer: Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | 0.00% |
Disposal costs | [1],[2] | (8.00%) | (8.00%) |
[1] | Appraisals are adjusted by management for qualitative factors and disposal costs. | ||
[2] | Fair value is generally determined through independent appraisals or sales contracts of the underlying collateral, which generally include various level 3 inputs which are not identifiable. |
Fair Value of Financial Instr56
Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
AFS investment securities | $ 109,900 | $ 115,184 |
HTM investment securities | 67,249 | 67,022 |
Time deposits | 147,110 | 187,256 |
Brokered deposits | 29,811 | 29,286 |
Subordinated debt | 9,750 | 9,750 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 36,189 | 22,103 |
AFS investment securities | 109,900 | 115,184 |
HTM investment securities | 67,249 | 67,022 |
Restricted stock | 6,566 | 5,381 |
Loans, net of allowance, including impaired | 811,258 | 812,156 |
Accrued interest receivable | 3,558 | 3,567 |
Non-interest-bearing deposits | 181,529 | 173,467 |
Interest-bearing deposits | 534,609 | 495,178 |
Time deposits | 147,110 | 187,256 |
Brokered deposits | 29,811 | 29,286 |
Repurchase agreements | 15,700 | 11,889 |
FHLBP advances | 49,869 | 55,332 |
Junior subordinated debentures and other borrowings | 9,279 | 9,279 |
Subordinated debt | 9,750 | 9,750 |
Accrued interest payable | 552 | 534 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 36,189 | 22,103 |
AFS investment securities | 109,900 | 115,184 |
HTM investment securities | 67,388 | 66,124 |
Restricted stock | 6,566 | 5,381 |
Loans, net of allowance, including impaired | 791,963 | 792,190 |
Accrued interest receivable | 3,558 | 3,567 |
Non-interest-bearing deposits | 181,529 | 173,467 |
Interest-bearing deposits | 534,609 | 495,178 |
Time deposits | 146,425 | 186,012 |
Brokered deposits | 30,659 | 28,873 |
Repurchase agreements | 15,700 | 11,889 |
FHLBP advances | 49,845 | 54,734 |
Junior subordinated debentures and other borrowings | 9,012 | 8,637 |
Subordinated debt | 11,295 | 10,493 |
Accrued interest payable | 552 | 534 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 36,189 | 22,103 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
AFS investment securities | 109,900 | 115,184 |
HTM investment securities | 65,388 | 64,124 |
Restricted stock | 6,566 | 5,381 |
Accrued interest receivable | 3,558 | 3,567 |
Non-interest-bearing deposits | 181,529 | 173,467 |
Interest-bearing deposits | 534,609 | 495,178 |
Time deposits | 146,425 | 186,012 |
Brokered deposits | 30,659 | 28,873 |
Repurchase agreements | 15,700 | 11,889 |
FHLBP advances | 49,845 | 54,734 |
Junior subordinated debentures and other borrowings | 9,012 | 8,637 |
Subordinated debt | 11,295 | 10,493 |
Accrued interest payable | 552 | 534 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
HTM investment securities | 2,000 | 2,000 |
Loans, net of allowance, including impaired | $ 791,963 | $ 792,190 |