Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 08, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | DNB FINANCIAL CORP /PA/ | |
Entity Central Index Key | 713,671 | |
Trading Symbol | DNBF | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,296,514 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 14,078 | $ 10,917 |
Cash and cash equivalents | 14,078 | 10,917 |
Available-for-sale investment securities at fair value (amortized cost of $111,675 and $113,555) | 108,889 | 111,783 |
Held-to-maturity investment securities (fair value of $61,004 and $62,420) | 62,219 | 62,390 |
Total investments securities | 171,108 | 174,173 |
Loans held for sale | 646 | 651 |
Loans | 864,345 | 845,897 |
Allowance for credit losses | (6,145) | (5,843) |
Net loans | 858,200 | 840,054 |
Restricted stock | 7,363 | 7,641 |
Office property and equipment, net | 8,366 | 8,649 |
Accrued interest receivable | 3,982 | 3,822 |
Other real estate owned & other repossessed property | 4,993 | 5,012 |
Bank owned life insurance (BOLI) | 9,366 | 9,314 |
Core deposit intangible | 411 | 435 |
Goodwill | 15,525 | 15,525 |
Net deferred taxes | 2,979 | 2,980 |
Other assets | 3,013 | 2,742 |
Total assets | 1,100,030 | 1,081,915 |
Liabilities | ||
Non-interest-bearing deposits | 172,044 | 176,815 |
Interest-bearing deposits: | ||
NOW | 207,538 | 199,310 |
Money market | 253,757 | 221,726 |
Savings | 81,635 | 81,050 |
Time | 115,214 | 140,490 |
Brokered deposits | 61,598 | 41,812 |
Total deposits | 891,786 | 861,203 |
Federal Home Loan Bank of Pittsburgh (FHLBP) advances | 67,993 | 79,013 |
Repurchase agreements | 10,717 | 12,023 |
Junior subordinated debentures | 9,279 | 9,279 |
Subordinated debt | 9,750 | 9,750 |
Other borrowings | 351 | 2,738 |
Total borrowings | 98,090 | 112,803 |
Accrued interest payable | 494 | 554 |
Other liabilities | 5,990 | 5,413 |
Total liabilities | 996,360 | 979,973 |
Stockholders' Equity | ||
Common stock, $1.00 par value; 20,000,000 shares authorized; 4,364,801 and 4,362,939 issued, respectively; 4,292,689 and 4,286,117 outstanding, respectively | 4,383 | 4,379 |
Treasury stock, at cost; 72,112 and 76,822 shares, respectively | (1,345) | (1,429) |
Surplus | 69,238 | 69,110 |
Retained earnings | 35,056 | 32,272 |
Accumulated other comprehensive loss | (3,662) | (2,390) |
Total stockholders' equity | 103,670 | 101,942 |
Total liabilities and stockholders' equity | $ 1,100,030 | $ 1,081,915 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Consolidated Statements of Financial Condition [Abstract] | ||
Available-for-sale Securities, Amortized Cost | $ 111,675 | $ 113,555 |
Held-to-maturity Securities, Fair Value | $ 61,004 | $ 62,420 |
Common stock par value per share | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares, issued | 4,364,801 | 4,362,939 |
Common stock, shares, outstanding | 4,292,689 | 4,286,117 |
Treasury stock, shares | 72,112 | 76,822 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Income: | ||
Interest and fees on loans | $ 9,882 | $ 9,521 |
Interest and dividends on investment securities: Taxable | 793 | 697 |
Interest and dividends on investment securities: Exempt from federal taxes | 217 | 242 |
Interest on cash and cash equivalents | 21 | 34 |
Total interest and dividend income | 10,913 | 10,494 |
Interest Expense: | ||
Interest on NOW, money market and savings | 830 | 484 |
Interest on time deposits | 325 | 301 |
Interest on brokered deposits | 199 | 92 |
Interest on FHLB advances | 301 | 169 |
Interest on repurchase agreements | 6 | 6 |
Interest on junior subordinated debentures | 105 | 92 |
Interest on subordinated debt | 104 | 104 |
Interest on other borrowings | 16 | 14 |
Total interest expense | 1,886 | 1,262 |
Net interest income | 9,027 | 9,232 |
Provision for credit losses | 375 | 325 |
Net interest income after provision for credit losses | 8,652 | 8,907 |
Non-interest Income: | ||
Service charges | 313 | 363 |
Wealth management | 435 | 374 |
Mortgage banking | 61 | 36 |
Increase in cash surrender value of BOLI | 52 | 55 |
Gains from insurance proceeds | 80 | |
Other fees | 412 | 398 |
Total non-interest income | 1,273 | 1,306 |
Non-interest Expense: | ||
Salaries and employee benefits | 3,772 | 3,641 |
Furniture and equipment | 489 | 496 |
Occupancy | 697 | 719 |
Professional and consulting | 403 | 393 |
Advertising and marketing | 182 | 166 |
Printing and supplies | 53 | 50 |
FDIC insurance | 118 | 195 |
PA shares tax | 242 | 225 |
Telecommunications | 81 | 90 |
Postage | 41 | 35 |
Gain on sale or write down of OREO, net | (1) | |
Due diligence and merger expense | 51 | |
Other expenses | 652 | 685 |
Total non-interest expense | 6,730 | 6,745 |
Income before income tax expense | 3,195 | 3,468 |
Income tax expense | 582 | 1,027 |
Net income | $ 2,613 | $ 2,441 |
Earnings per common share: | ||
Basic | $ 0.61 | $ 0.57 |
Diluted | 0.61 | 0.57 |
Cash dividends per common share | $ 0.07 | $ 0.07 |
Weighted average common shares outstanding: | ||
Basic | 4,290,971 | 4,246,593 |
Diluted | 4,308,847 | 4,274,209 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net income | $ 2,613 | $ 2,441 | |
Other Comprehensive (Loss) Income: | |||
Unrealized holding gains arising during the period, Before tax amount | (1,014) | 151 | |
Unrealized holding gains arising during the period, Tax effect | 213 | (51) | |
Unrealized holding gains arising during the period | (801) | 100 | |
Accretion of discount on AFS to HTM reclassification, Before tax amount | [1] | 1 | |
Accretion of discount on AFS to HTM reclassification, Tax effect | [2] | (1) | |
Total other comprehensive (loss) income | (801) | 100 | |
Total comprehensive income | $ 1,812 | $ 2,541 | |
[1] | Amounts are included in "Interest and dividends on investment securities" in the consolidated statements of income. | ||
[2] | Amounts are included in "Income tax expense" in the consolidated statements of income. |
Consolidated Statements of Chan
Consolidated Statements of Changes in 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, 2016 | $ 4,351 | $ (1,730) | $ 68,973 | $ 25,520 | $ (2,274) | $ 94,840 |
Net income | 2,441 | 2,441 | ||||
Other comprehensive income (loss) | 100 | 100 | ||||
Restricted stock compensation expense | 4 | 103 | 107 | |||
Exercise of stock options | 7 | (7) | ||||
Taxes on exercise of stock options | (135) | (135) | ||||
Tax benefit for stock option exercises | 110 | 110 | ||||
Cash dividends - common | (297) | (297) | ||||
Sale of treasury shares to 401(k) | 54 | 31 | 85 | |||
Sale of treasury shares to deferred comp. plan | 23 | 14 | 37 | |||
Balance at Mar. 31, 2017 | 4,362 | (1,653) | 69,089 | 27,664 | (2,174) | 97,288 |
Balance at Dec. 31, 2017 | 4,379 | (1,429) | 69,110 | 32,272 | (2,390) | 101,942 |
Net income | 2,613 | 2,613 | ||||
Other comprehensive income (loss) | (801) | (801) | ||||
Restricted stock compensation expense | 4 | 92 | 96 | |||
Exercise of stock options | 1 | (1) | ||||
Taxes on exercise of stock options | (1) | (36) | (37) | |||
Cash dividends - common | (300) | (300) | ||||
Sale of treasury shares to 401(k) | 58 | 50 | 108 | |||
Sale of treasury shares to deferred comp. plan | 26 | 23 | 49 | |||
Adoption impact - ASU 2018-02 | 471 | (471) | ||||
Balance at Mar. 31, 2018 | $ 4,383 | $ (1,345) | $ 69,238 | $ 35,056 | $ (3,662) | $ 103,670 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||
Restricted stock compensation expense, shares | 896 | |
Exercise of stock options, shares | 966 | 6,623 |
Cash dividends- common stock per share | $ 0.07 | $ 0.07 |
Sale of treasury shares to 401(k), shares | 3,230 | 2,960 |
Sale of treasury shares to deferred compensation plan, shares | 1,480 | 1,303 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities: | ||
Net income | $ 2,613 | $ 2,441 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 384 | 427 |
Provision for credit losses | 375 | 325 |
Stock based compensation | 96 | 107 |
Net loss on sale or write down of OREO and other repossessed property | (1) | |
Gain on insurance proceeds | (80) | |
Earnings from investment in BOLI | (52) | (55) |
Deferred tax expense | 214 | 301 |
Proceeds from sales of mortgage loans | 3,408 | 1,175 |
Mortgage loans originated for sale | (3,342) | (1,339) |
Gain on sale of mortgage loans | (61) | (36) |
Increase in accrued interest receivable | (160) | (23) |
Increase in other assets | (271) | (465) |
Decrease in accrued interest payable | (60) | (43) |
Increase in other liabilities | 577 | 1,055 |
Net Cash Provided By Operating Activities | 3,721 | 3,789 |
Cash Flows From Investing Activities: | ||
Activity in available-for-sale securities: Maturities, repayments and calls | 1,803 | 4,921 |
Activity in held-to-maturity securities: Maturities, repayments and calls | 199 | 312 |
Activity in held-to-maturity securities: Purchases | (1,407) | |
Net decrease (increase) in restricted stock | 278 | (19) |
Net increase in loans | (18,535) | (1,268) |
Death benefit proceeds | 308 | |
Purchases of property and equipment | (28) | (252) |
Expenses capitalized in OREO | (14) | |
Proceeds from sale of OREO and other repossessed property | 33 | 1 |
Net Cash (Used in) Provided by Investing Activities | (16,250) | 2,582 |
Cash Flows From Financing Activities: | ||
Net increase in deposits | 30,583 | 20,581 |
Repayment of FHLBP advances | (71,020) | (12,208) |
Funding of FHLBP advances | 60,000 | 7,848 |
Net decrease in repurchase agreements | (1,306) | (415) |
Repayment of other borrowings | (2,387) | (12) |
Dividends paid | (300) | (297) |
Payment of employee taxes on stock option exercise and share award vest | (37) | (135) |
Tax benefit for restricted stock vesting | 110 | |
Sale of treasury stock | 157 | 122 |
Net Cash Provided by Financing Activities | 15,690 | 15,594 |
Net Change in Cash and Cash Equivalents | 3,161 | 21,965 |
Cash and Cash Equivalents at Beginning of Period | 10,917 | 22,103 |
Cash and Cash Equivalents at End of Period | 14,078 | 44,068 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for: Interest | 1,946 | 1,305 |
Cash paid during the period for: Income taxes | 225 | |
Supplemental Disclosure of Non-cash Flow Information: | ||
Transfers from loans to real estate owned and other repossessed property | $ 14 | $ 2,219 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 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, 2017. Subsequent Events-- Management has evaluated events and transactions occurring subsequent to March 31, 2018 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 and 2017, the FASB issued ASU Nos. 2016-10, 2016-12, 2016-20, and 2017-13 that provided additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. DNB adopted the new standards discussed above effective January 1, 2018 using the modified retrospective approach. A significant majority of DNB’s revenues are explicitly excluded from the scope of the new guidance including interest, dividend income, BOLI, gain/loss on sale of loans and investments on the Consolidated Statements of Income. The adoption of ASU 2014-09 did not require a cumulative adjustment to the opening balance of retained earnings as of January 1, 2018 and is not expected to have a material impact on DNB’s Consolidated Statements of Financial Condition, Comprehensive Income, Stockholders’ Equity or Cash Flows for the year ended December 31, 2018. Non-interest income components in the scope of Topic 606 continue to be recognized when DNB’s performance obligations are complete or at the time of sale after a customer’s transaction posts in the account. Disclosures required for DNB’s revenue streams in the scope of ASU 2014-09 are included in Non-Interest Income in the following table. Non-interest Income Non-interest income includes revenue from contracts with customers in the scope of ASU 2014-09 as follows: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Non-interest Income: Service charges: Non-sufficient funds (NSF) charges $ 159 $ 188 Business analysis charges 41 42 Cycle charges 23 25 Lockbox fees 44 47 Stop payment fees 4 5 Wire transfer fees 21 21 Other service charges 21 35 Total service charges 313 363 Wealth management: DNB Investments & Insurance 89 102 DNB First Investment Management & Trust 346 272 Total wealth management 435 374 Other fee income: Cardholder interchange fees 245 231 Safe deposit box 24 25 Check printing 23 21 Merchant card processing 48 41 ATM surcharges for non-DNB customers 17 18 Other fee income 14 22 Total other fee income 371 358 Total Revenue from contracts with customers 1,119 1,095 Total Revenue not within the scope of ASC 606 154 211 Total non-interest income $ 1,273 $ 1,306 Service charges on deposit accounts are recorded monthly when DNB’s performance obligations are complete. Deposit balances are disclosed in the Consolidated Statement of Condition. For transaction-based service charges such as non-sufficient funds (NSF) charges, wire transfer fees, stop payment fees, ATM fees, and other transaction-based fees, revenue is recognized at the time of sale after the transaction posts in the customer’s account. Wealth management revenue includes non-deposit products and services offered under the names “DNB Investment & Insurance” and “DNB First Investment Management & Trust”. Through a third-party marketing agreement with Cetera Investment Services, LLC (“Cetera”), DNB Investment & Insurance offers a complete line of investment and insurance products. DNB’s performance obligation as an agent is to arrange for the sale of products by Cetera. Monthly, DNB recognizes cmmission fees in the amounts to which it is entitled in accordance with the terms of the marketing agreement for products sold. Shortly after a product is sold, policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. DNB First Investment Management & Trust offers a full line of investment and fiduciary services. DNB’s performance obligation is to manage investments, estates and trusts. Investment management and trust income is primarily comprised of fees earned from the management and administration of trusts, estate and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. While managing estates and trusts, DNB contracts with a third-party tax preparation service. For tax preparation services, DNB’s obligation as an agent is to arrange for the performance of services by the third party. As tax services are rendered, DNB records revenue monthly, net of the cost of the services. Cardholder interchange fees consist of revenue DNB is entitled per agreements with third party debit and credit card providers. DNB’s performance obligation as an agent is to arrange for cardholder services with its customers in accordance with fees and terms offered by the third-party service providers. Based on cardholder transactions reported by third party service providers, DNB recognizes fees for the amount it is contractually entitled. DNB also contracts with third party providers for check printing, merchant card services, and ATM services. DNB’s performance obligation as an agent is to arrange for the services with its customers in accordance with fees and terms offered by the third-party service providers. Monthly, DNB recognizes fees for the amount it is contractually entitled. DNB adopted ASU 2015-16, Business Combinations (Topic 805), in 2016: 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 it does not have a material impact to the consolidated financial statements. 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 March 31, 2018, 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. Adoption of the standard on January 1, 2018 also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. 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 determined that upon the adoption of ASU 2016-02 we will be required to recognize a right-of-use asset and a corresponding liability based on the then present value of such obligation. DNB is preparing an inventory of its leases and evaluating the impact of this ASU on these leases. Upon adoption of the guidance, DNB expects to report increased assets and increased liabilities as a result of recognizing right-of-use assets and lease liabilities on its consolidated statement of condition. DNB is currently evaluating the extent of the impact that the adoption of this ASU will have on our consolidated financial statements. 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. During the three month period ended March 31, 2018, DNB had $13,000 of tax benefits for stock option exercises and restricted stock vesting. In accordance with ASU 2016-09, forfeitures are recognized as they occur instead of applying an estimated forfeiture rate to each grant. For purposes of the determination of stock-based compensation expense for the three month period ended March 31, 2018, we recognized actual forfeitures of 250 shares of restricted stock awards that were granted to officers and other employees. 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. Although early adoption is permitted for fiscal years beginning after December 15, 2018, DNB does not plan to early adopt. DNB has established a CECL Implementation Team to assess the impact of this ASU on its consolidated financial position, results of operations, and cash flows. DNB has been preserving certain historical loan information from its core processing system in anticipation of adopting the standard and will be evaluating control and process framework, data, model, and resource requirements and areas where modifications will be required. The team continues to assess the impact of the standard; however, DNB expects adopting this ASU will result in an increase in its allowance for credit losses. The amount of the increase in the allowance for credit losses upon adoption will be dependent upon the characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that date. A cumulative effect adjustment will be made to retained earnings for the impact of the standard at the beginning of the period the standard is adopted. 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. Accordingly, effective January 1, 2018, DNB adopted the pronouncement and it did not have a material impact to DNB’s consolidated financial statements. 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 will not early adopt this ASU for its annual goodwill impairment test, and conducted a qualitative test (step zero) as of October 1, 2017 and determined that its Goodwill has not been impaired. The adoption of this ASU is not expected to have a material impact on DNB’s consolidated financial statements. 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 will not 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. The adoption of the ASU did not have a material impact to the consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ; (“ASU 2017-09”). ASU 2017-09 provides clarity by offering guidance on the scope of modification accounting for share-based payment awards and gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. DNB adopted the ASU on January 1, 2018 and the effects are immaterial. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). This ASU allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for certain income tax effects stranded in AOCI as a result of the Tax Act. Consequently, the reclassification eliminates the stranded tax effects resulting from the Tax Act and is intended to improve the usefulness of information reported to financial statement users. However, because the ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. DNB adopted this ASU on January 1, 2018. The amount of this reclassification is $471,000. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,549 $ 100 $ - $ 8,649 Government Sponsored Entities (GSE) mortgage-backed securities 467 1 - 468 Corporate bonds 13,944 159 (37) 14,066 Collateralized mortgage obligations GSE 1,372 - (45) 1,327 State and municipal taxable 362 - (12) 350 State and municipal tax-exempt 37,525 12 (1,393) 36,144 Total $ 62,219 $ 272 $ (1,487) $ 61,004 Available For Sale US Government agency obligations $ 53,285 $ - $ (622) $ 52,663 GSE mortgage-backed securities 31,791 - (1,204) 30,587 Collateralized mortgage obligations GSE 11,653 - (550) 11,103 Corporate bonds 12,958 11 (258) 12,711 State and municipal tax-exempt 1,988 - (163) 1,825 Total $ 111,675 $ 11 $ (2,797) $ 108,889 December 31, 2017 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,483 $ 163 $ - $ 8,646 Government Sponsored Entities (GSE) mortgage-backed securities 496 9 - 505 Corporate bonds 14,047 243 (2) 14,288 Collateralized mortgage obligations GSE 1,471 - (29) 1,442 State and municipal taxable 363 - (8) 355 State and municipal tax-exempt 37,530 59 (405) 37,184 Total $ 62,390 $ 474 $ (444) $ 62,420 Available For Sale US Government agency obligations $ 53,279 $ - $ (386) $ 52,893 GSE mortgage-backed securities 33,203 - (715) 32,488 Collateralized mortgage obligations GSE 12,101 - (447) 11,654 Corporate bonds 12,981 12 (173) 12,820 State and municipal tax-exempt 1,991 - (63) 1,928 Total $ 113,555 $ 12 $ (1,784) $ 111,783 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 March 31, 2018 and December 31, 2017. March 31, 2018 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 $ 5,257 $ (37) $ 5,257 $ (37) $ - $ - Collateralized mortgage obligations GSE 1,327 (45) 568 (13) 759 (32) State and municipal taxable 350 (12) 350 (12) - - State and municipal tax-exempt 28,058 (1,393) 15,261 (390) 12,797 (1,003) Total $ 34,992 $ (1,487) $ 21,436 $ (452) $ 13,556 $ (1,035) Available For Sale US Government agency obligations $ 52,663 $ (622) $ 17,534 $ (331) $ 35,129 $ (291) GSE mortgage-backed securities 30,587 (1,204) 8,518 (262) 22,069 (942) Collateralized mortgage obligations GSE 11,103 (550) 2,065 (74) 9,038 (476) Corporate bonds 11,653 (258) 5,500 (109) 6,153 (149) State and municipal tax-exempt 1,825 (163) 285 (2) 1,540 (161) Total $ 107,831 $ (2,797) $ 33,902 $ (778) $ 73,929 $ (2,019) December 31, 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 $ 498 $ (2) $ 498 $ (2) $ - $ - Collateralized mortgage obligations GSE 1,442 (29) 620 (5) 822 (24) State and municipal taxable 355 (8) 355 (8) - - State and municipal tax-exempt 20,240 (405) 6,775 (67) 13,465 (338) Total $ 22,535 $ (444) $ 8,248 $ (82) $ 14,287 $ (362) Available For Sale US Government agency obligations $ 52,893 $ (386) $ 30,894 $ (185) $ 21,999 $ (201) GSE mortgage-backed securities 32,488 (715) 9,055 (133) 23,433 (582) Collateralized mortgage obligations GSE 11,654 (447) 2,132 (56) 9,522 (391) Corporate bonds 10,759 (173) 4,572 (43) 6,187 (130) State and municipal tax-exempt 1,928 (63) 288 (2) 1,640 (61) Total $ 109,722 $ (1,784) $ 46,941 $ (419) $ 62,781 $ (1,365) As of March 31, 2018, there were nineteen collateralized mortgage obligations GSE, nineteen GSE mortgage-backed securities, eleven U.S. agency obligations, forty-six tax-exempt municipalities, one taxable municipality, and eleven 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 their 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 March 31, 2018 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 March 31, 2018, the following securities were reviewed: Collateralized mortgage obligations GSE There are nineteen impaired securities classified as collateralized mortgage obligations, sixteen of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 6.74% of its carrying 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 March 31, 2018 levels. Management concluded that these securities were not other-than-temporarily impaired at March 31, 2018 . GSE mortgage-backed securities There are nineteen impaired securities classified as GSE mortgage-backed securities, fourteen of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 4.69% of its carrying 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 recovery in the market value as the securities approach their maturity dates or if interest rates decline from March 31, 2018 levels. Management concluded that these securities were not other-than-temporarily impaired at March 31, 2018. US Government agency obligations There are eleven impaired securities classified as agencies, six of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 4.26% of its carrying 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 March 31, 2018. State and municipal tax-exempt There are forty-six impaired securities in this category, which are comprised of intermediate to long-term municipal bonds, twenty of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 10.39% of its carrying 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 forty-six municipal securities, there are seventeen insured school districts, eighteen 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 March 31, 2018 . State and municipal taxable There is one impaired security in this category, which has been impaired for less than 12 months. The unrealized loss of this security is 3.42% of its carrying value. This security is an insured township and carries a “BBB+” underlying credit. It is performing and is expected to continue to perform in accordance with its contractual terms and conditions. There have not been disruptions of any payments associated with this municipal security. Management concluded that this security was not other-than-temporarily impaired at March 31, 2018 . Corporate bonds There are eleven impaired bonds classified as corporate bonds, four of which have been impaired for more than 12 months. The largest unrealized loss of a security in this group is 5.00% of its carrying 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 March 31, 2018 levels. Management concluded that these securities were not other-than-temporarily impaired at March 31, 2018. The amortized cost and fair value of investment securities as of March 31, 2018, 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 $ - $ - $ 27,420 $ 27,236 Due after one year through five years 22,480 22,637 33,510 33,034 Due after five years through ten years 27,886 27,251 18,216 17,627 Due after ten years 11,853 11,116 32,529 30,992 Total investment securities $ 62,219 $ 61,004 $ 111,675 $ 108,889 DNB did not sell any investment securities during the three months ended March 31, 2018 and 2017, and therefore had no realized gains or losses during these respective periods. At March 31, 2018 and December 31, 2017, investment securities with a carrying value of approximately $103.8 million and $ 105.9 million, respectively, were pledged to secure public funds, repurchase agreements and for other purposes as required by law. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2018 | |
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) March 31, 2018 December 31, 2017 Residential mortgage $ 95,404 $ 93,959 Commercial mortgage 498,506 484,868 Commercial: Commercial term 131,144 129,535 Commercial construction 78,863 75,014 Consumer: Home equity 55,002 56,844 Other 5,426 5,677 Total loans $ 864,345 $ 845,897 Less allowance for credit losses (6,145) (5,843) Net loans $ 858,200 $ 840,054 Information concerning non-accrual loans is shown in the following tables: Three Months Ended March 31, 2018 (Dollars in thousands) March 31, 2018 December 31, 2017 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 $ 2,033 $ 1,915 $ 25 $ - $ 25 Commercial mortgage 2,088 2,259 30 - 30 Commercial: Commercial term 3,015 2,100 44 - 44 Commercial construction 497 514 11 - 11 Consumer: Home equity 464 466 5 - 5 Other 311 245 8 - 8 Total non-accrual loans $ 8,408 $ 7,499 $ 123 $ - $ 123 Loans 90 days past due and accruing - 54 - - - Total non-performing loans $ 8,408 $ 7,553 $ 123 $ - $ 123 Three Months Ended March 31, 2017 (Dollars in thousands) March 31, 2017 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 $ 1,845 $ 21 $ - $ 21 Commercial mortgage 1,885 41 - 41 Commercial: Commercial term 1,986 38 - 38 Commercial construction 1,248 45 - 45 Consumer: Home equity 460 6 - 6 Other 254 5 - 5 Total non-accrual loans $ 7,678 $ 156 $ - $ 156 Loans 90 days past due and accruing - - - - Total non-performing loans $ 7,678 $ 156 $ - $ 156 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31 2018 and December 31, 2017. Age Analysis of Past Due Loans Receivable March 31, 2018 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage $ 866 $ - $ 1,345 $ 2,211 $ 93,193 $ 95,404 $ - Commercial mortgage (less acquired with credit deterioration) 164 - 1,123 1,287 496,255 498,232 - Acquired commercial mortgage with credit deterioration - - 274 274 690 274 - Commercial: Commercial term 35 432 1,992 2,459 128,685 131,144 - Commercial construction - - - - 78,863 78,863 - Consumer: Home equity 561 - 386 947 54,055 55,002 - Other 45 62 172 279 5,147 5,426 - Total $ 1,671 $ 494 $ 5,292 $ 7,457 $ 856,888 $ 864,345 $ - December 31, 2017 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past 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) $ 887 $ 349 $ 1,148 $ 2,384 $ 91,568 $ 93,952 $ - Acquired residential mortgage with credit deterioration - - 7 7 - 7 - Commercial mortgage (less acquired with credit deterioration) 221 - 1,126 1,347 483,105 484,452 - Acquired commercial mortgage with credit deterioration - - 416 416 - 416 - Commercial: Commercial term 381 13 1,654 2,048 127,487 129,535 - Commercial construction 514 - - 514 74,500 75,014 - Consumer: Home equity 15 - 386 401 56,443 56,844 - Other 13 139 156 308 5,369 5,677 54 Total $ 2,031 $ 501 $ 4,893 $ 7,425 $ 838,472 $ 845,897 $ 54 DNB had $869,000 of residential mortgage loans in the process of foreclosure and $74,000 of residential mortgage loans in other real estate owned as of March 31, 2018. DNB had $638,000 residential mortgage loans in the process of foreclosure and $149,000 of residential mortgage loans in other real estate owned as of December 31, 2017. The following tables summarize information in regards to impaired loans by loan portfolio class as of March 31, 2018 and December 31, 2017, and for the three months ended March 31, 2018 and 2017. Impaired Loans March 31, 2018 December 31, 2017 Recorded Unpaid Related Recorded Unpaid Related Investment Principal Allowance Investment Principal Allowance (Dollars in thousands) Balance Balance With no related allowance recorded: Residential mortgage $ 2,296 $ 2,607 $ - $ 1,908 $ 2,210 $ - Acquired residential mortgage with credit deterioration - - - - - Commercial mortgage 2,708 2,953 - 2,809 3,207 - Acquired commercial mortgage with credit deterioration 786 800 - 936 950 Commercial: Commercial term 2,092 2,605 - 1,743 2,253 - Commercial construction 497 514 - 514 514 - Consumer: Home equity 608 629 - 612 632 - Other 210 210 - 117 117 - Total $ 9,197 $ 10,318 $ - $ 8,639 $ 9,883 $ - With allowance recorded: Residential mortgage - - - - - - Acquired residential mortgage with credit deterioration - - - 7 26 3 Commercial mortgage 83 159 24 19 93 19 Commercial: Commercial term 923 939 142 337 343 123 Commercial construction - - - - - - Consumer: Other 101 103 8 128 129 12 Total $ 1,107 $ 1,201 $ 174 $ 491 $ 591 $ 157 Total: Residential mortgage 2,296 2,607 - 1,908 2,210 - Acquired residential mortgage with credit deterioration - - - 7 26 3 Commercial mortgage 2,791 3,112 24 2,828 3,300 19 Acquired commercial mortgage with credit deterioration 786 800 - 936 950 - Commercial: Commercial term 3,015 3,544 142 2,080 2,596 123 Commercial construction 497 514 - 514 514 - Consumer: Home equity 608 629 - 612 632 - Other 311 313 8 245 246 12 Total $ 10,304 $ 11,519 $ 174 $ 9,130 $ 10,474 $ 157 Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance recorded: Residential mortgage $ 2,102 $ 1 $ 1,139 $ - Acquired residential mortgage with credit deterioration - - 11 - Commercial mortgage 2,759 12 1,836 - Acquired commercial mortgage with credit deterioration 861 7 1,404 - Commercial: Commercial term 1,918 - 448 - Commercial construction 505 - 1,022 - Consumer: Home equity 610 2 576 2 Other 164 - 113 - Total $ 8,919 $ 22 $ 6,549 $ 2 With allowance recorded: Residential mortgage - - 659 - Acquired residential mortgage with credit deterioration 4 - - Commercial mortgage 51 - - - Acquired commercial mortgage with credit deterioration - - - Commercial: Commercial term 630 - 645 - Commercial construction - - 224 - Consumer: Other 114 - 142 - Total $ 799 $ - $ 1,670 $ - Total: Residential mortgage 2,102 1 1,798 - Acquired residential mortgage with credit deterioration 4 - 11 - Commercial mortgage 2,810 12 1,836 - Acquired commercial mortgage with credit deterioration 861 7 1,404 - Commercial: Commercial term 2,548 - 1,093 - Commercial construction 505 - 1,246 - Consumer: Home equity 610 2 576 2 Other 278 - 255 - Total $ 9,718 $ 22 $ 8,219 $ 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 March 31, 2018 and December 31, 2017. Credit Quality Indicators March 31, 2018 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 93,075 $ - $ 2,329 $ - $ 95,404 Commercial mortgage 492,144 1,114 5,248 - 498,506 Commercial: Commercial term 126,492 577 4,075 - 131,144 Commercial construction 75,620 1,769 1,474 - 78,863 Consumer: Home equity 54,247 - 755 - 55,002 Other 5,115 - 311 - 5,426 Total $ 846,693 $ 3,460 $ 14,192 $ - $ 864,345 December 31, 2017 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 91,993 $ - $ 1,966 $ - $ 93,959 Commercial mortgage 479,308 125 5,435 - 484,868 Commercial: Commercial term 125,926 115 3,494 - 129,535 Commercial construction 73,902 - 1,112 - 75,014 Consumer: Home equity 56,085 - 759 - 56,844 Other 5,432 - 245 - 5,677 Total $ 832,646 $ 240 $ 13,011 $ - $ 845,897 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. During the three month period ended March 31, 2018 and 2017 , DNB did not classify any loans as TDRs. Loans classified as troubled debt restructurings are designated as impaired. The recorded investments in troubled debt restructured loans at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 681 Commercial mortgage 992 992 977 Consumer: Home equity 148 148 144 Other 40 42 39 Total $ 1,934 $ 2,065 $ 1,841 December 31, 2017 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 690 Commercial mortgage 992 992 982 Consumer: Home equity 148 148 146 Other 40 42 39 Total $ 1,934 $ 2,065 $ 1,857 At March 31, 2018, DNB had eight TDRs with recorded investment totaling $1,841,000 , five of which, totaling $1,121,000 , are accruing loans in compliance with the terms of the modification. The remaining $720,000 represents three 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 one consumer installment loan after its restructuring. As of March 31, 2018, 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 three months ended March 31, 2018. At December 31, 2017, DNB had eight TDRs with recorded investment totaling $1,857,000 , five of which, totaling $1,128,000 , were accruing loans in compliance with the terms of the modifications. The remaining $729,000 represents three 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, 2017, 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. As of December 31, 2017, 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 2017. DNB classified three commercial mortgage loans totaling $992,000 as TDRs during the year ended December 31, 2017. The following tables set forth the composition of DNB’s allowance for credit losses as of March 31, 2018 and December 31, 2017, the activity for the three months ended March 31, 2018 and 2017 and as of and for the year ended December 31, 2017. 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 - January 1, 2018 $ 221 $ 2,856 $ 845 $ 1,128 $ - $ 183 $ 63 $ 547 $ 5,843 Charge-offs (34) (13) (17) - - - (12) - (76) Recoveries 1 - 2 - - - - - 3 Provisions 38 144 74 91 - (7) 4 31 375 Ending balance - March 31, 2018 $ 226 $ 2,987 $ 904 $ 1,219 $ - $ 176 $ 55 $ 578 $ 6,145 Ending balance: individually evaluated for impairment $ - $ 24 $ 142 $ - $ - $ - $ 8 $ - $ 174 Ending balance: collectively evaluated for impairment $ 226 $ 2,963 $ 762 $ 1,219 $ - $ 176 $ 47 $ 578 $ 5,971 Loans receivables: Ending balance $ 95,404 $ 498,506 $ 131,144 $ 78,863 $ - $ 55,002 $ 5,426 $ 864,345 Ending balance: individually evaluated for impairment $ 2,296 $ 2,791 $ 3,015 $ 497 $ - $ 608 $ 311 $ 9,518 Ending balance: acquired with credit deterioration $ - $ 786 $ - $ - $ - $ - $ - $ 786 Ending balance: collectively evaluated for impairment $ 93,108 $ 494,929 $ 128,129 $ 78,366 $ - $ 54,394 $ 5,115 $ 854,041 Reserve for unfunded loan commitments included in other liabilities $ - $ 3 $ 150 $ 139 $ - $ 17 $ - $ 309 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 - (234) (105) - - - (10) - (349) Recoveries 2 50 16 - 1 - - - 69 Provisions (104) 250 154 90 (1) - 12 (76) 325 Ending balance - March 31, 2017 $ 247 $ 2,597 $ 774 $ 1,059 $ - $ 196 $ 63 $ 482 $ 5,418 Reserve for unfunded loan commitments included in other liabilities $ - $ 10 $ 147 $ 202 $ - $ 17 $ - $ 376 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, 2017 $ 221 $ 2,856 $ 845 $ 1,128 $ - $ 183 $ 63 $ 547 $ 5,843 Ending balance: individually evaluated for impairment $ 3 $ 19 $ 123 $ - $ - $ - $ 12 $ - $ 157 Ending balance: collectively evaluated for impairment $ 218 $ 2,837 $ 722 $ 1,128 $ - $ 183 $ 51 $ 547 $ 5,686 Loans receivables: Ending balance $ 93,959 $ 484,868 $ 129,535 $ 75,014 $ - $ 56,844 $ 5,677 $ 845,897 Ending balance: individually evaluated for impairment $ 1,908 $ 2,828 $ 2,080 $ 514 $ - $ 612 $ 245 $ 8,187 Ending balance: acquired with credit deterioration $ 7 $ 936 $ - $ - $ - $ - $ - $ 943 Ending balance: collectively evaluated for impairment $ 92,044 $ 481,104 $ 127,455 $ 74,500 $ - $ 56,232 $ 5,432 $ 836,767 Reserve for unfunded loan commitments included in other liabilities $ - $ 2 $ 155 $ 173 $ - $ 18 $ - $ 348 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018. There were no outstanding stock warrants, no anti-dilutive stock options outstanding, and no anti-dilutive stock awards outstanding at March 31, 2017. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2018 (In thousands, except per-share data) Income Shares Amount Basic EPS Income available to common stockholders $ 2,613 4,291 $ 0.61 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 18 - Diluted EPS Income available to common stockholders after assumed conversions $ 2,613 4,309 $ 0.61 Three Months Ended March 31, 2017 (In thousands, except per-share data) Income Shares Amount Basic EPS Income available to common stockholders $ 2,441 4,247 $ 0.57 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 27 - Diluted EPS Income available to common stockholders after assumed conversions $ 2,441 4,274 $ 0.57 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Net unrealized loss on AFS securities $ (2,786) $ 585 $ (2,201) Unrealized actuarial losses-pension (1,849) 388 (1,461) $ (4,635) $ 973 $ (3,662) December 31, 2017 Net unrealized loss on AFS securities $ (1,772) $ 603 $ (1,169) Unrealized actuarial losses-pension (1,849) 628 (1,221) $ (3,621) $ 1,231 $ (2,390) |
Subordinated Debentures, Notes,
Subordinated Debentures, Notes, and Other Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Repurchase agreements and repurchase-to-maturity transactions $ 10,717 $ - $ - $ - $ 10,717 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 10,717 $ 10,717 December 31, 2017 Repurchase agreements and repurchase-to-maturity transactions $ 12,023 $ - $ - $ - $ 12,023 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 12,023 $ 12,023 As of March 31, 2018 and December 31, 2017, DNB had $10.7 million and $12.0 million of repurchase agreements, respectively. In conjunction with these repurchase agreements, $10.9 million and $ 12.3 million of state and municipal securities were sold on an overnight basis as of March 31, 2018 and December 31, 2017, respectively, which represents 102% of the repurchase agreement amounts. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018. All options are immediately exercisable. During the three months ended March 31, 2018 and 2017, DNB had no expenses related to the plan. DNB has no anticipated additional expense related to the plan. Under the Stock Option Plan, 2,100 shares were exercised during the three months ended March 31, 2018. The shares awarded from the non-qualified cashless exercises resulted in an increase in shares outstanding of 966 shares. There was a cash equivalent of 1,134 shares used to pay all applicable taxes on the transactions. Under the Stock Option Plan, 13,700 shares were exercised during the three months ended March 31, 2017. The shares awarded frm the non-qualified cashless exercises resulted in an increase in shares outstanding of 6,623 shares. There was a cash equivalent of 7,077 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, 2018 16,450 $ 10.31 Issued - - Exercised 2,100 10.31 Forfeited - - Expired - - Outstanding March 31, 2018 14,350 $ 10.31 Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2017 49,700 $ 9.18 Issued - - Exercised 13,700 7.42 Forfeited - - Expired - - Outstanding March 31, 2017 36,000 $ 9.85 The weighted-average price and weighted average remaining contractual life for the outstanding options are listed in the following table for the dates indicated. March 31, 2018 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 - 10.99 14,350 14,350 $ 10.31 0.70 years $ 364,000 December 31, 2017 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 - 10.99 16,450 16,450 $ 10.31 0.95 years $ 385,000 Other Stock-Based Compensation DNB maintains an Incentive Equity and Deferred Compensation Plan (the "Plan"). The Plan provides that up to 493,101 (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 month period ended March 31, 2018, $96,000 was amortized to expense. For the three month period ended March 31, 2017, $ 107,000 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 March 31, 2018, there was approximately $ 664,000 in additional compensation that will be recognized over the remaining service period of approximately 1.68 years. At March 31, 2018, 304,159 shares were reserved for future grants under the Plan. There were 1,400 restricted shares that vested during the three months ended March 31, 2018. The shares awarded from the cashless exercises resulted in an increase in shares outstanding of 896 shares. There was a cash equivalent of 504 shares used to pay all apllicable taxes on the transactions. There were no such transaction during the three months ended March 31, 2017. Stock grant activity is indicated below: Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2018 31,130 $ 26.53 Granted 10,750 33.98 Forfeited 250 28.00 Vested 1,400 25.84 Non-vested stock awards—March 31, 2018 40,230 $ 28.53 Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2017 55,775 $ 25.63 Granted - - Forfeited - - Vested - - Non-vested stock awards—March 31, 2017 55,775 $ 25.63 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 9: INCOME TAXES As of March 31, 2018, 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 2014 through 2016 were open for examination as of March 31, 2018. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value | NOTE 10: FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. 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 tables present assets measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 : March 31, 2018 (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 $ - $ 52,663 $ - $ 52,663 GSE mortgage-backed securities - 30,587 - 30,587 Collateralized mortgage obligations GSE - 11,103 - 11,103 Corporate bonds - 12,711 - 12,711 State and municipal tax-exempt - 1,825 - 1,825 Total $ - $ 108,889 $ - $ 108,889 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 933 $ 933 OREO and other repossessed property - - 14 14 Total $ - $ - $ 947 $ 947 December 31, 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 $ - $ 52,893 $ - $ 52,893 GSE mortgage-backed securities - 32,488 - 32,488 Collateralized mortgage obligations GSE - 11,654 - 11,654 Corporate bonds - 12,820 - 12,820 State and municipal tax-exempt - 1,928 - 1,928 Total $ - $ 111,783 $ - $ 111,783 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,814 $ 1,814 OREO and other repossessed property - - 817 817 Total $ - $ - $ 2,631 $ 2,631 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: March 31, 2018 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Commercial mortgage 59 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial term 781 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -11% (-10%) Impaired loans - Consumer other 93 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 933 Other real estate owned $ 14 Disposal costs (2) 8% to 8% (-8%) (1) (2) December 31, 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 $ 4 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial mortgage 46 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial term 1,648 Appraisal of Appraisal adj. (2) 0% to -50% (-6%) collateral (1) Disposal costs (2) 0% to -9% (-8%) Impaired loans - Consumer other 116 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,814 Other real estate owned $ 817 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 $ 10.3 million at March 31, 2018. Of this, $ 1.1 million had specific valuation allowances of $174,000 , leaving a fair value of $933,000 as of March 31, 2018. In addition, DNB had no impaired loans that were partially charged down during the three months ended March 31, 2018. Impaired loans had a carrying amount of $9.1 million at December 31, 2017. Of this, $ 491,000 had specific valuation allowances of $157,000 , leaving a fair value of $334,000 at December 31, 2017. In addition, DNB had $1.9 million in impaired loans that were partially charged down by $442,000 , leaving $1.5 million at fair value as of December 31, 2017. The total fair value of impaired loans at December 31, 2017 was $1.8 million. 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 $5.0 million of such assets at March 31, 2018, $ 4.8 million of which was OREO and $158,000 was in other repossessed property. DNB had $5.0 million of such assets at December 31, 2017, which consisted of $ 4.8 million in OREO and $ 177,000 in other repossessed property. DNB did no t write down the carrying values of OREO during the three month period ended March 31, 2018. DNB did no t write down the carrying values of OREO during the three month period ended March 31, 2017. 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 three months ended March 31, 2018. 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 statement of financial condition . The carrying amounts and fair values of financial instruments at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 14,078 $ 14,078 $ 14,078 $ - $ - AFS investment securities 108,889 108,889 - 108,889 - HTM investment securities 62,219 61,004 - 59,004 2,000 Restricted stock 7,363 7,363 - 7,363 - Loans held-for-sale 646 648 - - 648 Loans, net of allowance, including impaired 858,200 847,545 - - 847,545 Accrued interest receivable 3,982 3,982 - 3,982 - Financial liabilities Deposits: Non-interest-bearing deposits 172,044 172,044 - 172,044 - Other interest-bearing deposits 542,930 542,930 - 542,930 - Time 115,214 113,940 - 113,940 - Brokered deposits 61,598 60,033 - 60,033 - Repurchase agreements 10,717 10,717 - 10,717 - FHLBP advances 67,993 67,136 - 67,136 - Junior subordinated debentures and other borrowings 9,279 9,798 - 9,798 - Subordinated debt 9,750 9,423 - 9,423 - Accrued interest payable 494 494 - 494 - Off-balance sheet instruments - - - - - December 31, 2017 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,917 $ 10,917 $ 10,917 $ - $ - AFS investment securities 111,783 111,783 - 111,783 - HTM investment securities 62,390 62,420 - 60,420 2,000 Restricted stock 7,641 7,641 - 7,641 - Loans held-for-sale 651 657 - - 657 Loans, net of allowance, including impaired 840,054 821,672 - - 821,672 Accrued interest receivable 3,822 3,822 - 3,822 - Financial liabilities Deposits: Non-interest-bearing deposits 176,815 176,815 - 176,815 - Other interest-bearing deposits 502,086 502,086 - 502,086 - Time 140,490 139,406 - 139,406 - Brokered deposits 41,812 42,304 - 42,304 - Repurchase agreements 12,023 12,023 - 12,023 - FHLBP advances 79,013 78,531 - 78,531 - Junior subordinated debentures and other borrowings 9,279 9,373 - 9,373 - Subordinated debt 9,750 9,577 - 9,577 - Accrued interest payable 554 554 - 554 - 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 $61.6 million in brokered deposits at March 31, 2018, $4.1 million matures in 2018, $10.9 million matures in 2019, $28.4 million matures in 2020, $ 13.2 million matures in 2021, and $5.0 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 March 31, 2018, un-funded loan commitments totaled $ 199.6 million and stand-by letters of credit totaled $ 3.5 million. At December 31, 2017, un-funded loan commitments totaled $ 176.6 million and stand-by letters of credit totaled $ 4.6 million. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 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, 2017. |
Subsequent Events | Subsequent Events-- Management has evaluated events and transactions occurring subsequent to March 31, 2018 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 and 2017, the FASB issued ASU Nos. 2016-10, 2016-12, 2016-20, and 2017-13 that provided additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. DNB adopted the new standards discussed above effective January 1, 2018 using the modified retrospective approach. A significant majority of DNB’s revenues are explicitly excluded from the scope of the new guidance including interest, dividend income, BOLI, gain/loss on sale of loans and investments on the Consolidated Statements of Income. The adoption of ASU 2014-09 did not require a cumulative adjustment to the opening balance of retained earnings as of January 1, 2018 and is not expected to have a material impact on DNB’s Consolidated Statements of Financial Condition, Comprehensive Income, Stockholders’ Equity or Cash Flows for the year ended December 31, 2018. Non-interest income components in the scope of Topic 606 continue to be recognized when DNB’s performance obligations are complete or at the time of sale after a customer’s transaction posts in the account. Disclosures required for DNB’s revenue streams in the scope of ASU 2014-09 are included in Non-Interest Income in the following table. Non-interest Income Non-interest income includes revenue from contracts with customers in the scope of ASU 2014-09 as follows: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Non-interest Income: Service charges: Non-sufficient funds (NSF) charges $ 159 $ 188 Business analysis charges 41 42 Cycle charges 23 25 Lockbox fees 44 47 Stop payment fees 4 5 Wire transfer fees 21 21 Other service charges 21 35 Total service charges 313 363 Wealth management: DNB Investments & Insurance 89 102 DNB First Investment Management & Trust 346 272 Total wealth management 435 374 Other fee income: Cardholder interchange fees 245 231 Safe deposit box 24 25 Check printing 23 21 Merchant card processing 48 41 ATM surcharges for non-DNB customers 17 18 Other fee income 14 22 Total other fee income 371 358 Total Revenue from contracts with customers 1,119 1,095 Total Revenue not within the scope of ASC 606 154 211 Total non-interest income $ 1,273 $ 1,306 Service charges on deposit accounts are recorded monthly when DNB’s performance obligations are complete. Deposit balances are disclosed in the Consolidated Statement of Condition. For transaction-based service charges such as non-sufficient funds (NSF) charges, wire transfer fees, stop payment fees, ATM fees, and other transaction-based fees, revenue is recognized at the time of sale after the transaction posts in the customer’s account. Wealth management revenue includes non-deposit products and services offered under the names “DNB Investment & Insurance” and “DNB First Investment Management & Trust”. Through a third-party marketing agreement with Cetera Investment Services, LLC (“Cetera”), DNB Investment & Insurance offers a complete line of investment and insurance products. DNB’s performance obligation as an agent is to arrange for the sale of products by Cetera. Monthly, DNB recognizes cmmission fees in the amounts to which it is entitled in accordance with the terms of the marketing agreement for products sold. Shortly after a product is sold, policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. DNB First Investment Management & Trust offers a full line of investment and fiduciary services. DNB’s performance obligation is to manage investments, estates and trusts. Investment management and trust income is primarily comprised of fees earned from the management and administration of trusts, estate and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. While managing estates and trusts, DNB contracts with a third-party tax preparation service. For tax preparation services, DNB’s obligation as an agent is to arrange for the performance of services by the third party. As tax services are rendered, DNB records revenue monthly, net of the cost of the services. Cardholder interchange fees consist of revenue DNB is entitled per agreements with third party debit and credit card providers. DNB’s performance obligation as an agent is to arrange for cardholder services with its customers in accordance with fees and terms offered by the third-party service providers. Based on cardholder transactions reported by third party service providers, DNB recognizes fees for the amount it is contractually entitled. DNB also contracts with third party providers for check printing, merchant card services, and ATM services. DNB’s performance obligation as an agent is to arrange for the services with its customers in accordance with fees and terms offered by the third-party service providers. Monthly, DNB recognizes fees for the amount it is contractually entitled. DNB adopted ASU 2015-16, Business Combinations (Topic 805), in 2016: 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 it does not have a material impact to the consolidated financial statements. 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 March 31, 2018, 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. Adoption of the standard on January 1, 2018 also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. 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 determined that upon the adoption of ASU 2016-02 we will be required to recognize a right-of-use asset and a corresponding liability based on the then present value of such obligation. DNB is preparing an inventory of its leases and evaluating the impact of this ASU on these leases. Upon adoption of the guidance, DNB expects to report increased assets and increased liabilities as a result of recognizing right-of-use assets and lease liabilities on its consolidated statement of condition. DNB is currently evaluating the extent of the impact that the adoption of this ASU will have on our consolidated financial statements. 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. During the three month period ended March 31, 2018, DNB had $13,000 of tax benefits for stock option exercises and restricted stock vesting. In accordance with ASU 2016-09, forfeitures are recognized as they occur instead of applying an estimated forfeiture rate to each grant. For purposes of the determination of stock-based compensation expense for the three month period ended March 31, 2018, we recognized actual forfeitures of 250 shares of restricted stock awards that were granted to officers and other employees. 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. Although early adoption is permitted for fiscal years beginning after December 15, 2018, DNB does not plan to early adopt. DNB has established a CECL Implementation Team to assess the impact of this ASU on its consolidated financial position, results of operations, and cash flows. DNB has been preserving certain historical loan information from its core processing system in anticipation of adopting the standard and will be evaluating control and process framework, data, model, and resource requirements and areas where modifications will be required. The team continues to assess the impact of the standard; however, DNB expects adopting this ASU will result in an increase in its allowance for credit losses. The amount of the increase in the allowance for credit losses upon adoption will be dependent upon the characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that date. A cumulative effect adjustment will be made to retained earnings for the impact of the standard at the beginning of the period the standard is adopted. 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. Accordingly, effective January 1, 2018, DNB adopted the pronouncement and it did not have a material impact to DNB’s consolidated financial statements. 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 will not early adopt this ASU for its annual goodwill impairment test, and conducted a qualitative test (step zero) as of October 1, 2017 and determined that its Goodwill has not been impaired. The adoption of this ASU is not expected to have a material impact on DNB’s consolidated financial statements. 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 will not 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. The adoption of the ASU did not have a material impact to the consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ; (“ASU 2017-09”). ASU 2017-09 provides clarity by offering guidance on the scope of modification accounting for share-based payment awards and gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. DNB adopted the ASU on January 1, 2018 and the effects are immaterial. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). This ASU allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for certain income tax effects stranded in AOCI as a result of the Tax Act. Consequently, the reclassification eliminates the stranded tax effects resulting from the Tax Act and is intended to improve the usefulness of information reported to financial statement users. However, because the ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. DNB adopted this ASU on January 1, 2018. The amount of this reclassification is $471,000. |
Fair Value (Policy)
Fair Value (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation [Abstract] | |
Non-Interest Income Including Revenue From Contracts With Customers In Scope Of ASU 2014-09 | Three Months Ended March 31, (Dollars in thousands) 2018 2017 Non-interest Income: Service charges: Non-sufficient funds (NSF) charges $ 159 $ 188 Business analysis charges 41 42 Cycle charges 23 25 Lockbox fees 44 47 Stop payment fees 4 5 Wire transfer fees 21 21 Other service charges 21 35 Total service charges 313 363 Wealth management: DNB Investments & Insurance 89 102 DNB First Investment Management & Trust 346 272 Total wealth management 435 374 Other fee income: Cardholder interchange fees 245 231 Safe deposit box 24 25 Check printing 23 21 Merchant card processing 48 41 ATM surcharges for non-DNB customers 17 18 Other fee income 14 22 Total other fee income 371 358 Total Revenue from contracts with customers 1,119 1,095 Total Revenue not within the scope of ASC 606 154 211 Total non-interest income $ 1,273 $ 1,306 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment Securities [Abstract] | |
Amortized Cost and Estimated Fair Values of Investment Securities | March 31, 2018 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,549 $ 100 $ - $ 8,649 Government Sponsored Entities (GSE) mortgage-backed securities 467 1 - 468 Corporate bonds 13,944 159 (37) 14,066 Collateralized mortgage obligations GSE 1,372 - (45) 1,327 State and municipal taxable 362 - (12) 350 State and municipal tax-exempt 37,525 12 (1,393) 36,144 Total $ 62,219 $ 272 $ (1,487) $ 61,004 Available For Sale US Government agency obligations $ 53,285 $ - $ (622) $ 52,663 GSE mortgage-backed securities 31,791 - (1,204) 30,587 Collateralized mortgage obligations GSE 11,653 - (550) 11,103 Corporate bonds 12,958 11 (258) 12,711 State and municipal tax-exempt 1,988 - (163) 1,825 Total $ 111,675 $ 11 $ (2,797) $ 108,889 December 31, 2017 Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value Held To Maturity US Government agency obligations $ 8,483 $ 163 $ - $ 8,646 Government Sponsored Entities (GSE) mortgage-backed securities 496 9 - 505 Corporate bonds 14,047 243 (2) 14,288 Collateralized mortgage obligations GSE 1,471 - (29) 1,442 State and municipal taxable 363 - (8) 355 State and municipal tax-exempt 37,530 59 (405) 37,184 Total $ 62,390 $ 474 $ (444) $ 62,420 Available For Sale US Government agency obligations $ 53,279 $ - $ (386) $ 52,893 GSE mortgage-backed securities 33,203 - (715) 32,488 Collateralized mortgage obligations GSE 12,101 - (447) 11,654 Corporate bonds 12,981 12 (173) 12,820 State and municipal tax-exempt 1,991 - (63) 1,928 Total $ 113,555 $ 12 $ (1,784) $ 111,783 |
Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities | March 31, 2018 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 $ 5,257 $ (37) $ 5,257 $ (37) $ - $ - Collateralized mortgage obligations GSE 1,327 (45) 568 (13) 759 (32) State and municipal taxable 350 (12) 350 (12) - - State and municipal tax-exempt 28,058 (1,393) 15,261 (390) 12,797 (1,003) Total $ 34,992 $ (1,487) $ 21,436 $ (452) $ 13,556 $ (1,035) Available For Sale US Government agency obligations $ 52,663 $ (622) $ 17,534 $ (331) $ 35,129 $ (291) GSE mortgage-backed securities 30,587 (1,204) 8,518 (262) 22,069 (942) Collateralized mortgage obligations GSE 11,103 (550) 2,065 (74) 9,038 (476) Corporate bonds 11,653 (258) 5,500 (109) 6,153 (149) State and municipal tax-exempt 1,825 (163) 285 (2) 1,540 (161) Total $ 107,831 $ (2,797) $ 33,902 $ (778) $ 73,929 $ (2,019) December 31, 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 $ 498 $ (2) $ 498 $ (2) $ - $ - Collateralized mortgage obligations GSE 1,442 (29) 620 (5) 822 (24) State and municipal taxable 355 (8) 355 (8) - - State and municipal tax-exempt 20,240 (405) 6,775 (67) 13,465 (338) Total $ 22,535 $ (444) $ 8,248 $ (82) $ 14,287 $ (362) Available For Sale US Government agency obligations $ 52,893 $ (386) $ 30,894 $ (185) $ 21,999 $ (201) GSE mortgage-backed securities 32,488 (715) 9,055 (133) 23,433 (582) Collateralized mortgage obligations GSE 11,654 (447) 2,132 (56) 9,522 (391) Corporate bonds 10,759 (173) 4,572 (43) 6,187 (130) State and municipal tax-exempt 1,928 (63) 288 (2) 1,640 (61) Total $ 109,722 $ (1,784) $ 46,941 $ (419) $ 62,781 $ (1,365) |
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 $ - $ - $ 27,420 $ 27,236 Due after one year through five years 22,480 22,637 33,510 33,034 Due after five years through ten years 27,886 27,251 18,216 17,627 Due after ten years 11,853 11,116 32,529 30,992 Total investment securities $ 62,219 $ 61,004 $ 111,675 $ 108,889 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loans [Abstract] | |
Composition of Total Loans Outstanding | (Dollars in thousands) March 31, 2018 December 31, 2017 Residential mortgage $ 95,404 $ 93,959 Commercial mortgage 498,506 484,868 Commercial: Commercial term 131,144 129,535 Commercial construction 78,863 75,014 Consumer: Home equity 55,002 56,844 Other 5,426 5,677 Total loans $ 864,345 $ 845,897 Less allowance for credit losses (6,145) (5,843) Net loans $ 858,200 $ 840,054 |
Information on Non-Accrual Loans | Three Months Ended March 31, 2018 (Dollars in thousands) March 31, 2018 December 31, 2017 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 $ 2,033 $ 1,915 $ 25 $ - $ 25 Commercial mortgage 2,088 2,259 30 - 30 Commercial: Commercial term 3,015 2,100 44 - 44 Commercial construction 497 514 11 - 11 Consumer: Home equity 464 466 5 - 5 Other 311 245 8 - 8 Total non-accrual loans $ 8,408 $ 7,499 $ 123 $ - $ 123 Loans 90 days past due and accruing - 54 - - - Total non-performing loans $ 8,408 $ 7,553 $ 123 $ - $ 123 Three Months Ended March 31, 2017 (Dollars in thousands) March 31, 2017 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 $ 1,845 $ 21 $ - $ 21 Commercial mortgage 1,885 41 - 41 Commercial: Commercial term 1,986 38 - 38 Commercial construction 1,248 45 - 45 Consumer: Home equity 460 6 - 6 Other 254 5 - 5 Total non-accrual loans $ 7,678 $ 156 $ - $ 156 Loans 90 days past due and accruing - - - - Total non-performing loans $ 7,678 $ 156 $ - $ 156 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Allowance for Credit Losses [Abstract] | |
Age Analysis of Past Due Loans Receivables | Age Analysis of Past Due Loans Receivable March 31, 2018 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past Past than Total Loans Days and (Dollars in thousands) Due Due 90 Days Past Due Current Receivable Accruing Residential mortgage $ 866 $ - $ 1,345 $ 2,211 $ 93,193 $ 95,404 $ - Commercial mortgage (less acquired with credit deterioration) 164 - 1,123 1,287 496,255 498,232 - Acquired commercial mortgage with credit deterioration - - 274 274 690 274 - Commercial: Commercial term 35 432 1,992 2,459 128,685 131,144 - Commercial construction - - - - 78,863 78,863 - Consumer: Home equity 561 - 386 947 54,055 55,002 - Other 45 62 172 279 5,147 5,426 - Total $ 1,671 $ 494 $ 5,292 $ 7,457 $ 856,888 $ 864,345 $ - December 31, 2017 Loans 30-59 60-89 Receivable Days Days Greater Total > 90 Past 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) $ 887 $ 349 $ 1,148 $ 2,384 $ 91,568 $ 93,952 $ - Acquired residential mortgage with credit deterioration - - 7 7 - 7 - Commercial mortgage (less acquired with credit deterioration) 221 - 1,126 1,347 483,105 484,452 - Acquired commercial mortgage with credit deterioration - - 416 416 - 416 - Commercial: Commercial term 381 13 1,654 2,048 127,487 129,535 - Commercial construction 514 - - 514 74,500 75,014 - Consumer: Home equity 15 - 386 401 56,443 56,844 - Other 13 139 156 308 5,369 5,677 54 Total $ 2,031 $ 501 $ 4,893 $ 7,425 $ 838,472 $ 845,897 $ 54 |
Impaired Loans by Loan Portfolio | March 31, 2018 December 31, 2017 Recorded Unpaid Related Recorded Unpaid Related Investment Principal Allowance Investment Principal Allowance (Dollars in thousands) Balance Balance With no related allowance recorded: Residential mortgage $ 2,296 $ 2,607 $ - $ 1,908 $ 2,210 $ - Acquired residential mortgage with credit deterioration - - - - - Commercial mortgage 2,708 2,953 - 2,809 3,207 - Acquired commercial mortgage with credit deterioration 786 800 - 936 950 Commercial: Commercial term 2,092 2,605 - 1,743 2,253 - Commercial construction 497 514 - 514 514 - Consumer: Home equity 608 629 - 612 632 - Other 210 210 - 117 117 - Total $ 9,197 $ 10,318 $ - $ 8,639 $ 9,883 $ - With allowance recorded: Residential mortgage - - - - - - Acquired residential mortgage with credit deterioration - - - 7 26 3 Commercial mortgage 83 159 24 19 93 19 Commercial: Commercial term 923 939 142 337 343 123 Commercial construction - - - - - - Consumer: Other 101 103 8 128 129 12 Total $ 1,107 $ 1,201 $ 174 $ 491 $ 591 $ 157 Total: Residential mortgage 2,296 2,607 - 1,908 2,210 - Acquired residential mortgage with credit deterioration - - - 7 26 3 Commercial mortgage 2,791 3,112 24 2,828 3,300 19 Acquired commercial mortgage with credit deterioration 786 800 - 936 950 - Commercial: Commercial term 3,015 3,544 142 2,080 2,596 123 Commercial construction 497 514 - 514 514 - Consumer: Home equity 608 629 - 612 632 - Other 311 313 8 245 246 12 Total $ 10,304 $ 11,519 $ 174 $ 9,130 $ 10,474 $ 157 Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance recorded: Residential mortgage $ 2,102 $ 1 $ 1,139 $ - Acquired residential mortgage with credit deterioration - - 11 - Commercial mortgage 2,759 12 1,836 - Acquired commercial mortgage with credit deterioration 861 7 1,404 - Commercial: Commercial term 1,918 - 448 - Commercial construction 505 - 1,022 - Consumer: Home equity 610 2 576 2 Other 164 - 113 - Total $ 8,919 $ 22 $ 6,549 $ 2 With allowance recorded: Residential mortgage - - 659 - Acquired residential mortgage with credit deterioration 4 - - Commercial mortgage 51 - - - Acquired commercial mortgage with credit deterioration - - - Commercial: Commercial term 630 - 645 - Commercial construction - - 224 - Consumer: Other 114 - 142 - Total $ 799 $ - $ 1,670 $ - Total: Residential mortgage 2,102 1 1,798 - Acquired residential mortgage with credit deterioration 4 - 11 - Commercial mortgage 2,810 12 1,836 - Acquired commercial mortgage with credit deterioration 861 7 1,404 - Commercial: Commercial term 2,548 - 1,093 - Commercial construction 505 - 1,246 - Consumer: Home equity 610 2 576 2 Other 278 - 255 - Total $ 9,718 $ 22 $ 8,219 $ 2 |
Credit Quality Indicators | March 31, 2018 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 93,075 $ - $ 2,329 $ - $ 95,404 Commercial mortgage 492,144 1,114 5,248 - 498,506 Commercial: Commercial term 126,492 577 4,075 - 131,144 Commercial construction 75,620 1,769 1,474 - 78,863 Consumer: Home equity 54,247 - 755 - 55,002 Other 5,115 - 311 - 5,426 Total $ 846,693 $ 3,460 $ 14,192 $ - $ 864,345 December 31, 2017 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Residential mortgage $ 91,993 $ - $ 1,966 $ - $ 93,959 Commercial mortgage 479,308 125 5,435 - 484,868 Commercial: Commercial term 125,926 115 3,494 - 129,535 Commercial construction 73,902 - 1,112 - 75,014 Consumer: Home equity 56,085 - 759 - 56,844 Other 5,432 - 245 - 5,677 Total $ 832,646 $ 240 $ 13,011 $ - $ 845,897 |
Recorded Investments in Troubled Debt Restructured Loans | March 31, 2018 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 681 Commercial mortgage 992 992 977 Consumer: Home equity 148 148 144 Other 40 42 39 Total $ 1,934 $ 2,065 $ 1,841 December 31, 2017 Pre-Modification Post-Modification (Dollars in thousands) Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Residential mortgage $ 754 $ 883 $ 690 Commercial mortgage 992 992 982 Consumer: Home equity 148 148 146 Other 40 42 39 Total $ 1,934 $ 2,065 $ 1,857 |
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 - January 1, 2018 $ 221 $ 2,856 $ 845 $ 1,128 $ - $ 183 $ 63 $ 547 $ 5,843 Charge-offs (34) (13) (17) - - - (12) - (76) Recoveries 1 - 2 - - - - - 3 Provisions 38 144 74 91 - (7) 4 31 375 Ending balance - March 31, 2018 $ 226 $ 2,987 $ 904 $ 1,219 $ - $ 176 $ 55 $ 578 $ 6,145 Ending balance: individually evaluated for impairment $ - $ 24 $ 142 $ - $ - $ - $ 8 $ - $ 174 Ending balance: collectively evaluated for impairment $ 226 $ 2,963 $ 762 $ 1,219 $ - $ 176 $ 47 $ 578 $ 5,971 Loans receivables: Ending balance $ 95,404 $ 498,506 $ 131,144 $ 78,863 $ - $ 55,002 $ 5,426 $ 864,345 Ending balance: individually evaluated for impairment $ 2,296 $ 2,791 $ 3,015 $ 497 $ - $ 608 $ 311 $ 9,518 Ending balance: acquired with credit deterioration $ - $ 786 $ - $ - $ - $ - $ - $ 786 Ending balance: collectively evaluated for impairment $ 93,108 $ 494,929 $ 128,129 $ 78,366 $ - $ 54,394 $ 5,115 $ 854,041 Reserve for unfunded loan commitments included in other liabilities $ - $ 3 $ 150 $ 139 $ - $ 17 $ - $ 309 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 - (234) (105) - - - (10) - (349) Recoveries 2 50 16 - 1 - - - 69 Provisions (104) 250 154 90 (1) - 12 (76) 325 Ending balance - March 31, 2017 $ 247 $ 2,597 $ 774 $ 1,059 $ - $ 196 $ 63 $ 482 $ 5,418 Reserve for unfunded loan commitments included in other liabilities $ - $ 10 $ 147 $ 202 $ - $ 17 $ - $ 376 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, 2017 $ 221 $ 2,856 $ 845 $ 1,128 $ - $ 183 $ 63 $ 547 $ 5,843 Ending balance: individually evaluated for impairment $ 3 $ 19 $ 123 $ - $ - $ - $ 12 $ - $ 157 Ending balance: collectively evaluated for impairment $ 218 $ 2,837 $ 722 $ 1,128 $ - $ 183 $ 51 $ 547 $ 5,686 Loans receivables: Ending balance $ 93,959 $ 484,868 $ 129,535 $ 75,014 $ - $ 56,844 $ 5,677 $ 845,897 Ending balance: individually evaluated for impairment $ 1,908 $ 2,828 $ 2,080 $ 514 $ - $ 612 $ 245 $ 8,187 Ending balance: acquired with credit deterioration $ 7 $ 936 $ - $ - $ - $ - $ - $ 943 Ending balance: collectively evaluated for impairment $ 92,044 $ 481,104 $ 127,455 $ 74,500 $ - $ 56,232 $ 5,432 $ 836,767 Reserve for unfunded loan commitments included in other liabilities $ - $ 2 $ 155 $ 173 $ - $ 18 $ - $ 348 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended March 31, 2018 (In thousands, except per-share data) Income Shares Amount Basic EPS Income available to common stockholders $ 2,613 4,291 $ 0.61 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 18 - Diluted EPS Income available to common stockholders after assumed conversions $ 2,613 4,309 $ 0.61 Three Months Ended March 31, 2017 (In thousands, except per-share data) Income Shares Amount Basic EPS Income available to common stockholders $ 2,441 4,247 $ 0.57 Effect of potential dilutive common stock equivalents – stock options and restricted shares - 27 - Diluted EPS Income available to common stockholders after assumed conversions $ 2,441 4,274 $ 0.57 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Net unrealized loss on AFS securities $ (2,786) $ 585 $ (2,201) Unrealized actuarial losses-pension (1,849) 388 (1,461) $ (4,635) $ 973 $ (3,662) December 31, 2017 Net unrealized loss on AFS securities $ (1,772) $ 603 $ (1,169) Unrealized actuarial losses-pension (1,849) 628 (1,221) $ (3,621) $ 1,231 $ (2,390) |
Subordinated Debentures, Note27
Subordinated Debentures, Notes, And Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Repurchase agreements and repurchase-to-maturity transactions $ 10,717 $ - $ - $ - $ 10,717 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 10,717 $ 10,717 December 31, 2017 Repurchase agreements and repurchase-to-maturity transactions $ 12,023 $ - $ - $ - $ 12,023 Gross amount of recognized liabilities for repurchase agreements in statement of condition $ 12,023 $ 12,023 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock Option Activity | Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2018 16,450 $ 10.31 Issued - - Exercised 2,100 10.31 Forfeited - - Expired - - Outstanding March 31, 2018 14,350 $ 10.31 Number Weighted Average Outstanding Exercise Price Outstanding January 1, 2017 49,700 $ 9.18 Issued - - Exercised 13,700 7.42 Forfeited - - Expired - - Outstanding March 31, 2017 36,000 $ 9.85 |
Weighted Average Price And Weighted Average Remaining Contractual Life | March 31, 2018 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 - 10.99 14,350 14,350 $ 10.31 0.70 years $ 364,000 December 31, 2017 Range of Weighted Average Exercise Number Number Exercise Remaining Intrinsic Prices Outstanding Exercisable Price Contractual Life Value $ 6.93 - 10.99 16,450 16,450 $ 10.31 0.95 years $ 385,000 |
Stock Grant Activity | Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2018 31,130 $ 26.53 Granted 10,750 33.98 Forfeited 250 28.00 Vested 1,400 25.84 Non-vested stock awards—March 31, 2018 40,230 $ 28.53 Weighted Average Shares Stock Price Non-vested stock awards—January 1, 2017 55,775 $ 25.63 Granted - - Forfeited - - Vested - - Non-vested stock awards—March 31, 2017 55,775 $ 25.63 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | March 31, 2018 (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 $ - $ 52,663 $ - $ 52,663 GSE mortgage-backed securities - 30,587 - 30,587 Collateralized mortgage obligations GSE - 11,103 - 11,103 Corporate bonds - 12,711 - 12,711 State and municipal tax-exempt - 1,825 - 1,825 Total $ - $ 108,889 $ - $ 108,889 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 933 $ 933 OREO and other repossessed property - - 14 14 Total $ - $ - $ 947 $ 947 December 31, 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 $ - $ 52,893 $ - $ 52,893 GSE mortgage-backed securities - 32,488 - 32,488 Collateralized mortgage obligations GSE - 11,654 - 11,654 Corporate bonds - 12,820 - 12,820 State and municipal tax-exempt - 1,928 - 1,928 Total $ - $ 111,783 $ - $ 111,783 Assets Measured at Fair Value on a Nonrecurring Basis Impaired loans $ - $ - $ 1,814 $ 1,814 OREO and other repossessed property - - 817 817 Total $ - $ - $ 2,631 $ 2,631 |
Quantitative Information About Level 3 Fair Value Measurements | March 31, 2018 Quantitative Information about Level 3 Fair Value Measurement Fair Value Valuation Range (Dollars in thousands) Estimate Techniques Unobservable Input (Weighted Average) Impaired loans - Commercial mortgage 59 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial term 781 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -11% (-10%) Impaired loans - Consumer other 93 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 933 Other real estate owned $ 14 Disposal costs (2) 8% to 8% (-8%) (1) (2) December 31, 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 $ 4 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial mortgage 46 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loans - Commercial term 1,648 Appraisal of Appraisal adj. (2) 0% to -50% (-6%) collateral (1) Disposal costs (2) 0% to -9% (-8%) Impaired loans - Consumer other 116 Appraisal of Appraisal adj. (2) 0% to 0% (0%) collateral (1) Disposal costs (2) -8% to -8% (-8%) Impaired loan total $ 1,814 Other real estate owned $ 817 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 Fair Values of Financial Instruments | March 31, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 14,078 $ 14,078 $ 14,078 $ - $ - AFS investment securities 108,889 108,889 - 108,889 - HTM investment securities 62,219 61,004 - 59,004 2,000 Restricted stock 7,363 7,363 - 7,363 - Loans held-for-sale 646 648 - - 648 Loans, net of allowance, including impaired 858,200 847,545 - - 847,545 Accrued interest receivable 3,982 3,982 - 3,982 - Financial liabilities Deposits: Non-interest-bearing deposits 172,044 172,044 - 172,044 - Other interest-bearing deposits 542,930 542,930 - 542,930 - Time 115,214 113,940 - 113,940 - Brokered deposits 61,598 60,033 - 60,033 - Repurchase agreements 10,717 10,717 - 10,717 - FHLBP advances 67,993 67,136 - 67,136 - Junior subordinated debentures and other borrowings 9,279 9,798 - 9,798 - Subordinated debt 9,750 9,423 - 9,423 - Accrued interest payable 494 494 - 494 - Off-balance sheet instruments - - - - - December 31, 2017 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 10,917 $ 10,917 $ 10,917 $ - $ - AFS investment securities 111,783 111,783 - 111,783 - HTM investment securities 62,390 62,420 - 60,420 2,000 Restricted stock 7,641 7,641 - 7,641 - Loans held-for-sale 651 657 - - 657 Loans, net of allowance, including impaired 840,054 821,672 - - 821,672 Accrued interest receivable 3,822 3,822 - 3,822 - Financial liabilities Deposits: Non-interest-bearing deposits 176,815 176,815 - 176,815 - Other interest-bearing deposits 502,086 502,086 - 502,086 - Time 140,490 139,406 - 139,406 - Brokered deposits 41,812 42,304 - 42,304 - Repurchase agreements 12,023 12,023 - 12,023 - FHLBP advances 79,013 78,531 - 78,531 - Junior subordinated debentures and other borrowings 9,279 9,373 - 9,373 - Subordinated debt 9,750 9,577 - 9,577 - Accrued interest payable 554 554 - 554 - Off-balance sheet instruments - - - - - |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounting Standards Update 2016-09 [Member] | |
Tax benefits for stock option exercises and restricted stock vesting | $ 13 |
Accounting Standards Update 2018-02 [Member] | |
Reclassification amount from accumulated other comprehensive income related to Tax Cuts and jobs Act | $ 471 |
Basis of Presentation (Non-Inte
Basis of Presentation (Non-Interest Income Including Revenue From Contracts With Customers In Scope Of ASU 2014-09) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total non-interest income | $ 1,273 | $ 1,306 |
Total Revenue Not Within the Scope of ASC 606 [Member] | ||
Revenue from contracts with customers | 154 | 211 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | ||
Revenue from contracts with customers | 1,119 | 1,095 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges [Member] | ||
Revenue from contracts with customers | 313 | 363 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Non-sufficient Funds (NSF) Charges [Member] | ||
Revenue from contracts with customers | 159 | 188 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Business Analysis Charges [Member] | ||
Revenue from contracts with customers | 41 | 42 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Cycle Charges [Member | ||
Revenue from contracts with customers | 23 | 25 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Lockbox Fees [Member] | ||
Revenue from contracts with customers | 44 | 47 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Stop Payment Fees [Member] | ||
Revenue from contracts with customers | 4 | 5 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Wire Transfer Fees [Member] | ||
Revenue from contracts with customers | 21 | 21 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Service Charges Other Service Charges [Member] | ||
Revenue from contracts with customers | 21 | 35 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Wealth Management [Member] | ||
Revenue from contracts with customers | 435 | 374 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Wealth Management DNB Investments & Insurance [Member] | ||
Revenue from contracts with customers | 89 | 102 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Wealth Management DNB First Investment Management & Trust [Member] | ||
Revenue from contracts with customers | 346 | 272 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income [Member] | ||
Revenue from contracts with customers | 371 | 358 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Cardholder Interchange Fees [Member] | ||
Revenue from contracts with customers | 245 | 231 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Safe Deposit Box [Member] | ||
Revenue from contracts with customers | 24 | 25 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Check Printing [Member] | ||
Revenue from contracts with customers | 23 | 21 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Merchant Card Processing [Member] | ||
Revenue from contracts with customers | 48 | 41 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income ATM Surcharges For Non-DNB Customers [Member] | ||
Revenue from contracts with customers | 17 | 18 |
Revenue from Contracts with Customers in Scope of ASU 2014-09 [Member] | Other Fee Income Other Fee [Member] | ||
Revenue from contracts with customers | $ 14 | $ 22 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Securities [Line Items] | ||
Available-for-sale securities pledged as collateral | $ | $ 103.8 | $ 105.9 |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 19 | |
Number of securities, impaired for more than 12 months | 16 | |
Unrealized loss of security from book value | 6.74% | |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 19 | |
Number of securities, impaired for more than 12 months | 14 | |
Unrealized loss of security from book value | 4.69% | |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 11 | |
Number of securities, impaired for more than 12 months | 6 | |
Unrealized loss of security from book value | 4.26% | |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 46 | |
Number of securities, impaired for more than 12 months | 20 | |
Number of impaired municipal securities, insured school districts | 17 | |
Number of impaired municipal securities, unisured school districts | 18 | |
Number of impaired municipal securities, townships insured | 4 | |
Number of impaired municipal securities, townships uninsured | 7 | |
Unrealized loss of security from book value | 10.39% | |
State and Municipal Taxable [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 1 | |
Unrealized loss of security from book value | 3.42% | |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Securities in unrealized loss positions qualitative disclosure number of positions | 11 | |
Number of securities, impaired for more than 12 months | 4 | |
Unrealized loss of security from book value | 5.00% |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | $ 62,219 | $ 62,390 |
Held-to-maturity Securities, Unrealized Gains | 272 | 474 |
Held-to-maturity Securities, Unrealized Losses | (1,487) | (444) |
Held-to-maturity Securities, Fair Value | 61,004 | 62,420 |
Available-for-sale Securities, Amortized Cost | 111,675 | 113,555 |
Available-for-sale Securities, Unrealized Gains | 11 | 12 |
Available-for-sale Securities, Unrealized Losses | (2,797) | (1,784) |
AFS investment securities | 108,889 | 111,783 |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 8,549 | 8,483 |
Held-to-maturity Securities, Unrealized Gains | 100 | 163 |
Held-to-maturity Securities, Fair Value | 8,649 | 8,646 |
Available-for-sale Securities, Amortized Cost | 53,285 | 53,279 |
Available-for-sale Securities, Unrealized Losses | (622) | (386) |
AFS investment securities | 52,663 | 52,893 |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 467 | 496 |
Held-to-maturity Securities, Unrealized Gains | 1 | 9 |
Held-to-maturity Securities, Fair Value | 468 | 505 |
Available-for-sale Securities, Amortized Cost | 31,791 | 33,203 |
Available-for-sale Securities, Unrealized Losses | (1,204) | (715) |
AFS investment securities | 30,587 | 32,488 |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 13,944 | 14,047 |
Held-to-maturity Securities, Unrealized Gains | 159 | 243 |
Held-to-maturity Securities, Unrealized Losses | (37) | (2) |
Held-to-maturity Securities, Fair Value | 14,066 | 14,288 |
Available-for-sale Securities, Amortized Cost | 12,958 | 12,981 |
Available-for-sale Securities, Unrealized Gains | 11 | 12 |
Available-for-sale Securities, Unrealized Losses | (258) | (173) |
AFS investment securities | 12,711 | 12,820 |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 1,372 | 1,471 |
Held-to-maturity Securities, Unrealized Losses | (45) | (29) |
Held-to-maturity Securities, Fair Value | 1,327 | 1,442 |
Available-for-sale Securities, Amortized Cost | 11,653 | 12,101 |
Available-for-sale Securities, Unrealized Losses | (550) | (447) |
AFS investment securities | 11,103 | 11,654 |
State and Municipal Taxable [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 362 | 363 |
Held-to-maturity Securities, Unrealized Losses | (12) | (8) |
Held-to-maturity Securities, Fair Value | 350 | 355 |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 37,525 | 37,530 |
Held-to-maturity Securities, Unrealized Gains | 12 | 59 |
Held-to-maturity Securities, Unrealized Losses | (1,393) | (405) |
Held-to-maturity Securities, Fair Value | 36,144 | 37,184 |
Available-for-sale Securities, Amortized Cost | 1,988 | 1,991 |
Available-for-sale Securities, Unrealized Losses | (163) | (63) |
AFS investment securities | $ 1,825 | $ 1,928 |
Investment Securities (Aggregat
Investment Securities (Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | $ 34,992 | $ 22,535 |
Held-to-maturity Securities, Unrealized Losses | (1,487) | (444) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 21,436 | 8,248 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (452) | (82) |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 13,556 | 14,287 |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (1,035) | (362) |
Available-for-sale Securities, Fair Value, Total | 107,831 | 109,722 |
Available-for-sale Securities, Unrealized Loss, Total | (2,797) | (1,784) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 33,902 | 46,941 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (778) | (419) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 73,929 | 62,781 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (2,019) | (1,365) |
US Government Agency Obligations [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value, Total | 52,663 | 52,893 |
Available-for-sale Securities, Unrealized Loss, Total | (622) | (386) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 17,534 | 30,894 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (331) | (185) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 35,129 | 21,999 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (291) | (201) |
Government Sponsored Entities (GSE) Mortgage-Backed Securities [Member] | ||
Securities [Line Items] | ||
Available-for-sale Securities, Fair Value, Total | 30,587 | 32,488 |
Available-for-sale Securities, Unrealized Loss, Total | (1,204) | (715) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 8,518 | 9,055 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (262) | (133) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 22,069 | 23,433 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (942) | (582) |
Collateralized Mortgage Obligations GSE [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 1,327 | 1,442 |
Held-to-maturity Securities, Unrealized Losses | (45) | (29) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 568 | 620 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (13) | (5) |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 759 | 822 |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (32) | (24) |
Available-for-sale Securities, Fair Value, Total | 11,103 | 11,654 |
Available-for-sale Securities, Unrealized Loss, Total | (550) | (447) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 2,065 | 2,132 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (74) | (56) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 9,038 | 9,522 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (476) | (391) |
Corporate Bonds [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 5,257 | 498 |
Held-to-maturity Securities, Unrealized Losses | (37) | (2) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 5,257 | 498 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (37) | (2) |
Available-for-sale Securities, Fair Value, Total | 11,653 | 10,759 |
Available-for-sale Securities, Unrealized Loss, Total | (258) | (173) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 5,500 | 4,572 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (109) | (43) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 6,153 | 6,187 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | (149) | (130) |
State and Municipal Taxable [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 350 | 355 |
Held-to-maturity Securities, Unrealized Losses | (12) | (8) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 350 | 355 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (12) | (8) |
State and Municipal Tax-Exempt [Member] | ||
Securities [Line Items] | ||
Held-to-maturity Securities, Fair Value, Total | 28,058 | 20,240 |
Held-to-maturity Securities, Unrealized Losses | (1,393) | (405) |
Held-to-maturity Securities, Fair Value Impaired Less Than 12 Months | 15,261 | 6,775 |
Held-to-maturity Securities, Unrealized Loss Less Than 12 Months | (390) | (67) |
Held-to-maturity Securities, Fair Value Impaired More Than 12 Months | 12,797 | 13,465 |
Held-to-maturity Securities, Unrealized Loss More Than 12 Months | (1,003) | (338) |
Available-for-sale Securities, Fair Value, Total | 1,825 | 1,928 |
Available-for-sale Securities, Unrealized Loss, Total | (163) | (63) |
Available-for-sale Securities, Fair Value Impaired Less Than 12 Months | 285 | 288 |
Available-for-sale Securities, Unrealized Loss Less Than 12 Months | (2) | (2) |
Available-for-sale Securities, Fair Value Impaired More Than 12 Months | 1,540 | 1,640 |
Available-for-sale Securities, Unrealized Loss More Than 12 Months | $ (161) | $ (61) |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment Securities [Abstract] | ||
Held to Maturity, Due after one year through five years, Amortized Cost | $ 22,480 | |
Held to Maturity, Due after five years through ten years, Amortized Cost | 27,886 | |
Held to Maturity, Due after ten years, Amortized Cost | 11,853 | |
Held-to-maturity Securities, Amortized Cost | 62,219 | $ 62,390 |
Held to Maturity, Due after one year through five years, Fair Value | 22,637 | |
Held to Maturity, Due after five years through ten years, Fair Value | 27,251 | |
Held to Maturity, Due after ten years, Fair Value | 11,116 | |
Held-to-maturity, Total investment securities, Fair Value | 61,004 | 62,420 |
Available for Sale, Due in one year or less, Amortized Cost | 27,420 | |
Available for Sale, Due after one year through five years, Amortized Cost | 33,510 | |
Available for Sale, Due after five years through ten years, Amortized Cost | 18,216 | |
Available for Sale, Due after ten years, Amortized Cost | 32,529 | |
Available-for-sale Securities, Amortized Cost | 111,675 | 113,555 |
Available for Sale, Due in one year or less, Fair Value | 27,236 | |
Available for Sale, Due after one year through five years, Fair Value | 33,034 | |
Available for Sale, Due after five years through ten years, Fair Value | 17,627 | |
Available for Sale, Due after ten years, Fair Value | 30,992 | |
Available for Sale, Total investment securities, Fair Value | $ 108,889 | $ 111,783 |
Loans (Composition of Total Loa
Loans (Composition of Total Loans Outstanding) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 864,345 | $ 845,897 | ||
Less allowance for credit losses | (6,145) | (5,843) | $ (5,418) | $ (5,373) |
Net loans | 858,200 | 840,054 | ||
Residential Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 95,404 | 93,959 | ||
Less allowance for credit losses | (226) | (221) | (247) | (349) |
Commercial Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 498,506 | 484,868 | ||
Less allowance for credit losses | (2,987) | (2,856) | (2,597) | (2,531) |
Commercial Term [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 131,144 | 129,535 | ||
Less allowance for credit losses | (904) | (845) | (774) | (709) |
Commercial Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 78,863 | 75,014 | ||
Less allowance for credit losses | (1,219) | (1,128) | (1,059) | (969) |
Consumer: Home Equity [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 55,002 | 56,844 | ||
Less allowance for credit losses | (176) | (183) | (196) | (196) |
Consumer: Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,426 | 5,677 | ||
Less allowance for credit losses | $ (55) | $ (63) | $ (63) | $ (61) |
Loans (Information on Non-Accru
Loans (Information on Non-Accrual Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | $ 8,408 | $ 7,678 | $ 7,499 |
Loans 90 day past due and accruing | 54 | ||
Total non-performing loans | 8,408 | 7,678 | 7,553 |
Interest income that would have been recorded under original terms, non-accrual loans | 123 | 156 | |
Interest income that would have been recorded under original terms | 123 | 156 | |
Net impact on interest income, non-accrual loans | 123 | 156 | |
Net impact on interest income | 123 | 156 | |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | 2,033 | 1,845 | 1,915 |
Interest income that would have been recorded under original terms, non-accrual loans | 25 | 21 | |
Net impact on interest income, non-accrual loans | 25 | 21 | |
Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | 2,088 | 1,885 | 2,259 |
Interest income that would have been recorded under original terms, non-accrual loans | 30 | 41 | |
Net impact on interest income, non-accrual loans | 30 | 41 | |
Commercial Term [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | 3,015 | 1,986 | 2,100 |
Interest income that would have been recorded under original terms, non-accrual loans | 44 | 38 | |
Net impact on interest income, non-accrual loans | 44 | 38 | |
Commercial Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | 497 | 1,248 | 514 |
Interest income that would have been recorded under original terms, non-accrual loans | 11 | 45 | |
Net impact on interest income, non-accrual loans | 11 | 45 | |
Consumer: Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | 464 | 460 | 466 |
Interest income that would have been recorded under original terms, non-accrual loans | 5 | 6 | |
Net impact on interest income, non-accrual loans | 5 | 6 | |
Consumer: Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual loans | 311 | 254 | 245 |
Loans 90 day past due and accruing | $ 54 | ||
Interest income that would have been recorded under original terms, non-accrual loans | 8 | 5 | |
Net impact on interest income, non-accrual loans | $ 8 | $ 5 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of TDR loans | loan | 8 | 8 | |
TDR recorded investment | $ 1,841 | $ 1,857 | |
Partial charge-off of loan amount | $ 76 | $ 349 | |
Number of defaulted TDRs | loan | 0 | 0 | |
Loan defaults on TDRs | $ 0 | $ 0 | |
Accruing Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of TDR loans | loan | 5 | 5 | |
TDR recorded investment | $ 1,121 | $ 1,128 | |
Nonaccrual Impaired Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of TDR loans | loan | 3 | 3 | |
TDR recorded investment | $ 720 | $ 729 | |
Residential Mortgage [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Real estate loans in process of foreclosure | $ 869 | $ 638 | |
Number of TDR loans | loan | 2 | 2 | |
Partial charge-off of loan amount | $ 151 | $ 151 | |
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 | $ 74 | $ 149 | |
Commercial Mortgage [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of TDR loans | loan | 3 | ||
TDR recorded investment | $ 992 |
Allowance for Credit Losses (Ag
Allowance for Credit Losses (Age Analysis Of Past Due Loans Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | $ 7,457 | $ 7,425 |
Current | 856,888 | 838,472 |
Total Loans Receivables | 864,345 | 845,897 |
Loans Receivable >90 Days and Accruing | 54 | |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 1,671 | 2,031 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 494 | 501 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 5,292 | 4,893 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 2,211 | |
Current | 93,193 | |
Total Loans Receivables | 95,404 | 93,959 |
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 866 | |
Residential Mortgage [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 1,345 | |
Residential Mortgage (Less Acquired With Credit Deterioration) [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 2,384 | |
Current | 91,568 | |
Total Loans Receivables | 93,952 | |
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 | 887 | |
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 | 349 | |
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 | 1,148 | |
Acquired Residential Mortgage With Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 7 | |
Total Loans Receivables | 7 | |
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 | 7 | |
Commercial Mortgage (Less Acquired With Credit Deterioration) [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 1,287 | 1,347 |
Current | 496,255 | 483,105 |
Total Loans Receivables | 498,232 | 484,452 |
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 | 164 | 221 |
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 | 1,123 | 1,126 |
Acquired Commercial Mortgage With Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 274 | 416 |
Current | 690 | |
Total Loans Receivables | 274 | 416 |
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 | 274 | 416 |
Commercial Term [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 2,459 | 2,048 |
Current | 128,685 | 127,487 |
Total Loans Receivables | 131,144 | 129,535 |
Commercial Term [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 35 | 381 |
Commercial Term [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 432 | 13 |
Commercial Term [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 1,992 | 1,654 |
Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 514 | |
Current | 78,863 | 74,500 |
Total Loans Receivables | 78,863 | 75,014 |
Commercial Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 514 | |
Consumer: Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 947 | 401 |
Current | 54,055 | 56,443 |
Total Loans Receivables | 55,002 | 56,844 |
Consumer: Home Equity [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 561 | 15 |
Consumer: Home Equity [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 386 | 386 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 279 | 308 |
Current | 5,147 | 5,369 |
Total Loans Receivables | 5,426 | 5,677 |
Loans Receivable >90 Days and Accruing | 54 | |
Consumer: Other [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 45 | 13 |
Consumer: Other [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | 62 | 139 |
Consumer: Other [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans receivables | $ 172 | $ 156 |
Allowance for Credit Losses (Im
Allowance for Credit Losses (Impaired Loans By Loan Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | $ 9,197 | $ 8,639 | |
Unpaid Principal Balance, With no related allowance recorded | 10,318 | 9,883 | |
Average Recorded Investment, With no related allowance recorded | 8,919 | $ 6,549 | |
Interest Income Recognized, With no related allowance recorded | 22 | 2 | |
Recorded Investment, with allowance recorded | 1,107 | 491 | |
Unpaid Principal Balance, With allowance recorded | 1,201 | 591 | |
Related Allowance | 174 | 157 | |
Average Recorded Investment, With allowance recorded | 799 | 1,670 | |
Recorded Investment, Total | 10,304 | 9,130 | |
Unpaid Principal Balance, Total | 11,519 | 10,474 | |
Average Recorded Investment, Total | 9,718 | 8,219 | |
Interest Income Recognized, Total | 22 | 2 | |
Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 2,296 | 1,908 | |
Unpaid Principal Balance, With no related allowance recorded | 2,607 | 2,210 | |
Average Recorded Investment, With no related allowance recorded | 2,102 | 1,139 | |
Interest Income Recognized, With no related allowance recorded | 1 | ||
Average Recorded Investment, With allowance recorded | 659 | ||
Recorded Investment, Total | 2,296 | 1,908 | |
Unpaid Principal Balance, Total | 2,607 | 2,210 | |
Average Recorded Investment, Total | 2,102 | 1,798 | |
Interest Income Recognized, Total | 1 | ||
Acquired Residential Mortgage With Credit Deterioration [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment, With no related allowance recorded | 11 | ||
Recorded Investment, with allowance recorded | 7 | ||
Unpaid Principal Balance, With allowance recorded | 26 | ||
Related Allowance | 3 | ||
Average Recorded Investment, With allowance recorded | 4 | ||
Recorded Investment, Total | 7 | ||
Unpaid Principal Balance, Total | 26 | ||
Average Recorded Investment, Total | 4 | 11 | |
Commercial Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 2,708 | 2,809 | |
Unpaid Principal Balance, With no related allowance recorded | 2,953 | 3,207 | |
Average Recorded Investment, With no related allowance recorded | 2,759 | 1,836 | |
Interest Income Recognized, With no related allowance recorded | 12 | ||
Recorded Investment, with allowance recorded | 83 | 19 | |
Unpaid Principal Balance, With allowance recorded | 159 | 93 | |
Related Allowance | 24 | 19 | |
Average Recorded Investment, With allowance recorded | 51 | ||
Recorded Investment, Total | 2,791 | 2,828 | |
Unpaid Principal Balance, Total | 3,112 | 3,300 | |
Average Recorded Investment, Total | 2,810 | 1,836 | |
Interest Income Recognized, Total | 12 | ||
Acquired Commercial Mortgage With Credit Deterioration [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 786 | 936 | |
Unpaid Principal Balance, With no related allowance recorded | 800 | 950 | |
Average Recorded Investment, With no related allowance recorded | 861 | 1,404 | |
Interest Income Recognized, With no related allowance recorded | 7 | ||
Recorded Investment, Total | 786 | 936 | |
Unpaid Principal Balance, Total | 800 | 950 | |
Average Recorded Investment, Total | 861 | 1,404 | |
Interest Income Recognized, Total | 7 | ||
Commercial Term [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 2,092 | 1,743 | |
Unpaid Principal Balance, With no related allowance recorded | 2,605 | 2,253 | |
Average Recorded Investment, With no related allowance recorded | 1,918 | 448 | |
Recorded Investment, with allowance recorded | 923 | 337 | |
Unpaid Principal Balance, With allowance recorded | 939 | 343 | |
Related Allowance | 142 | 123 | |
Average Recorded Investment, With allowance recorded | 630 | 645 | |
Recorded Investment, Total | 3,015 | 2,080 | |
Unpaid Principal Balance, Total | 3,544 | 2,596 | |
Average Recorded Investment, Total | 2,548 | 1,093 | |
Commercial Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 497 | 514 | |
Unpaid Principal Balance, With no related allowance recorded | 514 | 514 | |
Average Recorded Investment, With no related allowance recorded | 505 | 1,022 | |
Average Recorded Investment, With allowance recorded | 224 | ||
Recorded Investment, Total | 497 | 514 | |
Unpaid Principal Balance, Total | 514 | 514 | |
Average Recorded Investment, Total | 505 | 1,246 | |
Consumer: Home Equity [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 608 | 612 | |
Unpaid Principal Balance, With no related allowance recorded | 629 | 632 | |
Average Recorded Investment, With no related allowance recorded | 610 | 576 | |
Interest Income Recognized, With no related allowance recorded | 2 | 2 | |
Recorded Investment, Total | 608 | 612 | |
Unpaid Principal Balance, Total | 629 | 632 | |
Average Recorded Investment, Total | 610 | 576 | |
Interest Income Recognized, Total | 2 | 2 | |
Consumer: Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 210 | 117 | |
Unpaid Principal Balance, With no related allowance recorded | 210 | 117 | |
Average Recorded Investment, With no related allowance recorded | 164 | 113 | |
Recorded Investment, with allowance recorded | 101 | 128 | |
Unpaid Principal Balance, With allowance recorded | 103 | 129 | |
Related Allowance | 8 | 12 | |
Average Recorded Investment, With allowance recorded | 114 | 142 | |
Recorded Investment, Total | 311 | 245 | |
Unpaid Principal Balance, Total | 313 | $ 246 | |
Average Recorded Investment, Total | $ 278 | $ 255 |
Allowance for Credit Losses (Cr
Allowance for Credit Losses (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 864,345 | $ 845,897 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 846,693 | 832,646 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,460 | 240 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 14,192 | 13,011 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 95,404 | 93,959 |
Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 93,075 | 91,993 |
Residential Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,329 | 1,966 |
Commercial Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 498,506 | 484,868 |
Commercial Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 492,144 | 479,308 |
Commercial Mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,114 | 125 |
Commercial Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 5,248 | 5,435 |
Commercial Term [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 131,144 | 129,535 |
Commercial Term [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 126,492 | 125,926 |
Commercial Term [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 577 | 115 |
Commercial Term [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 4,075 | 3,494 |
Commercial Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 78,863 | 75,014 |
Commercial Construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 75,620 | 73,902 |
Commercial Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,769 | |
Commercial Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,474 | 1,112 |
Consumer: Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 55,002 | 56,844 |
Consumer: Home Equity [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 54,247 | 56,085 |
Consumer: Home Equity [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 755 | 759 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 5,426 | 5,677 |
Consumer: Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 5,115 | 5,432 |
Consumer: Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 311 | $ 245 |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investments in Troubled Debt Restructured Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Pre-modification outstanding recorded investment | $ 1,934 | $ 1,934 |
Post-modification outstanding recorded investment | 2,065 | 2,065 |
Recorded Investment | 1,841 | 1,857 |
Residential Mortgage [Member] | ||
Pre-modification outstanding recorded investment | 754 | 754 |
Post-modification outstanding recorded investment | 883 | 883 |
Recorded Investment | 681 | 690 |
Commercial Mortgage [Member] | ||
Pre-modification outstanding recorded investment | 992 | 992 |
Post-modification outstanding recorded investment | 992 | 992 |
Recorded Investment | 977 | 982 |
Consumer: Home Equity [Member] | ||
Pre-modification outstanding recorded investment | 148 | 148 |
Post-modification outstanding recorded investment | 148 | 148 |
Recorded Investment | 144 | 146 |
Consumer: Other [Member] | ||
Pre-modification outstanding recorded investment | 40 | 40 |
Post-modification outstanding recorded investment | 42 | 42 |
Recorded Investment | $ 39 | $ 39 |
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 | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $ 5,843 | $ 5,373 | $ 5,373 |
Charge-offs | (76) | (349) | |
Recoveries | 3 | 69 | |
Provisions | 375 | 325 | |
Ending balance | 6,145 | 5,418 | 5,843 |
Ending balance: individually evaluated for impairment | 174 | 157 | |
Ending balance: collectively evaluated for impairment | 5,971 | 5,686 | |
Ending balance: Loans receivables | 864,345 | 845,897 | |
Ending Balance: individually evaluated for impairment | 9,518 | 8,187 | |
Ending Balance: collectively evaluated for impairment | 854,041 | 836,767 | |
Reserve for unfunded loan commitments included in other liabilities | 309 | 376 | 348 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Ending balance: Loans receivables | 786 | 943 | |
Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 221 | 349 | 349 |
Charge-offs | (34) | ||
Recoveries | 1 | 2 | |
Provisions | 38 | (104) | |
Ending balance | 226 | 247 | 221 |
Ending balance: individually evaluated for impairment | 3 | ||
Ending balance: collectively evaluated for impairment | 226 | 218 | |
Ending balance: Loans receivables | 95,404 | 93,959 | |
Ending Balance: individually evaluated for impairment | 2,296 | 1,908 | |
Ending Balance: collectively evaluated for impairment | 93,108 | 92,044 | |
Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Ending balance: Loans receivables | 7 | ||
Commercial Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 2,856 | 2,531 | 2,531 |
Charge-offs | (13) | (234) | |
Recoveries | 50 | ||
Provisions | 144 | 250 | |
Ending balance | 2,987 | 2,597 | 2,856 |
Ending balance: individually evaluated for impairment | 24 | 19 | |
Ending balance: collectively evaluated for impairment | 2,963 | 2,837 | |
Ending balance: Loans receivables | 498,506 | 484,868 | |
Ending Balance: individually evaluated for impairment | 2,791 | 2,828 | |
Ending Balance: collectively evaluated for impairment | 494,929 | 481,104 | |
Reserve for unfunded loan commitments included in other liabilities | 3 | 10 | 2 |
Commercial Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Ending balance: Loans receivables | 786 | 936 | |
Commercial Term [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 845 | 709 | 709 |
Charge-offs | (17) | (105) | |
Recoveries | 2 | 16 | |
Provisions | 74 | 154 | |
Ending balance | 904 | 774 | 845 |
Ending balance: individually evaluated for impairment | 142 | 123 | |
Ending balance: collectively evaluated for impairment | 762 | 722 | |
Ending balance: Loans receivables | 131,144 | 129,535 | |
Ending Balance: individually evaluated for impairment | 3,015 | 2,080 | |
Ending Balance: collectively evaluated for impairment | 128,129 | 127,455 | |
Reserve for unfunded loan commitments included in other liabilities | 150 | 147 | 155 |
Commercial Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 1,128 | 969 | 969 |
Charge-offs | |||
Provisions | 91 | 90 | |
Ending balance | 1,219 | 1,059 | 1,128 |
Ending balance: collectively evaluated for impairment | 1,219 | 1,128 | |
Ending balance: Loans receivables | 78,863 | 75,014 | |
Ending Balance: individually evaluated for impairment | 497 | 514 | |
Ending Balance: collectively evaluated for impairment | 78,366 | 74,500 | |
Reserve for unfunded loan commitments included in other liabilities | 139 | 202 | 173 |
Leases Financing [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Charge-offs | |||
Recoveries | 1 | ||
Provisions | (1) | ||
Consumer: Home Equity [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 183 | 196 | 196 |
Charge-offs | |||
Provisions | (7) | ||
Ending balance | 176 | 196 | 183 |
Ending balance: collectively evaluated for impairment | 176 | 183 | |
Ending balance: Loans receivables | 55,002 | 56,844 | |
Ending Balance: individually evaluated for impairment | 608 | 612 | |
Ending Balance: collectively evaluated for impairment | 54,394 | 56,232 | |
Reserve for unfunded loan commitments included in other liabilities | 17 | 17 | 18 |
Consumer: Other [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 63 | 61 | 61 |
Charge-offs | (12) | (10) | |
Provisions | 4 | 12 | |
Ending balance | 55 | 63 | 63 |
Ending balance: individually evaluated for impairment | 8 | 12 | |
Ending balance: collectively evaluated for impairment | 47 | 51 | |
Ending balance: Loans receivables | 5,426 | 5,677 | |
Ending Balance: individually evaluated for impairment | 311 | 245 | |
Ending Balance: collectively evaluated for impairment | 5,115 | 5,432 | |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 547 | 558 | 558 |
Charge-offs | |||
Provisions | 31 | (76) | |
Ending balance | 578 | $ 482 | 547 |
Ending balance: collectively evaluated for impairment | $ 578 | $ 547 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders, Income | $ 2,613 | $ 2,441 |
Income available to common stockholders after assumed conversions, Income | $ 2,613 | $ 2,441 |
Net income available to common stockholders, Shares | 4,290,971 | 4,246,593 |
Effect of potential dilutive common stock equivalents– stock options and restricted shares, Shares | 18,000 | 27,000 |
Income available to common stockholders after assumed conversions, Shares | 4,308,847 | 4,274,209 |
Net Income available to common stockholders, Amount | $ 0.61 | $ 0.57 |
Income available to common stockholders after assumed conversions, Amount | $ 0.61 | $ 0.57 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Net unrealized loss on AFS securities, Before-Tax Amount | $ (2,786) | $ (1,772) |
Net unrealized loss on AFS securities, Tax Effect | 585 | 603 |
Net unrealized loss on AFS securities, Net-of-Tax Amount | (2,201) | (1,169) |
Unrealized actuarial losses-pension, Before-Tax Amount | (1,849) | (1,849) |
Unrealized actuarial losses-pension, Tax Effect | 388 | 628 |
Unrealized actuarial losses-pension, Net-of-Tax Amount | (1,461) | (1,221) |
Total of all items above, Before-Tax Amount | (4,635) | (3,621) |
Total of all items above, Tax Effect | 973 | 1,231 |
Accumulated other comprehensive loss, net of tax | $ (3,662) | $ (2,390) |
Subordinated Debentures, Note47
Subordinated Debentures, Notes, And Other Borrowings (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Mar. 05, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Number of issuances of junior subordinated debentures | item | 2 | ||
Repurchase agreements | $ 10,717,000 | $ 12,023,000 | |
State and municipal securites sold | $ 10,900,000 | $ 12,300,000 | |
Repurchase agreement amount, percentage | 102.00% | 102.00% | |
Subordinated Note [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate period, in years | 5 years | ||
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] | |||
Subordinate notes bearing fixed interest rate | 4.25% | ||
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% | ||
Subordinate notes bearing 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, Note48
Subordinated Debentures, Notes, And Other Borrowings (Repurchase Agreements Accounted for as Secured Borrowings) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements and repurchase-to-maturity transactions | $ 10,717 | $ 12,023 |
Gross amount of recognized liabilities for repurchase agreements in statement of condition | 10,717 | 12,023 |
Maturity Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase agreements and repurchase-to-maturity transactions | 10,717 | 12,023 |
Gross amount of recognized liabilities for repurchase agreements in statement of condition | $ 10,717 | $ 12,023 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares issued | 10,750 | |||
Exercise of stock options, shares | 2,100 | 13,700 | ||
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 issuable shares of common stock | 493,101 | |||
Share issuance, restricted sale period | 1 year | |||
Shares available for future grants | 304,159 | |||
Stock based compensation | $ 96 | $ 107 | ||
Share based compensation cost not yet recognized | $ 664 | |||
Share based compensation cost not yet recognized, period for recognition | 1 year 8 months 5 days | |||
Incentive Equity And Deferred Compensation Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares issued | 1,400 | |||
Increase in shares outstanding | 896 | |||
Cash equivalent shares used to pay taxes | 504 | |||
Employees And Directors Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of issuable shares of common stock | 793,368 | |||
Shares available for future grants | 354,090 | |||
Stock based compensation | $ 0 | $ 0 | ||
Increase in shares outstanding | 966 | 6,623 | ||
Cash equivalent shares used to pay taxes | 1,134 | 7,077 | ||
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-Based Compensation [Abstract] | ||
Beginning balance, Outstanding | 16,450 | 49,700 |
Beginning balance, Weighted Average Exercise Price | $ 10.31 | $ 9.18 |
Issued | ||
Issued, Weighted Average Exercise Price | ||
Exercised | 2,100 | 13,700 |
Exercised, Weighted Average Exercise Price | $ 10.31 | $ 7.42 |
Forfeited | ||
Forfeited, Weighted Average Exercise Price | ||
Expired | ||
Expired, Weighted Average Exercise Price | ||
Ending balance, Outstanding | 14,350 | 36,000 |
Ending balance, Weighted Average Exercise Price | $ 10.31 | $ 9.85 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
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 | 14,350 | 16,450 |
Number Exercisable | 14,350 | 16,450 |
Weighted Average Exercise Price | $ 10.31 | $ 10.31 |
Weighted Average Remaining Contractual Life | 8 months 12 days | 11 months 12 days |
Intrinsic Value | $ 364 | $ 385 |
Stock-Based Compensation (Sto52
Stock-Based Compensation (Stock Grant Activity) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-Based Compensation [Abstract] | ||
Non-vested stock awards, Shares, beginning balance | 31,130 | 55,775 |
Granted | 10,750 | |
Forfeited | 250 | |
Vested | 1,400 | |
Non-vested stock awards, Shares, ending balance | 40,230 | 55,775 |
Non-vested stock awards, Weighted Average Stock Price | $ 26.53 | $ 25.63 |
Granted, Weighted Average Stock Price | 33.98 | |
Forfeited, Weighted Average Stock Price | 28 | |
Vested, Weighted Average Stock Price | 25.84 | |
Non-vested stock awards, Weighted Average Stock Price | $ 28.53 | $ 25.63 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - Federal And State [Member] | 3 Months Ended |
Mar. 31, 2018 | |
Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year for examinations | 2,014 |
Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open tax year for examinations | 2,016 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total recorded investment | $ 10,304 | $ 9,130 | |
Recorded Investment, with allowance recorded | 1,107 | 491 | |
Impaired Financing Receivable, Related Allowance | 174 | 157 | |
Additional impaired financing receivable | 0 | 1,900 | |
Partially charged down loans | 442 | ||
Total fair value of impaired loans | 1,800 | ||
Other real estate owned & other repossessed property | 4,993 | 5,012 | |
OREO | 4,800 | 4,800 | |
Other repossessed property | 158 | 177 | |
Transfers from level 1 to level 2 | 0 | ||
Transfers from level 2 to level 1 | 0 | ||
Brokered deposits | 61,598 | 41,812 | |
Brokered deposits maturing in 2018 | 4,100 | ||
Brokered deposits maturing in 2019 | 10,900 | ||
Brokered deposits maturing in 2020 | 28,400 | ||
Brokered deposits maturing in 2021 | 13,200 | ||
Brokered deposits maturing in 2022 | 5,000 | ||
Un-funded Loan Commitments [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks liability amount | 199,600 | 176,600 | |
Stand-by Letters of Credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Off-balance sheet risks liability amount | 3,500 | 4,600 | |
Estimated Fair Value [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Recorded Investment, with allowance recorded | 933 | 334 | |
Fair value of additional impaired financing receivable recorded investment | 1,500 | ||
Brokered deposits | 60,033 | $ 42,304 | |
Other Real Estate Owned [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Amount of write-down recognized on real estate | $ 0 | $ 0 |
Fair Value (Assets Measured at
Fair Value (Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | $ 108,889 | $ 111,783 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 108,889 | 111,783 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 933 | 1,814 |
OREO & other repossessed property | 14 | 817 |
Total | 947 | 2,631 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 108,889 | 111,783 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 108,889 | 111,783 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 933 | 1,814 |
OREO & other repossessed property | 14 | 817 |
Total | 947 | 2,631 |
US Government Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 52,663 | 52,893 |
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 | 52,663 | 52,893 |
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 | 52,663 | 52,893 |
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 | 30,587 | 32,488 |
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 | 30,587 | 32,488 |
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 | 30,587 | 32,488 |
Collateralized Mortgage Obligations GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 11,103 | 11,654 |
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 | 11,103 | 11,654 |
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 | 11,103 | 11,654 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 12,711 | 12,820 |
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 | 12,711 | 12,820 |
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 | 12,711 | 12,820 |
State and Municipal Tax-Exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for Sale Securities | 1,825 | 1,928 |
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 | 1,825 | 1,928 |
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 | $ 1,825 | $ 1,928 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 933 | $ 1,814 | |
Other real estate owned, fair value | 14 | 817 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 933 | 1,814 | |
Other real estate owned, fair value | 14 | 817 | |
Level 3 [Member] | Residential Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 4 | ||
Level 3 [Member] | Commercial Mortgage [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 59 | 46 | |
Level 3 [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 781 | 1,648 | |
Level 3 [Member] | Consumer: Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 93 | $ 116 | |
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% | |
Disposal costs | [1],[2] | (8.00%) | |
Level 3 [Member] | Minimum [Member] | Commercial 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% | 0.00% |
Disposal costs | [1],[2] | (8.00%) | 0.00% |
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% | |
Disposal costs | [1],[2] | (8.00%) | |
Level 3 [Member] | Maximum [Member] | Commercial 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] | Maximum [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | (50.00%) |
Disposal costs | [1],[2] | (11.00%) | (9.00%) |
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% | |
Disposal costs | [1],[2] | (8.00%) | |
Level 3 [Member] | Weighted Average [Member] | Commercial 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] | Weighted Average [Member] | Commercial Term [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Appraisal adjustments | [1],[2] | 0.00% | (6.00%) |
Disposal costs | [1],[2] | (10.00%) | (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 (Carrying Amounts an
Fair Value (Carrying Amounts and Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
AFS investment securities | $ 108,889 | $ 111,783 |
HTM investment securities | 62,219 | 62,390 |
Loans held-for-sale | 646 | 651 |
Time | 115,214 | 140,490 |
Brokered deposits | 61,598 | 41,812 |
Subordinated debt | 9,750 | 9,750 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 14,078 | 10,917 |
AFS investment securities | 108,889 | 111,783 |
HTM investment securities | 62,219 | 62,390 |
Restricted stock | 7,363 | 7,641 |
Loans held-for-sale | 646 | 651 |
Loans, net of allowance, including impaired | 858,200 | 840,054 |
Accrued interest receivable | 3,982 | 3,822 |
Non-interest-bearing deposits | 172,044 | 176,815 |
Other interest-bearing deposits | 542,930 | 502,086 |
Time | 115,214 | 140,490 |
Brokered deposits | 61,598 | 41,812 |
Repurchase agreements | 10,717 | 12,023 |
FHLBP advances | 67,993 | 79,013 |
Junior subordinated debentures and other borrowings | 9,279 | 9,279 |
Subordinated debt | 9,750 | 9,750 |
Accrued interest payable | 494 | 554 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 14,078 | 10,917 |
AFS investment securities | 108,889 | 111,783 |
HTM investment securities | 61,004 | 62,420 |
Restricted stock | 7,363 | 7,641 |
Loans held-for-sale | 648 | 657 |
Loans, net of allowance, including impaired | 847,545 | 821,672 |
Accrued interest receivable | 3,982 | 3,822 |
Non-interest-bearing deposits | 172,044 | 176,815 |
Other interest-bearing deposits | 542,930 | 502,086 |
Time | 113,940 | 139,406 |
Brokered deposits | 60,033 | 42,304 |
Repurchase agreements | 10,717 | 12,023 |
FHLBP advances | 67,136 | 78,531 |
Junior subordinated debentures and other borrowings | 9,798 | 9,373 |
Subordinated debt | 9,423 | 9,577 |
Accrued interest payable | 494 | 554 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 14,078 | 10,917 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
AFS investment securities | 108,889 | 111,783 |
HTM investment securities | 59,004 | 60,420 |
Restricted stock | 7,363 | 7,641 |
Accrued interest receivable | 3,982 | 3,822 |
Non-interest-bearing deposits | 172,044 | 176,815 |
Other interest-bearing deposits | 542,930 | 502,086 |
Time | 113,940 | 139,406 |
Brokered deposits | 60,033 | 42,304 |
Repurchase agreements | 10,717 | 12,023 |
FHLBP advances | 67,136 | 78,531 |
Junior subordinated debentures and other borrowings | 9,798 | 9,373 |
Subordinated debt | 9,423 | 9,577 |
Accrued interest payable | 494 | 554 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
HTM investment securities | 2,000 | 2,000 |
Loans held-for-sale | 648 | 657 |
Loans, net of allowance, including impaired | $ 847,545 | $ 821,672 |