Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 16, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | JUNIATA VALLEY FINANCIAL CORP | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 100,318,551 | ||
Entity Common Stock, Shares Outstanding | 5,109,259 | ||
Entity Central Index Key | 0000714712 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 12,658 | $ 15,617 |
Interest bearing deposits with banks | 82 | 110 |
Federal funds sold | 729 | |
Cash and cash equivalents | 12,740 | 16,456 |
Interest bearing time deposits with banks | 2,210 | 3,290 |
Equity securities | 1,144 | 1,118 |
Debt securities available for sale | 210,686 | 141,953 |
Restricted investment in bank stock | 3,442 | 2,441 |
Total loans | 400,590 | 417,631 |
Less: Allowance for loan losses | (2,961) | (3,034) |
Total loans, net of allowance for loan losses | 397,629 | 414,597 |
Premises and equipment, net | 9,243 | 8,744 |
Other real estate owned | 744 | |
Bank owned life insurance and annuities | 16,266 | 15,938 |
Investment in low income housing partnerships | 3,904 | 4,545 |
Core deposit and other intangible assets | 318 | 405 |
Goodwill | 9,047 | 9,139 |
Mortgage servicing rights | 180 | 200 |
Accrued interest receivable and other assets | 3,823 | 5,666 |
Total assets | 670,632 | 625,236 |
Liabilities: | ||
Deposits: Non-interest bearing | 134,703 | 126,057 |
Deposits: Interest bearing | 397,234 | 395,665 |
Total deposits | 531,937 | 521,722 |
Short-term borrowings and repurchase agreements | 13,129 | 14,511 |
Long-term debt | 45,000 | 15,000 |
Other interest bearing liabilities | 1,603 | 1,596 |
Accrued interest payable and other liabilities | 5,256 | 5,029 |
Total liabilities | 596,925 | 557,858 |
Commitments and contingent liabilities | ||
Stockholders' Equity: | ||
Preferred stock, no par value: Authorized - 500,000 shares, none issued | ||
Common stock, par value $1.00 per share: Authorized 20,000,000 shares Issued - 5,141,749 shares at December 31, 2019; 5,134,249 shares at December 31, 2018 Outstanding - 5,099,729 shares at December 31, 2019; 5,092,048 shares at December 31, 2018 | 5,142 | 5,134 |
Surplus | 24,898 | 24,821 |
Retained earnings | 43,954 | 42,525 |
Accumulated other comprehensive income (loss) | 516 | (4,299) |
Cost of common stock in Treasury: 42,020 shares at December 31, 2019; 42,201 shares at December 31, 2018 | (803) | (803) |
Total stockholders' equity | 73,707 | 67,378 |
Total liabilities and stockholders' equity | $ 670,632 | $ 625,236 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Statements of Financial Condition [Abstract] | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, authorized | 500,000 | 500,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares Issued | 5,141,749 | 5,134,249 |
Common Stock, Shares, Outstanding | 5,099,729 | 5,092,048 |
Treasury Stock, Shares | 42,020 | 42,201 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | ||
Loans, including fees | $ 21,060 | $ 20,060 |
Taxable securities | 4,115 | 3,040 |
Tax-exempt securities | 147 | 393 |
Other interest income | 292 | 158 |
Total interest income | 25,614 | 23,651 |
Interest expense: | ||
Deposits | 3,706 | 3,068 |
Short-term borrowings and repurchase agreements | 61 | 252 |
Long-term debt | 899 | 276 |
Other interest bearing liabilities | 42 | 39 |
Total interest expense | 4,708 | 3,635 |
Net interest income | 20,906 | 20,016 |
Provision for loan losses | (573) | 337 |
Net interest income after provision for loan losses | 21,479 | 19,679 |
Non-interest income: | ||
Earnings on bank-owned life insurance and annuities | 289 | 352 |
Income/gain from unconsolidated subsidiary | 296 | |
Gain (loss) on sales and calls of securities | (43) | (188) |
Change in value of equity securities | 26 | (1) |
Other non-interest income | 344 | 334 |
Total non-interest income | 4,749 | 5,027 |
Non-interest expense: | ||
Employee compensation expense | 8,257 | 7,822 |
Employee benefits | 3,594 | 2,458 |
Occupancy | 1,296 | 1,217 |
Equipment | 881 | 818 |
Data processing expense | 2,114 | 1,924 |
Director compensation | 206 | 215 |
Professional fees | 961 | 640 |
Taxes, other than income | 567 | 498 |
FDIC Insurance premiums | 108 | 274 |
Loss (gain) on sales of other real estate owned | (208) | (60) |
Amortization of intangible assets | 87 | 79 |
Amortization of investment in low income housing partnerships | 792 | 800 |
Merger and acquisition expense | 884 | |
Other non-interest expense | 1,752 | 1,892 |
Total non-interest expense | 20,407 | 19,461 |
Income before income taxes | 5,821 | 5,245 |
Income tax provision (benefit) | (14) | (659) |
Net income | $ 5,835 | $ 5,904 |
Earnings per share | ||
Basic | $ 1.14 | $ 1.18 |
Diluted | $ 1.14 | $ 1.18 |
Customer Service Fees [Member] | ||
Non-interest income: | ||
Non-interest income | $ 1,717 | $ 1,779 |
Debit Card fee Income [Member] | ||
Non-interest income: | ||
Non-interest income | 1,349 | 1,280 |
Trust Fees [Member] | ||
Non-interest income: | ||
Non-interest income | 394 | 430 |
Commissions from Sales of Non-Deposit Products [Member] | ||
Non-interest income: | ||
Non-interest income | 272 | 259 |
Fees Derived From Loan Activity [Member] | ||
Non-interest income: | ||
Non-interest income | 333 | 416 |
Mortgage Banking Income [Member] | ||
Non-interest income: | ||
Non-interest income | $ 68 | $ 70 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income: Pre-Tax Amount | $ 5,821 | $ 5,245 |
Net Income: Tax Effect | 14 | 659 |
Net income: Net-of-Tax Amount | 5,835 | 5,904 |
Other comprehensive income (loss): | ||
Unrealized holding gains arising during the period: Pre-Tax Amount | 3,961 | (1,216) |
Unrealized holding gains (losses) arising during the period: Tax Effect | (832) | 255 |
Unrealized holding losses arising during the period: Net-of-Tax Amount | 3,129 | (961) |
Unrealized holding gain from unconsolidated subsidiary: Pre-Tax Amount | 5 | |
Unrealized holding gain from unconsolidated subsidiary: Net-of-Tax Amount | 5 | |
Less reclassification adjustment for losses included in net income for sales of debt securities: Pre-Tax Amount | 43 | 188 |
Less reclassification adjustment for losses (gains) included in net income for sales of debt securities: Tax Effect | (9) | (39) |
Less reclassification adjustment for: gains included in net income: Net-of-Tax Amount | 34 | 149 |
Pension net loss (gain): Pre-Tax Amount | 2,399 | (55) |
Pension net loss (gain): Tax Effect | (504) | 11 |
Pension net loss (gain): Net-of-Tax Amount | 1,895 | (44) |
Pension (loss) gain due to change in assumptions: Pre-Tax Amount | (1,478) | 601 |
Pension (loss) gain due to change in assumptions: Tax Effect | 310 | (126) |
Pension (loss) gain due to change in assumptions: Net-of-Tax Amount | (1,168) | 475 |
Amortization of pension net actuarial loss: Pre-Tax Amount | 1,276 | 338 |
Amortization of net pension actuarial loss: Tax Effect | (268) | (71) |
Amortization of net pension actuarial cost: Net-of-Tax Amount | 1,008 | 267 |
Other comprehensive income (loss): Pre-Tax Amount | 6,201 | (139) |
Other comprehensive income (loss): Tax Effect | (1,303) | 30 |
Other comprehensive income (loss): Net-of-Tax Amount | 4,898 | (109) |
Total comprehensive income: Pre-Tax Amount | 12,022 | 5,106 |
Total comprehensive income: Tax Effect | (1,289) | 689 |
Total comprehensive income: Net-of-Tax Amount | $ 10,733 | $ 5,795 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Beginning balance at Dec. 31, 2017 | $ 4,811 | $ 18,565 | $ 40,876 | $ (4,034) | $ (831) | $ 59,387 |
Beginning balance, shares at Dec. 31, 2017 | 4,767,656 | |||||
Net income | 5,904 | 5,904 | ||||
Other comprehensive income (loss) | (109) | (109) | ||||
Reclassification for ASU 2016-01 | 156 | (156) | ||||
Cash dividends at $0.88 per share | (4,411) | (4,411) | ||||
Stock-based compensation | 82 | 82 | ||||
Purchase of treasury stock | $ (70) | (70) | ||||
Purchase of treasury stock, shares | (3,416) | (3,416) | ||||
Treasury stock issued for stock plans | (8) | $ 98 | 90 | |||
Treasury stock issued for stock plans, shares | 5,170 | |||||
Common stock issued for stock plans | $ 8 | 34 | $ 42 | |||
Common stock issued for stock plans, shares | 7,354 | 2,134 | ||||
Common stock issued for acquisition | $ 315 | 6,148 | $ 6,463 | |||
Common stock issued acquisition, shares | 315,284 | |||||
Ending balance at Dec. 31, 2018 | $ 5,134 | 24,821 | 42,525 | (4,299) | (803) | $ 67,378 |
Ending balance, shares at Dec. 31, 2018 | 5,092,048 | 5,092,048 | ||||
Net income | 5,835 | $ 5,835 | ||||
Other comprehensive income (loss) | 4,898 | 4,898 | ||||
Reclassification for ASU | 83 | (83) | ||||
Cash dividends at $0.88 per share | (4,489) | (4,489) | ||||
Stock-based compensation | 113 | $ 113 | ||||
Forfeiture of restricted stock, Shares | (800) | (800) | ||||
Purchase of treasury stock | $ (428) | $ (428) | ||||
Purchase of treasury stock, shares | (21,508) | (21,508) | ||||
Treasury stock issued for stock plans | (28) | $ 428 | $ 400 | |||
Treasury stock issued for stock plans, shares | 22,489 | 1,880 | ||||
Common stock issued for stock plans | $ 8 | (8) | ||||
Common stock issued for stock plans, shares | 7,500 | |||||
Ending balance at Dec. 31, 2019 | $ 5,142 | $ 24,898 | $ 43,954 | $ 516 | $ (803) | $ 73,707 |
Ending balance, shares at Dec. 31, 2019 | 5,099,729 | 5,099,729 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of in Stockholders' Equity [Abstract] | ||
Cash Dividends at per share | $ 0.88 | $ 0.88 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | ||
Net income | $ 5,835,000 | $ 5,904,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | (573,000) | 337,000 |
Depreciation | 801,000 | 815,000 |
Net amortization of securities premiums | 817,000 | 540,000 |
Net amortization of loan origination fees | 96,000 | 43,000 |
Deferred net loan origination costs | (437,000) | (348,000) |
Amortization of intangibles | 87,000 | 79,000 |
Amortization of investment in low income housing partnerships | 792,000 | 800,000 |
Net amortization of purchase fair value adjustments | (187,000) | (102,000) |
Net realized loss on sales and calls of available for sale securities | 43,000 | 188,000 |
Change in value of equity securities | (26,000) | 1,000 |
Net gain on sales of other real estate owned | (208,000) | (60,000) |
Earnings on bank owned life insurance and annuities | (289,000) | (352,000) |
Deferred income tax expense (benefit) | (782,000) | (96,000) |
Income/gain from unconsolidated subsidiary, net of dividends of $0 and $75, respectively | 194,000 | |
Equity gain from acquisition of unconsolidated subsidiary | (415,000) | |
Stock-based compensation expense | 113,000 | 82,000 |
Proceeds from mortgage loans sold to others | 88,000 | 95,000 |
Mortgage banking income | (68,000) | (70,000) |
Decrease (increase) in accrued interest receivable and other assets | 1,872,000 | (1,493,000) |
Increase (decrease) in accrued interest payable and other liabilities | 1,967,000 | (821,000) |
Net cash provided by operating activities | 9,941,000 | 5,321,000 |
Investing activities: | ||
Purchases of: Securities available for sale | (125,422,000) | (20,610,000) |
Purchases of: FHLB stock | (1,001,000) | |
Purchases of: Premises and equipment | (1,308,000) | (548,000) |
Purchases of: Bank owned life insurance and annuities | (39,000) | (39,000) |
Proceeds from: Sales of securities available for sale | 21,777,000 | 10,461,000 |
Proceeds from: Maturities of and principal repayments on securities available for sale | 38,056,000 | 19,145,000 |
Proceeds from: Redemption of FHLB stock | 787,000 | |
Proceeds from: Sale of other real estate owned | 952,000 | 352,000 |
Proceeds from: Sale of fixed assets | 7,000 | |
Proceeds from: Sale of other assets | 13,000 | 22,000 |
Net cash received from acquisition | 7,561,000 | |
Investment in low income housing partnerships | (151,000) | (100,000) |
Net decrease in interest bearing time deposits with banks | 1,080,000 | 735,000 |
Net decrease (increase) in loans | 18,068,000 | (2,931,000) |
Net cash (used in) provided by investing activities | (47,968,000) | 14,835,000 |
Financing activities: | ||
Net increase in deposits | 10,210,000 | 8,010,000 |
Net decrease in short-term borrowings and securities sold under agreements to repurchase | (1,382,000) | (7,258,000) |
Issuance of long-term debt | 45,000,000 | |
Repayment of long-term debt | (15,000,000) | (10,000,000) |
Cash dividends | (4,489,000) | (4,411,000) |
Purchase of treasury stock | (428,000) | (70,000) |
Treasury stock issued for employee stock plans | 400,000 | 90,000 |
Common stock issued for employee stock plans | 42,000 | |
Net cash provided by (used in) financing activities | 34,311,000 | (13,597,000) |
Net (decrease) increase in cash and cash equivalents | (3,716,000) | 6,559,000 |
Cash and cash equivalents at beginning of year | 16,456,000 | 9,897,000 |
Cash and cash equivalents at end of period | 12,740,000 | 16,456,000 |
Supplemental information: | ||
Interest paid | 4,524,000 | 3,646,000 |
Income tax paid | 243,000 | (663,000) |
Supplemental schedule of noncash investing and financing activities: | ||
Transfer of loans to other real estate owned | 681,000 | |
Transfer of loans to repossessed vehicles | 7,000 | 12,000 |
Right-of-Use assets obtained in exchange for lease obligations | $ 556,000 | |
Assets acquired: | ||
Investment in time deposits with banks | 3,675,000 | |
Loans | 31,331,000 | |
Premises and equipment | 125,000 | |
Accrued interest receivable | 123,000 | |
Core deposit and other intangible assets | 289,000 | |
Bank owned life insurance | 632,000 | |
FHLB stock | 124,000 | |
Other assets | 267,000 | |
Assets acquired, total | 36,566,000 | |
Liabilities assumed: | ||
Deposits | 36,052,000 | |
Accrued interest payable and other liabilities | 266,000 | |
Liabilities assumed, total | $ 36,318,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Cash Flows [Abstract] | ||
Equity method investment, dividends | $ 0 | $ 75 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations [Abstract] | |
Nature of Operations | 1. NATURE OF OPERATIONS Juniata Valley Financial Corp. (“Juniata” or the “Company”) is a bank holding company operating in central Pennsylvania for the purpose of delivering financial services within its local market. Through its wholly-owned banking subsidiary, The Juniata Valley Bank (the “Bank”), Juniata provides retail and commercial banking and other financial services through 16 branch locations located in Juniata, Mifflin, Perry, McKean, Potter and Huntingdon Counties. Additionally, in Mifflin, Juniata and Centre Counties, the Company maintains three offices for loan production, trust services and wealth management sales. Each of the Company’s lines of business are part of the same reporting segment, whose operating results are regularly reviewed and managed by a centralized executive management group. As a result, the Company has only one reportable segment for financial reporting purposes. The Bank provides a full range of banking services, including online and mobile banking, an automatic teller machine network, checking accounts, identity protection products for consumers, savings accounts, money market accounts, fixed rate certificates of deposit, club accounts, secured and unsecured commercial and consumer loans, construction and mortgage loans, safe deposit facilities and credit loans with overdraft checking protection. The Bank also provides a variety of trust services. The Company has a contractual arrangement with a broker-dealer to allow the offering of annuities, mutual funds, stock and bond brokerage services and long-term care insurance to its local market. The Bank operates under a state bank charter and is subject to regulation by the Pennsylvania Department of Banking and the Federal Deposit Insurance Corporation. Juniata is subject to regulation by the Board of Governors of the Federal Reserve Bank and the Pennsylvania Department of Banking and Securities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of Juniata Valley Financial Corp. and its wholly owned subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general financial services industry practices. A summary of the more significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows. Principles of Consolidation The consolidated financial statements include the accounts of Juniata Valley Financial Corp. and its wholly owned subsidiary, The Juniata Valley Bank. All significant intercompany transactions and balances have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the Juniata Valley and the JVB Northern Tier regions. Note 6 discusses the types of securities in which the Company invests. Note 7 discusses the types of lending in which the Company engages. As of December 31, 2019, credit exposure to lessors of non-residential buildings and dwellings represented 45% of capital, credit exposure to residential buildings and dwellings represented 32% of capital, credit exposure to hotels and motels represented 30% of capital, and credit exposure to continuing care retirement communities represented 26% of capital. Otherwise, there were no concentrations of credit to any particular industry equaling more than 10% of total capital. The Bank’s business activities are geographically concentrated in the counties of Juniata, Mifflin, Perry, Huntingdon, Centre, Franklin, McKean, Potter and Snyder, Pennsylvania. The Bank has a diversified loan portfolio; however, a substantial portion of its debtors’ ability to honor their obligations is dependent upon the economy in central Pennsylvania. Revenue Recognition The Company generally acts in a principal capacity, on its own behalf, in most contracts with customers. In such transactions, revenue and related costs to provide these services are recognized on a gross basis in the financial statements. In some cases, the Company acts in an agent capacity, deriving revenue through assisting other entities in transactions with its customers. In such transactions, revenue and the related costs to provide the services are recognized on a net basis in the financial statements. These transactions primarily relate to non-deposit product commissions and fees derived from customer’s use of various interchange and ATM/debit card networks. All of the Company’s revenue from contracts with customers in the scope of ASC Topic 606, Revenue from Contracts with Customers , are recognized within non-interest income on the consolidated statements of income. Revenue streams not within the scope of ASC 606 included in non-interest income on the consolidated statements of income include earnings on bank-owned life insurance and annuities, income from unconsolidated subsidiary, fees derived from loan activity, mortgage banking income, gain/loss on sales and calls of securities, and the change in value of equity securities. Refer to Note 20 for a description of the Company’s sources of revenue accounted for under ASC 606. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing demand deposits with banks and federal funds sold. Generally, federal funds are sold for one-day periods. Interest Bearing Time Deposits with Banks Interest-bearing time deposits with banks consist of certificates of deposits in other banks with original maturities of greater than 90 days. These time deposits all have maturities within five years. Securities Debt securities classified as available for sale are stated at fair value, with the unrealized gains and losses, net of tax, reported as a component of other comprehensive income (loss). Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Interest and dividends are recognized as income when earned. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company had no securities classified as held to maturity at December 31, 2019 and 2018. Management evaluates debt securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. As of January 1, 2018, upon the adoption of ASU 2016‑01, all of the Company’ equity securities are within the scope of ASC 321, Investments – Equity Securities , while debt securities remain under ASC 320, Investments – Debt Securities . ASC 321 requires all equity securities within its scope to be measured at fair value with changes in fair value recognized in net income. Restricted Investment in Bank Stock The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and my invest in additional amounts. The Bank also owns restricted stock investments in the Atlantic Community Bankers Bank (“ACBB”). Both the FHLB and ACBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity are stated at the outstanding unpaid principal balances, net of any deferred fees or costs and the allowance for loan losses. Interest income on all loans, other than non-accrual loans, is accrued over the term of the loans based on the amount of principal outstanding. The loan portfolio includes the following classes: (1) commercial, financial and agricultural, (2) real estate - commercial, (3) real estate - construction, (4) real estate – mortgage, (5) obligations of states and political subdivisions, and (6) personal loans. Interest income on consumer, mortgage and commercial loans is discontinued and loans are placed on non-accrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Loans are charged off to the extent principal or interest is deemed uncollectible. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Non-accrual loans and loans past due 90 days still on accrual include both homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan principal balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms for a reasonable period of time and future payments are reasonably assured. Loan Origination Fees and Costs Loan origination fees and related direct origination costs for a given loan are deferred and amortized over the life of the loan on a level-yield basis as an adjustment to interest income over the contractual life of the loan. As of December 31, 2019, the amount of net unamortized origination costs carried as an adjustment to outstanding loan balances was $70,000. As of December 31, 2018, the amount of net unamortized origination fees carried as an adjustment to outstanding loan balances was $11,000. Acquired Loans Loans that Juniata acquires through business combinations are recorded at fair value with no carryover of the related allowance for loan losses. Some of these loans have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics, such as credit score, loan type, and date of origination. Juniata estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. PCI loans that met the criteria for impairment or non-accrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Juniata expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, Juniata may no longer consider the loan to be non-accrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Loans acquired through business combinations that do not meet the specific criteria of ASC 310‑30, but for which a discount is attributable at least in part to credit quality, are also accounted for in accordance with this guidance. As a result, related discounts are recognized subsequently through accretion based on the contractual cash flows of the acquired loans. Allowance for Loan Losses The allowance for loan losses (“allowance”) represents management’s estimate of losses inherent in the loan portfolio as of the consolidated statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, as well as other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgement, should be charged off. For financial reporting purposes, the provision for loan losses charged to current operating income is based on management’s estimates, and actual losses may vary from estimates. These estimates are reviewed and adjusted at least quarterly and are reported in earnings in the periods in which they become known. Loans included in any class are considered for charge-off when: · principal or interest has been in default for 120 days or more and for which no payment has been received during the previous four months; · all collateral securing the loan has been liquidated and a deficiency balance remains; · a bankruptcy notice is received for an unsecured loan; · a confirming loss event has occurred; or · the loan is deemed to be uncollectible for any other reason. There are two components of the allowance: (1) specific allowances allocated to loans evaluated for impairment under ASC Section 310‑10‑35; and (2) allowances calculated for pools of loans evaluated collectively for impairment under ASC Subtopic 450‑20, Contingencies . The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loans and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Impairment for substantially all of the Company’s impaired loans is measured based on the estimated fair value of the loan’s collateral. For real estate - commercial loans, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the current appraisal and the condition of the property. Appraised values may be discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include the estimated costs to sell the property. For commercial, financial and agricultural, and obligations of states and political subdivision loans, estimated fair values are determined based on the borrower’s financial statements, inventory reports, aging accounts receivable, equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company generally does not separately identify individual consumer segment loans for impairment analysis, unless such loans are subject to a restructuring agreement. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. Loans whose terms are modified are classified as troubled debt restructurings if the Company grants borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a below-market interest rate based on the loan’s risk characteristics, an extension of a loan’s stated maturity date or a significant delay in payment. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period after modification. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio class. The general component of the allowance covers loans that are collectively evaluated for impairment. In accordance with ASC Subtopic 450‑20, when measuring estimated credit losses, these loans are grouped into homogenous pools with similar characteristics and evaluated collectively considering both quantitative measures, such as historical loss, and qualitative measures, in the form of environmental adjustments. Quantitative factor determination: An average annual loss rate is calculated for each pool through an analysis of historical losses over a five-year look-back period. Using data for each loan, a loss emergence period is determined within each class pool. The loss emergence period reflects the approximate length of time from the point when a loss is incurred (the loss trigger event) to the point of loss confirmation (the date of eventual charge-off). The loss emergence period is applied to the average annual loss to produce the quantitative factor for each pooled class. Qualitative factor determination: Historical loss rates computed in the quantitative component reflects an estimate of the level of incurred losses in the portfolio based on historical experience. Management considers that the current conditions may deviate from those that prevailed over the historical look-back period. Thus, the quantitative rates are an imperfect estimate, necessitating an evaluation of qualitative considerations (i.e. environmental factors) to incorporate these risks. Management considered qualitative, environmental risk factors including: · National, regional and local economic and business conditions, and developments that affect the collectability of the portfolio, including the condition of various market segments; · Changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified loans; · Changes in the nature and volume of the portfolio and terms of loans; · Changes in the experience, ability and depth of lending and credit management and other relevant staff; · Existence and effect of any concentrations of credit and changes in the level of such concentrations; · Changes in the quality of the loan review system; · Changes in lending policies and procedures including changes in underwriting standards and collection, charge-off and recovery practices; · Changes in the value of underlying collateral for collateral-dependent loans; and · Effect of external influences, including competition, legal and regulatory requirements. Within each loan class, an analysis was performed over a ten-year look-back period to discover peak historical losses, and with this data, management established ranges of risk from minimal to very high, for each risk factor, to produce a supportable anchor for risk assignment. Based on the framework for risk factor evaluation and range of adjustments established through the anchoring process, a risk assessment and corresponding adjustment was assigned for each class as of December 31, 2019. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. The combination of quantitative and qualitative factors was applied to year-end balances in each class to establish the overall allowance. Reserve for Unfunded Lending Commitments The reserve for unfunded lending commitments represents management’s estimate of probable incurred losses inherent in its unfunded lending commitments and is recorded in other liabilities on the consolidated statement of financial condition, when necessary. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. Loans Held for Sale and Mortgage Servicing Rights The Company has originated residential mortgage loans with the intent to sell. These individual loans were normally sold to the buyer immediately. The Company maintains servicing rights on these loans. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, which are included with mortgage banking income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The carrying amount of mortgage servicing rights was $180,000 and $200,000 at December 31, 2019 and 2018, respectively. Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. Servicing fees totaled $88,000 and $95,000 for the years ended December 31, 2019 and 2018, respectively. Late fees and ancillary fees related to loan servicing are not material. Commercial, Financial and Agricultural Lending The Company originates commercial, financial and agricultural loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is shorter and does not exceed the projected useful life of such machinery and equipment. Most business lines of credit are written with a five year maturity, subject to an annual review. Commercial, financial and agricultural loans are generally secured with short-term assets; however, in many cases, additional collateral, such as real estate, is provided as additional security for the loan. Loan-to-value maximum values have been established by the Company and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, etc. In underwriting commercial, financial and agricultural loans, an analysis of the borrower’s capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as an evaluation of conditions affecting the borrower, is performed. Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s analysis. Concentration analysis assists in identifying industry specific risk inherent in commercial, financial and agricultural lending. Mitigants include the identification of secondary and tertiary sources of repayment and appropriate increases in oversight. Commercial, financial and agricultural loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. Real Estate - Commercial Lending The Company engages in real estate - commercial lending in its primary market area and surrounding areas. The Company’s real estate - commercial portfolio is secured primarily by residential housing, commercial buildings, raw land and hotels. Generally, real estate - commercial loans have terms that do not exceed 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property and are typically secured by personal guarantees of the borrowers. As economic conditions deteriorate, the Company reduces its exposure in real estate loans with higher risk characteristics. In underwriting these loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing real estate - commercial loans originated by the Company are performed by independent appraisers. Real estate - commercial loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. Real Estate - Construction Lending The Company engages in real estate - construction lending in its primary market area and surrounding areas. The Company’s real estate - construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Company’s commercial real estate - construction loans are generally secured with the subject property, and advances are made in conformity with a pre-determined draw schedule supported by independent inspections. Terms of construction loans depend on the specifics of the project, such as estimated absorption rates, estimated time to complete, etc. In underwriting commercial real estate - construction loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, etc. Appraisals on properties securing real estate - commercial loans originated by the Company are performed by independent appraisers. Real estate - construction loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. The difficulty of estimating total construction costs adds to the risk as well. Real Estate - Mortgage Lending The Company’s real estate - mortgage portfolio is comprised of one-to-four family residential mortgages and commercial loans secured by one-to-four family properties. One-to-four family residential mortgage loan originations, including home equity installment and home equity lines of credit loans, are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within the Company’s market area or with customers primarily from the market area. The Company offers fixed-rate and adjustable rate real estate - mortgage loans with terms up to a maximum of 25 years for both permanent structures and those under construction. The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. Most of the Company’s residential real estate - mortgage loans originate with a loan-to-value of 80% or less. Home equity installment loans are secured by the borrower’s primary residence with a maximum loan-to-value of 80% and a maximum term of 15 years. Home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of 90% and a maximum term of 20 years. In underwriting one-to-four family residential real estate - mortgage loans, the Company evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability to repay is determined by the borrower’s employment history, current financial conditions, and credit background. The analysis is based primarily on the customer’s ability to repay and secondarily on the collateral or security. Most properties securing real estate - mortgage loans made by the Company are appraised by independent fee appraisers. The Company generally requires real estate - mortgage loan borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Company does not engage in sub-prime residential real estate - mortgage originations. Residential real estate - mortgage loans and home equity loans generally present a lower level of risk than certain other types of consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Company is in a subordinate position for the loan collateral. Obligations of States and Political Subdivisions The Company lends to local municipalities and other tax-exempt organizations. These loans are primarily tax-anticipation notes and, as such, carry little risk. Historically, the Company has never had a loss on any loan of this type. Personal Lending The Company offers a variety of secured and unsecured personal loans, including vehicle loans, mobile home loans and loans secured by savings deposits as well as other types of personal loans. Personal loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis of the borrower’s willingness and financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial conditions and credit background. Personal loans may entail greater credit risk than do residential mortgage loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and, thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit |
Recent Accounting Standards Upd
Recent Accounting Standards Update ("ASU") | 12 Months Ended |
Dec. 31, 2019 | |
Recent Accounting Standards Update ("ASU") [Abstract] | |
Recent Accounting Standards Update ("ASU") | 3. RECENT ACCOUNTING STANDARDS UPDATE (“ASU”) New Accounting Standards Adopted in 2019 ASU 2016‑02, Leases Issued: February 2016 Summary: The new standard established 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 are to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted ASU 2016‑02 on January 1, 2019 using the optional transition method. The Company also elected the following practical expedients: the package of practical expedients, combining lease and nonlease components by class of underlying asset, and using hindsight in determining the lease terms. The adoption of this standard resulted in the recording of a ROU asset and lease liability of $556,000 as of January 1, 2019 for the Company’s four operating lease obligations. The adoption of this standard did not have a material impact on the Company’s operations, cash flows or capital ratios, nor did it cause the Company to no longer be well capitalized. Please refer to Note 14 for additional information. Pending Accounting Standards ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Issued: June 2016 Summary: ASU 2016‑13 requires credit losses on most financial assets to be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD financial assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available for sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Effective Date: On October 16, 2019, the FASB voted and approved to delay the effective date of this ASU for smaller reporting companies until fiscal years beginning after December 15, 2022. Since the Company is a smaller reporting company, the approved delay by the FASB is applicable. While the Company’s senior management is currently in the process of evaluating the impact of the amended guidance on its consolidated financial statements and disclosures, it expects the allowance for loan and lease losses (“ALLL”) to increase upon adoption given that the allowance will be required to cover the full remaining expected life of the portfolio, rather than the incurred loss under current U.S. GAAP. The extent of this increase is still being evaluated and will depend on economic conditions and the composition of the Company’s loan portfolio at the time of adoption. In preparation, the Company has taken steps to prepare for the implementation when it becomes effective by forming an internal taskforce, gathering pertinent data, participating in training courses, and partnering with a software provider that specializes in ALLL analysis, as well as assessing the sufficiency of data currently available through its core database. |
Merger
Merger | 12 Months Ended |
Dec. 31, 2019 | |
Merger [Abstract] | |
Merger | 4. MERGER On April 30, 2018, the Company completed the acquisition of Liverpool Community Bank, a Pennsylvania state-chartered bank with one branch location in Liverpool, Perry County. Liverpool was merged with and into The Juniata Valley Bank. As of the merger date, Liverpool had assets of $45,360,000, loans of $32,091,000, and equity of $9,246,000. Prior to the acquisition, Juniata owned 1,214, or 39.16%, of the 3,100 outstanding common shares of Liverpool. The merger was accounted for using the acquisition method of accounting, in accordance with the provisions of ASC 805, Business Combinations. Juniata obtained control over Liverpool in a step acquisition by acquiring the previously unowned interest in Liverpool. As such, Juniata was required to remeasure its previously held equity interest in Liverpool at its acquisition date fair value and recognize the resulting gain in earnings. The purchase price for the step acquisition was calculated as the aggregate of the consideration transferred for the newly acquired interest (Step Two - 60.84% interest) and the fair value of Juniata’s previously held equity interest (Step One - 39.16% interest) in Liverpool. On April 30, 2018, Juniata’s Step One adjusted basis in Liverpool was $5,037,000, which included a $415,000 equity gain from the acquisition, in addition to Juniata’s basis in Liverpool of $4,622,000 prior to the recording of the equity gain. Liverpool shareholders (other than Juniata, whose Liverpool common stock owned of record or beneficially was cancelled) received either: (i) 202.6286 shares of common stock of Juniata or (ii) $4,050.00 in cash in exchange for each share of Liverpool common stock subject to the limitation that cash would be paid for no more than 20% and no less than 15% of Liverpool’s outstanding common stock. As a result, Juniata issued 315,284 shares of common stock with an acquisition date fair value of approximately $6,463,000, based on Juniata’s closing stock price of $20.50 on April 30, 2018, and cash of $1,362,000, including cash in lieu of fractional shares for a total Step Two purchase price consideration of $7,825,000. The total purchase price of the merger, including both the Step One adjusted basis and Step Two purchase price consideration, was $12,862,000. The assets and liabilities of Liverpool were recorded on the consolidated balance sheet at their estimated fair value as of April 30, 2018, and its results of operations have been included in the consolidated income statement since such date. The allocation of the purchase price is as follows: (Dollars in thousands) Recorded at April 30, 2018 Step One Purchase Price Consideration April 30, 2018 JUVF basis in LCB (before gain) $ 4,622 Increase in Step One basis from equity gain in acquisition 415 Total Step One adjusted basis 5,037 Step Two Purchase Price Consideration Purchase price assigned to LCB common shares exchanged for 315,284 JUVF common shares $ 6,463 Purchase price assigned to LCB common shares exchanged for cash including cash in lieu of fractional shares 1,362 Total Step Two purchase price consideration 7,825 Total purchase price 12,862 LCB net assets acquired: Tangible common equity 9,246 Adjustments to reflect assets acquired and liabilities assumed at fair value: Total fair value adjustments (95) Associated deferred income taxes 20 Fair value adjustment to net assets acquired, net of tax (75) Total LCB net assets acquired 9,171 Goodwill resulting from the merger $ 3,691 The following table summarizes the estimated fair value of the assets acquired and liabilities assumed. (Dollars in thousands) Recorded at April 30, 2018 Total purchase price $ 12,862 Net assets acquired: Cash and cash equivalents 8,923 Investments in time deposits with banks 3,675 Loans 31,331 Premises and equipment 125 Accrued interest receivable 123 Core deposit and other intangibles 289 Bank owned life insurance 632 FHLB stock 124 Other assets 267 Deposits (36,052) Accrued interest payable (17) Other liabilities (249) 9,171 Goodwill $ 3,691 The purchase price included goodwill and a core deposit intangible of $3,691,000 and $289,000, respectively. The core deposit intangible will be amortized over a ten-year period using a sum of the year’s digits basis. The goodwill will not be amortized but will be tested annually for impairment, or more frequently if circumstances require. ASC 805 allows for adjustments to the estimated fair value of assets and liabilities, and the resulting goodwill for a period of up to one year after the merger date for new information that becomes available reflecting circumstances at the merger date. During the first quarter of 2019, Juniata recorded a $92,000 credit to goodwill relating to the tax treatment of Liverpool’s acquired net operating loss resulting in goodwill related to the Liverpool acquisition of $3,599,000. The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $32,091,000. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at April 30, 2018 $ 32,091 Market rate adjustment 272 Credit fair value adjustment on pools of homogeneous loans (496) Credit fair value adjustment on purchased credit impaired loans (622) Reversal of existing deferred fees and premiums 86 Fair value of purchased loans at April 30, 2018 $ 31,331 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the stated rates of the acquired loans. The credit adjustment made on pools of homogeneous loans represents the changes in credit quality of the underlying borrowers from the loan inception to the acquisition date. The credit adjustment on impaired loans is derived in accordance with ASC 310‑30 and represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan. Summarized below is the acquired Liverpool purchased credit impaired loan portfolio as of April 30, 2018. (Dollars in thousands) Contractually required principal and interest at acquisition $ 2,022 Contractual cash flows not expected to be collected (nonaccretable discount) (1,273) Expected cash flows at acquisition 749 Interest component of expected cash flows (accretable discount) (177) Fair value of acquired loans $ 572 The following table presents unaudited pro forma information as if the merger between Juniata and Liverpool had been completed on January 1, 2017. The pro forma information does not necessarily reflect the results of operations that would have occurred had Juniata merged with Liverpool at the beginning of 2017. Due to Juniata’s former 39.16% ownership in Liverpool, the income previously recorded in 2018 attributable to the partial ownership of Liverpool has been excluded, in addition to merger-related costs incurred in 2018 and the resulting tax impacts. Supplemental pro forma earnings for the year ended December 31, 2018 were adjusted to exclude $296,000 from the income/gain from unconsolidated subsidiary, $884,000 in merger-related expenses, and the resulting tax benefit of $123,000, as well as the $406,000 tax credit. A 21% tax rate was assumed. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies or other factors. (Dollars in thousands; except share data) Year Ended December 31, 2018 Net interest income after loan loss provision $ 20,629 Noninterest income 4,816 Noninterest expense 18,818 Net income available to common shareholders 6,996 Net income per common share 1.37 The Company no longer had an investment in an unconsolidated subsidiary following its acquisition of the remainder of the outstanding common stock of Liverpool on April 30, 2018. Prior to the acquisition, the Company owned 39.16% of the outstanding common stock of Liverpool, and the investment was accounted for under the equity method of accounting. The following table illustrates the components of the income/gain from the unconsolidated subsidiary investment recorded for the year ended December 31, 2018. There was no income/gain from the unconsolidated subsidiary investment recorded in 2019 since the investment did not exist during the year. (Dollars in thousands) Year Ended December 31, 2018 Income from unconsolidated subsidiary (excluding merger-related adjustments) Dividend income $ 36 Equity income 45 Total income (excluding merger-related adjustments) 81 Merger-related adjustments for investment in unconsolidated subsidiary Adjustment to LCB book value at April 30, 2018 (239) Special merger-related dividend 39 Fair value gain 415 Total merger-related adjustments 215 Total income/gain from unconsolidated subsidiary $ 296 |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2019 | |
Restrictions on Cash and Due from Banks [Abstract] | |
Restrictions on Cash and Due from Banks | 5. RESTRICTIONS ON CASH AND DUE FROM BANKS The Bank is required to maintain cash reserve balances with the Federal Reserve Bank if vault cash is insufficient to cover the reserve requirement. As of December 31, 2019 and 2018, respectively, no reserves were required to be held at the Federal Reserve Bank. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Securities [Abstract] | |
Securities | 6. SECURITIES Equity Securities Equity securities owned by the Company consist of common stock of various financial services providers (“Bank Stocks”). On January 1, 2018, the Company adopted ASU 2016‑01, Measurement of Financial Assets Instruments. Upon adoption, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in net income. The Company had $1,144,000 in equity securities recorded at fair value as of December 31, 2019, and $1,118,000 in equity securities recorded at fair value as of December 31, 2018. During the years ended December 31, 2019 and 2018, the Company recorded a net gain of $26,000 and a net loss of $1,000, respectively, on the consolidated statements of income as a result of the change in fair value of the Company’s equity securities. Debt Securities Available for Sale The Company’s investment portfolio includes primarily mortgage-backed securities issued by U.S. Government sponsored agencies and backed by residential mortgages (approximately 88%), bonds issued by U.S. Government sponsored agencies (approximately 10%) and municipalities (approximately 2%) as of December 31, 2019. Most of the municipal bonds are general obligation bonds with maturities or pre-refunding dates within 5 years. The amortized cost and fair value of debt securities available for sale as of December 31, 2019 and 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties. (Dollars in thousands) December 31, 2019 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 14,998 $ 14,970 $ 1 $ (29) After five years but within ten years 6,000 5,950 — (50) 20,998 20,920 1 (79) Obligations of state and political subdivisions Within one year 1,020 1,024 4 — After one year but within five years 2,810 2,823 13 — After five years but within ten years 723 728 5 — 4,553 4,575 22 — Mortgage-backed securities 184,488 185,191 1,132 (429) Total $ 210,039 $ 210,686 $ 1,155 $ (508) (Dollars in thousands) December 31, 2018 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 20,998 $ 20,355 $ — $ (643) After five years but within ten years 2,999 2,911 — (88) 23,997 23,266 — (731) Obligations of state and political subdivisions Within one year 826 826 — — After one year but within five years 14,751 14,686 13 (78) After five years but within ten years 2,779 2,669 — (110) 18,356 18,181 13 (188) Mortgage-backed securities 102,957 100,506 172 (2,623) Total $ 145,310 $ 141,953 $ 185 $ (3,542) Certain obligations of the U.S. Government and state and political subdivisions are pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. The carrying value of the pledged assets was $50,365,000 and $50,157,000 at December 31, 2019 and 2018, respectively. In addition to cash received from the scheduled maturities of securities, some investment securities available for sale are sold at current market values during the course of normal operations. Following is a summary of proceeds received from all investment securities transactions and the resulting realized gains and losses: (Dollars in thousands) Year Ended December 31, 2019 2018 Gross proceeds from sales and calls of securities $ 21,777 $ 10,461 Securities available for sale: Gross realized gains from sold and called securities $ 67 $ — Gross realized losses from sold and called securities (110) (188) Net losses from sales and calls of securities $ (43) $ (188) The following table shows gross unrealized losses and fair values of debt securities available for sale, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019: Unrealized Losses at December 31, 2019 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises 9 $ 16,919 $ (79) — $ — $ — 9 $ 16,919 $ (79) Mortgage-backed securities 13 47,466 (204) 16 22,049 (225) 29 69,515 (429) Total temporarily impaired securities 22 $ 64,385 $ (283) 16 $ 22,049 $ (225) 38 $ 86,434 $ (508) At December 31, 2019, nine U.S. Government and agency securities had unrealized losses that, in the aggregate, did not exceed 1% of amortized cost. None of these securities were in a continuous loss position for 12 months or more. At December 31, 2019, there were no obligations of state and political subdivision bonds with unrealized losses. At December 31, 2019, twenty-nine mortgage-backed securities had unrealized losses that, in aggregate, did not exceed 1% of amortized cost. Sixteen of these securities were in a continuous loss position for 12 months or more. The mortgage-backed securities in the Company’s portfolio are government sponsored enterprise (“GSE”) pass-through instruments issued by the Federal National Mortgage Association (“FNMA”), which guarantees the timely payment of principal on these investments. The unrealized losses noted above are considered to be temporary impairments. The decline in the values of the debt securities is due only to interest rate fluctuations, rather than erosion of issuer credit quality. As a result, the payment of contractual cash flows, including principal repayment, is not at risk. None of the debt securities are deemed to be other-than-temporarily impaired because the Company does not intend to sell the securities, does not believe it will be required to sell the securities before recovery and expects to recover the entire amortized cost basis. The following table shows gross unrealized losses and fair values of securities available for sale, aggregated by category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2018: Unrealized Losses at December 31, 2018 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises — $ — $ — 14 $ 23,267 $ (731) 14 $ 23,267 $ (731) Obligations of state and political subdivisions 8 5,055 (10) 13 8,242 (178) 21 13,297 (188) Mortgage-backed securities 3 6,726 (32) 43 77,170 (2,591) 46 83,896 (2,623) Total temporarily impaired securities 11 $ 11,781 $ (42) 70 $ 108,679 $ (3,500) 81 $ 120,460 $ (3,542) |
Loans and Related Allowance for
Loans and Related Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Related Allowance for Credit Losses [Abstract] | |
Loans and Related Allowance for Loan Losses | 7. LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES Loan Portfolio Classification The following table presents the loan portfolio by class at December 31, 2019 and 2018. (Dollars in thousands) December 31, 2019 December 31, 2018 Commercial, financial and agricultural $ 51,785 $ 46,563 Real estate - commercial 126,613 141,295 Real estate - construction 46,459 36,688 Real estate - mortgage 150,538 163,548 Obligations of states and political subdivisions 16,377 19,129 Personal 8,818 10,408 Total $ 400,590 $ 417,631 The following tables summarize loans and the activity in the allowance for loan losses by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended December 31, 2019 and 2018: (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total Year Ended December 31, 2019 Balance, beginning of period $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 Provision for loan losses 45 (619) (135) (3) 105 34 (573) Charge-offs (2) (15) — — (66) (54) (137) Recoveries 3 314 295 — 7 18 637 Balance, end of period $ 321 $ 754 $ 718 $ 17 $ 1,081 $ 70 $ 2,961 December 31, 2018 Balance, beginning of period $ 273 $ 1,022 $ 288 $ — $ 1,285 $ 71 $ 2,939 Provision for loan losses (8) 107 270 20 (79) 27 337 Charge-offs — (60) — — (183) (42) (285) Recoveries 10 5 — — 12 16 43 Balance, end of period $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total December 31, 2019 Loans allocated by: individually evaluated for impairment $ — $ 1,206 $ — $ — $ 1,296 $ 14 $ 2,516 acquired with credit deterioration — 366 — — 704 — 1,070 collectively evaluated for impairment 51,785 125,041 46,459 16,377 148,538 8,804 397,004 $ 51,785 $ 126,613 $ 46,459 $ 16,377 $ 150,538 $ 8,818 $ 400,590 Allowance for loan losses allocated by: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — acquired with credit deterioration — — — — — — — collectively evaluated for impairment 321 754 718 17 1,081 70 2,961 $ 321 $ 754 $ 718 $ 17 $ 1,081 $ 70 $ 2,961 December 31, 2018 Loans allocated by: individually evaluated for impairment $ — $ 909 $ 27 $ — $ 1,180 $ 17 $ 2,133 acquired with credit deterioration — 544 — — 971 — 1,515 collectively evaluated for impairment 46,563 139,842 36,661 19,129 161,397 10,391 413,983 $ 46,563 $ 141,295 $ 36,688 $ 19,129 $ 163,548 $ 10,408 $ 417,631 Allowance for loan losses allocated by: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — acquired with credit deterioration — — — — — — — collectively evaluated for impairment 275 1,074 558 20 1,035 72 3,034 $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 The following tables summarize information regarding impaired loans by portfolio class as of December 31, 2019 and December 31, 2018: (Dollars in thousands) As of December 31, 2019 As of December 31, 2018 Recorded Unpaid Principal Related Recorded Unpaid Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans With no related allowance recorded: Real estate - commercial $ 1,206 $ 1,304 $ — $ 909 $ 1,303 $ — Acquired with credit deterioration 366 395 — 544 592 — Real estate – construction — 1,054 — 27 1,123 — Real estate - mortgage 1,296 2,006 — 1,180 1,912 — Acquired with credit deterioration 704 840 — 971 1,061 — Personal 14 14 — 17 17 — Total: Real estate - commercial $ 1,206 $ 1,304 $ — $ 909 $ 1,303 $ — Acquired with credit deterioration 366 395 — 544 592 — Real estate - construction — 1,054 — 27 1,123 — Real estate – mortgage 1,296 2,006 — 1,180 1,912 — Acquired with credit deterioration 704 840 — 971 1,061 — Personal 14 14 — 17 17 — $ 3,586 $ 5,613 $ — $ 3,648 $ 6,008 $ — (Dollars in thousands) Year Ended December 31, 2019 Year Ended December 31, 2018 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Income Investment Recognized Income Impaired Loans With no related allowance recorded: Commercial, financial and agricultural $ 549 $ 22 $ 15 $ 234 $ — $ — Real estate - commercial 1,058 45 28 2,970 — — Acquired with credit deterioration 455 — — 368 — — Real estate - construction 14 — — 14 — — Real estate - mortgage 1,238 17 45 1,706 19 33 Acquired with credit deterioration 838 — — 654 — — Personal 16 — — 9 — — Total: Commercial, financial and agricultural $ 549 $ 22 $ 15 $ 234 $ — $ — Real estate - commercial 1,058 45 28 2,970 — — Acquired with credit deterioration 455 — — 368 — — Real estate - construction 14 — — 14 — — Real estate - mortgage 1,238 17 45 1,706 19 33 Acquired with credit deterioration 838 — — 654 — — Personal 16 — — 9 — — $ 4,168 $ 84 $ 88 $ 5,955 $ 19 $ 33 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2019 and December 31, 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Non-accrual loans: Real estate - commercial $ 903 $ 908 Real estate - construction — 29 Real estate - mortgage 902 753 Personal 14 17 Total $ 1,819 $ 1,707 Interest income not recorded based on the original contractual terms of the loans for non-accrual loans was $130,000 and $311,000 in 2019 and 2018, respectively. The decline in unrecorded interest income on non-accrual loans in 2019 compared to 2018 was due to the payoff of a large non-accrual loan in April 2019 and the paydown of another large loan during the year ended December 31, 2019. These two loans combined for $175,000 of the total $311,000 in unrecorded interest income on non-accrual loans reported for 2018. 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 recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2019 and December 31, 2018: Loans Past Due Greater (Dollars in thousands) Greater than 89 30‑59 Days 60‑89 Days than 89 Total Past Days and Current Past Due(2) Past Due Days Due Total Loans Accruing(1) As of December 31, 2019 Commercial, financial and agricultural $ 51,725 $ 60 $ — $ — $ 60 $ 51,785 $ — Real estate - commercial 126,180 19 — 48 67 126,247 — Real estate - construction 46,172 287 — — 287 46,459 — Real estate - mortgage 148,366 348 149 971 1,468 149,834 359 Obligations of states and political subdivisions 16,377 — — — — 16,377 — Personal 8,725 55 — 38 93 8,818 24 Subtotal 397,545 769 149 1,057 1,975 399,520 383 Loans acquired with credit deterioration Real estate - commercial 366 — — — — 366 — Real estate - mortgage 330 371 — 3 374 704 3 Subtotal 696 371 — 3 374 1,070 3 $ 398,241 $ 1,140 $ 149 $ 1,060 $ 2,349 $ 400,590 $ 386 Loans Past Due Greater (Dollars in thousands) Greater than 89 30‑59 Days 60‑89 Days than 89 Total Past Days and Current Past Due(2) Past Due Days Due Total Loans Accruing(1) As of December 31, 2018 Commercial, financial and agricultural $ 46,557 $ 6 $ — $ — $ 6 $ 46,563 $ — Real estate - commercial 139,890 — — 1,214 1,214 141,104 306 Real estate - construction 36,627 32 — 29 61 36,688 — Real estate - mortgage 161,651 824 561 175 1,560 163,211 23 Obligations of states and political subdivisions 19,129 — — — — 19,129 — Personal 10,352 24 15 17 56 10,408 — Subtotal 414,206 886 576 1,435 2,897 417,103 329 Loans acquired with credit deterioration Real estate - commercial 51 140 — — 140 191 — Real estate - mortgage 71 259 — 7 266 337 7 Subtotal 122 399 — 7 406 528 7 $ 414,328 $ 1,285 $ 576 $ 1,442 $ 3,303 $ 417,631 $ 336 (1) These loans are guaranteed, or well secured, and there is an effective means of collection in process. (2) Loans are considered past due when the borrower is in arrears on two or more monthly payments. Troubled Debt Restructurings As of December 31, 2019 and 2018, the Company had a recorded investment in troubled debt restructurings of $703,000 and $445,000, respectively. There were no specific reserves for those loans at December 31, 2019 and 2018. There were also no commitments to lend additional amounts in December 31, 2019 and 2018. The modification of the terms of the residential real estate - mortgage and real estate - commercial loans performed during the year ended December 31, 2019 included extensions to the maturity date of 1.2 and 5.5 years, respectively. The modification of the terms of the residential real estate - mortgage loan performed during the year ended December 31, 2018 included an extension of 5.3 years to the maturity date at a stated rate of interest lower than the current market rate. As of December 31, 2019, one accruing restructured loan for $36,000 was in default because it was delinquent in excess of 30 days with respect to the terms of the restructuring. There were no defaults of troubled debt restructurings within 12 months of restructure during 2019 or 2018. The following tables summarize loans whose terms were modified, resulting in troubled debt restructurings during 2019 and 2018. (Dollars in thousands) Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Recorded Investment Year ended December 31, 2019 Accruing troubled debt restructurings: Real estate - commercial 1 $ 306 $ 326 $ 306 Real estate - mortgage 1 9 9 5 2 $ 315 $ 335 $ 311 The troubled debt restructurings described above had no specific allowance for loan losses and resulted in charge-offs of $16,000 during the year ending December 31, 2019. (Dollars in thousands) Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Recorded Investment Year ended December 31, 2018 Accruing troubled debt restructurings: Real estate - mortgage 1 $ 153 $ 153 $ 147 1 $ 153 $ 153 $ 147 The troubled debt restructurings described above had no specific allowance for loan losses and resulted in no charge-offs during the year ending December 31, 2018. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans to commercial customers with an aggregate loan exposure greater than $500,000 and for lines of credit in excess of $50,000. This analysis is performed on a continuing basis with all such loans reviewed annually. The Company uses the following definitions for risk ratings: Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Loans in this category are reviewed no less than quarterly. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans in this category are reviewed no less than monthly. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans in this category are reviewed no less than monthly. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2019 and December 31, 2018. (Dollars in thousands) Special As of December 31, 2019 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 46,725 $ 4,080 $ 980 $ — $ 51,785 Real estate - commercial 113,851 5,668 7,046 48 126,613 Real estate - construction 44,954 287 1,218 — 46,459 Real estate - mortgage 148,164 327 1,951 96 150,538 Obligations of states and political subdivisions 16,377 — — — 16,377 Personal 8,804 — 14 — 8,818 Total $ 378,875 $ 10,362 $ 11,209 $ 144 $ 400,590 (Dollars in thousands) Special As of December 31, 2018 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 42,757 $ 2,992 $ 814 $ — $ 46,563 Real estate - commercial 125,352 8,590 6,459 894 141,295 Real estate - construction 34,131 — 2,528 29 36,688 Real estate - mortgage 160,774 24 2,569 181 163,548 Obligations of states and political subdivisions 19,129 — — — 19,129 Personal 10,389 — 19 — 10,408 Total $ 392,532 $ 11,606 $ 12,389 $ 1,104 $ 417,631 |
Pledged Assets
Pledged Assets | 12 Months Ended |
Dec. 31, 2019 | |
Pledged Assets [Abstract] | |
Pledged Assets | 8. PLEDGED ASSETS The Bank must maintain sufficient qualifying collateral with the FHLB in order to secure borrowings. Therefore, a Master Collateral Agreement has been entered into which pledges all mortgage related assets as collateral for future borrowings. Mortgage related assets could include loans or investment securities. As of December 31, 2019, the amount of loans included in qualifying collateral was $255,566,000, for a borrowing value of $183,790,000. As of December 31, 2018, the amount of loans included in qualifying collateral was $261,442,000, for a borrowing value of $187,818,000. No investment securities were included in qualifying collateral as of December 31, 2019 or 2018. |
Bank Owned Life Insurance and A
Bank Owned Life Insurance and Annuities | 12 Months Ended |
Dec. 31, 2019 | |
Bank Owned Life Insurance and Annuities [Abstract] | |
Bank Owned Life Insurance and Annuities | 9. BANK OWNED LIFE INSURANCE AND ANNUITIES The Company holds bank-owned life insurance (“BOLI”) and deferred annuities with a combined cash value of $16,266,000 and $15,938,000 at December 31, 2019 and 2018, respectively. As annuitants retire, the deferred annuities may be converted to payout annuities to create payment streams that match certain post-retirement liabilities. The net increase in cash surrender value on the BOLI and annuities was $328,000 and $966,000 in 2019 and 2018, respectively; the net change resulting from the addition in 2018 of BOLI acquired through acquisition, proceeds from life insurance claim payments, premium payments and earnings recorded as non-interest income. The contracts are owned by the Bank in various insurance companies. The crediting rate on the policies varies annually based on the insurance companies’ investment portfolio returns in their general fund and market conditions. Changes in cash value of BOLI and annuities in 2019 and 2018 are shown below: (Dollars in thousands) Life Deferred Insurance Annuities Total Balance as of January 1, 2018 $ 14,510 $ 462 $ 14,972 Earnings 277 18 295 Premiums on existing policies 25 13 38 Annuity payments received 1 — 1 BOLI acquired through acquisition 632 — 632 Balance as of December 31, 2018 15,445 493 15,938 Earnings 270 19 289 Premiums on existing policies 26 13 39 Balance as of December 31, 2019 $ 15,741 $ 525 $ 16,266 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | 10. PREMISES AND EQUIPMENT Premises and equipment consist of the following: (Dollars in thousands) December 31, 2019 2018 Land $ 294 $ 1,158 Buildings and improvements 13,227 11,645 Furniture, computer software and equipment 6,630 6,217 20,151 19,020 Less: accumulated depreciation (10,908) (10,276) $ 9,243 $ 8,744 Depreciation expense on premises and equipment charged to operations was $801,000 in 2019 and $815,000 in 2018. The Company had no premises and equipment subject to lease agreements in which it acts as the lessor. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 11. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill On September 8, 2006, the Company acquired a branch office in Richfield, PA. Goodwill associated with this transaction is carried at $2,046,000. On November 30, 2015, the Company acquired FNBPA and carries goodwill of $3,402,000 relating to the acquisition. On April 30, 2018, Juniata completed the acquisition of LCB and as a result, recorded goodwill of $3,691,000 at December 31, 2018. In the first quarter of 2019, an adjustment was made to the carrying value of the LCB goodwill, decreasing it to $3,599,000 as of December 31, 2019. Total goodwill at December 31, 2019 and December 31, 2018 was $9,047,000 and $9,139,000, respectively. Intangible Assets On November 30, 2015, a core deposit intangible in the amount of $303,000 associated with the FNBPA acquisition was recorded. On April 30, 2018, a core deposit intangible of $289,000 associated with the LCB acquisition was recorded. Both core deposit intangibles are being amortized over a ten-year period using a sum of the years’ digits basis. The following table shows the amortization schedule for each of the intangible assets recorded. (Dollars in thousands) FNBPA LCB Acquisition Acquisition Core Core Deposit Deposit Intangible Intangible Beginning Balance at Acquisition Date $ 303 $ 289 Amortization expense recorded prior to December 31, 2017 108 — Amortization expense recorded in Years ended: December 31, 2018 44 35 December 31, 2019 38 49 Unamortized balance as of December 31, 2019 $ 113 $ 205 Scheduled Amortization expense for years ended: December 31, 2020 33 44 December 31, 2021 27 39 December 31, 2022 22 33 December 31, 2023 16 28 December 31, 2024 10 23 After December 31, 2024 5 38 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | 12. DEPOSITS The aggregate amount of demand deposit overdrafts that were reclassified as loans were $70,000 at December 31, 2019, compared to $75,000 at December 31, 2018. Deposits consist of the following: (Dollars in thousands) December 31, 2019 2018 Demand, non-interest bearing $ 134,703 $ 126,057 Interest-bearing demand and money market 150,157 147,413 Savings 96,980 99,236 Time deposits, $250,000 or more 6,923 8,368 Other time deposits 143,174 140,648 $ 531,937 $ 521,722 Aggregate amount of scheduled maturities of time deposits as of December 31, 2019 include the following: (Dollars in thousands) Time Deposits Maturing in: $250,000 or more Other Total Time Deposits 2020 $ 3,647 $ 54,611 $ 58,258 2021 1,535 33,182 34,717 2022 — 14,645 14,645 2023 346 13,173 13,519 2024 656 7,133 7,789 Later 739 20,430 21,169 $ 6,923 $ 143,174 $ 150,097 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Borrowings | 13. BORROWINGS Short term borrowings, and the related maximum amounts outstanding at the end of any month in both of the years ended December 31, 2019 and 2018, are presented below. (Dollars in thousands) Maximum Outstanding at Years Ended December 31, Any Month End 2019 2018 2019 2018 Repurchase agreements $ 3,429 $ 2,911 $ 3,891 $ 4,620 Short-term borrowings with FHLB: Overnight advances 9,700 11,600 9,700 29,238 $ 13,129 $ 14,511 $ 13,591 $ 33,858 The following table presents supplemental information related to short-term borrowings. (Dollars in thousands) Securities sold under Short-term borrowings with agreements to repurchase Federal Home Loan Bank 2019 2018 2019 2018 Amount outstanding as of December 31 $ 3,429 $ 2,911 $ 9,700 $ 11,600 Weighted average interest rate as of December 31 1.09 % 2.13 % 1.81 % 2.62 % Average amount outstanding during the year 3,246 4,177 1,022 9,906 Weighted average interest rate during the year 1.15 % 1.49 % 2.32 % 1.92 % The Bank has repurchase agreements with some of its depositors, under which customers’ funds are invested daily into an interest bearing account. These funds are carried by the Company as short-term debt. It is the Company’s policy to completely collateralize repurchase agreements with U.S. Government securities. As of December 31, 2019, the securities that serve as collateral for securities sold under agreements to repurchase had a fair value of $9,029,000. The interest rate paid on these funds is variable and subject to change daily. Long-term debt is comprised only of FHLB advances with an original maturity of one year or more. Outstanding balances were $45,000,000 as of December 31, 2019 and $15,000,000 as of December 31, 2018. The following table summarizes the scheduled maturities of long-term debt as of December 31, 2019. (Dollars in thousands) Scheduled Weighted Average Year Maturities Interest Rate 2020 $ — — % 2021 — — 2022 5,000 2.74 2023 5,000 2.75 2024 20,000 2.42 Thereafter 15,000 2.41 $ 45,000 2.49 % The advances outstanding at December 31, 2018 carried an average interest rate of 1.59% and were repaid at maturity in 2019. The Bank’s maximum borrowing capacity with the FHLB was $183,790,000, with a balance of $55,604,000 outstanding as of December 31, 2019. In order to borrow additional amounts, the FHLB would require the Bank to purchase additional FHLB Stock. The FHLB is a source of both short-term and long-term funding. The Bank must maintain sufficient qualifying collateral to secure all outstanding advances. Qualifying collateral is defined by the FHLB and includes outstanding balances of the Company’s real estate loans, excluding loans with certain risk mitigants, including delinquencies and loans made to insiders, borrowers with low credit scores or loans with high loan-to-value ratios. |
Operating Lease Obligations
Operating Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Lease Obligations | 14. OPERATING LEASE OBLIGATIONS A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period in exchange for consideration. On January 1, 2019, the Company adopted ASU 2016‑02, Leases (Topic 842), and all subsequent ASUs that modified Topic 842 using the optional transition method. The adoption of this standard resulted in the recording of a ROU asset and lease liability of $556,000 as of January 1, 2019 for the Company’s four operating lease obligations in which the Company is the lessee. The Company elected the package of practical expedients, which removed the requirements to reassess whether any expired or existing contracts contain leases, reassess the lease classification for any expired or existing leases, and reassess the initial direct costs for any existing leases. The Company also elected two other practical expedients allowing the combination of lease and nonlease components by class of underlying asset and using hindsight in determining the lease terms since most of the leases have an extension option. The four operating leases, one of which is with a related party, are comprised of real estate property for branch and office space with terms extending through 2029. Operating leases were previously not recognized on the Company’s consolidated statements of condition, but with the adoption of Topic 842, operating lease agreements are recognized on the consolidated statements of condition as a ROU asset and a corresponding lease liability. As of December 31, 2019, the Company had operating lease ROU assets totaling $464,000 included in other assets and operating lease liabilities totaling $469,000 included in other liabilities. The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Topic 842 requires the use of the rate implicit in the lease as the discount rate if that rate is readily determinable. As this rate is rarely determinable, the Company utilized its incremental borrowing rate at lease inception, which is the rate the Company would have incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Because the four operating leases existed prior to the adoption of Topic 842 on January 1, 2019, the incremental borrowing rate for the remaining lease term at January 1, 2019 was used. As of December 31, 2019, the weighted-average remaining operating lease term was 6.8 years, and the weighted-average discount rate was 4.95%. The Company elected, for the real estate class of underlying assets which is currently its only class, not to separate lease and nonlease components and to account for them as a single lease component. The Company has one operating lease agreement containing a monthly ATM surcharge, which is combined with the property rental payment as a result of electing the practical expedient. The Company’s total operating lease cost for the years ended December 31, 2019 and 2018 were $120,000 and $109,000, respectively. During both of the years ended December 31, 2019 and 2018, total operating lease payments made to a related party totaled $23,000. The future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows: (Dollars in thousands) Years ending December 31, Lease Obligation 2020 $ 117 2021 107 2022 50 2023 46 2024 47 2025 and beyond 206 Total Future Minimum Lease Payments 573 Amounts Representing Interest (104) Present Value of Net Future Minimum Lease Payments (Lease Liability) $ 469 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 15. INCOME TAXES The components of income tax (benefit) expense for the two years ended December 31 were: (Dollars in thousands) Years Ended December 31, 2019 2018 Current tax expense (benefit) $ 768 $ (563) Deferred tax expense (benefit) (782) (96) Total tax expense (benefit) $ (14) $ (659) Federal credits are available for ten years for Juniata’s investment in two low income housing projects. Tax credits associated with phase I will continue through 2023. Phase II credits were initiated in the second half of 2017 and will run through 2027. The tax credits are included in the tax expense line item on the Consolidated Statements of Income. Amortization of the investments using the cost method is scheduled to occur over the same period as tax credits are earned. Juniata’s maximum exposure to loss is limited to the carrying value of the investment at year-end. The total tax benefit during the year ended December 31, 2019 was $14,000 compared to a total tax benefit of $659,000 during the year ended December 31, 2018. The greater tax benefit in 2018 was mainly due to the removal of a $406,000 deferred tax liability related to the previous 39.16% ownership in Liverpool. A reconciliation of the statutory income tax (benefit) expense computed at 21% to the income tax expense included in the consolidated statements of income follows: (Dollars in thousands) Years Ended December 31, 2019 2018 Income before income taxes $ 5,821 $ 5,245 Statutory tax rate 21 % 21 % Federal tax at statutory rate 1,222 1,101 Tax-exempt interest (261) (271) Net earnings on BOLI (49) (50) Dividend from unconsolidated subsidiary — (10) Stock-based compensation (12) 19 Federal tax credits (902) (901) Merger and acquisition expenses — 33 Defined benefit prior year contribution, net of other PTR adjustments — (198) Basis difference related to Liverpool investment prior to acquisition — (406) Other permanent differences (12) 24 Total tax expense (benefit) $ (14) $ (659) Effective tax rate (0.2) % (12.6) % Deductible temporary differences and taxable temporary differences gave rise to a net deferred tax asset for the Company as of December 31, 2019 and 2018. The components giving rise to the net deferred tax asset are detailed below: (Dollars in thousands) Years Ended December 31, 2019 2018 Deferred Tax Assets: Allowance for loan losses $ 634 $ 494 Deferred directors’ compensation 337 345 Employee and director benefits 288 309 Qualified pension liability — 78 Unrealized losses on debt securities available for sale — 655 Unrealized loss from securities impairment — 34 Stock-based compensation 40 — Investment in low income housing project 211 142 Fair value adjustments to acquired assets and liabilities 251 293 Tax credit carryforward 191 225 Net operating loss carryforward 29 — Lease liability 98 — Other — 2 Total deferred tax assets 2,079 2,577 Deferred Tax Liabilities: Depreciation (197) (445) Right of use asset (97) — Loan origination fees and costs (418) (384) Prepaid expenses (52) (229) Unrealized gains on debt securities available for sale (136) — Unrealized gain from securities impairment (54) — Annuity earnings (60) (56) Fair value of mortgage servicing rights (38) (42) Intangible assets (56) (68) Goodwill (382) (353) Total deferred tax liabilities (1,490) (1,577) Net deferred tax asset included in other assets $ 589 $ 1,000 The Company has concluded that the deferred tax assets are realizable (on a more likely than not basis) through the combination of future reversals of existing taxable temporary differences, certain tax planning strategies and expected future taxable income. It is the Company’s policy to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Income. No significant income tax uncertainties were identified as a result of the Company’s evaluation of its income tax position. Therefore, the Company recognized no adjustment for unrecognized income tax benefits for the years ended December 31, 2019 and 2018. The Company is no longer subject to examination by taxing authorities for years before 2016. Tax years 2016 through the present, with limited exception, remain open to examination. |
Stockholders' Equity and Regula
Stockholders' Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Regulatory Matters [Abstract] | |
Stockholders' Equity and Regulatory Matters | 16. STOCKHOLDERS’ EQUITY AND REGULATORY MATTERS The Company is authorized to issue 500,000 shares of preferred stock with no par value. The Board has the ability to fix the voting, dividend, redemption and other rights of the preferred stock, which can be issued in one or more series. No shares of preferred stock have been issued. The Company has a dividend reinvestment and stock purchase plan. Under this plan, additional shares of Juniata Valley Financial Corp. stock may be purchased at the prevailing market prices through reinvested dividends and voluntary cash payments, within limits. To the extent that shares are not available in the open market, the Company has reserved common stock to be issued under the plan. Any adjustment in capitalization of the Company will result in a proportionate adjustment to the reserved shares for this plan. At December 31, 2019, 141,887 shares were available for issuance under the Dividend Reinvestment Plan. The Company periodically repurchases shares of its common stock under a share repurchase program approved by the Board of Directors. Repurchases have typically been through open market transactions and have complied with all regulatory restrictions on the timing and amount of such repurchases. Shares repurchased have been added to treasury stock and accounted for at cost. These shares may be reissued for stock option exercises, stock awards, employee stock purchase plan purchases, to fulfill dividend reinvestment program needs and to supply shares needed for exchange in an acquisition. During 2019 and 2018, 21,508 and 3,416 shares, respectively, were repurchased in conjunction with this program. In 2019, 800 issued shares were transferred to treasury due to forfeitures of restricted stock awards. Remaining shares authorized in the program were 148,266 as of December 31, 2019. The Bank is subject to risk-based capital standards by which banks are evaluated in terms of capital adequacy. These regulatory capital requirements are administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of various forms of capital. The requirements were revised and became effective on a phased-in basis beginning January 1, 2015 and included the establishment of a Common Equity Tier I level. The ratio of the Bank’s Total, Tier I and Common Equity Tier I capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations), and Tier I capital (as defined in the regulations) as a percentage of average assets (as defined in the regulations) are set forth in the table below. Amounts recorded to accumulated other comprehensive income are not included in regulatory capital. These risk-based capital rules require that banks and holding companies maintain a “capital conservation buffer” of 250 basis points in excess of the “minimum capital ratio”. The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. The capital conservation buffer was fully phased in as of January 1, 2019. The maximum buffer for 2018 was 1.875% and was 2.5% for 2019 and thereafter. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. Management believes, as of December 31, 2019 and 2018, that the Bank met all capital adequacy requirements to which they were subject. As of December 31, 2019, the most recent notification from the regulatory banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, the Bank must maintain minimum Total risk-based, Tier I risk-based, Common Equity Tier I risk-based and Tier I leverage ratios as set forth in the table. To the knowledge of management, there are no conditions or events since these notifications that have changed the Bank’s category. The table below provides a comparison of the Bank’s risk-based capital ratios and leverage ratios to the minimum regulatory requirements as of the dates indicated. Minimum Regulatory Requirements Minimum to be "Well Capital Capitalized" Minimum Requirement Adequacy under Prompt for Capital with Capital Corrective Action The Juniata Valley Bank Actual Adequacy Purposes Buffer Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total Capital (to Risk Weighted Assets) $ 65,861 15.85 % $ 33,244 8.00 % $ 43,633 10.50 % $ 41,555 10.00 % Tier 1 Capital (to Risk Weighted Assets) 62,900 15.14 % 24,933 6.00 % 35,322 8.50 % 33,244 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 62,900 15.14 % 18,700 4.50 % 29,089 7.00 % 27,011 6.50 % Tier 1 Capital (to Average Assets) Leverage 62,900 9.60 % 26,198 4.00 % 26,198 4.00 % 32,747 5.00 % As of December 31, 2018: Total Capital (to Risk Weighted Assets) $ 62,422 15.50 % $ 32,222 8.00 % $ 39,774 9.875 % $ 40,278 10.00 % Tier 1 Capital (to Risk Weighted Assets) 59,388 14.74 % 24,167 6.00 % 31,719 7.875 % 32,222 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 59,388 14.74 % 18,125 4.50 % 25,677 6.375 % 26,181 6.50 % Tier 1 Capital (to Average Assets) Leverage 59,388 9.77 % 24,317 4.00 % 24,317 4.000 % 30,397 5.00 % Certain regulatory restrictions exist regarding the ability of the Bank to transfer funds to the Company in the form of cash dividends, loans or advances. At December 31, 2019, $35,824,000 of undistributed earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Company as dividends without prior regulatory approval, subject to the regulatory capital requirements above. |
Calculation of Earnings Per Sha
Calculation of Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Calculation of Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | 17. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Restricted stock is participating, and therefore, is included in the basic EPS calculation. The following table sets forth the computation of basic and diluted earnings per share: (Dollars in thousands, except earnings per share) Year ended December 31, 2019 2018 Net income $ 5,835 $ 5,904 Weighted-average common shares outstanding 5,102 4,987 Basic earnings per share $ 1.14 $ 1.18 Weighted-average common shares outstanding 5,102 4,987 Common stock equivalents due to effect of stock options 19 22 Total weighted-average common shares and equivalents $ 5,121 $ 5,009 Diluted earnings per share $ 1.14 $ 1.18 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 18. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables show changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 Unrealized Gains and Losses on Available for Sale Securities Defined Benefit Pension Items Total Beginning balance, December 31, 2018 $ (2,647) $ (1,652) $ (4,299) Current period other comprehensive income: Other comprehensive income before reclassification 3,129 634 3,763 Amounts reclassified from accumulated other comprehensive income 34 1,101 1,135 Net current period other comprehensive income 3,163 1,735 4,898 Reclassification for ASU 2018-02 — (83) (83) Ending balance, December 31, 2019 $ 516 $ — $ 516 (Dollars in thousands) December 31, 2018 Unrealized Gains and Losses on Available for Sale Securities Defined Benefit Pension Items Total Beginning balance, December 31, 2017 $ (1,684) $ (2,350) $ (4,034) Current period other comprehensive income: Other comprehensive income before reclassification (956) 564 (392) Amounts reclassified from accumulated other comprehensive income 149 134 283 Net current period other comprehensive income (807) 698 (109) Reclassification for ASU 2016-01 (156) — (156) Ending balance, December 31, 2018 $ (2,647) $ (1,652) $ (4,299) The following table shows significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2019: (Dollars in thousands) Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available for sale securities Realized losses on securities available for sale $ (43) Gain (loss) on sales and calls of securities Total before tax (43) Tax effect 9 Income tax provision (benefit) Net of tax (34) Amortization of defined benefit pension items Actuarial losses (1,394) Employee benefits Reclassification for ASU 2018-02 105 Total before tax (1,289) Tax effect 271 Income tax provision (benefit) Net of tax (1,018) Total reclassifications for the period, net of tax $ (1,052) The following table shows significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2018: (Dollars in thousands) Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available for sale securities Realized losses on securities available for sale $ (188) Gain (loss) on sales and calls of securities Reclassification for ASU 2016-01 197 Total before tax 9 Tax effect (2) Income tax provision (benefit) Net of tax 7 Amortization of defined benefit pension items Actuarial losses (170) Employee benefits Total before tax (170) Tax effect 36 Income tax provision (benefit) Net of tax (134) Total reclassifications for the period, net of tax $ (127) |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 19. FAIR VALUE MEASUREMENT Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Additional guidance is provided on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes guidance on identifying circumstances when a transaction may not be considered orderly. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed, and significant adjustments to the related prices may be necessary to estimate fair value in accordance with fair value measurement and disclosure guidance. This guidance clarifies that, when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Inputs – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Equities Securities The fair value of equity securities is based upon quoted prices in active markets and is reported using Level 1 inputs. Debt Securities Available for Sale Debt securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurement from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the debt securities’ terms and conditions, among other things. Impaired Loans Certain impaired loans are reported on a non-recurring basis at the fair value of the underlying collateral since repayment is expected solely from the 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 in the Level 3 fair value classification, based upon the lowest level of input that is significant to the fair value measurements. Other Real Estate Owned Certain assets included in other real estate owned are carried at fair value as a result of impairment and accordingly are measured on a non-recurring basis as they are carried at the lower of cost or fair value. These assets are subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Values are estimated using Level 3 inputs, based on appraisals that consider the sales prices of property in the proximate vicinity less estimated costs to sell. Mortgage Servicing Rights The fair value of servicing assets is based on the present value of estimated future cash flows on pools of mortgages stratified by rate and maturity date and are considered Level 3 inputs. The following tables summarize financial assets and financial liabilities measured at fair value as of December 31, 2019 and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant Active Markets Other Other (Dollars in thousands) December 31, for Identical Observable Unobservable 2019 Assets Inputs Inputs Measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ 20,920 $ — $ 20,920 $ — Obligations of state and political subdivisions 4,575 — 4,575 — Mortgage-backed securities 185,191 — 185,191 — Equity securities 1,144 1,144 — — Mortgage servicing rights 180 — — 180 Measured at fair value on a non-recurring basis: Impaired loans $ 144 $ — $ — $ 144 (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant Active Markets Other Other (Dollars in thousands) December 31, for Identical Observable Unobservable 2018 Assets Inputs Inputs Measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ 23,266 $ — $ 23,266 $ — Obligations of state and political subdivisions 18,181 — 18,181 — Mortgage-backed securities 100,506 — 100,506 — Equity securities 1,118 1,118 — — Mortgage servicing rights 200 — — 200 Measured at fair value on a non-recurring basis: Impaired loans $ 1,104 $ — $ — $ 1,104 Other real estate owned 149 — — 149 Assets measured at fair value on a nonrecurring basis for which Level 3 inputs have been used to determine fair value are immaterial to the Company’s consolidated financial statements. Fair Value of Financial Instruments Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transactions on the dates indicated. The estimated fair value amounts have been measured as of their respective year ends and have not been re-evaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end. The information presented below should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is provided only for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: Financial Instruments (Dollars in thousands) December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and due from banks $ 12,658 $ 12,658 $ 15,617 $ 15,617 Interest bearing deposits with banks 82 82 110 110 Federal funds sold — — 729 729 Interest bearing time deposits with banks 2,210 2,210 3,290 3,290 Securities 211,830 211,830 141,953 141,953 Restricted investment in bank stock 3,442 N/A 2,441 N/A Loans, net of allowance for loan losses 397,629 403,359 414,597 415,195 Accrued interest receivable 1,607 1,607 1,681 1,681 Financial liabilities: Non-interest bearing deposits $ 134,703 $ 134,703 $ 126,057 126,057 Interest bearing deposits 397,234 399,848 395,665 395,226 Securities sold under agreements to repurchase 3,429 N/A 2,911 N/A Short-term borrowings 9,700 9,700 11,600 11,600 Long-term debt 45,000 45,809 15,000 14,958 Other interest bearing liabilities 1,603 1,603 1,596 1,597 Accrued interest payable 473 473 289 289 Off-balance sheet financial instruments: Commitments to extend credit $ — $ — $ — $ — Letters of credit — — — — The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of December 31, 2019 and December 31, 2018. These tables exclude financial instruments for which the carrying amount approximates fair value. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs December 31, 2019 Financial instruments - Assets Interest bearing time deposits with banks $ 2,210 $ 2,210 $ — $ 2,210 $ — Loans, net of allowance for loan losses 397,629 403,359 — — 403,359 Financial instruments - Liabilities Interest bearing deposits $ 397,234 $ 399,848 $ — $ 399,848 $ — Long-term debt 45,000 45,809 — 45,809 — Other interest bearing liabilities 1,603 1,603 — 1,603 — (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs December 31, 2018 Financial instruments - Assets Interest bearing time deposits with banks $ 3,290 $ 3,290 $ — $ 3,290 $ — Loans, net of allowance for loan losses 414,597 415,195 — — 415,195 Financial instruments - Liabilities Interest bearing deposits $ 395,665 $ 395,226 $ — $ 395,226 $ — Long-term debt 15,000 14,958 — 14,958 — Other interest bearing liabilities 1,596 1,597 — 1,597 — |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 20. REVENUE RECOGNITION The Company adopted ASU 2014‑09, Revenue from Contracts with Customers (Topic 606), as well as subsequent ASU’s that modified ASC 606, on January 1, 2018. The Company elected to apply the ASU and all related ASU’s using the modified retrospective approach applied to all contracts initiated on or after the effective date, and for contracts which have remaining obligations as of the effective date, while prior period results continue to be reported under legacy U.S. GAAP. Based on this assessment, the Company concluded that ASC 606 did not materially change the method by which the Company currently recognizes revenue for these revenue streams, which is by recognizing revenues as they are earned based upon contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company generally acts in a principal capacity, on its own behalf, in most contracts with customers. In such transactions, revenue and related costs to provide these services are recognized on a gross basis in the financial statements. In some cases, the Company acts in an agent capacity, deriving revenue through assisting other entities in transactions with its customers. In such transactions, revenue and the related costs to provide the services are recognized on a net basis in the financial statements. These transactions primarily relate to non-deposit product commissions and fees derived from customer’s use of various interchange and ATM/debit card networks. All of the Company’s revenue from contracts with customers in the scope of ASC 606 are recognized within non-interest income on the consolidated statements of income. Revenue streams not within the scope of ASC 606 included in non-interest income on the consolidated statements of income include earnings on bank-owned life insurance and annuities, income from unconsolidated subsidiary, fees derived from loan activity, mortgage banking income, gain/loss on sales and calls of securities, and the change in value of equity securities. A description of the Company’s sources of revenue accounted for under ASC 606 are as follows: Customer Service Fees – fees mainly represent fees from deposit customers for transaction based, account maintenance, and overdraft services. Transaction based fees include, but are not limited to, stop payment and overdraft fees. These fees are recognized at the time of the transaction when the performance obligation has been fulfilled. Account maintenance fees and account analysis fees are earned over the course of a month, representing the period of the performance obligation, and are recognized monthly. Debit Card Fee Income – consists of interchange fees from cardholder transactions conducted through the card payment network. Cardholders use debit cards to conduct point-of-sale transactions that produce interchange fees. The Company acts in an agent capacity to offer processing services for debit cards to its customers. Fees are recognized with the processing of the transactions and netted against the related fees from such transactions. Trust Fees – include asset management and estate fees. Asset management fees are generally based on a fee schedule, based upon the market value of the assets under management, and recognized monthly when the service obligation is completed. Trust fees recognized in 2019 and 2018 were $359,000 and $367,000, respectively. Fees for estate management services are based on a specified fee schedule and generally recognized as the following performance obligations are fulfilled: (i) 25% of total estate fee recognized when all estate assets are collected and debts paid, (ii) 50% of the total fee is recognized when the inheritance tax return is filed, and (iii) remaining 25% is recognized when the first and final account is confirmed, settling the estate. Estate fees recognized during 2019 and 2018 were $35,000 and $63,000, respectively. Commissions From Sales Of Non-Deposit Products – include, but are not limited to, brokerage services, employer-based retirement solutions, individual retirement planning, insurance solutions, and fee-based investment advisory services. The Company acts in an agent capacity to offer these services to customers. Revenue is recognized, net of related fees, in the month in which the contract is fulfilled. Other Non-Interest Income – includes certain revenue streams within the scope of ASC 606 comprised primarily of ATM surcharges, commissions on check orders, and wire transfer fees. ATM surcharges are the result of customers conducting ATM transactions that generate fee income. All of these fees, as well as wire transfer fees, are transaction based and are recognized at the time of the transaction. In addition, the Company acts in an agent capacity to offer checks to its customers and recognizes commissions, net of related fees, when the contract is fulfilled. Gains/Losses On Sales Of Other Real Estate Owned – are recognized when control of the property transfers to the buyer, which generally occurs when the deed is executed. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due from the customer). The company’s non-interest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into longer-term revenue contracts with customer, and therefore, does not experience significant contract balances. Contract Acquisition Costs The Company expenses all contract acquisition costs as costs are incurred. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 21. EMPLOYEE BENEFIT PLANS Long-Term Incentive Plan The Company maintains the 2016 Long-Term Incentive Plan (the “Plan”), that amended and restated the former 2011 Stock Option Plan (the “2011 Plan”). The Plan continues in effect for any outstanding awards under the 2011 Plan in accordance with the terms and conditions governing such awards immediately prior to the effective date of the Plan but expanded the types of awards authorized to include, among others, restricted stock. Under the provisions of the Plan, while active, awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock and performance shares to officers and key employees of the Company, as well as Directors. Compensation expense for stock options granted and restricted stock awarded is measured using the fair value of the award on the grant date and is recognized over the vesting period. The Company recognized $113,000 and $82,000 of expense for the years ended December 31, 2019 and 2018, respectively, for stock-based compensation. The Plan is administered by a committee of the Board of Directors. The Committee determines, among other things, which officers and key employees receive stock compensation, the number of shares to be subject to each award, the option price, the duration of the option and the restricted period, as appropriate. A recipient of the restricted shares will forfeit those shares in their entirety if employment is terminated prior to the vesting date for reasons other than retirement, death or disability. The maximum number of shares of common stock that may be issued under the Plan is 300,000 shares, and 158,455 shares were available for grant as of December 31, 2019. Shares of common stock issued under the Plan may be treasury shares or authorized but unissued shares. During 2019 and 2018, certain officers and key employees were issued restricted stock awards of 7,500 and 5,220 shares, respectively. Each of the awards vest after three-years, with no interim vesting. The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the consolidated statement of income. (Dollars in thousands) 2019 2018 Compensation expense $ 109 $ 77 Tax benefit (23) (16) Net income effect $ 86 $ 61 At December 31, 2019, there was $133,000 of unrecognized compensation cost related to all non-vested restricted stock awards. This cost is expected to be recognized through February 2022. The following table presents a summary of non-vested restricted shares activity for 2019. Weighted Average Grant Date Shares Fair Value Non-vested at January 1, 2019 13,020 $ 18.78 Vested (4,360) 18.05 Cancelled — — Forfeited (800) 19.62 Granted 7,500 20.00 Non-vested at December 31, 2019 15,360 19.54 No stock options were awarded in 2019. Options granted prior to 2019 vest over three to five years and are exercisable at the grant price, which is at least the fair market value of the stock on the grant date. The Plan provides that the option price per share is not to be less than the fair market value of the stock on the day the option was granted, but in no event less than the par value of such stock. Options granted under the Plan are exercisable no earlier than one year after the date of grant and expire ten years after the date of the grant. All options previously granted under the Plans are scheduled to expire through February 17, 2025. Total options outstanding at December 31, 2019 have exercise prices between $17.65 and $18.00, with a weighted average exercise price of $17.78 and a weighted average remaining contractual life of 3.79 years. As of December 31, 2019, there was less than $1,000 of total unrecognized compensation cost related to non-vested options granted under the Plan. That cost is expected to be recognized through 2020. Cash received from option exercises under the Plans for the year ended December 31, 2019 was $364,000 and $90,000 for the year ended December 31, 2018. A summary of the status of the outstanding stock options as of December 31, 2019 and 2018, and changes during the years ending on those dates is presented below: 2019 2018 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 113,756 $ 17.76 125,026 $ 17.91 Granted — — — — Exercised (20,609) 17.66 (5,170) 17.47 Forfeited — — (6,100) 21.10 Outstanding at end of year 93,147 $ 17.78 113,756 $ 17.76 Options exercisable at year-end 92,147 110,911 Weighted-average fair value of options granted during the year $ — $ — Intrinsic value of options exercised during the year $ 43,135 $ 15,240 Intrinsic value of options outstanding and exercisable at December 31, 2019 $ 144,656 Defined Benefit Retirement Plans The Company sponsored defined benefit retirement plan, JVB Plan, which covered substantially all its employees employed prior to December 31, 2007 was amended, January 1, 2008 to close the plan to new entrants. All active participants as of December 31, 2007 became 100% vested in their accrued benefit and, as long as they remained eligible, continued to accrue benefits until December 31, 2012. The benefits were based on years of service and the employee’s compensation. Effective December 31, 2012, the JVB Plan was amended to cease future service accruals after that date (i.e., it was frozen). As a result of the FNBPA acquisition, the Company assumed sponsorship of a second defined benefit retirement plan, the Retirement Plan for the First National Bank of Port Allegany (“FNB Plan”), as of November 30, 2015, which covered substantially all former FNBPA employees that were employed prior to September 30, 2008. The FNBPA Plan was amended as of December 31, 2015 to cease future service accruals to previously unfrozen participants and was considered to be “frozen”. Effective December 31, 2016, the FNB Plan was merged into the JVB Plan, which was amended to provide the same benefits to the class of participants previously included in the FNB Plan. In 2018, Juniata completed the second step of the strategy to reduce the liability associated with its defined benefit pension plan by making a lump sum payment offer to a small group of terminated vested participants in Juniata’s defined benefit plan. This step further reduced Juniata’s remaining pension liability by approximately 9%, which resulted in a pre-tax charge to earnings of $210,000 in the twelve months ended December 31, 2018. The pre-tax charge represented a further acceleration of pension expenses that would otherwise have impacted Juniata’s future earnings. The Company also made a $1,350,000 contribution to the defined benefit pension plan during the third quarter of 2018. Juniata’s Board of Directors resolved to terminate the JVB Plan, effective November 30, 2018. All participants were properly notified. During the second quarter of 2019, JVB Plan participants elected preferences for receiving their vested benefit in the form of either lump sum payments or annuities. Those electing lump sums received payment in the second quarter of 2019, resulting in a pre-tax settlement charge of $278,000. In the third quarter of 2019, annuities were purchased to provide vested benefits to all remaining recipients, resulting in a pre-tax charge of $943,000. As of December 31, 2019, all obligations were satisfied and The JVB Plan was liquidated. Excess funds of $431,000 were transferred to fund the Company’s 401(k) Safe Harbor Plan. The following table illustrates the equity instruments, by fair value hierarchy, included in the JVB Plan’s assets at fair value as of December 31, 2018. Due to the liquidation of the JVB Plan in the third quarter of 2019, no assets remained at December 31, 2019. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Other Significant Other (Dollars in thousands) December 31, Active Markets for Observable Unobservable 2018 Identical Assets Inputs Inputs Measured at fair value on a recurring basis: Mutual funds $ 11,891 $ 11,891 $ — $ — Money market funds 241 241 — — $ 12,132 $ 12,132 $ — $ — The measurement date for the JVB Plan is December 31. Information pertaining to the activity in the defined benefit plan was as follows: (Dollars in thousands) Years ended December 31, 2019 2018 Change in projected benefit obligation ("PBO") PBO at beginning of year $ 12,555 $ 15,554 Interest cost 299 521 Change in assumptions 1,477 (1,208) Actuarial loss (1,326) (244) Group annuity purchase (9,021) — Settlement payments (3,569) (1,485) Benefits paid (415) (583) PBO at end of period $ — $ 12,555 Change in plan assets Fair value of plan assets at beginning of year $ 12,182 $ 13,117 Actual return on plan assets, net of expenses 1,254 (217) Employer contribution — 1,350 Group annuity purchase (9,021) — Settlement payments (3,569) (1,485) Benefits paid (415) (583) Benefits transferred to 401(k) Plan (431) — Fair value of plan assets at end of period $ — $ 12,182 Funded status, included in other (liabilities) assets $ — $ (373) Amounts recognized in accumulated comprehensive loss before income taxes consist of: Unrecognized actual loss $ — $ (884) Accumulated benefit obligation $ — $ 12,555 For the year ended December 31, 2018, the mortality assumptions were derived using the Adjusted RP‑2014 White Collar Mortality Table. Incorporated into the most recent table are rates projected generationally using Scale MP‑2018 to reflect mortality improvement. Pension expense for the JVB Plan included the following components for the years ended December 31: Year Ended (Dollars in thousands) December 31, 2019 2018 Components of net periodic pension cost: Interest cost $ 299 $ 521 Expected return on plan assets (182) (690) Recognized net actuarial loss 1,277 339 Net periodic pension cost 1,394 170 Total recognized in other comprehensive income (2,197) (884) Total recognized in net periodic pension benefit and other comprehensive income $ (803) $ (714) Assumptions used to determine benefit obligations were: 2019 2018 Discount rate — % 4.10 % Rate of compensation increase N/A N/A Assumptions used to determine the net periodic benefit cost were: 2019 2018 Discount rate — % 3.50 % Expected long-term return on plan assets — 4.20 Rate of compensation increase N/A N/A Defined Contribution Plan The Company has a Defined Contribution Plan under which employees, through payroll deductions, are able to defer portions of their compensation. The Company makes an annual non-elective fully vested contribution equal to 3% of compensation to each eligible participant. For the year ended December 31, 2019, the contribution amount totaled $250,000, which was credited to employee’s accounts by January 31, 2020. This liability at December 31, 2018 totaled $238,000 and was credited to employee accounts by January 31, 2019. Expense incurred under this plan was $248,000 and $234,000 in 2019 and 2018, respectively. The Defined Contribution Plan also includes an employer matching contribution for employees that elect to defer compensation into this program. The matching contribution in 2019 and 2018 was $212,000 and $199,000, respectively. Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan under which employees, through payroll deductions, are able to purchase shares of Company stock annually. The option price of the stock purchases is between 95% and 100% of the fair market value of the stock on the offering termination date as determined annually by the Board of Directors. The maximum number of shares which employees may purchase under the Plan is 250,000; however, the annual issuance of shares may not exceed 5,000 shares plus any unissued shares from prior offerings. There were 1,880 shares issued in 2019 and 2,134 shares issued in 2018 under this plan. At December 31, 2019, there were 171,079 shares reserved for issuance under the Employee Stock Purchase Plan. Supplemental Retirement Plans The Company has non-qualified supplemental retirement plans for directors and key employees. At December 31, 2019 and 2018, the present value of the future liability associated with these plans was $166,000 and $215,000, respectively. For the years ended December 31, 2019 and 2018, $16,000 and $20,000, respectively, was charged to expense in connection with these plans. The Company offsets the cost of these plans through the purchase of bank-owned life insurance and annuities. See Note 9. Deferred Compensation Plans The Company has entered into deferred compensation agreements with certain directors to provide each director an additional retirement benefit, or to provide their beneficiary a benefit, in the event of pre-retirement death. At December 31, 2019 and 2018, the present value of the future liability was $1,603,000 and $1,602,000, respectively. For the years ended December 31, 2019 and 2018, $42,000 and $40,000, respectively, was charged to expense in connection with these plans. The Company offsets the cost of these plans through the purchase of bank-owned life insurance. See Note 9. Salary Continuation Plans The Company has non-qualified salary continuation plans for key employees. At December 31, 2019 and 2018, the present value of the future liability was $1,209,000 and $1,256,000, respectively. For the years ended December 31, 2019 and 2018 $57,000 and $103,000, respectively, was charged to expense in connection with these plans. The Company offsets the cost of these plans through the purchase of bank-owned life insurance. See Note 9. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments with off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | 22. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments may include commitments to extend credit and letters of credit. Because many commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. These instruments involve, to varying degrees, elements of credit risk that are not recognized in the consolidated financial statements. Exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making these commitments and conditional obligations as it does for on-balance sheet instruments. The Company controls the credit risk of its financial instruments through credit approvals, limits and monitoring procedures; however, it does not generally require collateral for such financial instruments since there is no principal credit risk. A summary of the Company’s financial instrument commitments is as follows: (Dollars in thousands) December 31, 2019 2018 Commitments to grant loans $ 97,037 $ 72,755 Unfunded commitments under lines of credit 13,448 14,468 Outstanding letters of credit 2,624 2,749 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since portions of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained by the Bank upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Outstanding letters of credit are instruments issued by the Bank that guarantee payment to the beneficiary by the Bank in the event of default by the Bank’s customer in the non-performance of an obligation or service. Most letters of credit are extended for one year periods. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral supporting those commitments for which collateral is deemed necessary. The amount of the liability as of December 31, 2019 and 2018 for guarantees under letters of credit issued is not material. The maximum undiscounted exposure related to these guarantees at December 31, 2019 was $2,624,000, and the approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $23,429,000. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 23. RELATED-PARTY TRANSACTIONS The Bank has granted loans to certain of its executive officers, directors and their related interests. The aggregate dollar amount of these loans was $8,127,000 and $7,780,000 at December 31, 2019 and 2018, respectively. During 2019, $8,798,000 of new loans were made and repayments totaled $8,451,000. None of these loans were past due, in non-accrual status or restructured at December 31, 2019 or 2018. Deposits and other funds from related parties held by Juniata amounted to $1,396,000 and $1,215,000 at December 31, 2019 and 2018, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | 24. COMMITMENTS AND CONTINGENT LIABILITIES In 2017, the Company executed renewal agreements for technology outsourcing services through two outside service bureaus. Both agreements provide for termination fees if the Company cancels the services prior to the end of the 7‑year commitment period that runs through May 31, 2024. At December 31, 2019, potential termination fees were estimated to be approximately $1,369,000 and $1,253,000 on the two contracts. The potential termination fees decrease by approximately 15% in each succeeding year through 2024. Since the Company does not expect to terminate these services with either vendor prior to the end of the commitment periods, no liability has been recorded as of December 31, 2019. The Company, from time to time, may be a defendant in legal proceedings relating to the conduct of its banking business. Most of such legal proceedings are a normal part of the banking business and, in management’s opinion, the consolidated financial condition and results of operations of the Company would not be materially affected by the outcome of such legal proceedings. Additionally, the Company has sold qualifying residential mortgage loans to the FHLB as part of its Mortgage Partnership Finance Program (“Program”). Under the terms of the Program, there is limited recourse back to the Company for loans that do not perform in accordance with the terms of the loan agreement. Each loan sold under the Program is “credit enhanced” such that the individual loan’s rating is raised to “BBB”, as determined by the FHLB. The Program can be terminated by either the FHLB or the Company, without cause, by giving notice to the other party. The FHLB has no obligation to commit to purchase any mortgage through, or from, the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25. SUBSEQUENT EVENT In January 2020, the Board of Directors declared a dividend of $0.22 per share to shareholders of record on February 14, 2020, payable on February 28, 2020. |
Juniata Valley Financial Corp.
Juniata Valley Financial Corp. (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Juniata Valley Financial Corp. (Parent Company Only) Financial Information [Abstract] | |
Juniata Valley Financial Corp. (Parent Company Only) Financial Information | 26. JUNIATA VALLEY FINANCIAL CORP. (PARENT COMPANY ONLY) FINANCIAL INFORMATION CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2019 2018 ASSETS Cash and cash equivalents $ 80 $ 48 Investment in bank subsidiary 72,353 65,909 Equity securities 947 940 Debt securities available for sale 253 253 Other assets 99 641 TOTAL ASSETS $ 73,732 $ 67,791 LIABILITIES Accounts payable and other liabilities $ 25 $ 413 STOCKHOLDERS’ EQUITY 73,707 67,378 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 73,732 $ 67,791 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) Years Ended December 31, 2019 2018 INCOME Interest and dividends on investment securities available for sale $ 47 $ 44 Dividends from bank subsidiary 4,489 4,923 Income from unconsolidated subsidiary — 296 Change in value of equity securities 8 26 TOTAL INCOME 4,544 5,289 EXPENSE Merger-related expenses — 134 Other non-interest expense 176 155 TOTAL EXPENSE 176 289 INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED NET INCOME OF SUBSIDIARY 4,368 5,000 Income tax (benefit) expense (35) (347) 4,403 5,347 Undistributed net income of subsidiary 1,432 557 NET INCOME $ 5,835 $ 5,904 CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Years Ended December 31, 2019 2018 Cash flows from operating activities: Net income $ 5,835 $ 5,904 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net income of subsidiary (1,432) (556) Change in value of equity securities (8) (26) Equity in earnings of unconsolidated subsidiary, net of dividends of $0 and $75 — 194 Equity gain from acquisition of unconsolidated subsidiary — (415) Stock-based compensation expense 113 82 Decrease (increase) in other assets 429 (93) Decrease in taxes payable (402) (402) Increase (decrease) in accounts payable and other liabilities 14 (12) Net cash provided by operating activities 4,549 4,676 Cash flows from investing activities: Net cash received from acquisition — (1,361) Net cash used in investing activities — (1,361) Cash flows from financing activities: Cash dividends (4,489) (4,411) Purchase of treasury stock (428) (70) Treasury stock issued for stock plans 400 90 Common stock issued for stock plans — 42 Net cash used in financing activities (4,517) (4,349) Net increase (decrease) in cash and cash equivalents 32 (1,034) Cash and cash equivalents at beginning of year 48 1,082 Cash and cash equivalents at end of year $ 80 $ 48 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Juniata Valley Financial Corp. and its wholly owned subsidiary, The Juniata Valley Bank. All significant intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the Juniata Valley and the JVB Northern Tier regions. Note 6 discusses the types of securities in which the Company invests. Note 7 discusses the types of lending in which the Company engages. As of December 31, 2019, credit exposure to lessors of non-residential buildings and dwellings represented 45% of capital, credit exposure to residential buildings and dwellings represented 32% of capital, credit exposure to hotels and motels represented 30% of capital, and credit exposure to continuing care retirement communities represented 26% of capital. Otherwise, there were no concentrations of credit to any particular industry equaling more than 10% of total capital. The Bank’s business activities are geographically concentrated in the counties of Juniata, Mifflin, Perry, Huntingdon, Centre, Franklin, McKean, Potter and Snyder, Pennsylvania. The Bank has a diversified loan portfolio; however, a substantial portion of its debtors’ ability to honor their obligations is dependent upon the economy in central Pennsylvania. |
Revenue Recognition | Revenue Recognition The Company generally acts in a principal capacity, on its own behalf, in most contracts with customers. In such transactions, revenue and related costs to provide these services are recognized on a gross basis in the financial statements. In some cases, the Company acts in an agent capacity, deriving revenue through assisting other entities in transactions with its customers. In such transactions, revenue and the related costs to provide the services are recognized on a net basis in the financial statements. These transactions primarily relate to non-deposit product commissions and fees derived from customer’s use of various interchange and ATM/debit card networks. All of the Company’s revenue from contracts with customers in the scope of ASC Topic 606, Revenue from Contracts with Customers , are recognized within non-interest income on the consolidated statements of income. Revenue streams not within the scope of ASC 606 included in non-interest income on the consolidated statements of income include earnings on bank-owned life insurance and annuities, income from unconsolidated subsidiary, fees derived from loan activity, mortgage banking income, gain/loss on sales and calls of securities, and the change in value of equity securities. Refer to Note 20 for a description of the Company’s sources of revenue accounted for under ASC 606. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing demand deposits with banks and federal funds sold. Generally, federal funds are sold for one-day periods. |
Interest Bearing Time Deposits with Banks | Interest Bearing Time Deposits with Banks Interest-bearing time deposits with banks consist of certificates of deposits in other banks with original maturities of greater than 90 days. These time deposits all have maturities within five years. |
Securities | Securities Debt securities classified as available for sale are stated at fair value, with the unrealized gains and losses, net of tax, reported as a component of other comprehensive income (loss). Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Interest and dividends are recognized as income when earned. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company had no securities classified as held to maturity at December 31, 2019 and 2018. Management evaluates debt securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. As of January 1, 2018, upon the adoption of ASU 2016‑01, all of the Company’ equity securities are within the scope of ASC 321, Investments – Equity Securities , while debt securities remain under ASC 320, Investments – Debt Securities . ASC 321 requires all equity securities within its scope to be measured at fair value with changes in fair value recognized in net income. |
Restricted Investment in Bank Stock | Restricted Investment in Bank Stock The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and my invest in additional amounts. The Bank also owns restricted stock investments in the Atlantic Community Bankers Bank (“ACBB”). Both the FHLB and ACBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans | Loans Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity are stated at the outstanding unpaid principal balances, net of any deferred fees or costs and the allowance for loan losses. Interest income on all loans, other than non-accrual loans, is accrued over the term of the loans based on the amount of principal outstanding. The loan portfolio includes the following classes: (1) commercial, financial and agricultural, (2) real estate - commercial, (3) real estate - construction, (4) real estate – mortgage, (5) obligations of states and political subdivisions, and (6) personal loans. Interest income on consumer, mortgage and commercial loans is discontinued and loans are placed on non-accrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Loans are charged off to the extent principal or interest is deemed uncollectible. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Non-accrual loans and loans past due 90 days still on accrual include both homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan principal balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms for a reasonable period of time and future payments are reasonably assured. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Loan origination fees and related direct origination costs for a given loan are deferred and amortized over the life of the loan on a level-yield basis as an adjustment to interest income over the contractual life of the loan. As of December 31, 2019, the amount of net unamortized origination costs carried as an adjustment to outstanding loan balances was $70,000. |
Acquired Loans | Acquired Loans Loans that Juniata acquires through business combinations are recorded at fair value with no carryover of the related allowance for loan losses. Some of these loans have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics, such as credit score, loan type, and date of origination. Juniata estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. PCI loans that met the criteria for impairment or non-accrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Juniata expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, Juniata may no longer consider the loan to be non-accrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Loans acquired through business combinations that do not meet the specific criteria of ASC 310‑30, but for which a discount is attributable at least in part to credit quality, are also accounted for in accordance with this guidance. As a result, related discounts are recognized subsequently through accretion based on the contractual cash flows of the acquired loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses (“allowance”) represents management’s estimate of losses inherent in the loan portfolio as of the consolidated statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, as well as other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgement, should be charged off. For financial reporting purposes, the provision for loan losses charged to current operating income is based on management’s estimates, and actual losses may vary from estimates. These estimates are reviewed and adjusted at least quarterly and are reported in earnings in the periods in which they become known. Loans included in any class are considered for charge-off when: · principal or interest has been in default for 120 days or more and for which no payment has been received during the previous four months; · all collateral securing the loan has been liquidated and a deficiency balance remains; · a bankruptcy notice is received for an unsecured loan; · a confirming loss event has occurred; or · the loan is deemed to be uncollectible for any other reason. There are two components of the allowance: (1) specific allowances allocated to loans evaluated for impairment under ASC Section 310‑10‑35; and (2) allowances calculated for pools of loans evaluated collectively for impairment under ASC Subtopic 450‑20, Contingencies . The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loans and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Impairment for substantially all of the Company’s impaired loans is measured based on the estimated fair value of the loan’s collateral. For real estate - commercial loans, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the current appraisal and the condition of the property. Appraised values may be discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include the estimated costs to sell the property. For commercial, financial and agricultural, and obligations of states and political subdivision loans, estimated fair values are determined based on the borrower’s financial statements, inventory reports, aging accounts receivable, equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company generally does not separately identify individual consumer segment loans for impairment analysis, unless such loans are subject to a restructuring agreement. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. Loans whose terms are modified are classified as troubled debt restructurings if the Company grants borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a below-market interest rate based on the loan’s risk characteristics, an extension of a loan’s stated maturity date or a significant delay in payment. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period after modification. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio class. The general component of the allowance covers loans that are collectively evaluated for impairment. In accordance with ASC Subtopic 450‑20, when measuring estimated credit losses, these loans are grouped into homogenous pools with similar characteristics and evaluated collectively considering both quantitative measures, such as historical loss, and qualitative measures, in the form of environmental adjustments. Quantitative factor determination: An average annual loss rate is calculated for each pool through an analysis of historical losses over a five-year look-back period. Using data for each loan, a loss emergence period is determined within each class pool. The loss emergence period reflects the approximate length of time from the point when a loss is incurred (the loss trigger event) to the point of loss confirmation (the date of eventual charge-off). The loss emergence period is applied to the average annual loss to produce the quantitative factor for each pooled class. Qualitative factor determination: Historical loss rates computed in the quantitative component reflects an estimate of the level of incurred losses in the portfolio based on historical experience. Management considers that the current conditions may deviate from those that prevailed over the historical look-back period. Thus, the quantitative rates are an imperfect estimate, necessitating an evaluation of qualitative considerations (i.e. environmental factors) to incorporate these risks. Management considered qualitative, environmental risk factors including: · National, regional and local economic and business conditions, and developments that affect the collectability of the portfolio, including the condition of various market segments; · Changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified loans; · Changes in the nature and volume of the portfolio and terms of loans; · Changes in the experience, ability and depth of lending and credit management and other relevant staff; · Existence and effect of any concentrations of credit and changes in the level of such concentrations; · Changes in the quality of the loan review system; · Changes in lending policies and procedures including changes in underwriting standards and collection, charge-off and recovery practices; · Changes in the value of underlying collateral for collateral-dependent loans; and · Effect of external influences, including competition, legal and regulatory requirements. Within each loan class, an analysis was performed over a ten-year look-back period to discover peak historical losses, and with this data, management established ranges of risk from minimal to very high, for each risk factor, to produce a supportable anchor for risk assignment. Based on the framework for risk factor evaluation and range of adjustments established through the anchoring process, a risk assessment and corresponding adjustment was assigned for each class as of December 31, 2019. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. The combination of quantitative and qualitative factors was applied to year-end balances in each class to establish the overall allowance. |
Reserve for Unfunded Lending Commitments | Reserve for Unfunded Lending Commitments The reserve for unfunded lending commitments represents management’s estimate of probable incurred losses inherent in its unfunded lending commitments and is recorded in other liabilities on the consolidated statement of financial condition, when necessary. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. |
Loans Held for Sale and Mortgage Servicing Rights | Loans Held for Sale and Mortgage Servicing Rights The Company has originated residential mortgage loans with the intent to sell. These individual loans were normally sold to the buyer immediately. The Company maintains servicing rights on these loans. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, which are included with mortgage banking income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. The carrying amount of mortgage servicing rights was $180,000 and $200,000 at December 31, 2019 and 2018, respectively. Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. Servicing fees totaled $88,000 and $95,000 for the years ended December 31, 2019 and 2018, respectively. Late fees and ancillary fees related to loan servicing are not material. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired in settlement of mortgage loan indebtedness are recorded as other real estate owned (“OREO”) at fair value less estimated costs to sell, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Goodwill and Intangibles | Goodwill and Other Intangibles Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired an liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Juniata has selected November 30 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives. There were no impairment losses recognized as a result of periodic impairment testing in the years ended December 31, 2019 and 2018. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed principally using the straight-line method over the estimated useful lives of the related assets, which range from 3 to 10 years for furniture and equipment and 25 to 50 years for buildings. Expenditures for maintenance and repairs are charged against income as incurred. Costs of major additions and improvements are capitalized. Amortization of leasehold improvements is computed on a straight-line basis over the shorter of the assets’ useful life or the related lease term. |
Trust Assets and Revenues | Trust Assets and Revenues Assets held in a fiduciary capacity are not assets of the Bank or the Bank’s Trust Department and are, therefore, not included in the consolidated financial statements. Trust revenues are recorded on the accrual basis as the related obligations are satisfied. |
Bank Owned Life Insurance, Annuities and Split-dollar Arrangements | Bank Owned Life Insurance, Annuities and Split-dollar Arrangements The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Juniata has promised a continuation of life insurance coverage to certain persons post-retirement. The estimated present value of future benefits to be paid was $1,117,000 and $1,081,000 as of December 31, 2019 and 2018, respectively, and is included in other liabilities. Related expenses for 2019 and 2018 were $36,000 and $38,000. |
Investments in Low-income Housing Partnerships | Investments in Low-income Housing Partnerships Juniata has invested as a limited partner in two partnerships that provide low-income housing in Lewistown, Pennsylvania. The carrying value of the investment in the limited partnerships was $3,904,000 at December 31, 2019 and $4,545,000 at December 31, 2018. The decline in carrying value in 2019 was the result of amortization exceeding the draws taken for the completion of the phase II low-income housing project. The project is now fully funded as the final remaining draw occurred in 2019. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance ASC Topic 740, Income Taxes . Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes a benefit for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than 50 percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes, if any, as a component of income tax expense. |
Advertising | Advertising The Company follows the policy of charging costs of advertising to expense as incurred. Advertising expenses were $312,000 and $294,000 in 2019 and 2018, respectively. |
Off-balance Sheet Financial Instruments | Off-balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded on the consolidated statement of financial condition when they are funded. |
Transfer of Financial Assets | Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is net income divided by weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes changes in unrealized gains and losses on securities available for sale arising during the period and reclassification adjustments for realized gains and losses on securities available for sale included in net income. The Company has a defined benefit retirement plan which utilizes assumptions and methods to calculate the fair value of Plan assets and recognizing the funded status of the Plans on its consolidated balance sheet. Gains and losses on the Plan are recognized in other comprehensive income (loss), net of tax, until they are amortized, or immediately upon curtailment. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management believes that there are no such matters that will have a material effect on the financial statements. |
Dividend Restrictions | Dividend Restrictions Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate footnote. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Stock-based Compensation | Stock-based Compensation The Company sponsors a stock compensation plan for certain key officers which allows, among other stock-based compensation methods, for stock options and restricted stock awards. Prior to 2016, stock options were used exclusively for long-term compensation. Beginning in 2016, restricted shares awards have been used. Compensation expense for stock options granted and restricted stock awarded is measured using the fair value of the award on the grant date and is recognized over the vesting period. The stock-based compensation expense amounts for stock options were derived based on the fair value of options using the Black-Scholes option-pricing model. |
Segment Reporting | Segment Reporting Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail and trust operations of the Company. As such, discrete financial information is not available, and segment reporting would not be meaningful. |
Reclassifications | Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | |
Loans | Commercial, Financial and Agricultural Lending The Company originates commercial, financial and agricultural loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is shorter and does not exceed the projected useful life of such machinery and equipment. Most business lines of credit are written with a five year maturity, subject to an annual review. Commercial, financial and agricultural loans are generally secured with short-term assets; however, in many cases, additional collateral, such as real estate, is provided as additional security for the loan. Loan-to-value maximum values have been established by the Company and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, collateral appraisals, etc. In underwriting commercial, financial and agricultural loans, an analysis of the borrower’s capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as an evaluation of conditions affecting the borrower, is performed. Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s analysis. Concentration analysis assists in identifying industry specific risk inherent in commercial, financial and agricultural lending. Mitigants include the identification of secondary and tertiary sources of repayment and appropriate increases in oversight. Commercial, financial and agricultural loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | |
Loans | Real Estate - Commercial Lending The Company engages in real estate - commercial lending in its primary market area and surrounding areas. The Company’s real estate - commercial portfolio is secured primarily by residential housing, commercial buildings, raw land and hotels. Generally, real estate - commercial loans have terms that do not exceed 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property and are typically secured by personal guarantees of the borrowers. As economic conditions deteriorate, the Company reduces its exposure in real estate loans with higher risk characteristics. In underwriting these loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing real estate - commercial loans originated by the Company are performed by independent appraisers. Real estate - commercial loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | |
Loans | Real Estate - Construction Lending The Company engages in real estate - construction lending in its primary market area and surrounding areas. The Company’s real estate - construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Company’s commercial real estate - construction loans are generally secured with the subject property, and advances are made in conformity with a pre-determined draw schedule supported by independent inspections. Terms of construction loans depend on the specifics of the project, such as estimated absorption rates, estimated time to complete, etc. In underwriting commercial real estate - construction loans, the Company performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, the reliability and predictability of the cash flow generated by the project using feasibility studies, market data, etc. Appraisals on properties securing real estate - commercial loans originated by the Company are performed by independent appraisers. Real estate - construction loans generally present a higher level of risk than certain other types of loans, particularly during slow economic conditions. The difficulty of estimating total construction costs adds to the risk as well. |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | |
Loans | Real Estate - Mortgage Lending The Company’s real estate - mortgage portfolio is comprised of one-to-four family residential mortgages and commercial loans secured by one-to-four family properties. One-to-four family residential mortgage loan originations, including home equity installment and home equity lines of credit loans, are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within the Company’s market area or with customers primarily from the market area. The Company offers fixed-rate and adjustable rate real estate - mortgage loans with terms up to a maximum of 25 years for both permanent structures and those under construction. The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. Most of the Company’s residential real estate - mortgage loans originate with a loan-to-value of 80% or less. Home equity installment loans are secured by the borrower’s primary residence with a maximum loan-to-value of 80% and a maximum term of 15 years. Home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of 90% and a maximum term of 20 years. In underwriting one-to-four family residential real estate - mortgage loans, the Company evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability to repay is determined by the borrower’s employment history, current financial conditions, and credit background. The analysis is based primarily on the customer’s ability to repay and secondarily on the collateral or security. Most properties securing real estate - mortgage loans made by the Company are appraised by independent fee appraisers. The Company generally requires real estate - mortgage loan borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Company does not engage in sub-prime residential real estate - mortgage originations. Residential real estate - mortgage loans and home equity loans generally present a lower level of risk than certain other types of consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Company is in a subordinate position for the loan collateral. |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | |
Loans | Obligations of States and Political Subdivisions The Company lends to local municipalities and other tax-exempt organizations. These loans are primarily tax-anticipation notes and, as such, carry little risk. Historically, the Company has never had a loss on any loan of this type. |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | |
Loans | Personal Lending The Company offers a variety of secured and unsecured personal loans, including vehicle loans, mobile home loans and loans secured by savings deposits as well as other types of personal loans. Personal loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis of the borrower’s willingness and financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial conditions and credit background. Personal loans may entail greater credit risk than do residential mortgage loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and, thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. |
Borrowings (Policy)
Borrowings (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Repurchase Agreements, Policy | The Bank has repurchase agreements with some of its depositors, under which customers’ funds are invested daily into an interest bearing account. These funds are carried by the Company as short-term debt. It is the Company’s policy to completely collateralize repurchase agreements with U.S. Government securities. |
Merger (Tables)
Merger (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Merger [Abstract] | |
Schedule of Purchase Price Allocation | The allocation of the purchase price is as follows: (Dollars in thousands) Recorded at April 30, 2018 Step One Purchase Price Consideration April 30, 2018 JUVF basis in LCB (before gain) $ 4,622 Increase in Step One basis from equity gain in acquisition 415 Total Step One adjusted basis 5,037 Step Two Purchase Price Consideration Purchase price assigned to LCB common shares exchanged for 315,284 JUVF common shares $ 6,463 Purchase price assigned to LCB common shares exchanged for cash including cash in lieu of fractional shares 1,362 Total Step Two purchase price consideration 7,825 Total purchase price 12,862 LCB net assets acquired: Tangible common equity 9,246 Adjustments to reflect assets acquired and liabilities assumed at fair value: Total fair value adjustments (95) Associated deferred income taxes 20 Fair value adjustment to net assets acquired, net of tax (75) Total LCB net assets acquired 9,171 Goodwill resulting from the merger $ 3,691 |
Summary of the Estimated Fair Value of the Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed. (Dollars in thousands) Recorded at April 30, 2018 Total purchase price $ 12,862 Net assets acquired: Cash and cash equivalents 8,923 Investments in time deposits with banks 3,675 Loans 31,331 Premises and equipment 125 Accrued interest receivable 123 Core deposit and other intangibles 289 Bank owned life insurance 632 FHLB stock 124 Other assets 267 Deposits (36,052) Accrued interest payable (17) Other liabilities (249) 9,171 Goodwill $ 3,691 |
Schedule of Fair Value Adjustments for Acquired Loans | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at April 30, 2018 $ 32,091 Market rate adjustment 272 Credit fair value adjustment on pools of homogeneous loans (496) Credit fair value adjustment on purchased credit impaired loans (622) Reversal of existing deferred fees and premiums 86 Fair value of purchased loans at April 30, 2018 $ 31,331 |
Schedule of Acquired Impaired Loans | Summarized below is the acquired Liverpool purchased credit impaired loan portfolio as of April 30, 2018. (Dollars in thousands) Contractually required principal and interest at acquisition $ 2,022 Contractual cash flows not expected to be collected (nonaccretable discount) (1,273) Expected cash flows at acquisition 749 Interest component of expected cash flows (accretable discount) (177) Fair value of acquired loans $ 572 |
Merger, Pro Forma Information | The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies or other factors. (Dollars in thousands; except share data) Year Ended December 31, 2018 Net interest income after loan loss provision $ 20,629 Noninterest income 4,816 Noninterest expense 18,818 Net income available to common shareholders 6,996 Net income per common share 1.37 |
Components of the Income/Gain from the Unconsolidated Subsidiary Investment | The following table illustrates the components of the income/gain from the unconsolidated subsidiary investment recorded for the year ended December 31, 2018. There was no income/gain from the unconsolidated subsidiary investment recorded in 2019 since the investment did not exist during the year. (Dollars in thousands) Year Ended December 31, 2018 Income from unconsolidated subsidiary (excluding merger-related adjustments) Dividend income $ 36 Equity income 45 Total income (excluding merger-related adjustments) 81 Merger-related adjustments for investment in unconsolidated subsidiary Adjustment to LCB book value at April 30, 2018 (239) Special merger-related dividend 39 Fair value gain 415 Total merger-related adjustments 215 Total income/gain from unconsolidated subsidiary $ 296 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Securities [Abstract] | |
Debt securities Available for Sale | The amortized cost and fair value of debt securities available for sale as of December 31, 2019 and 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties. (Dollars in thousands) December 31, 2019 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 14,998 $ 14,970 $ 1 $ (29) After five years but within ten years 6,000 5,950 — (50) 20,998 20,920 1 (79) Obligations of state and political subdivisions Within one year 1,020 1,024 4 — After one year but within five years 2,810 2,823 13 — After five years but within ten years 723 728 5 — 4,553 4,575 22 — Mortgage-backed securities 184,488 185,191 1,132 (429) Total $ 210,039 $ 210,686 $ 1,155 $ (508) (Dollars in thousands) December 31, 2018 Gross Gross Amortized Fair Unrealized Unrealized Debt Securities Available for Sale Cost Value Gains Losses Type and Maturity Obligations of U.S. Government sponsored enterprises After one year but within five years $ 20,998 $ 20,355 $ — $ (643) After five years but within ten years 2,999 2,911 — (88) 23,997 23,266 — (731) Obligations of state and political subdivisions Within one year 826 826 — — After one year but within five years 14,751 14,686 13 (78) After five years but within ten years 2,779 2,669 — (110) 18,356 18,181 13 (188) Mortgage-backed securities 102,957 100,506 172 (2,623) Total $ 145,310 $ 141,953 $ 185 $ (3,542) |
Summary of Proceeds and Realized Gain/(Loss) | Following is a summary of proceeds received from all investment securities transactions and the resulting realized gains and losses: (Dollars in thousands) Year Ended December 31, 2019 2018 Gross proceeds from sales and calls of securities $ 21,777 $ 10,461 Securities available for sale: Gross realized gains from sold and called securities $ 67 $ — Gross realized losses from sold and called securities (110) (188) Net losses from sales and calls of securities $ (43) $ (188) |
Schedule of Gross Unrealized Losses and Fair Value | The following table shows gross unrealized losses and fair values of debt securities available for sale, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019: Unrealized Losses at December 31, 2019 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises 9 $ 16,919 $ (79) — $ — $ — 9 $ 16,919 $ (79) Mortgage-backed securities 13 47,466 (204) 16 22,049 (225) 29 69,515 (429) Total temporarily impaired securities 22 $ 64,385 $ (283) 16 $ 22,049 $ (225) 38 $ 86,434 $ (508) The following table shows gross unrealized losses and fair values of securities available for sale, aggregated by category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2018: Unrealized Losses at December 31, 2018 Less Than 12 Months 12 Months or More Total (Dollars in thousands) Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. Government sponsored enterprises — $ — $ — 14 $ 23,267 $ (731) 14 $ 23,267 $ (731) Obligations of state and political subdivisions 8 5,055 (10) 13 8,242 (178) 21 13,297 (188) Mortgage-backed securities 3 6,726 (32) 43 77,170 (2,591) 46 83,896 (2,623) Total temporarily impaired securities 11 $ 11,781 $ (42) 70 $ 108,679 $ (3,500) 81 $ 120,460 $ (3,542) |
Loans and Related Allowance f_2
Loans and Related Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Related Allowance for Credit Losses [Abstract] | |
Loan Portfolio by Class | The following table presents the loan portfolio by class at December 31, 2019 and 2018. (Dollars in thousands) December 31, 2019 December 31, 2018 Commercial, financial and agricultural $ 51,785 $ 46,563 Real estate - commercial 126,613 141,295 Real estate - construction 46,459 36,688 Real estate - mortgage 150,538 163,548 Obligations of states and political subdivisions 16,377 19,129 Personal 8,818 10,408 Total $ 400,590 $ 417,631 |
Allowance for Loan Losses and Recorded Investments in Loans Receivable | The following tables summarize loans and the activity in the allowance for loan losses by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended December 31, 2019 and 2018: (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total Year Ended December 31, 2019 Balance, beginning of period $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 Provision for loan losses 45 (619) (135) (3) 105 34 (573) Charge-offs (2) (15) — — (66) (54) (137) Recoveries 3 314 295 — 7 18 637 Balance, end of period $ 321 $ 754 $ 718 $ 17 $ 1,081 $ 70 $ 2,961 December 31, 2018 Balance, beginning of period $ 273 $ 1,022 $ 288 $ — $ 1,285 $ 71 $ 2,939 Provision for loan losses (8) 107 270 20 (79) 27 337 Charge-offs — (60) — — (183) (42) (285) Recoveries 10 5 — — 12 16 43 Balance, end of period $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total December 31, 2019 Loans allocated by: individually evaluated for impairment $ — $ 1,206 $ — $ — $ 1,296 $ 14 $ 2,516 acquired with credit deterioration — 366 — — 704 — 1,070 collectively evaluated for impairment 51,785 125,041 46,459 16,377 148,538 8,804 397,004 $ 51,785 $ 126,613 $ 46,459 $ 16,377 $ 150,538 $ 8,818 $ 400,590 Allowance for loan losses allocated by: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — acquired with credit deterioration — — — — — — — collectively evaluated for impairment 321 754 718 17 1,081 70 2,961 $ 321 $ 754 $ 718 $ 17 $ 1,081 $ 70 $ 2,961 December 31, 2018 Loans allocated by: individually evaluated for impairment $ — $ 909 $ 27 $ — $ 1,180 $ 17 $ 2,133 acquired with credit deterioration — 544 — — 971 — 1,515 collectively evaluated for impairment 46,563 139,842 36,661 19,129 161,397 10,391 413,983 $ 46,563 $ 141,295 $ 36,688 $ 19,129 $ 163,548 $ 10,408 $ 417,631 Allowance for loan losses allocated by: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — acquired with credit deterioration — — — — — — — collectively evaluated for impairment 275 1,074 558 20 1,035 72 3,034 $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 |
Impaired Loans by Loan Portfolio Class | (Dollars in thousands) Obligations Commercial, of states financial and Real estate- Real estate- and political Real estate- agricultural commercial construction subdivisions mortgage Personal Total December 31, 2019 Loans allocated by: individually evaluated for impairment $ — $ 1,206 $ — $ — $ 1,296 $ 14 $ 2,516 acquired with credit deterioration — 366 — — 704 — 1,070 collectively evaluated for impairment 51,785 125,041 46,459 16,377 148,538 8,804 397,004 $ 51,785 $ 126,613 $ 46,459 $ 16,377 $ 150,538 $ 8,818 $ 400,590 Allowance for loan losses allocated by: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — acquired with credit deterioration — — — — — — — collectively evaluated for impairment 321 754 718 17 1,081 70 2,961 $ 321 $ 754 $ 718 $ 17 $ 1,081 $ 70 $ 2,961 December 31, 2018 Loans allocated by: individually evaluated for impairment $ — $ 909 $ 27 $ — $ 1,180 $ 17 $ 2,133 acquired with credit deterioration — 544 — — 971 — 1,515 collectively evaluated for impairment 46,563 139,842 36,661 19,129 161,397 10,391 413,983 $ 46,563 $ 141,295 $ 36,688 $ 19,129 $ 163,548 $ 10,408 $ 417,631 Allowance for loan losses allocated by: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — acquired with credit deterioration — — — — — — — collectively evaluated for impairment 275 1,074 558 20 1,035 72 3,034 $ 275 $ 1,074 $ 558 $ 20 $ 1,035 $ 72 $ 3,034 The following tables summarize information regarding impaired loans by portfolio class as of December 31, 2019 and December 31, 2018: (Dollars in thousands) As of December 31, 2019 As of December 31, 2018 Recorded Unpaid Principal Related Recorded Unpaid Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans With no related allowance recorded: Real estate - commercial $ 1,206 $ 1,304 $ — $ 909 $ 1,303 $ — Acquired with credit deterioration 366 395 — 544 592 — Real estate – construction — 1,054 — 27 1,123 — Real estate - mortgage 1,296 2,006 — 1,180 1,912 — Acquired with credit deterioration 704 840 — 971 1,061 — Personal 14 14 — 17 17 — Total: Real estate - commercial $ 1,206 $ 1,304 $ — $ 909 $ 1,303 $ — Acquired with credit deterioration 366 395 — 544 592 — Real estate - construction — 1,054 — 27 1,123 — Real estate – mortgage 1,296 2,006 — 1,180 1,912 — Acquired with credit deterioration 704 840 — 971 1,061 — Personal 14 14 — 17 17 — $ 3,586 $ 5,613 $ — $ 3,648 $ 6,008 $ — (Dollars in thousands) Year Ended December 31, 2019 Year Ended December 31, 2018 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Income Investment Recognized Income Impaired Loans With no related allowance recorded: Commercial, financial and agricultural $ 549 $ 22 $ 15 $ 234 $ — $ — Real estate - commercial 1,058 45 28 2,970 — — Acquired with credit deterioration 455 — — 368 — — Real estate - construction 14 — — 14 — — Real estate - mortgage 1,238 17 45 1,706 19 33 Acquired with credit deterioration 838 — — 654 — — Personal 16 — — 9 — — Total: Commercial, financial and agricultural $ 549 $ 22 $ 15 $ 234 $ — $ — Real estate - commercial 1,058 45 28 2,970 — — Acquired with credit deterioration 455 — — 368 — — Real estate - construction 14 — — 14 — — Real estate - mortgage 1,238 17 45 1,706 19 33 Acquired with credit deterioration 838 — — 654 — — Personal 16 — — 9 — — $ 4,168 $ 84 $ 88 $ 5,955 $ 19 $ 33 |
Nonaccrual Loans by Classes of the Loan Portfolio | The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2019 and December 31, 2018: (Dollars in thousands) December 31, 2019 December 31, 2018 Non-accrual loans: Real estate - commercial $ 903 $ 908 Real estate - construction — 29 Real estate - mortgage 902 753 Personal 14 17 Total $ 1,819 $ 1,707 |
Loan Portfolio Summarized by the Past Due Status | The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2019 and December 31, 2018: Loans Past Due Greater (Dollars in thousands) Greater than 89 30‑59 Days 60‑89 Days than 89 Total Past Days and Current Past Due(2) Past Due Days Due Total Loans Accruing(1) As of December 31, 2019 Commercial, financial and agricultural $ 51,725 $ 60 $ — $ — $ 60 $ 51,785 $ — Real estate - commercial 126,180 19 — 48 67 126,247 — Real estate - construction 46,172 287 — — 287 46,459 — Real estate - mortgage 148,366 348 149 971 1,468 149,834 359 Obligations of states and political subdivisions 16,377 — — — — 16,377 — Personal 8,725 55 — 38 93 8,818 24 Subtotal 397,545 769 149 1,057 1,975 399,520 383 Loans acquired with credit deterioration Real estate - commercial 366 — — — — 366 — Real estate - mortgage 330 371 — 3 374 704 3 Subtotal 696 371 — 3 374 1,070 3 $ 398,241 $ 1,140 $ 149 $ 1,060 $ 2,349 $ 400,590 $ 386 Loans Past Due Greater (Dollars in thousands) Greater than 89 30‑59 Days 60‑89 Days than 89 Total Past Days and Current Past Due(2) Past Due Days Due Total Loans Accruing(1) As of December 31, 2018 Commercial, financial and agricultural $ 46,557 $ 6 $ — $ — $ 6 $ 46,563 $ — Real estate - commercial 139,890 — — 1,214 1,214 141,104 306 Real estate - construction 36,627 32 — 29 61 36,688 — Real estate - mortgage 161,651 824 561 175 1,560 163,211 23 Obligations of states and political subdivisions 19,129 — — — — 19,129 — Personal 10,352 24 15 17 56 10,408 — Subtotal 414,206 886 576 1,435 2,897 417,103 329 Loans acquired with credit deterioration Real estate - commercial 51 140 — — 140 191 — Real estate - mortgage 71 259 — 7 266 337 7 Subtotal 122 399 — 7 406 528 7 $ 414,328 $ 1,285 $ 576 $ 1,442 $ 3,303 $ 417,631 $ 336 (1) These loans are guaranteed, or well secured, and there is an effective means of collection in process. (2) Loans are considered past due when the borrower is in arrears on two or more monthly payments. |
Summary of Loans Whose Terms Have Been Modified | The following tables summarize loans whose terms were modified, resulting in troubled debt restructurings during 2019 and 2018. (Dollars in thousands) Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Recorded Investment Year ended December 31, 2019 Accruing troubled debt restructurings: Real estate - commercial 1 $ 306 $ 326 $ 306 Real estate - mortgage 1 9 9 5 2 $ 315 $ 335 $ 311 The troubled debt restructurings described above had no specific allowance for loan losses and resulted in charge-offs of $16,000 during the year ending December 31, 2019. (Dollars in thousands) Pre-Modification Post-Modification Number of Outstanding Outstanding Contracts Recorded Investment Recorded Investment Recorded Investment Year ended December 31, 2018 Accruing troubled debt restructurings: Real estate - mortgage 1 $ 153 $ 153 $ 147 1 $ 153 $ 153 $ 147 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2019 and December 31, 2018. (Dollars in thousands) Special As of December 31, 2019 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 46,725 $ 4,080 $ 980 $ — $ 51,785 Real estate - commercial 113,851 5,668 7,046 48 126,613 Real estate - construction 44,954 287 1,218 — 46,459 Real estate - mortgage 148,164 327 1,951 96 150,538 Obligations of states and political subdivisions 16,377 — — — 16,377 Personal 8,804 — 14 — 8,818 Total $ 378,875 $ 10,362 $ 11,209 $ 144 $ 400,590 (Dollars in thousands) Special As of December 31, 2018 Pass Mention Substandard Doubtful Total Commercial, financial and agricultural $ 42,757 $ 2,992 $ 814 $ — $ 46,563 Real estate - commercial 125,352 8,590 6,459 894 141,295 Real estate - construction 34,131 — 2,528 29 36,688 Real estate - mortgage 160,774 24 2,569 181 163,548 Obligations of states and political subdivisions 19,129 — — — 19,129 Personal 10,389 — 19 — 10,408 Total $ 392,532 $ 11,606 $ 12,389 $ 1,104 $ 417,631 |
Bank Owned Life Insurance and_2
Bank Owned Life Insurance and Annuities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Bank Owned Life Insurance and Annuities [Abstract] | |
Summary of Changes in Cash Value of BOLI and Annuities | Changes in cash value of BOLI and annuities in 2019 and 2018 are shown below: (Dollars in thousands) Life Deferred Insurance Annuities Total Balance as of January 1, 2018 $ 14,510 $ 462 $ 14,972 Earnings 277 18 295 Premiums on existing policies 25 13 38 Annuity payments received 1 — 1 BOLI acquired through acquisition 632 — 632 Balance as of December 31, 2018 15,445 493 15,938 Earnings 270 19 289 Premiums on existing policies 26 13 39 Balance as of December 31, 2019 $ 15,741 $ 525 $ 16,266 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment consist of the following: (Dollars in thousands) December 31, 2019 2018 Land $ 294 $ 1,158 Buildings and improvements 13,227 11,645 Furniture, computer software and equipment 6,630 6,217 20,151 19,020 Less: accumulated depreciation (10,908) (10,276) $ 9,243 $ 8,744 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangible Assets [Abstract] | |
Amortization Schedule for Intangible Assets | The following table shows the amortization schedule for each of the intangible assets recorded. (Dollars in thousands) FNBPA LCB Acquisition Acquisition Core Core Deposit Deposit Intangible Intangible Beginning Balance at Acquisition Date $ 303 $ 289 Amortization expense recorded prior to December 31, 2017 108 — Amortization expense recorded in Years ended: December 31, 2018 44 35 December 31, 2019 38 49 Unamortized balance as of December 31, 2019 $ 113 $ 205 Scheduled Amortization expense for years ended: December 31, 2020 33 44 December 31, 2021 27 39 December 31, 2022 22 33 December 31, 2023 16 28 December 31, 2024 10 23 After December 31, 2024 5 38 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits consist of the following: (Dollars in thousands) December 31, 2019 2018 Demand, non-interest bearing $ 134,703 $ 126,057 Interest-bearing demand and money market 150,157 147,413 Savings 96,980 99,236 Time deposits, $250,000 or more 6,923 8,368 Other time deposits 143,174 140,648 $ 531,937 $ 521,722 |
Schedule of Maturities of Time Deposits | Aggregate amount of scheduled maturities of time deposits as of December 31, 2019 include the following: (Dollars in thousands) Time Deposits Maturing in: $250,000 or more Other Total Time Deposits 2020 $ 3,647 $ 54,611 $ 58,258 2021 1,535 33,182 34,717 2022 — 14,645 14,645 2023 346 13,173 13,519 2024 656 7,133 7,789 Later 739 20,430 21,169 $ 6,923 $ 143,174 $ 150,097 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Short Term Borrowings | Short term borrowings, and the related maximum amounts outstanding at the end of any month in both of the years ended December 31, 2019 and 2018, are presented below. (Dollars in thousands) Maximum Outstanding at Years Ended December 31, Any Month End 2019 2018 2019 2018 Repurchase agreements $ 3,429 $ 2,911 $ 3,891 $ 4,620 Short-term borrowings with FHLB: Overnight advances 9,700 11,600 9,700 29,238 $ 13,129 $ 14,511 $ 13,591 $ 33,858 The following table presents supplemental information related to short-term borrowings. (Dollars in thousands) Securities sold under Short-term borrowings with agreements to repurchase Federal Home Loan Bank 2019 2018 2019 2018 Amount outstanding as of December 31 $ 3,429 $ 2,911 $ 9,700 $ 11,600 Weighted average interest rate as of December 31 1.09 % 2.13 % 1.81 % 2.62 % Average amount outstanding during the year 3,246 4,177 1,022 9,906 Weighted average interest rate during the year 1.15 % 1.49 % 2.32 % 1.92 % |
Summary of the Scheduled Maturities of Long-Term Debt | The following table summarizes the scheduled maturities of long-term debt as of December 31, 2019. (Dollars in thousands) Scheduled Weighted Average Year Maturities Interest Rate 2020 $ — — % 2021 — — 2022 5,000 2.74 2023 5,000 2.75 2024 20,000 2.42 Thereafter 15,000 2.41 $ 45,000 2.49 % |
Operating Lease Obligations (Ta
Operating Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of future minimum payments for operating leases | The future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2019 were as follows: (Dollars in thousands) Years ending December 31, Lease Obligation 2020 $ 117 2021 107 2022 50 2023 46 2024 47 2025 and beyond 206 Total Future Minimum Lease Payments 573 Amounts Representing Interest (104) Present Value of Net Future Minimum Lease Payments (Lease Liability) $ 469 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | The components of income tax (benefit) expense for the two years ended December 31 were: (Dollars in thousands) Years Ended December 31, 2019 2018 Current tax expense (benefit) $ 768 $ (563) Deferred tax expense (benefit) (782) (96) Total tax expense (benefit) $ (14) $ (659) |
Effective Income Tax Rate Reconciliation | A reconciliation of the statutory income tax (benefit) expense computed at 21% to the income tax expense included in the consolidated statements of income follows: (Dollars in thousands) Years Ended December 31, 2019 2018 Income before income taxes $ 5,821 $ 5,245 Statutory tax rate 21 % 21 % Federal tax at statutory rate 1,222 1,101 Tax-exempt interest (261) (271) Net earnings on BOLI (49) (50) Dividend from unconsolidated subsidiary — (10) Stock-based compensation (12) 19 Federal tax credits (902) (901) Merger and acquisition expenses — 33 Defined benefit prior year contribution, net of other PTR adjustments — (198) Basis difference related to Liverpool investment prior to acquisition — (406) Other permanent differences (12) 24 Total tax expense (benefit) $ (14) $ (659) Effective tax rate (0.2) % (12.6) % |
Schedule of Deferred Tax Assets and Liabilities | The components giving rise to the net deferred tax asset are detailed below: (Dollars in thousands) Years Ended December 31, 2019 2018 Deferred Tax Assets: Allowance for loan losses $ 634 $ 494 Deferred directors’ compensation 337 345 Employee and director benefits 288 309 Qualified pension liability — 78 Unrealized losses on debt securities available for sale — 655 Unrealized loss from securities impairment — 34 Stock-based compensation 40 — Investment in low income housing project 211 142 Fair value adjustments to acquired assets and liabilities 251 293 Tax credit carryforward 191 225 Net operating loss carryforward 29 — Lease liability 98 — Other — 2 Total deferred tax assets 2,079 2,577 Deferred Tax Liabilities: Depreciation (197) (445) Right of use asset (97) — Loan origination fees and costs (418) (384) Prepaid expenses (52) (229) Unrealized gains on debt securities available for sale (136) — Unrealized gain from securities impairment (54) — Annuity earnings (60) (56) Fair value of mortgage servicing rights (38) (42) Intangible assets (56) (68) Goodwill (382) (353) Total deferred tax liabilities (1,490) (1,577) Net deferred tax asset included in other assets $ 589 $ 1,000 |
Stockholders' Equity and Regu_2
Stockholders' Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | The table below provides a comparison of the Bank’s risk-based capital ratios and leverage ratios to the minimum regulatory requirements as of the dates indicated. Minimum Regulatory Requirements Minimum to be "Well Capital Capitalized" Minimum Requirement Adequacy under Prompt for Capital with Capital Corrective Action The Juniata Valley Bank Actual Adequacy Purposes Buffer Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total Capital (to Risk Weighted Assets) $ 65,861 15.85 % $ 33,244 8.00 % $ 43,633 10.50 % $ 41,555 10.00 % Tier 1 Capital (to Risk Weighted Assets) 62,900 15.14 % 24,933 6.00 % 35,322 8.50 % 33,244 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 62,900 15.14 % 18,700 4.50 % 29,089 7.00 % 27,011 6.50 % Tier 1 Capital (to Average Assets) Leverage 62,900 9.60 % 26,198 4.00 % 26,198 4.00 % 32,747 5.00 % As of December 31, 2018: Total Capital (to Risk Weighted Assets) $ 62,422 15.50 % $ 32,222 8.00 % $ 39,774 9.875 % $ 40,278 10.00 % Tier 1 Capital (to Risk Weighted Assets) 59,388 14.74 % 24,167 6.00 % 31,719 7.875 % 32,222 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 59,388 14.74 % 18,125 4.50 % 25,677 6.375 % 26,181 6.50 % Tier 1 Capital (to Average Assets) Leverage 59,388 9.77 % 24,317 4.00 % 24,317 4.000 % 30,397 5.00 % |
Calculation of Earnings Per S_2
Calculation of Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Calculation of Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: (Dollars in thousands, except earnings per share) Year ended December 31, 2019 2018 Net income $ 5,835 $ 5,904 Weighted-average common shares outstanding 5,102 4,987 Basic earnings per share $ 1.14 $ 1.18 Weighted-average common shares outstanding 5,102 4,987 Common stock equivalents due to effect of stock options 19 22 Total weighted-average common shares and equivalents $ 5,121 $ 5,009 Diluted earnings per share $ 1.14 $ 1.18 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax | The following tables show changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2019 and 2018: (Dollars in thousands) December 31, 2019 Unrealized Gains and Losses on Available for Sale Securities Defined Benefit Pension Items Total Beginning balance, December 31, 2018 $ (2,647) $ (1,652) $ (4,299) Current period other comprehensive income: Other comprehensive income before reclassification 3,129 634 3,763 Amounts reclassified from accumulated other comprehensive income 34 1,101 1,135 Net current period other comprehensive income 3,163 1,735 4,898 Reclassification for ASU 2018-02 — (83) (83) Ending balance, December 31, 2019 $ 516 $ — $ 516 (Dollars in thousands) December 31, 2018 Unrealized Gains and Losses on Available for Sale Securities Defined Benefit Pension Items Total Beginning balance, December 31, 2017 $ (1,684) $ (2,350) $ (4,034) Current period other comprehensive income: Other comprehensive income before reclassification (956) 564 (392) Amounts reclassified from accumulated other comprehensive income 149 134 283 Net current period other comprehensive income (807) 698 (109) Reclassification for ASU 2016-01 (156) — (156) Ending balance, December 31, 2018 $ (2,647) $ (1,652) $ (4,299) |
Schedule of reclassification out of each component of accumulated other comprehensive income (loss) | The following table shows significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2019: (Dollars in thousands) Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available for sale securities Realized losses on securities available for sale $ (43) Gain (loss) on sales and calls of securities Total before tax (43) Tax effect 9 Income tax provision (benefit) Net of tax (34) Amortization of defined benefit pension items Actuarial losses (1,394) Employee benefits Reclassification for ASU 2018-02 105 Total before tax (1,289) Tax effect 271 Income tax provision (benefit) Net of tax (1,018) Total reclassifications for the period, net of tax $ (1,052) The following table shows significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the year ending December 31, 2018: (Dollars in thousands) Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available for sale securities Realized losses on securities available for sale $ (188) Gain (loss) on sales and calls of securities Reclassification for ASU 2016-01 197 Total before tax 9 Tax effect (2) Income tax provision (benefit) Net of tax 7 Amortization of defined benefit pension items Actuarial losses (170) Employee benefits Total before tax (170) Tax effect 36 Income tax provision (benefit) Net of tax (134) Total reclassifications for the period, net of tax $ (127) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurements by Level of Valuation Inputs | The following tables summarize financial assets and financial liabilities measured at fair value as of December 31, 2019 and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant Active Markets Other Other (Dollars in thousands) December 31, for Identical Observable Unobservable 2019 Assets Inputs Inputs Measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ 20,920 $ — $ 20,920 $ — Obligations of state and political subdivisions 4,575 — 4,575 — Mortgage-backed securities 185,191 — 185,191 — Equity securities 1,144 1,144 — — Mortgage servicing rights 180 — — 180 Measured at fair value on a non-recurring basis: Impaired loans $ 144 $ — $ — $ 144 (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant Active Markets Other Other (Dollars in thousands) December 31, for Identical Observable Unobservable 2018 Assets Inputs Inputs Measured at fair value on a recurring basis: Debt securities available for sale: Obligations of U.S. Government agencies and corporations $ 23,266 $ — $ 23,266 $ — Obligations of state and political subdivisions 18,181 — 18,181 — Mortgage-backed securities 100,506 — 100,506 — Equity securities 1,118 1,118 — — Mortgage servicing rights 200 — — 200 Measured at fair value on a non-recurring basis: Impaired loans $ 1,104 $ — $ — $ 1,104 Other real estate owned 149 — — 149 |
Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: Financial Instruments (Dollars in thousands) December 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and due from banks $ 12,658 $ 12,658 $ 15,617 $ 15,617 Interest bearing deposits with banks 82 82 110 110 Federal funds sold — — 729 729 Interest bearing time deposits with banks 2,210 2,210 3,290 3,290 Securities 211,830 211,830 141,953 141,953 Restricted investment in bank stock 3,442 N/A 2,441 N/A Loans, net of allowance for loan losses 397,629 403,359 414,597 415,195 Accrued interest receivable 1,607 1,607 1,681 1,681 Financial liabilities: Non-interest bearing deposits $ 134,703 $ 134,703 $ 126,057 126,057 Interest bearing deposits 397,234 399,848 395,665 395,226 Securities sold under agreements to repurchase 3,429 N/A 2,911 N/A Short-term borrowings 9,700 9,700 11,600 11,600 Long-term debt 45,000 45,809 15,000 14,958 Other interest bearing liabilities 1,603 1,603 1,596 1,597 Accrued interest payable 473 473 289 289 Off-balance sheet financial instruments: Commitments to extend credit $ — $ — $ — $ — Letters of credit — — — — |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of December 31, 2019 and December 31, 2018. These tables exclude financial instruments for which the carrying amount approximates fair value. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs December 31, 2019 Financial instruments - Assets Interest bearing time deposits with banks $ 2,210 $ 2,210 $ — $ 2,210 $ — Loans, net of allowance for loan losses 397,629 403,359 — — 403,359 Financial instruments - Liabilities Interest bearing deposits $ 397,234 $ 399,848 $ — $ 399,848 $ — Long-term debt 45,000 45,809 — 45,809 — Other interest bearing liabilities 1,603 1,603 — 1,603 — (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Significant (Dollars in thousands) Active Markets Other Other Carrying for Identical Observable Unobservable Amount Fair Value Assets or Liabilities Inputs Inputs December 31, 2018 Financial instruments - Assets Interest bearing time deposits with banks $ 3,290 $ 3,290 $ — $ 3,290 $ — Loans, net of allowance for loan losses 414,597 415,195 — — 415,195 Financial instruments - Liabilities Interest bearing deposits $ 395,665 $ 395,226 $ — $ 395,226 $ — Long-term debt 15,000 14,958 — 14,958 — Other interest bearing liabilities 1,596 1,597 — 1,597 — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Compensation Expense and Related Tax Benefits for Restricted Stock | The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the consolidated statement of income. (Dollars in thousands) 2019 2018 Compensation expense $ 109 $ 77 Tax benefit (23) (16) Net income effect $ 86 $ 61 |
Summary of Non-Vested Restricted Shares Activity | The following table presents a summary of non-vested restricted shares activity for 2019. Weighted Average Grant Date Shares Fair Value Non-vested at January 1, 2019 13,020 $ 18.78 Vested (4,360) 18.05 Cancelled — — Forfeited (800) 19.62 Granted 7,500 20.00 Non-vested at December 31, 2019 15,360 19.54 |
Schedule of Stock Options Activity | A summary of the status of the outstanding stock options as of December 31, 2019 and 2018, and changes during the years ending on those dates is presented below: 2019 2018 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 113,756 $ 17.76 125,026 $ 17.91 Granted — — — — Exercised (20,609) 17.66 (5,170) 17.47 Forfeited — — (6,100) 21.10 Outstanding at end of year 93,147 $ 17.78 113,756 $ 17.76 Options exercisable at year-end 92,147 110,911 Weighted-average fair value of options granted during the year $ — $ — Intrinsic value of options exercised during the year $ 43,135 $ 15,240 Intrinsic value of options outstanding and exercisable at December 31, 2019 $ 144,656 |
JVB Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The following table illustrates the equity instruments, by fair value hierarchy, included in the JVB Plan’s assets at fair value as of December 31, 2018. Due to the liquidation of the JVB Plan in the third quarter of 2019, no assets remained at December 31, 2019. (Level 1) (Level 2) (Level 3) Quoted Prices in Significant Other Significant Other (Dollars in thousands) December 31, Active Markets for Observable Unobservable 2018 Identical Assets Inputs Inputs Measured at fair value on a recurring basis: Mutual funds $ 11,891 $ 11,891 $ — $ — Money market funds 241 241 — — $ 12,132 $ 12,132 $ — $ — |
Schedule of Net Funded Status | The measurement date for the JVB Plan is December 31. Information pertaining to the activity in the defined benefit plan was as follows: (Dollars in thousands) Years ended December 31, 2019 2018 Change in projected benefit obligation ("PBO") PBO at beginning of year $ 12,555 $ 15,554 Interest cost 299 521 Change in assumptions 1,477 (1,208) Actuarial loss (1,326) (244) Group annuity purchase (9,021) — Settlement payments (3,569) (1,485) Benefits paid (415) (583) PBO at end of period $ — $ 12,555 Change in plan assets Fair value of plan assets at beginning of year $ 12,182 $ 13,117 Actual return on plan assets, net of expenses 1,254 (217) Employer contribution — 1,350 Group annuity purchase (9,021) — Settlement payments (3,569) (1,485) Benefits paid (415) (583) Benefits transferred to 401(k) Plan (431) — Fair value of plan assets at end of period $ — $ 12,182 Funded status, included in other (liabilities) assets $ — $ (373) Amounts recognized in accumulated comprehensive loss before income taxes consist of: Unrecognized actual loss $ — $ (884) Accumulated benefit obligation $ — $ 12,555 |
Components of Net Periodic Pension Cost | Pension expense for the JVB Plan included the following components for the years ended December 31: Year Ended (Dollars in thousands) December 31, 2019 2018 Components of net periodic pension cost: Interest cost $ 299 $ 521 Expected return on plan assets (182) (690) Recognized net actuarial loss 1,277 339 Net periodic pension cost 1,394 170 Total recognized in other comprehensive income (2,197) (884) Total recognized in net periodic pension benefit and other comprehensive income $ (803) $ (714) |
Schedule of Assumptions Used | Assumptions used to determine benefit obligations were: 2019 2018 Discount rate — % 4.10 % Rate of compensation increase N/A N/A Assumptions used to determine the net periodic benefit cost were: 2019 2018 Discount rate — % 3.50 % Expected long-term return on plan assets — 4.20 Rate of compensation increase N/A N/A |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments with off-Balance Sheet Risk [Abstract] | |
Summary of Financial Instrument Commitments | A summary of the Company’s financial instrument commitments is as follows: (Dollars in thousands) December 31, 2019 2018 Commitments to grant loans $ 97,037 $ 72,755 Unfunded commitments under lines of credit 13,448 14,468 Outstanding letters of credit 2,624 2,749 |
Juniata Valley Financial Corp_2
Juniata Valley Financial Corp. (Parent Company Only) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Juniata Valley Financial Corp. (Parent Company Only) Financial Information [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2019 2018 ASSETS Cash and cash equivalents $ 80 $ 48 Investment in bank subsidiary 72,353 65,909 Equity securities 947 940 Debt securities available for sale 253 253 Other assets 99 641 TOTAL ASSETS $ 73,732 $ 67,791 LIABILITIES Accounts payable and other liabilities $ 25 $ 413 STOCKHOLDERS’ EQUITY 73,707 67,378 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 73,732 $ 67,791 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) Years Ended December 31, 2019 2018 INCOME Interest and dividends on investment securities available for sale $ 47 $ 44 Dividends from bank subsidiary 4,489 4,923 Income from unconsolidated subsidiary — 296 Change in value of equity securities 8 26 TOTAL INCOME 4,544 5,289 EXPENSE Merger-related expenses — 134 Other non-interest expense 176 155 TOTAL EXPENSE 176 289 INCOME BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED NET INCOME OF SUBSIDIARY 4,368 5,000 Income tax (benefit) expense (35) (347) 4,403 5,347 Undistributed net income of subsidiary 1,432 557 NET INCOME $ 5,835 $ 5,904 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Years Ended December 31, 2019 2018 Cash flows from operating activities: Net income $ 5,835 $ 5,904 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net income of subsidiary (1,432) (556) Change in value of equity securities (8) (26) Equity in earnings of unconsolidated subsidiary, net of dividends of $0 and $75 — 194 Equity gain from acquisition of unconsolidated subsidiary — (415) Stock-based compensation expense 113 82 Decrease (increase) in other assets 429 (93) Decrease in taxes payable (402) (402) Increase (decrease) in accounts payable and other liabilities 14 (12) Net cash provided by operating activities 4,549 4,676 Cash flows from investing activities: Net cash received from acquisition — (1,361) Net cash used in investing activities — (1,361) Cash flows from financing activities: Cash dividends (4,489) (4,411) Purchase of treasury stock (428) (70) Treasury stock issued for stock plans 400 90 Common stock issued for stock plans — 42 Net cash used in financing activities (4,517) (4,349) Net increase (decrease) in cash and cash equivalents 32 (1,034) Cash and cash equivalents at beginning of year 48 1,082 Cash and cash equivalents at end of year $ 80 $ 48 |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segmentOfficelocation | |
Nature of Operations [Abstract] | |
Number of branches | location | 16 |
Number of offices maintained | Office | 3 |
Number of reportable segment | segment | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Line Items] | ||
Concentration of credit, benchmark description | Otherwise, there were no concentrations of credit to any particular industry equaling more than 10% of total capital. | |
Maturity of interest-bearing time deposits | 5 years | |
Held-to-maturity securities | $ 0 | $ 0 |
Net unamortized origination costs | $ 70,000 | 11,000 |
Usual period of lines of credit for commercial, financial and agricultural lending | 5 years | |
Other real estate owned | 744,000 | |
Goodwill impairment loss | $ 0 | 0 |
Mortgage servicing rights | 180,000 | 200,000 |
Investment in low-income housing limited partnership | $ 3,904,000 | 4,545,000 |
Income tax credits and adjustments period | 10 years | |
Accrued benefit liability | $ 1,117,000 | 1,081,000 |
Other postretirement benefit | 36,000 | 38,000 |
Advertising expense | 312,000 | 294,000 |
Shareholder Service [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Trust and Estate fees recognized | $ 88,000 | $ 95,000 |
Leasehold Improvements [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property and equipment, description | shorter of the assets' useful life or the related lease term | |
Residential Portfolio Segment [Member] | Credit Exposure [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Percentage of capital representing credit exposure to lessors | 32.00% | |
Residential Portfolio Segment [Member] | Mortgage Loan [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Loan period for lending, maximum | 25 years | |
Maximum loan-to-value ratio | 80.00% | |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Loan period for lending, maximum | 20 years | |
Maximum loan-to-value ratio | 90.00% | |
Residential Portfolio Segment [Member] | Home Equity Installments [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Loan period for lending, maximum | 15 years | |
Maximum loan-to-value ratio | 80.00% | |
Real Estate Portfolio Segment [Member] | Credit Exposure [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Percentage of capital representing credit exposure to lessors | 26.00% | |
Real Estate Portfolio Segment [Member] | Mortgage Loan [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Loan period for lending, maximum | 25 years | |
Real Estate Portfolio Segment [Member] | Commercial Loan [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Loan period for lending, maximum | 20 years | |
Maximum loan-to-value ratio | 80.00% | |
Commercial Portfolio Segment [Member] | Credit Exposure [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Percentage of capital representing credit exposure to lessors | 30.00% | |
Non-Residential Portfolio [Member] | Credit Exposure [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Percentage of capital representing credit exposure to lessors | 45.00% | |
Maximum [Member] | Furniture and Equipment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property and equipment | 10 years | |
Maximum [Member] | Building [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property and equipment | 50 years | |
Minimum [Member] | Furniture and Equipment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property and equipment | 3 years | |
Minimum [Member] | Building [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property and equipment | 25 years |
Recent Accounting Standards U_2
Recent Accounting Standards Update ("ASU") (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)item | Jan. 01, 2019USD ($) | |
Recent Accounting Standards Update ("ASU") [Abstract] | ||
Practical expedients package | true | |
Practical expedients, use of hindsight | true | |
ROU asset | $ 464,000 | $ 556,000 |
Lease liability | $ 469,000 | $ 556,000 |
Number of operating lease obligations | item | 4 |
Merger (Narrative) (Details)
Merger (Narrative) (Details) - USD ($) | Apr. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 29, 2018 |
Business Acquisition [Line Items] | |||||
Fair value gain | $ 415,000 | ||||
Change in goodwill resulting from the merger | $ 92,000 | ||||
Acquiree's common shares outstanding | 5,099,729 | 5,092,048 | |||
Goodwill | $ 9,047,000 | $ 9,139,000 | |||
Income/gain from unconsolidated subsidiary | $ 296,000 | ||||
Federal statutory tax rate | 21.00% | 21.00% | |||
Liverpool Community Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date | Apr. 30, 2018 | ||||
Business acquisition, name of acquired entity | Liverpool Community Bank | ||||
Total assets of acquiree | $ 45,360,000 | ||||
Loans receivables of acquiree | 32,091,000 | ||||
Equity of acquiree | $ 9,246,000 | ||||
Percentage of equity interest in acquiree, before acquisition | 39.16% | ||||
Percentage of equity interest acquired | 60.84% | ||||
Number of acquiree's common shares owned | 1,214 | ||||
Equity owned before acquisition | $ 4,622,000 | ||||
Juniata's basis in Liverpool | 5,037,000 | ||||
Fair value gain | $ 415,000 | ||||
Per share price of Liverpool shares | $ 4,050 | ||||
Acquiree's common shares outstanding | 3,100 | ||||
Number of Juniata's share for each Liverpool share | 202.6286 | ||||
Number of shares issued upon the closing of acquisition | 315,284 | ||||
Fair value of shares issued for acquisition | $ 6,463,000 | ||||
Closing stock price | $ 20.50 | ||||
Approximate cash transaction of business acquisition | $ 1,362,000 | ||||
Juniata's Step One adjusted basis in Liverpool | 12,862,000 | ||||
Step Two purchase price consideration | 7,825,000 | ||||
Goodwill | 3,691,000 | $ 3,599,000 | $ 3,599,000 | $ 3,691,000 | |
Core deposit intangible assets acquired | $ 289,000 | ||||
Intangible assets amortization period | 10 years | ||||
Gross amortized cost basis | $ 32,091,000 | ||||
Income/gain from unconsolidated subsidiary | 296,000 | ||||
Merger related costs | 884,000 | ||||
Merger related tax expense (benefit) | $ 123,000 | ||||
Federal statutory tax rate | 21.00% | ||||
Minimum [Member] | Liverpool Community Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding common stock to be purchased for cash | 15.00% | ||||
Maximum [Member] | Liverpool Community Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding common stock to be purchased for cash | 20.00% | ||||
Originally Reported [Member] | Liverpool Community Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Equity of acquiree | $ 9,246,000 | ||||
Equity owned before acquisition | 4,622,000 | ||||
Juniata's basis in Liverpool | 5,037,000 | ||||
Fair value gain | 415,000 | ||||
Fair value of shares issued for acquisition | 6,463,000 | ||||
Approximate cash transaction of business acquisition | 1,362,000 | ||||
Juniata's Step One adjusted basis in Liverpool | 12,862,000 | ||||
Step Two purchase price consideration | 7,825,000 | ||||
Goodwill | $ 3,691,000 | ||||
Adjustment [Member] | |||||
Business Acquisition [Line Items] | |||||
Tax benefit from removal of deferred tax liability | $ 406,000 |
Merger (Schedule of Purchase Pr
Merger (Schedule of Purchase Price Allocation) (Details) - USD ($) | Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Increase in Step One basis from equity gain in acquisition | $ 415,000 | |||
Adjustments to reflect assets acquired and liabilities assumed at fair value: | ||||
Goodwill | 9,139,000 | $ 9,047,000 | ||
Liverpool Community Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
April 30, 2018 JUVF basis in LCB (before gain) | $ 4,622,000 | |||
Increase in Step One basis from equity gain in acquisition | 415,000 | |||
Total Step One adjusted basis | 5,037,000 | |||
Purchase price assigned to LCB common shares exchanged for 315,284 JUVF common shares | 6,463,000 | |||
Purchase price assigned to LCB common shares exchanged for cash including cash in lieu of fractional shares | 1,362,000 | |||
Total Step Two purchase price consideration | 7,825,000 | |||
Total Step One adjusted basis | 12,862,000 | |||
Net assets acquired: | ||||
Tangible common equity | 9,246,000 | |||
Adjustments to reflect assets acquired and liabilities assumed at fair value: | ||||
Goodwill | $ 3,691,000 | $ 3,691,000 | $ 3,599,000 | $ 3,599,000 |
Number of shares issued upon the closing of acquisition | 315,284 | |||
Liverpool Community Bank [Member] | Originally Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
April 30, 2018 JUVF basis in LCB (before gain) | $ 4,622,000 | |||
Increase in Step One basis from equity gain in acquisition | 415,000 | |||
Total Step One adjusted basis | 5,037,000 | |||
Purchase price assigned to LCB common shares exchanged for 315,284 JUVF common shares | 6,463,000 | |||
Purchase price assigned to LCB common shares exchanged for cash including cash in lieu of fractional shares | 1,362,000 | |||
Total Step Two purchase price consideration | 7,825,000 | |||
Total Step One adjusted basis | 12,862,000 | |||
Net assets acquired: | ||||
Tangible common equity | 9,246,000 | |||
Adjustments to reflect assets acquired and liabilities assumed at fair value: | ||||
Total fair value adjustments | (95,000) | |||
Associated deferred income taxes | 20,000 | |||
Fair value adjustments to net assets acquired, net of tax | (75,000) | |||
Total net assets acquired | 9,171,000 | |||
Goodwill | $ 3,691,000 |
Merger (Summary of the Estimate
Merger (Summary of the Estimated Fair Value of the Assets Acquired and Liabilities Assumed) (Details) - USD ($) | Apr. 30, 2018 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Net assets acquired: | |||||
Bank owned life insurance | $ 16,266,000 | $ 15,938,000 | $ 14,972,000 | ||
Goodwill | 9,047,000 | 9,139,000 | |||
Liverpool Community Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 12,862,000 | ||||
Net assets acquired: | |||||
Core deposit and other intangibles | 289,000 | ||||
Goodwill | 3,691,000 | $ 3,599,000 | $ 3,599,000 | $ 3,691,000 | |
Liverpool Community Bank [Member] | Originally Reported [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | 12,862,000 | ||||
Net assets acquired: | |||||
Cash and cash equivalents | 8,923,000 | ||||
Investments in time deposits with banks | 3,675,000 | ||||
Loans | 31,331,000 | ||||
Premises and equipment | 125,000 | ||||
Accrued interest receivable | 123,000 | ||||
Core deposit and other intangibles | 289,000 | ||||
Bank owned life insurance | 632,000 | ||||
FHLB Stock | 124,000 | ||||
Other assets | 267,000 | ||||
Deposits | (36,052,000) | ||||
Accrued interest payable | (17,000) | ||||
Other liabilities | (249,000) | ||||
Total net assets acquired | 9,171,000 | ||||
Goodwill | $ 3,691,000 |
Merger (Schedule of Fair Value
Merger (Schedule of Fair Value Adjustments for Acquired Loans) (Details) - Liverpool Community Bank [Member] | Apr. 30, 2018USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at April 30, 2018 | $ 32,091,000 |
Market rate adjustment | 272,000 |
Credit fair value adjustment on pools of homogeneous loans | (496,000) |
Credit fair value adjustment on impaired loans | (622,000) |
Reversal of existing deferred fees and premiums | 86,000 |
Fair value of purchased loans at April 30, 2018 | $ 31,331,000 |
Merger (Schedule of Acquired Im
Merger (Schedule of Acquired Impaired Loans) (Details) - Liverpool Community Bank [Member] $ in Thousands | Apr. 30, 2018USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest at acquisition | $ 2,022 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (1,273) |
Expected cash flows at acquisition | 749 |
Interest component of expected cash flows (accretable discount) | (177) |
Fair value of acquired loans | $ 572 |
Merger (Merger, Pro Forma Infor
Merger (Merger, Pro Forma Information) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / shares | |
Merger [Abstract] | |
Net interest income after loan loss provision | $ 20,629 |
Noninterest income | 4,816 |
Noninterest expense | 18,818 |
Net income available to common shareholders | $ 6,996 |
Consolidated net income per common share | $ / shares | $ 1.37 |
Merger (Components of the Incom
Merger (Components of the Income/Gain from the Unconsolidated Subsidiary Investment) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Income from unconsolidated subsidiary (excluding merger-related adjustments) | |
Dividend income | $ 36 |
Equity income | 45 |
Total income (excluding merger-related adjustments) | 81 |
Merger Related Adjustments For Investment In Unconsolidated Subsidiary [Abstract] | |
Adjustment to LCB book value at April 30, 2018 | (239) |
Special merger-related dividend | 39 |
Fair value gain | 415 |
Total merger-related adjustments | 215 |
Income (Loss) from Equity Method Investments, Total | $ 296 |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Proceeds from: Sales of securities available for sale | $ | $ 21,777,000 | $ 10,461,000 |
Securities in unrealized loss position | 38 | 81 |
Equity securities | $ | $ 1,144,000 | $ 1,118,000 |
Unrealized gain (loss) on equity securities | $ | $ 26,000 | $ (1,000) |
Number of Securities, Less Than 12 Months | 22 | 11 |
Number of Securities, 12 Months or More | 16 | 70 |
Number of securities | 38 | 81 |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Securities in unrealized loss position | 9 | 14 |
Number of Securities, Less Than 12 Months | 9 | |
Number of Securities, 12 Months or More | 14 | |
Number of securities | 9 | 14 |
Obligations of State and Political Subdivisions [Member] | ||
Securities in unrealized loss position | 21 | |
Number of Securities, Less Than 12 Months | 8 | |
Number of Securities, 12 Months or More | 13 | |
Number of securities | 21 | |
U.S. Government Sponsored Agencies [Member] | ||
Investment portfolio percentage | 10.00% | |
Carrying value of pledged assets | $ | $ 50,365,000 | $ 50,157,000 |
Mortgage-Backed Securities [Member] | ||
Investment portfolio percentage | 88.00% | |
Securities in unrealized loss position | 29 | 46 |
Number of Securities, Less Than 12 Months | 13 | 3 |
Number of Securities, 12 Months or More | 16 | 43 |
Number of securities | 29 | 46 |
Municipal Bonds [Member] | ||
Investment portfolio percentage | 2.00% | |
Debt instrument term | 5 years | |
Maximum [Member] | Obligations of U.S. Government Agencies and Corporations [Member] | ||
Percentage of securities depreciated from their amortized cost basis | 1.00% | |
Maximum [Member] | Mortgage-Backed Securities [Member] | ||
Percentage of securities depreciated from their amortized cost basis | 1.00% |
Securities (Debt Securities Ava
Securities (Debt Securities Available for Sale) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities, Total | $ 210,039 | $ 145,310 |
Fair Value of AFS Securities, Total | 210,686 | 141,953 |
Gross Unrealized Gains on AFS Securities, Total | 1,155 | |
Gross Unrealized Gains on AFS Securities Without Single Maturity Date | 185 | |
Gross Unrealized Losses on AFS Securities Without Single Maturity Date | (508) | (3,542) |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 14,998 | 20,998 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 6,000 | 2,999 |
Amortized Cost of AFS Securities, Total | 20,998 | 23,997 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 14,970 | 20,355 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 5,950 | 2,911 |
Fair Value of AFS Securities, Total | 20,920 | 23,266 |
Gross Unrealized Gains on AFS Securities Maturing After One Year But Within Five Years | 1 | |
Gross Unrealized Gains on AFS Securities, Total | 1 | |
Gross Unrealized Losses on AFS Securities Maturing After One Year But Within Five Years | (29) | (643) |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (50) | (88) |
Gross Unrealized Losses on AFS Securities, Total | (79) | (731) |
Obligations of State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Maturing Within One Year | 1,020 | 826 |
Amortized Cost of AFS Securities Maturing After One Year But Within Five Years | 2,810 | 14,751 |
Amortized Cost of AFS Securities Maturing After Five Years But Within Ten Years | 723 | 2,779 |
Amortized Cost of AFS Securities, Total | 4,553 | 18,356 |
Fair Value of AFS Securities Maturing Within One Year | 1,024 | 826 |
Fair Value of AFS Securities Maturing After One Year But Within Five Years | 2,823 | 14,686 |
Fair Value of AFS Securities Maturing After Five Years But Within Ten Years | 728 | 2,669 |
Fair Value of AFS Securities, Total | 4,575 | 18,181 |
Gross Unrealized Gains on AFS Securities Maturing Within One Year | 4 | |
Gross Unrealized Gains on AFS Securities Maturing After One Year But Within Five Years | 13 | 13 |
Gross Unrealized Gains on AFS Securities Maturing After Five Years But Within ten Years | 5 | |
Gross Unrealized Gains on AFS Securities, Total | 22 | 13 |
Gross Unrealized Losses on AFS Securities Maturing After One Year But Within Five Years | (78) | |
Gross Unrealized Losses on AFS Securities Maturing After Five Years But Within Ten Years | (110) | |
Gross Unrealized Losses on AFS Securities, Total | (188) | |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost of AFS Securities Without Single Maturity Date | 184,488 | 102,957 |
Fair Value of AFS Securities Without Single Maturity Date | 185,191 | 100,506 |
Gross Unrealized Gains on AFS Securities Without Single Maturity Date | 1,132 | 172 |
Gross Unrealized Losses on AFS Securities Without Single Maturity Date | $ (429) | $ (2,623) |
Securities (Summary of Proceeds
Securities (Summary of Proceeds and Realized Gain/(Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Securities [Abstract] | ||
Gross proceeds from sales and calls of securities | $ 21,777 | $ 10,461 |
Gross realized gains from sold and called securities | 67 | |
Gross realized losses from sold and called securities | (110) | (188) |
Net losses from sales and calls of securities | $ (43) | $ (188) |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Losses) (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 22 | 11 |
Fair Value, Less Than 12 Months | $ 64,385 | $ 11,781 |
Unrealized Losses, Less Than 12 Months | $ (283) | $ (42) |
Number of Securities, 12 Months or More | security | 16 | 70 |
Fair Value, 12 Months or More | $ 22,049 | $ 108,679 |
Unrealized Losses, 12 Months or More | $ (225) | $ (3,500) |
Number of Securities, Total | security | 38 | 81 |
Fair Value, Total | $ 86,434 | $ 120,460 |
Unrealized Losses, Total | $ (508) | $ (3,542) |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 9 | |
Fair Value, Less Than 12 Months | $ 16,919 | |
Unrealized Losses, Less Than 12 Months | $ (79) | |
Number of Securities, 12 Months or More | security | 14 | |
Fair Value, 12 Months or More | $ 23,267 | |
Unrealized Losses, 12 Months or More | $ (731) | |
Number of Securities, Total | security | 9 | 14 |
Fair Value, Total | $ 16,919 | $ 23,267 |
Unrealized Losses, Total | $ (79) | $ (731) |
Obligations of State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 8 | |
Fair Value, Less Than 12 Months | $ 5,055 | |
Unrealized Losses, Less Than 12 Months | $ (10) | |
Number of Securities, 12 Months or More | security | 13 | |
Fair Value, 12 Months or More | $ 8,242 | |
Unrealized Losses, 12 Months or More | $ (178) | |
Number of Securities, Total | security | 21 | |
Fair Value, Total | $ 13,297 | |
Unrealized Losses, Total | $ (188) | |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 13 | 3 |
Fair Value, Less Than 12 Months | $ 47,466 | $ 6,726 |
Unrealized Losses, Less Than 12 Months | $ (204) | $ (32) |
Number of Securities, 12 Months or More | security | 16 | 43 |
Fair Value, 12 Months or More | $ 22,049 | $ 77,170 |
Unrealized Losses, 12 Months or More | $ (225) | $ (2,591) |
Number of Securities, Total | security | 29 | 46 |
Fair Value, Total | $ 69,515 | $ 83,896 |
Unrealized Losses, Total | $ (429) | $ (2,623) |
Loans and Related Allowance f_3
Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 400,590,000 | $ 417,631,000 |
Period for trouble debt restructuring loan to be considered in default | 30 days | |
Interest income on nonaccrual loans | $ 130,000 | 311,000 |
Interest income on nonaccrual loans due to pay off and pay down of two loans | 175,000 | |
Troubled debt restructured loan | 703,000 | 445,000 |
Reserves relating to TDR | 0 | 0 |
Restructured loan balance in default status | 0 | 0 |
Recorded charge-offs | $ 137,000 | 285,000 |
Credit quality indicators information | This analysis includes loans to commercial customers with an aggregate loan exposure greater than $500,000 and for lines of credit in excess of $50,000 | |
Aggregate amount of demand deposits reclassified as loan balances | $ 70,000 | 75,000 |
Real Estate Portfolio Segment [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 126,613,000 | 141,295,000 |
Recorded charge-offs | $ 15,000 | 60,000 |
Maximum loan-to-value ratio | 80.00% | |
Real Estate Portfolio Segment [Member] | Mortgage Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 150,538,000 | 163,548,000 |
Loans modifications, extensions of maturity dates | 5 years 6 months | |
Restructured loan balance in default status | $ 36,000 | |
Consumer Portfolio Segment [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans modifications, extensions of maturity dates | 1 year 2 months 12 days | |
Consumer Portfolio Segment [Member] | Mortgage Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 150,538,000 | $ 163,548,000 |
Loans modifications, extensions of maturity dates | 5 years 3 months 18 days | |
Recorded charge-offs | 66,000 | $ 183,000 |
Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded charge-offs | $ 16,000 | $ 0 |
Loans and Related Allowance f_4
Loans and Related Allowance for Credit Losses (Loan Portfolio by Class) (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 400,590 | $ 417,631 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 51,785 | 46,563 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 126,613 | 141,295 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 46,459 | 36,688 |
Mortgage Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 150,538 | 163,548 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 150,538 | 163,548 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,377 | 19,129 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 8,818 | $ 10,408 |
Loans and Related Allowance f_5
Loans and Related Allowance for Credit Losses (Allowance for Loan Losses and Related Investments in Loans Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | $ 3,034 | $ 2,939 |
Provision for loan losses | (573) | 337 |
Charge-offs | (137) | (285) |
Recoveries | 637 | 43 |
Ending balance | 2,961 | 3,034 |
Loans allocated by: individually evaluated for impairment | 2,516 | 2,133 |
Loans allocated by: collectively evaluated for impairment | 397,004 | 413,983 |
Financing receivable - Loans allocated | 400,590 | 417,631 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 2,961 | 3,034 |
Financing receivable - Allowance for loan losses | 2,961 | 3,034 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 275 | 273 |
Provision for loan losses | 45 | (8) |
Charge-offs | (2) | |
Recoveries | 3 | 10 |
Ending balance | 321 | 275 |
Loans allocated by: collectively evaluated for impairment | 51,785 | 46,563 |
Financing receivable - Loans allocated | 51,785 | 46,563 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 321 | 275 |
Financing receivable - Allowance for loan losses | 321 | 275 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,074 | 1,022 |
Provision for loan losses | (619) | 107 |
Charge-offs | (15) | (60) |
Recoveries | 314 | 5 |
Ending balance | 754 | 1,074 |
Loans allocated by: individually evaluated for impairment | 1,206 | 909 |
Loans allocated by: collectively evaluated for impairment | 125,041 | 139,842 |
Financing receivable - Loans allocated | 126,613 | 141,295 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 754 | 1,074 |
Financing receivable - Allowance for loan losses | 754 | 1,074 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 558 | 288 |
Provision for loan losses | (135) | 270 |
Recoveries | 295 | |
Ending balance | 718 | 558 |
Loans allocated by: individually evaluated for impairment | 27 | |
Loans allocated by: collectively evaluated for impairment | 46,459 | 36,661 |
Financing receivable - Loans allocated | 46,459 | 36,688 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 718 | 558 |
Financing receivable - Allowance for loan losses | 718 | 558 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 20 | |
Provision for loan losses | (3) | 20 |
Ending balance | 17 | 20 |
Loans allocated by: collectively evaluated for impairment | 16,377 | 19,129 |
Financing receivable - Loans allocated | 16,377 | 19,129 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 17 | 20 |
Financing receivable - Allowance for loan losses | 17 | 20 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,035 | 1,285 |
Provision for loan losses | 105 | (79) |
Charge-offs | (66) | (183) |
Recoveries | 7 | 12 |
Ending balance | 1,081 | 1,035 |
Loans allocated by: individually evaluated for impairment | 1,296 | 1,180 |
Loans allocated by: collectively evaluated for impairment | 148,538 | 161,397 |
Financing receivable - Loans allocated | 150,538 | 163,548 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 1,081 | 1,035 |
Financing receivable - Allowance for loan losses | 1,081 | 1,035 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 72 | 71 |
Provision for loan losses | 34 | 27 |
Charge-offs | (54) | (42) |
Recoveries | 18 | 16 |
Ending balance | 70 | 72 |
Loans allocated by: individually evaluated for impairment | 14 | 17 |
Loans allocated by: collectively evaluated for impairment | 8,804 | 10,391 |
Financing receivable - Loans allocated | 8,818 | 10,408 |
Allowance for loan losses allocated by: collectively evaluated for impairment | 70 | 72 |
Financing receivable - Allowance for loan losses | 70 | 72 |
Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans allocated by: individually evaluated for impairment | 1,070 | 1,515 |
Acquired with Credit Deterioration [Member] | Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans allocated by: individually evaluated for impairment | 366 | 544 |
Acquired with Credit Deterioration [Member] | Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans allocated by: individually evaluated for impairment | $ 704 | $ 971 |
Loans and Related Allowance f_6
Loans and Related Allowance for Credit Losses (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Total | $ 3,586 | $ 3,648 |
Unpaid Principal Balance, Total | 5,613 | 6,008 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,206 | 909 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,304 | 1,303 |
Recorded Investment, Total | 1,206 | 909 |
Unpaid Principal Balance, Total | 1,304 | 1,303 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 366 | 544 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 395 | 592 |
Recorded Investment, Total | 366 | 544 |
Unpaid Principal Balance, Total | 395 | 592 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 27 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,054 | 1,123 |
Recorded Investment, Total | 27 | |
Unpaid Principal Balance, Total | 1,054 | 1,123 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,296 | 1,180 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 2,006 | 1,912 |
Recorded Investment, Total | 1,296 | 1,180 |
Unpaid Principal Balance, Total | 2,006 | 1,912 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 704 | 971 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 840 | 1,061 |
Recorded Investment, Total | 704 | 971 |
Unpaid Principal Balance, Total | 840 | 1,061 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 14 | 17 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 14 | 17 |
Recorded Investment, Total | 14 | 17 |
Unpaid Principal Balance, Total | $ 14 | $ 17 |
Loans and Related Allowance f_7
Loans and Related Allowance for Credit Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment, Total | $ 4,168 | $ 5,955 |
Interest Income Recognized, Total | 84 | 19 |
Cash Basis Interest Income, Total | 88 | 33 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 549 | 234 |
Impaired Loans with No Allowance: Interest Income Recognized | 22 | |
Impaired Loans with No Allowance: Cash Basis Interest Income | 15 | |
Average Recorded Investment, Total | 549 | 234 |
Interest Income Recognized, Total | 22 | |
Cash Basis Interest Income, Total | 15 | |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 1,058 | 2,970 |
Impaired Loans with No Allowance: Interest Income Recognized | 45 | |
Impaired Loans with No Allowance: Cash Basis Interest Income | 28 | |
Average Recorded Investment, Total | 1,058 | 2,970 |
Interest Income Recognized, Total | 45 | |
Cash Basis Interest Income, Total | 28 | |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 14 | 14 |
Average Recorded Investment, Total | 14 | 14 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 1,238 | 1,706 |
Impaired Loans with No Allowance: Interest Income Recognized | 17 | 19 |
Impaired Loans with No Allowance: Cash Basis Interest Income | 45 | 33 |
Average Recorded Investment, Total | 1,238 | 1,706 |
Interest Income Recognized, Total | 17 | 19 |
Cash Basis Interest Income, Total | 45 | 33 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 16 | 9 |
Average Recorded Investment, Total | 16 | 9 |
Acquired with Credit Deterioration [Member] | Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment, Total | 455 | 368 |
Acquired with Credit Deterioration [Member] | Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 455 | 368 |
Acquired with Credit Deterioration [Member] | Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 838 | 654 |
Average Recorded Investment, Total | $ 838 | $ 654 |
Loans and Related Allowance f_8
Loans and Related Allowance for Credit Losses (Nonaccrual Loans by Classes of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | $ 1,819 | $ 1,707 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 903 | 908 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 29 | |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 902 | 753 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | $ 14 | $ 17 |
Loans and Related Allowance f_9
Loans and Related Allowance for Credit Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,349 | $ 3,303 |
Current | 398,241 | 414,328 |
Total loans | 400,590 | 417,631 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 386 | 336 |
Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,975 | 2,897 |
Current | 397,545 | 414,206 |
Total loans | 399,520 | 417,103 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 383 | 329 |
Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 374 | 406 |
Current | 696 | 122 |
Total loans | 1,070 | 528 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 3 | 7 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,140 | 1,285 |
30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 769 | 886 |
30-59 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 371 | 399 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 576 |
60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 576 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,060 | 1,442 |
Greater than 90 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,057 | 1,435 |
Greater than 90 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 7 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 51,785 | 46,563 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 60 | 6 |
Current | 51,725 | 46,557 |
Total loans | 51,785 | 46,563 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 60 | 6 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 126,613 | 141,295 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 67 | 1,214 |
Current | 126,180 | 139,890 |
Total loans | 126,247 | 141,104 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 306 | |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 140 | |
Current | 366 | 51 |
Total loans | 366 | 191 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 19 | |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 140 | |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | 1,214 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 46,459 | 36,688 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 287 | 61 |
Current | 46,172 | 36,627 |
Total loans | 46,459 | 36,688 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 287 | 32 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | |
Mortgage Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 150,538 | 163,548 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 150,538 | 163,548 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,468 | 1,560 |
Current | 148,366 | 161,651 |
Total loans | 149,834 | 163,211 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 359 | 23 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 374 | 266 |
Current | 330 | 71 |
Total loans | 704 | 337 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 3 | 7 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 348 | 824 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 371 | 259 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 561 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 971 | 175 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 7 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 19,129 | |
Total loans | 16,377 | 19,129 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 16,377 | |
Total loans | 16,377 | |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 8,818 | 10,408 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 93 | 56 |
Current | 8,725 | 10,352 |
Total loans | 8,818 | 10,408 |
Financing Receivable, Recorded Investment, 89 Days Past Due and Still Accruing | 24 | |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 55 | 24 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15 | |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | Excluding Loans Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 38 | $ 17 |
Loans and Related Allowance _10
Loans and Related Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Recorded Investment | $ 703,000 | $ 445,000 |
Restructured Loan [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | item | 2 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 315,000 | $ 153,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 335,000 | 153,000 |
Financing Receivable, Modifications, Recorded Investment | $ 311,000 | $ 147,000 |
Restructured Loan [Member] | Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | item | 1 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 306,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 326,000 | |
Financing Receivable, Modifications, Recorded Investment | $ 306,000 | |
Restructured Loan [Member] | Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | item | 1 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 9,000 | $ 153,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 9,000 | 153,000 |
Financing Receivable, Modifications, Recorded Investment | $ 5,000 | $ 147,000 |
Loans and Related Allowance _11
Loans and Related Allowance for Credit Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 400,590 | $ 417,631 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 378,875 | 392,532 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,362 | 11,606 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,209 | 12,389 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 144 | 1,104 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 51,785 | 46,563 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 46,725 | 42,757 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,080 | 2,992 |
Commercial, Financial and Agricultural [Member] | Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 980 | 814 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 126,613 | 141,295 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 113,851 | 125,352 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,668 | 8,590 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,046 | 6,459 |
Commercial Loan [Member] | Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48 | 894 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 46,459 | 36,688 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 44,954 | 34,131 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 287 | |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,218 | 2,528 |
Construction Loan [Member] | Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29 | |
Mortgage Loan [Member] | Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 150,538 | 163,548 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 150,538 | 163,548 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 148,164 | 160,774 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 327 | 24 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,951 | 2,569 |
Mortgage Loan [Member] | Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 96 | 181 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,377 | 19,129 |
Obligations of State and Political Subdivisions [Member] | Commercial Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,377 | 19,129 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,818 | 10,408 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,804 | 10,389 |
Personal Loan [Member] | Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 14 | $ 19 |
Pledged Assets (Narrative) (Det
Pledged Assets (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Pledged Assets [Abstract] | ||
Amount of loans included in qualifying collateral | $ 255,566,000 | $ 261,442,000 |
Securities pledged as collateral | 0 | 0 |
Maximum borrowing capacity with the Federal Home Loan Bank of Pittsburgh ("FHLB") | $ 183,790,000 | $ 187,818,000 |
Bank Owned Life Insurance and_3
Bank Owned Life Insurance and Annuities (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Bank Owned Life Insurance and Annuities [Abstract] | |||
Bank owned life insurance and annuities | $ 16,266,000 | $ 15,938,000 | $ 14,972,000 |
Increase in cash surrender value of bank-owned life insurance | $ 328,000 | $ 966,000 |
Bank Owned Life Insurance and_4
Bank Owned Life Insurance and Annuities (Summary of Changes in Cash Value of BOLI and Annuities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Balance | $ 15,938 | $ 14,972 |
Earnings | 289 | 295 |
Premiums on existing policies | 39 | 38 |
Annuity payments received | 1 | |
BOLI acquired through acquisition | 632 | |
Balance | 16,266 | 15,938 |
Life Insurance [Member] | ||
Balance | 15,445 | 14,510 |
Earnings | 270 | 277 |
Premiums on existing policies | 26 | 25 |
Annuity payments received | 1 | |
BOLI acquired through acquisition | 632 | |
Balance | 15,741 | 15,445 |
Deferred Annuities [Member] | ||
Balance | 493 | 462 |
Earnings | 19 | 18 |
Premiums on existing policies | 13 | 13 |
Balance | $ 525 | $ 493 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Premises and Equipment [Abstract] | ||
Depreciation expense on premises and equipment | $ 801,000 | $ 815,000 |
Premises and Equipment (Premise
Premises and Equipment (Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 20,151 | $ 19,020 |
Less: accumulated depreciation | (10,908) | (10,276) |
Property, Plant and Equipment, Net, Total | 9,243 | 8,744 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 294 | 1,158 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,227 | 11,645 |
Furniture, Computer Software and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 6,630 | $ 6,217 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | Apr. 30, 2018 | Nov. 30, 2015 | Sep. 08, 2006 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Goodwill included in acquisition price | $ 9,047,000 | $ 9,139,000 | ||||
Amortization of intangible assets | 87,000 | 79,000 | ||||
Other intangible assets | 180,000 | 200,000 | ||||
Goodwill impairment loss | 0 | 0 | ||||
Branch Office in Richfield, PA [Member] | ||||||
Acquisition date | Sep. 8, 2006 | |||||
Goodwill included in acquisition price | $ 2,046,000 | |||||
FNBPA Bancorp, Inc [Member] | ||||||
Acquisition date | Nov. 30, 2015 | |||||
Goodwill included in acquisition price | $ 3,402,000 | |||||
Intangible assets included in purchase price | $ 303,000 | |||||
Liverpool Community Bank [Member] | ||||||
Acquisition date | Apr. 30, 2018 | |||||
Goodwill included in acquisition price | $ 3,691,000 | $ 3,599,000 | $ 3,691,000 | $ 3,599,000 | ||
Intangible assets included in purchase price | $ 289,000 | |||||
Intangible assets amortization period | 10 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Amortization Schedule for Intangible Assets) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2018 | Nov. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 87,000 | $ 79,000 | |||
FNBPA Bancorp, Inc [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Beginning Balance at Acquisition Date | $ 303,000 | ||||
FNBPA Bancorp, Inc [Member] | Core Deposits [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Beginning Balance at Acquisition Date | $ 303,000 | ||||
Amortization of intangible assets | 38,000 | 44,000 | $ 108,000 | ||
Unamortized balance | 113,000 | ||||
Scheduled remaining amortization expense for years ended: | |||||
December 31, 2020 | 33,000 | ||||
December 31, 2021 | 27,000 | ||||
December 31, 2022 | 22,000 | ||||
December 31, 2023 | 16,000 | ||||
December 31, 2024 | 10,000 | ||||
After December 31, 2024 | 5,000 | ||||
Liverpool Community Bank [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Beginning Balance at Acquisition Date | $ 289,000 | ||||
Liverpool Community Bank [Member] | Core Deposits [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Beginning Balance at Acquisition Date | $ 289,000 | ||||
Amortization of intangible assets | 49,000 | $ 35,000 | |||
Unamortized balance | 205,000 | ||||
Scheduled remaining amortization expense for years ended: | |||||
December 31, 2020 | 44,000 | ||||
December 31, 2021 | 39,000 | ||||
December 31, 2022 | 33,000 | ||||
December 31, 2023 | 28,000 | ||||
December 31, 2024 | 23,000 | ||||
After December 31, 2024 | $ 38,000 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Aggregate amount of demand deposits reclassified as loan balances | $ 70,000 | $ 75,000 |
Deposits (Schedule of Deposits)
Deposits (Schedule of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Demand, non-interest bearing | $ 134,703 | $ 126,057 |
Interest-bearing demand and money market | 150,157 | 147,413 |
Savings | 96,980 | 99,236 |
Time deposits, 250,000 or more | 6,923 | 8,368 |
Other time deposits | 143,174 | 140,648 |
Total deposits | $ 531,937 | $ 521,722 |
Deposits (Schedule of Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Time Deposits 250000 or More [Member] | |
Maturities of Time Deposits | |
2020 | $ 3,647 |
2021 | 1,535 |
2023 | 346 |
2024 | 656 |
Later | 739 |
Total time deposits | 6,923 |
Time Deposits Other [Member] | |
Maturities of Time Deposits | |
2020 | 54,611 |
2021 | 33,182 |
2022 | 14,645 |
2023 | 13,173 |
2024 | 7,133 |
Later | 20,430 |
Total time deposits | 143,174 |
Certificates of Deposit [Member] | |
Maturities of Time Deposits | |
2020 | 58,258 |
2021 | 34,717 |
2022 | 14,645 |
2023 | 13,519 |
2024 | 7,789 |
Later | 21,169 |
Total time deposits | $ 150,097 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Maximum borrowing capacity with the Federal Home Loan Bank of Pittsburgh ("FHLB") | $ 183,790,000 | $ 187,818,000 |
Amount outstanding with Federal Home Loan Bank ("FHLB") | 55,604,000 | |
FHLB advances, average interest rate | 1.59% | |
Long-term debt | 45,000,000 | $ 15,000,000 |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Fair value of pledged assets | $ 9,029,000 |
Borrowings (Schedule of Borrowi
Borrowings (Schedule of Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term borrowings | $ 13,129 | $ 14,511 |
Maximum outstanding at any month end | 13,591 | 33,858 |
Securities Sold under Agreements to Repurchase [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term borrowings | 3,429 | 2,911 |
Maximum outstanding at any month end | $ 3,891 | $ 4,620 |
Weighted average interest rate as of December 31 | 1.09% | 2.13% |
Average amount outstanding during the year | $ 3,246 | $ 4,177 |
Weighted average interest rate during the year | 1.15% | 1.49% |
Overnight Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term borrowings | $ 9,700 | $ 11,600 |
Maximum outstanding at any month end | 9,700 | 29,238 |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term borrowings | $ 9,700 | $ 11,600 |
Weighted average interest rate as of December 31 | 1.81% | 2.62% |
Average amount outstanding during the year | $ 1,022 | $ 9,906 |
Weighted average interest rate during the year | 2.32% | 1.92% |
Borrowings (Summary of the Sche
Borrowings (Summary of the Scheduled Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | ||
2020 | ||
2021 | ||
2022 | 5,000 | |
2023 | 5,000 | |
2024 | 20,000 | |
Thereafter | 15,000 | |
Long-term Debt, Total | $ 45,000 | $ 15,000 |
Weighted Average Interest Rate | ||
2020 | ||
2021 | ||
2022 | 2.74% | |
2023 | 2.75% | |
2024 | 2.42% | |
Thereafter | 2.41% | |
Weighted average interest rate | 2.49% |
Operating Lease Obligations - R
Operating Lease Obligations - ROU Assets and Lease Liabilities (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Leases [Abstract] | |||
Number of Operating Lease Obligations | item | 4 | ||
Consolidated statements of condition classification of the Company's ROU assets and lease liabilities | |||
Practical expedients package | true | ||
Practical expedients, use of hindsight | true | ||
Operating lease ROU assets | $ 464,000 | $ 556,000 | |
Operating lease ROU assets, statement of financial position | juvf:AccruedInterestReceivableAndOtherAssets | ||
Lease liability | $ 469,000 | $ 556,000 | |
Operating lease liabilities, statement of financial position | juvf:AccruedInterestPayableAndOtherLiabilities | ||
Options to renew | true | ||
Weighted-average remaining operating lease term | 6 years 9 months 18 days | ||
Weighted-average discount rate | 4.95% | ||
Total operating cost | $ 120,000 | $ 109,000 | |
Total operating lease payment to related parties | $ 23,000 | $ 23,000 |
Operating Lease Obligations - F
Operating Lease Obligations - Future Minimum Payments for Operating Leases (Details) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2020 | $ 117,000 | |
2021 | 107,000 | |
2022 | 50,000 | |
2023 | 46,000 | |
2024 | 47,000 | |
2025 and beyond | 206,000 | |
Total Future Minimum Lease Payments | 573,000 | |
Amounts Representing Interest | (104,000) | |
Present Value of Net Future Minimum Lease Payments (Lease Liability) | $ 469,000 | $ 556,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued interest payable and other liabilities |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 29, 2018 | |
Federal statutory income tax rate | 21.00% | 21.00% | |
Federal tax credits related to investment in two low income housing | $ 902,000 | $ 901,000 | |
Income tax examination, year under examination | 2016 2017 2018 | ||
Adjustments to unrecognized tax benefits | $ 0 | $ 0 | |
Phase I [Member] | |||
Tax credit expiration date related to investment in two low income housing | Dec. 31, 2023 | ||
Phase II [Member] | |||
Tax credit expiration date related to investment in two low income housing | Dec. 31, 2027 | ||
Liverpool Community Bank [Member] | |||
Percentage of equity interest in acquiree, before acquisition | 39.16% | ||
Deferred tax liability related to previous 39.16% ownership in LCB | $ 406,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Current tax expense (benefit) | $ 768 | $ (563) |
Deferred income tax expense (benefit) | (782) | (96) |
Total tax expense (benefit) | $ (14) | $ (659) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Income before income taxes | $ 5,821 | $ 5,245 |
Federal statutory tax rate | 21.00% | 21.00% |
Federal tax at statutory rate | $ 1,222 | $ 1,101 |
Tax-exempt interest | (261) | (271) |
Net earnings on BOLI | (49) | (50) |
Dividend from unconsolidated subsidiary | (10) | |
Stock-based compensation | (12) | 19 |
Federal tax credits | (902) | (901) |
Merger and acquisition expenses | 33 | |
Defined benefit prior year contribution, net of other PTR adjustments | (198) | |
Basis difference related to LCB investments prior to acquisition | (406) | |
Other permanent differences | (12) | 24 |
Total tax expense (benefit) | $ (14) | $ (659) |
Effective tax rate | (0.20%) | (12.60%) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | ||
Allowance for loan losses | $ 634 | $ 494 |
Deferred directors' compensation | 337 | 345 |
Employee and director benefits | 288 | 309 |
Qualified pension liability | 78 | |
Unrealized losses on securities available for sale | 655 | |
Unrealized loss from securities impairment | 34 | |
Stock-based compensation | 40 | |
Investment in low income housing project | 211 | 142 |
Fair value adjustments to acquired assets and liabilities | 251 | 293 |
Tax credit carryforward | 191 | 225 |
Net operating loss carryforward | 29 | |
Lease liability | 98 | |
Other | 2 | |
Total deferred tax assets | 2,079 | 2,577 |
Deferred Tax Liabilities | ||
Depreciation | (197) | (445) |
Right of use asset | (97) | |
Loan origination costs | (418) | (384) |
Prepaid expense | (52) | (229) |
Unrealized gains on debt securities available for sale | (136) | |
Unrealized gain from securities impairment | (54) | |
Annuity earnings | (60) | (56) |
Fair value of mortgage servicing rights | (38) | (42) |
Intangible assets | (56) | (68) |
Goodwill | (382) | (353) |
Total deferred tax liabilities | (1,490) | (1,577) |
Net deferred tax asset included in other assets | $ 589 | $ 1,000 |
Stockholders' Equity and Regu_3
Stockholders' Equity and Regulatory Matters (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Preferred stock, authorized | 500,000 | 500,000 |
Preferred Stock Par Value | $ 0 | $ 0 |
Preferred Stock, Issued | 0 | 0 |
Shares Available For Issuance Under Dividend Reinvestment Plan | 141,887 | |
Forfeiture of restricted stock, Shares | 800 | |
Remaining Number of Shares Authorized Under Repurchase Program | 148,266 | |
Undistributed Earnings of Subsidiary, Available for Distribution | $ 35,824 | |
Shares issued during period under employee stock purchase plans | 2,134 | |
Treasury Stock [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Shares Repurchased Under Repurchase Program | 21,508 | 3,416 |
Stockholders' Equity and Regu_4
Stockholders' Equity and Regulatory Matters (Schedule of Compliance with Regulatory Capital Requirements) (Details) - The Juniata Valley Bank [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital, Amount | $ 65,861 | $ 62,422 |
Total Capital, Ratio | 15.85% | 15.50% |
Total Capital, Minimum Requirement for Capital Adequacy Purposes, Amount | $ 33,244 | $ 32,222 |
Total Capital, Minimum Requirement for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Capital, Minimum Capital Adequacy With Capital Buffer, Amount | $ 43,633 | $ 39,774 |
Total Capital, Minimum Capital Adequacy With Capital Buffer, Ratio | 10.50% | 9.875% |
Total Capital, Minimum Regulatory Requirements to be "Well Capitalized", Amount | $ 41,555 | $ 40,278 |
Total Capital, Minimum Regulatory Requirements to be "Well Capitalized", Ratio | 10.00% | 10.00% |
Tier 1 Capital, Amount | $ 62,900 | $ 59,388 |
Tier 1 Capital, Ratio | 15.14% | 14.74% |
Tier 1 Capital, Minimum Requirement for Capital Adequacy Purposes, Amount | $ 24,933 | $ 24,167 |
Tier 1 Capital, Minimum Requirement for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier One Risk Based Capital Minimum Capital Adequacy With Capital Buffer, Amount | $ 35,322 | $ 31,719 |
Tier One Risk Based Capital Minimum Capital Adequacy With Capital Buffer, Ratio | 8.50% | 7.875% |
Tier 1 Capital, Minimum Regulatory Requirements to be "Well Capitalized", Amount | $ 33,244 | $ 32,222 |
Tier 1 Capital, Minimum Regulatory Requirements to be "Well Capitalized", Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital, Amount | $ 62,900 | $ 59,388 |
Common Equity Tier 1 Capital, Ratio | 15.14% | 14.74% |
Common Equity Tier 1 Capital, Minimum Requirement for Capital Adequacy Purposes, Amount | $ 18,700 | $ 18,125 |
Common Equity Tier 1 Capital, Minimum Requirement for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital, Minimum Capital Adequacy With Capital Buffer, Amount | $ 29,089 | $ 25,677 |
Common Equity Tier 1 Capital, Minimum Capital Adequacy With Capital Buffer, Ratio | 7.00% | 6.375% |
Common Equity Tier 1 Capital, Minimum Regulatory Requirements to be "Well Capitalized", Amount | $ 27,011 | $ 26,181 |
Common Equity Tier 1 Capital, Minimum Regulatory Requirements to be "Well Capitalized", Ratio | 6.50% | 6.50% |
Tier 1, Leverage Capital to Average Assets, Amount | $ 62,900 | $ 59,388 |
Tier 1, Leverage Capital to Average Assets, Ratio | 9.60% | 9.77% |
Tier 1, Leverage Capital to Average Assets, Minimum Requirement for Capital Adequacy Purposes, Amount | $ 26,198 | $ 24,317 |
Tier 1, Leverage Capital to Average Assets, Minimum Requirement for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier One Risk Based Capital Minimum Capital Adequacy With Capital Buffer, Amount | $ 26,198 | $ 24,317 |
Tier 1, Leverage Capital to Average Assets, Minimum Capital Adequacy With Capital Buffer, Ratio | 4.00% | 4.00% |
Tier 1, Leverage Capital to Average Assets, Minimum Regulatory Requirements to be "Well Capitalized", Amount | $ 32,747 | $ 30,397 |
Tier 1, Leverage Capital to Average Assets, Minimum Regulatory Requirements to be "Well Capitalized", Ratio | 5.00% | 5.00% |
Calculation of Earnings Per S_3
Calculation of Earnings Per Share (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Calculation of Earnings Per Share [Abstract] | ||
Net income | $ 5,835 | $ 5,904 |
Weighted-average common shares outstanding | 5,102 | 4,987 |
Basic earnings per share | $ 1.14 | $ 1.18 |
Common stock equivalents due to effect of stock options | 19 | 22 |
Total weighted-average common shares and equivalents | 5,121 | 5,009 |
Diluted earnings per share | $ 1.14 | $ 1.18 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Changes in AOCI by Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning balance | $ 67,378 | $ 59,387 |
Other comprehensive income (loss): Net-of-Tax Amount | 4,898 | (109) |
Ending balance | 73,707 | 67,378 |
Accumulated Other Comprehensive Loss [Member] | ||
Beginning balance | (4,299) | (4,034) |
Other comprehensive income (loss) before reclassification | 3,763 | (392) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,135 | 283 |
Reclassification for ASU | (83) | |
Other comprehensive income (loss): Net-of-Tax Amount | 4,898 | (109) |
Ending balance | 516 | (4,299) |
Unrealized Gains and Losses on Available for sale Securities [Member] | ||
Beginning balance | (2,647) | (1,684) |
Other comprehensive income (loss) before reclassification | 3,129 | (956) |
Amounts reclassified from accumulated other comprehensive income (loss) | 34 | 149 |
Other comprehensive income (loss): Net-of-Tax Amount | 3,163 | (807) |
Ending balance | 516 | (2,647) |
Defined Benefit Pension Items [Member] | ||
Beginning balance | (1,652) | (2,350) |
Other comprehensive income (loss) before reclassification | 634 | 564 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,101 | 134 |
Other comprehensive income (loss): Net-of-Tax Amount | 1,735 | 698 |
Ending balance | (1,652) | |
ASU 2018-02 [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Reclassification for ASU | (83) | |
ASU 2018-02 [Member] | Defined Benefit Pension Items [Member] | ||
Reclassification for ASU | $ (83) | |
ASU 2016-01 [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Reclassification for ASU | (156) | |
ASU 2016-01 [Member] | Unrealized Gains and Losses on Available for sale Securities [Member] | ||
Reclassification for ASU | $ (156) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gains and losses on available for sale securities | ||
Realized losses on securities available for sale | $ 43 | $ 188 |
Total before taxes | (43) | (188) |
Income tax provision (benefit) | (14) | (659) |
Net of tax | (34) | (149) |
Amortization of defined benefit pension items | ||
Actuarial losses | 3,594 | 2,458 |
Income tax (benefit) expense | (14) | (659) |
Net income | 5,835 | 5,904 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Amortization of defined benefit pension items | ||
Net income | (1,052) | (127) |
Unrealized Gains and Losses on Available for sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Unrealized gains and losses on available for sale securities | ||
Realized losses on securities available for sale | (43) | (188) |
Total before taxes | (43) | 9 |
Income tax provision (benefit) | 9 | (2) |
Net of tax | (34) | 7 |
Amortization of defined benefit pension items | ||
Income tax (benefit) expense | 9 | (2) |
Amortization of Defined Benefit Pension Items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Unrealized gains and losses on available for sale securities | ||
Income tax provision (benefit) | 271 | 36 |
Amortization of defined benefit pension items | ||
Actuarial losses | (1,394) | (170) |
Total before taxes | (1,289) | (170) |
Income tax (benefit) expense | 271 | 36 |
Net of tax | (1,018) | (134) |
ASU 2018-02 [Member] | Amortization of Defined Benefit Pension Items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Amortization of defined benefit pension items | ||
Total before taxes | $ 105 | |
ASU 2016-01 [Member] | Unrealized Gains and Losses on Available for sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Unrealized gains and losses on available for sale securities | ||
Total before taxes | $ 197 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements by Level of Valuation Inputs) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | $ 210,686 | $ 141,953 |
Impaired loans | 3,586 | 3,648 |
Other real estate owned | 744 | |
Equity securities | 1,144 | 1,118 |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 20,920 | 23,266 |
Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 4,575 | 18,181 |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 20,920 | 23,266 |
Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 4,575 | 18,181 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,144 | 1,118 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 185,191 | 100,506 |
Fair Value, Measurements, Recurring [Member] | (Level 1) Quoted Prices in Active Markets for Identical Assets or Liabilities | Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 1,144 | 1,118 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 20,920 | 23,266 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 4,575 | 18,181 |
Fair Value, Measurements, Recurring [Member] | (Level 2) Significant Other Observable Inputs [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | 185,191 | 100,506 |
Fair Value, Measurements, Recurring [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | 180 | 200 |
Fair Value, Measurements, Recurring [Member] | Mortgage Servicing Rights [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage servicing rights | 180 | 200 |
Fair Value Measurements, Non-Recurring Basis [Member] | Impaired Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 144 | 1,104 |
Fair Value Measurements, Non-Recurring Basis [Member] | Impaired Loans [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 144 | 1,104 |
Fair Value Measurements, Non-Recurring Basis [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | 149 | |
Fair Value Measurements, Non-Recurring Basis [Member] | Other Real Estate Owned [Member] | (Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | $ 149 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing deposits with banks | $ 82 | $ 110 |
Federal funds sold | 729 | |
Interest bearing time deposits with banks | 2,210 | 3,290 |
Restricted investment in bank stock | 3,442 | 2,441 |
Deposits: Non-interest bearing | 134,703 | 126,057 |
Deposits: Interest bearing | 397,234 | 395,665 |
Short-term borrowings | 13,129 | 14,511 |
Long-term debt | 45,000 | 15,000 |
Other interest bearing liabilities | 1,603 | 1,596 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 12,658 | 15,617 |
Interest bearing deposits with banks | 82 | 110 |
Federal funds sold | 729 | |
Interest bearing time deposits with banks | 2,210 | 3,290 |
Securities | 211,830 | 141,953 |
Restricted investment in bank stock | 3,442 | 2,441 |
Loans, net of allowance for loan losses | 397,629 | 414,597 |
Accrued interest receivable | 1,607 | 1,681 |
Deposits: Non-interest bearing | 134,703 | 126,057 |
Deposits: Interest bearing | 397,234 | 395,665 |
Securities sold under agreements to repurchase | 3,429 | 2,911 |
Short-term borrowings | 9,700 | 11,600 |
Long-term debt | 45,000 | 15,000 |
Other interest bearing liabilities | 1,603 | 1,596 |
Accrued interest payable | 473 | 289 |
Commitments to extend credit | ||
Letters of credit | ||
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 12,658 | 15,617 |
Interest bearing deposits with banks | 82 | 110 |
Federal funds sold | 729 | |
Interest bearing time deposits with banks | 2,210 | 3,290 |
Securities | 211,830 | 141,953 |
Loans, net of allowance for loan losses | 403,359 | 415,195 |
Accrued interest receivable | 1,607 | 1,681 |
Deposits: Non-interest bearing | 134,703 | 126,057 |
Deposits: Interest bearing | 399,848 | 395,226 |
Short-term borrowings | 9,700 | 11,600 |
Long-term debt | 45,809 | 14,958 |
Other interest bearing liabilities | 1,603 | 1,597 |
Accrued interest payable | 473 | 289 |
Commitments to extend credit | ||
Letters of credit |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | $ 2,210 | $ 3,290 |
Deposits: Interest bearing | 397,234 | 395,665 |
Long-term debt | 45,000 | 15,000 |
Other interest bearing liabilities | 1,603 | 1,596 |
(Level 2) Significant Other Observable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | 2,210 | 3,290 |
Deposits: Interest bearing | 399,848 | 395,226 |
Long-term debt | 45,809 | 14,958 |
Other interest bearing liabilities | 1,603 | 1,597 |
(Level 3) Significant Other Unobservable Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for loan losses | 403,359 | 415,195 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | 2,210 | 3,290 |
Loans, net of allowance for loan losses | 397,629 | 414,597 |
Deposits: Interest bearing | 397,234 | 395,665 |
Long-term debt | 45,000 | 15,000 |
Other interest bearing liabilities | 1,603 | 1,596 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing time deposits with banks | 2,210 | 3,290 |
Loans, net of allowance for loan losses | 403,359 | 415,195 |
Deposits: Interest bearing | 399,848 | 395,226 |
Long-term debt | 45,809 | 14,958 |
Other interest bearing liabilities | $ 1,603 | $ 1,597 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Management Services [Member] | ||
Trust and Estate fees recognized | $ 359,000 | $ 367,000 |
Estate Management Services [Member] | ||
Trust and Estate fees recognized | $ 35,000 | $ 63,000 |
Percentage of total estate fee recognized when all estate assets are collected and debts paid | 25.00% | |
Percentage of total estate fee recognized when the inheritance tax return is filed | 50.00% | |
Percentage of total estate fee recognized when the first and final account is confirmed | 25.00% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2007 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Stock-based compensation expense | $ 113,000 | $ 82,000 | |||||
Weighted average exercise price | $ 17.78 | $ 17.76 | $ 17.91 | ||||
Employer's matching contribution | $ 1,350,000 | $ 212,000 | $ 199,000 | ||||
Cash received from option exercises | $ 364,000 | 90,000 | |||||
Debt and equity instruments included in the plan assets | 12,132,000 | ||||||
Employer's safe harbor contribution rate | 3.00% | ||||||
Employer's safe harbor contribution payable | $ 250,000 | ||||||
Prior year contribution payable credited in current year | 238,000 | ||||||
Defined contribution plan, cost recognized | 248,000 | $ 234,000 | |||||
Percentage Of Increase Decrease In Pension Liability | 9.00% | ||||||
Settlement loss | $ 210,000 | ||||||
Excess funds transferred to 401(k) plan | $ 431,000 | ||||||
Treasury stock issued for stock plans, shares | 1,880 | ||||||
Shares issued during period under employee stock purchase plans | 2,134 | ||||||
Deferred compensation liability | $ 1,603,000 | $ 1,602,000 | |||||
Deferred compensation, compensation expense | 42,000 | 40,000 | |||||
Salary continuation liability | 1,209,000 | 1,256,000 | |||||
Salary continuation period expense | 57,000 | 103,000 | |||||
Supplemental Employee Retirement Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Present value of future plan liability | 166,000 | 215,000 | |||||
Supplemental retirement plans, cost recognized during period | $ 16,000 | $ 20,000 | |||||
Employee Stock Option [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Stock options awarded | 0 | ||||||
Award expiration period | 10 years | ||||||
Award expiration date | Feb. 17, 2025 | ||||||
Shares authorized under share-based payment awards | 300,000 | ||||||
Shares available for grant | 158,455 | ||||||
Exercise price, lower range limit | $ 17.65 | ||||||
Exercise price, upper range limit | 18 | ||||||
Weighted average exercise price | $ 17.78 | ||||||
Weighted average remaining contractual life | 3 years 9 months 15 days | ||||||
Restricted Stock [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of shares issued under long-term stock incentive plan | 7,500 | 5,220 | |||||
Award vesting period | 3 years | ||||||
Unrecognized compensation cost related to non-vested awards | $ 133,000 | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Shares authorized under share-based payment awards | 250,000 | ||||||
Shares available for grant | 171,079 | ||||||
Number of share per year in addition to prior unissued shares | 5,000 | ||||||
JVB Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Debt and equity instruments included in the plan assets | $ 12,182,000 | $ 13,117,000 | |||||
Defined benefit plan, pre-tax settlement charge | $ 943,000 | $ 278,000 | |||||
Excess funds transferred to 401(k) plan | $ (431,000) | ||||||
Percentage of vested benefit | 100.00% | ||||||
Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Compensation costs not yet recognized | $ 1,000 | ||||||
Option price as a percentage of fair value | 100.00% | ||||||
Maximum [Member] | Employee Stock Option [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Award vesting period | 5 years | ||||||
Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Option price as a percentage of fair value | 95.00% | ||||||
Minimum [Member] | Employee Stock Option [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Award vesting period | 3 years |
Employee Benefit Plans (Compens
Employee Benefit Plans (Compensation Expense and Related Tax Benefits for Restricted Stock) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Net income effect | $ 113 | $ 82 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Compensation expense | 109 | 77 |
Tax benefit | (23) | (16) |
Net income effect | $ 86 | $ 61 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Non-Vested Restricted Shares Activity) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of shares | ||
Non-vested at January 1, 2019 | 13,020 | |
Vested | (4,360) | |
Forfeited | (800) | |
Granted | 7,500 | 5,220 |
Non-vested at December 31, 2019 | 15,360 | 13,020 |
Weighted Average Grant Date Fair Value | ||
Non-vested at January 1, 2019 | $ 18.78 | |
Vested | 18.05 | |
Forfeited | 19.62 | |
Granted | 20 | |
Non-vested at December 31, 2019 | $ 19.54 | $ 18.78 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | ||
Outstanding at beginning of year, Shares | 113,756 | 125,026 |
Exercised, Shares | (20,609) | (5,170) |
Forfeited, Shares | (6,100) | |
Outstanding at end of year, Shares | 93,147 | 113,756 |
Options exercisable at year-end, Shares | 92,147 | 110,911 |
Outstanding at beginning of year, Weighted average exercise price | $ 17.76 | $ 17.91 |
Exercised, Weighted average exercise price | 17.66 | 17.47 |
Forfeited, Weighted average exercise price | 21.10 | |
Outstanding at end of year, Weighted average exercise price | $ 17.78 | $ 17.76 |
Intrinsic value of options exercised during the year | $ 43,135 | $ 15,240 |
Intrinsic value of options outstanding and exercisable at December 31, 2019 | $ 144,656 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Allocation of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | $ 12,132 | |
Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | 11,891 | |
Money Market Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | 241 | |
(Level 1) Quoted Prices in Active Markets for Identical Assets or Liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | 12,132 | |
(Level 1) Quoted Prices in Active Markets for Identical Assets or Liabilities | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | 11,891 | |
(Level 1) Quoted Prices in Active Markets for Identical Assets or Liabilities | Money Market Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | 241 | |
JVB Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Debt and equity instruments included in the plan assets | $ 12,182 | $ 13,117 |
Employee Benefit Plans (Activit
Employee Benefit Plans (Activity in the Defined Benefit Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation (PBO) | ||
Interest cost | $ 299 | $ 521 |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 12,132 | |
Benefits transferred to 401(k) Plan | 431 | |
Fair value of plan assets at end of period | 12,132 | |
JVB Plan [Member] | ||
Change in projected benefit obligation (PBO) | ||
PBO at beginning of year | 12,555 | 15,554 |
Interest cost | 299 | 521 |
Change in assumptions | 1,477 | (1,208) |
Actuarial loss | (1,326) | (244) |
Group annuity purchase | (9,021) | |
Settlement payments | (3,569) | (1,485) |
Benefits paid | (415) | (583) |
PBO at end of period | 12,555 | |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 12,182 | 13,117 |
Actual return on plan assets, net of expenses | 1,254 | (217) |
Employer contribution | 1,350 | |
Group annuity purchase | (9,021) | |
Settlement payments | (3,569) | (1,485) |
Benefits paid | (415) | (583) |
Benefits transferred to 401(k) Plan | $ (431) | |
Fair value of plan assets at end of period | 12,182 | |
Funded status, included in other (liabilities) assets | (373) | |
Unrecognized actual loss | (884) | |
Accumulated benefit obligation | $ 12,555 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 299 | $ 521 |
Expected return on plan assets | (182) | (690) |
Recognized net actuarial loss | 1,277 | 339 |
Net periodic pension cost | 1,394 | 170 |
Total recognized in other comprehensive income | (2,197) | (884) |
Total recognized in net periodic pension benefit and other comprehensive income | (803) | (714) |
JVB Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 299 | $ 521 |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Assumptions Used) (Details) - JVB Plan [Member] | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Assumptions used calculating benefit obligation, discount rate | 4.10% |
Assumptions used calculating net periodic benefit cost, discount rate | 3.50% |
Assumptions used calculating net periodic benefit cost, expected long-term return on plan assets | 4.20% |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financial Instruments with off-Balance Sheet Risk [Abstract] | |
Maximum undiscounted exposure | $ 2,624,000 |
Underlying collateral upon liquidation | $ 23,429,000 |
Financial Instruments with Of_4
Financial Instruments with Off-Balance Sheet Risk (Summary of Financial Instrument Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Grant Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding letters of credit | $ 97,037 | $ 72,755 |
Unfunded Commitments Under Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding letters of credit | 13,448 | 14,468 |
Outstanding Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding letters of credit | $ 2,624 | $ 2,749 |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related-Party Transactions [Abstract] | ||
Due from related parties | $ 8,127,000 | $ 7,780,000 |
Due from related parties, new loans in period | 8,798,000 | |
Due from related parties, repayments in period | 8,451,000 | |
Related parties, deposits | $ 1,396,000 | $ 1,215,000 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Technology outsourcing services, commitment period | 7 years |
Technology Outsourcing Services [Member] | |
Loss Contingencies [Line Items] | |
Percentage decrease in termination fees in each succeeding year, if terminated | 15.00% |
Service Bureau One [Member] | |
Loss Contingencies [Line Items] | |
Technology outsourcing services, estimated contract termination fees | $ 1,369,000 |
Service Bureau Two [Member] | |
Loss Contingencies [Line Items] | |
Technology outsourcing services, estimated contract termination fees | $ 1,253,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] | 1 Months Ended |
Jan. 31, 2020$ / shares | |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Jan. 15, 2020 |
Dividends payable per share | $ 0.22 |
Dividends payable, date of record | Feb. 14, 2020 |
Dividends payable, date to be paid | Feb. 28, 2020 |
Juniata Valley Financial Corp_3
Juniata Valley Financial Corp. (Parent Company Only) Financial Information (Schedule of Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 12,740 | $ 16,456 | |
Equity securities | 1,144 | 1,118 | |
Debt securities available for sale | 210,686 | 141,953 | |
Total assets | 670,632 | 625,236 | |
Stockholders' equity | 73,707 | 67,378 | $ 59,387 |
Total liabilities and stockholders' equity | 670,632 | 625,236 | |
Parent Company [Member] | |||
Cash and cash equivalents | 80 | 48 | |
Investment in bank subsidiary | 72,353 | 65,909 | |
Equity securities | 947 | 940 | |
Debt securities available for sale | 253 | 253 | |
Other assets | 99 | 641 | |
Total assets | 73,732 | 67,791 | |
Accounts payable and other liabilities | 25 | 413 | |
Stockholders' equity | 73,707 | 67,378 | |
Total liabilities and stockholders' equity | $ 73,732 | $ 67,791 |
Juniata Valley Financial Corp_4
Juniata Valley Financial Corp. (Parent Company Only) Financial Information (Schedule of Condensed Statements of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income from unconsolidated subsidiary | $ 296 | |
Merger-related expenses | 884 | |
Other non-interest expense | $ 20,407 | 19,461 |
Income tax (benefit) expense | (14) | (659) |
Net income | 5,835 | 5,904 |
Comprehensive income | 10,733 | 5,795 |
Parent Company [Member] | ||
Interest and dividends on investment securities available for sale | 47 | 44 |
Dividends from bank subsidiary | 4,489 | 4,923 |
Income from unconsolidated subsidiary | 296 | |
Change in value of equity securities | 8 | 26 |
Total income | 4,544 | 5,289 |
Merger-related expenses | 134 | |
Other non-interest expense | 176 | 155 |
Total expense | 176 | 289 |
Income before income taxes and equity in undistributed net income of subsidiary | 4,368 | 5,000 |
Income tax (benefit) expense | (35) | (347) |
Net income, Including Portion attributable to subsidiary | 4,403 | 5,347 |
Undistributed net gain of subsidiary | 1,432 | 557 |
Net income | $ 5,835 | $ 5,904 |
Juniata Valley Financial Corp_5
Juniata Valley Financial Corp. (Parent Company Only) Financial Information (Schedule of Condensed Statements of Cash Flows) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 5,835,000 | $ 5,904,000 |
Net realized loss on sales and calls of available for sale securities | 43,000 | 188,000 |
Income/gain from unconsolidated subsidiary, net of dividends of $0 and $75, respectively | 194,000 | |
Equity gain from acquisition of unconsolidated subsidiary | (415,000) | |
Stock-based compensation expense | 113,000 | 82,000 |
Net cash provided by operating activities | 9,941,000 | 5,321,000 |
Purchases of: Securities available for sale | (125,422,000) | (20,610,000) |
Proceeds from: Sales of securities available for sale | 21,777,000 | 10,461,000 |
Proceeds from the maturity and principal repayments of available for sale investment securities | 38,056,000 | 19,145,000 |
Net cash received from acquisition | 7,561,000 | |
Net cash (used in) provided by investing activities | (47,968,000) | 14,835,000 |
Cash dividends | (4,489,000) | (4,411,000) |
Purchase of treasury stock | (428,000) | (70,000) |
Treasury stock issued for stock plans | 400,000 | 90,000 |
Common stock issued for stock plans | 42,000 | |
Net cash provided by (used in) financing activities | 34,311,000 | (13,597,000) |
Net (decrease) increase in cash and cash equivalents | (3,716,000) | 6,559,000 |
Cash and cash equivalents at beginning of year | 16,456,000 | 9,897,000 |
Cash and cash equivalents at end of period | 12,740,000 | 16,456,000 |
Equity method investment, dividends | 0 | 75,000 |
Parent Company [Member] | ||
Net income | 5,835,000 | 5,904,000 |
Undistributed net gain of subsidiary | (1,432,000) | (556,000) |
Change in equity security value | (8,000) | (26,000) |
Income/gain from unconsolidated subsidiary, net of dividends of $0 and $75, respectively | 194,000 | |
Equity gain from acquisition of unconsolidated subsidiary | (415,000) | |
Stock-based compensation expense | 113,000 | 82,000 |
Decrease (increase) in other assets | 429,000 | (93,000) |
Decrease in taxes payable | (402,000) | (402,000) |
Increase (decrease) in accounts payable and other liabilities | 14,000 | (12,000) |
Net cash provided by operating activities | 4,549,000 | 4,676,000 |
Net cash received from acquisition | (1,361,000) | |
Net cash (used in) provided by investing activities | (1,361,000) | |
Cash dividends | (4,489,000) | (4,411,000) |
Purchase of treasury stock | (428,000) | (70,000) |
Treasury stock issued for stock plans | 400,000 | 90,000 |
Common stock issued for stock plans | 42,000 | |
Net cash provided by (used in) financing activities | (4,517,000) | (4,349,000) |
Net (decrease) increase in cash and cash equivalents | 32,000 | (1,034,000) |
Cash and cash equivalents at beginning of year | 48,000 | 1,082,000 |
Cash and cash equivalents at end of period | 80,000 | 48,000 |
Equity method investment, dividends | $ 0 | $ 75,000 |