Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Document Period End Date | Sep. 30, 2018 | |
Entity Registrant Name | ACNB CORP | |
Entity Central Index Key | 715,579 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,042,224 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
ASSETS | |||
Cash and due from banks | $ 18,145 | $ 19,304 | $ 17,882 |
Interest bearing deposits with banks | 45,551 | 15,137 | 31,609 |
Total Cash and Cash Equivalents | 63,696 | 34,441 | 49,491 |
Equity securities with readily determinable fair values | 1,743 | 0 | 0 |
Debt securities available for sale | 162,957 | 159,051 | 158,392 |
Securities held to maturity, fair value $32,767; $47,373; $44,549 | 33,517 | 44,829 | 47,369 |
Loans held for sale | 1,112 | 1,736 | 1,873 |
Loans, net of allowance for loan losses $13,414; $14,105; $13,976 | 1,259,032 | 1,230,194 | 1,222,265 |
Premises and equipment | 26,097 | 26,774 | 26,590 |
Restricted investment in bank stocks | 4,529 | 4,773 | 4,821 |
Investment in bank-owned life insurance | 46,242 | 44,935 | 44,666 |
Investments in low-income housing partnerships | 2,096 | 2,446 | 2,587 |
Goodwill | 19,580 | 19,580 | 19,580 |
Intangible assets | 2,628 | 2,569 | 2,752 |
Foreclosed assets held for resale | 63 | 436 | 275 |
Other assets | 24,507 | 23,668 | 26,974 |
Total Assets | 1,647,799 | 1,595,432 | 1,607,635 |
Deposits: | |||
Non-interest bearing | 292,389 | 279,413 | 273,853 |
Interest bearing | 1,054,854 | 1,019,079 | 1,038,031 |
Total Deposits | 1,347,243 | 1,298,492 | 1,311,884 |
Short-term borrowings | 38,525 | 36,908 | 33,806 |
Long-term borrowings | 84,725 | 94,600 | 96,850 |
Other liabilities | 12,794 | 11,466 | 11,839 |
Total Liabilities | 1,483,287 | 1,441,466 | 1,454,379 |
STOCKHOLDERS’ EQUITY | |||
Preferred stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding | 0 | 0 | 0 |
Common stock, $2.50 par value; 20,000,000 shares authorized; 7,104,824, 7,082,245 and 7,086,258 shares issued; 7,042,224, 7,019,645 and 7,023,658 shares outstanding | 17,762 | 17,716 | 17,705 |
Treasury stock, at cost (62,600 shares) | (728) | (728) | (728) |
Additional paid-in capital | 38,321 | 37,777 | 37,671 |
Retained earnings | 118,192 | 106,293 | 103,997 |
Accumulated other comprehensive loss | (9,035) | (7,092) | (5,389) |
Total Stockholders’ Equity | 164,512 | 153,966 | 153,256 |
Total Liabilities and Stockholders’ Equity | $ 1,647,799 | $ 1,595,432 | $ 1,607,635 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | |||
Securities held to maturity, fair value | $ 32,767 | $ 44,549 | $ 47,373 |
Allowance for loan losses | $ 13,414 | $ 13,976 | $ 14,105 |
Preferred stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,104,824 | 7,086,258 | 7,082,245 |
Common stock, shares outstanding | 7,042,224 | 7,023,658 | 7,019,645 |
Treasury stock, shares | 62,600 | 62,600 | 62,600 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans, including fees | $ 14,966 | $ 13,990 | $ 43,746 | $ 33,484 |
Securities: | ||||
Taxable | 929 | 890 | 2,761 | 2,474 |
Tax-exempt | 51 | 85 | 175 | 352 |
Dividends | 77 | 61 | 229 | 174 |
Other | 259 | 83 | 490 | 120 |
Total Interest Income | 16,282 | 15,109 | 47,401 | 36,604 |
INTEREST EXPENSE | ||||
Deposits | 1,341 | 1,080 | 3,681 | 2,402 |
Short-term borrowings | 2 | 9 | 29 | 69 |
Long-term borrowings | 526 | 458 | 1,625 | 1,274 |
Total Interest Expense | 1,869 | 1,547 | 5,335 | 3,745 |
Net Interest Income | 14,413 | 13,562 | 42,066 | 32,859 |
PROVISION FOR LOAN LOSSES | 200 | 0 | 770 | 0 |
Net Interest Income after Provision for Loan Losses | 14,213 | 13,562 | 41,296 | 32,859 |
OTHER INCOME | ||||
Earnings on investment in bank-owned life insurance | 269 | 276 | 807 | 807 |
Gain on life insurance proceeds | 0 | 0 | 52 | 0 |
Net gains on sales of securities | 31 | 0 | 44 | 0 |
Net losses on equity securities | (23) | 0 | (50) | 0 |
Commissions from insurance sales | 1,450 | 1,313 | 4,358 | 4,031 |
Other | 318 | 492 | 963 | 1,007 |
Total Other Income | 4,125 | 3,930 | 12,154 | 10,540 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 6,560 | 6,715 | 19,870 | 18,397 |
Net occupancy | 700 | 677 | 2,199 | 1,710 |
Equipment | 1,276 | 1,039 | 3,759 | 2,666 |
Other tax | 243 | 197 | 684 | 576 |
Professional services | 371 | 224 | 1,084 | 807 |
Supplies and postage | 183 | 187 | 575 | 524 |
Marketing and corporate relations | 98 | 119 | 366 | 321 |
FDIC and regulatory | 173 | 170 | 521 | 449 |
Merger related expenses | 0 | 4,305 | 0 | 4,675 |
Intangible assets amortization | 175 | 193 | 541 | 355 |
Foreclosed real estate (income) expenses | (27) | 35 | 105 | 51 |
Other operating | 1,104 | 1,006 | 3,389 | 2,970 |
Total Other Expenses | 10,856 | 14,867 | 33,093 | 33,501 |
Income before Income Taxes | 7,482 | 2,625 | 20,357 | 9,898 |
PROVISION FOR INCOME TAXES | 1,443 | 713 | 3,898 | 2,627 |
Net Income | $ 6,039 | $ 1,912 | $ 16,459 | $ 7,271 |
PER SHARE DATA | ||||
Basic earnings (in dollars per share) | $ 0.86 | $ 0.27 | $ 2.34 | $ 1.14 |
Cash dividends declared (in dollars per share) | $ 0.23 | $ 0.20 | $ 0.66 | $ 0.60 |
Service charges on deposit accounts | ||||
OTHER INCOME | ||||
Revenue from contract with customer, excluding assessed tax | $ 839 | $ 870 | $ 2,465 | $ 2,057 |
Income from fiduciary, investment management and brokerage activities | ||||
OTHER INCOME | ||||
Revenue from contract with customer, excluding assessed tax | 632 | 489 | 1,762 | 1,409 |
Service charges on ATM and debit card transactions | ||||
OTHER INCOME | ||||
Revenue from contract with customer, excluding assessed tax | $ 609 | $ 490 | $ 1,753 | $ 1,229 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
NET INCOME | $ 6,039 | $ 1,912 | $ 16,459 | $ 7,271 | |
SECURITIES | |||||
Unrealized (losses) gains arising during the period, net of income taxes of $(139), $28, $(742) and $159, respectively | (476) | 54 | (2,195) | 306 | |
Reclassification adjustment for net gains included in net income, net of income taxes of $7, $0, $10 and $0, respectively (A) (C) | [1],[2] | 24 | 0 | 34 | 0 |
PENSION | |||||
Amortization of pension net loss, transition liability, and prior service cost, net of income taxes of $29, $60, $87 and $178, respectively (B) (C) | [2],[3] | 100 | 109 | 300 | 329 |
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (352) | 163 | (1,861) | 635 | |
TOTAL COMPREHENSIVE INCOME | $ 5,687 | $ 2,075 | $ 14,598 | $ 7,906 | |
[1] | Gross amounts are included in net gains on sales or calls of securities on the Consolidated Statements of Income in total other income. | ||||
[2] | Income tax amounts are included in the provision for income taxes on the Consolidated Statements of Income. | ||||
[3] | Gross amounts are included in the computation of net periodic benefit cost and are included in salaries and employee benefits on the Consolidated Statements of Income in total other expenses. |
CONSOLIDATED STATEMENTS OF CO_3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
SECURITIES: Unrealized (losses) gains arising during the period, income taxes | $ (139) | $ 28 | $ (742) | $ 159 |
SECURITIES: Reclassification adjustment for net gains included in net income, income taxes | 7 | 0 | 10 | 0 |
PENSION: Amortization of pension net loss, transition liability, and prior service cost, tax | $ 29 | $ 60 | $ 87 | $ 178 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
Beginning Balance at Dec. 31, 2016 | $ 120,061 | $ 15,317 | $ (728) | $ 10,941 | $ 100,555 | $ (6,024) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,271 | 7,271 | |||||
Other comprehensive income (loss), net of taxes | 635 | 635 | |||||
Common stock shares issued | 28,878 | 2,373 | 26,505 | ||||
Restricted stock grants | 120 | 15 | 105 | ||||
Restricted stock compensation expense | 120 | 120 | |||||
Cash dividends declared | (3,829) | (3,829) | |||||
Ending Balance at Sep. 30, 2017 | 153,256 | 17,705 | (728) | 37,671 | 103,997 | (5,389) | |
Beginning Balance at Dec. 31, 2017 | 153,966 | 17,716 | (728) | 37,777 | 106,293 | (7,092) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 16,459 | 16,459 | |||||
Other comprehensive income (loss), net of taxes | (1,861) | (1,861) | |||||
Reclassification of certain income tax effects from AOCI | [1] | 0 | 82 | (82) | |||
Common stock shares issued | 391 | 29 | 362 | ||||
Restricted stock grants | 13 | 17 | (4) | ||||
Restricted stock compensation expense | 186 | 186 | |||||
Cash dividends declared | (4,642) | (4,642) | |||||
Ending Balance at Sep. 30, 2018 | $ 164,512 | $ 17,762 | $ (728) | $ 38,321 | $ 118,192 | $ (9,035) | |
[1] | In January 2018, the Corporation adopted ASU 2018-02, as a result, the Corporation made a policy election to release income tax effects, as a result of the Tax Act, from AOCI to retained earnings. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock shares issued (in shares) | 11,822 | 949,314 |
Restricted stock grants, shares issued (in shares) | 6,744 | 6,193 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 16,459 | $ 7,271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of loans originated for sale | (404) | (398) |
Loss (gain) on sales of foreclosed assets held for resale, including writedowns | 1 | (36) |
Earnings on investment in bank-owned life insurance | (807) | (807) |
Gain on sales or calls of securities | (44) | 0 |
Loss on equity securities | 50 | 0 |
Restricted stock compensation expense | 186 | 120 |
Depreciation and amortization | 2,122 | 1,622 |
Provision for loan losses | 770 | 0 |
Net amortization of investment securities premiums | 357 | 396 |
Increase in accrued interest receivable | (1,067) | (637) |
Increase in accrued interest payable | 243 | 235 |
Mortgage loans originated for sale | (25,244) | (21,344) |
Proceeds from sales of loans originated for sale | 26,272 | 21,639 |
Decrease in other assets | 724 | 4,394 |
Decrease (increase) in deferred tax expense | 398 | (3,343) |
Increase in other liabilities | 1,471 | 843 |
Net Cash Provided by Operating Activities | 21,487 | 9,955 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from maturities of investment securities held to maturity | 11,307 | 8,148 |
Proceeds from maturities of investment securities available for sale | 12,471 | 18,486 |
Proceeds from sales of investment securities available for sale | 6,477 | 0 |
Purchase of investment securities available for sale | (27,746) | (12,144) |
Redemption (purchase) of restricted investment in bank stocks | 244 | (136) |
Net increase in loans | (29,843) | (63,636) |
Purchase of bank-owned life insurance | (500) | 0 |
Bank acquisition, net of cash acquired | 0 | (6,444) |
Insurance book- acquisition | (600) | 0 |
Capital expenditures | (904) | (1,087) |
Proceeds from sales of premises and equipment | 0 | 6 |
Proceeds from sales of foreclosed real estate | 607 | 228 |
Net Cash Used in Investing Activities | (28,487) | (43,691) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in demand deposits | 12,976 | 13,254 |
Net increase in time certificates of deposits and interest bearing deposits | 35,775 | 37,677 |
Net increase (decrease) in short-term borrowings | 1,617 | (784) |
Proceeds from long-term borrowings | 9,716 | 24,600 |
Repayments on long-term borrowings | (19,591) | (7,000) |
Dividends paid | (4,642) | (3,829) |
Common stock issued | 404 | 378 |
Net Cash Provided by Financing Activities | 36,255 | 64,296 |
Net Increase in Cash and Cash Equivalents | 29,255 | 30,560 |
CASH AND CASH EQUIVALENTS — BEGINNING | 34,441 | 18,931 |
CASH AND CASH EQUIVALENTS — ENDING | 63,696 | 49,491 |
Supplemental disclosures of cash flow information | ||
Interest paid | 5,092 | 3,510 |
Income taxes paid | 3,150 | 2,850 |
Loans transferred to foreclosed assets held for resale and other foreclosed transactions | $ 235 | $ 0 |
Basis of Presentation and Natur
Basis of Presentation and Nature of Operations | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations ACNB Corporation (the Corporation or ACNB), headquartered in Gettysburg, Pennsylvania, provides banking, insurance, and financial services to businesses and consumers through its wholly-owned subsidiaries, ACNB Bank (Bank) and Russell Insurance Group, Inc. (RIG). The Bank engages in full-service commercial and consumer banking and wealth management services, including trust and retail brokerage, through twenty-two community banking office locations in Adams, Cumberland, Franklin and York Counties, Pennsylvania. There is also a loan production office situated in York County, Pennsylvania, as well as another loan production office in Hunt Valley, Maryland, effective July 25, 2018. On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp, Inc. (New Windsor) of Taneytown, Maryland. At the effective time of the acquisition, New Windsor merged with and into a wholly-owned subsidiary of ACNB, immediately followed by the merger of New Windsor State Bank (NWSB) with and into ACNB Bank. ACNB Bank now operates in the Maryland market as “NWSB Bank, A Division of ACNB Bank” and serves this marketplace with banking and wealth management services via a network of seven community banking offices located in Carroll County, Maryland. RIG is a full-service insurance agency based in Westminster, Maryland, with a second location in Germantown, Maryland. The agency offers a broad range of property and casualty, life, and health insurance to both commercial and individual clients. The Corporation’s primary source of revenue is interest income on loans and investment securities and fee income on its products and services. Expenses consist of interest expense on deposits and borrowed funds, provisions for loan losses, and other operating expenses. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly ACNB Corporation’s financial position and the results of operations, comprehensive income, changes in stockholders’ equity, and cash flows. All such adjustments are of a normal recurring nature. The accounting policies followed by the Corporation are set forth in Note A to the Corporation’s consolidated financial statements in the 2017 ACNB Corporation Annual Report on Form 10-K, filed with the SEC on March 9, 2018 . It is suggested that the consolidated financial statements contained herein be read in conjunction with the consolidated financial statements and notes included in the Corporation’s Annual Report on Form 10-K. The results of operations for the three and nine month periods ended September 30, 2018 , are not necessarily indicative of the results to be expected for the full year. On January 1, 2018, the Corporation adopted ASU 2014-09, Revenue from Contracts with Customers, and all subsequent amendments to the ASU (collectively “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Corporation’s revenue comes from interest income, including loans and securities, that are outside the scope of ASC 606. The Corporation’s services that fall within the scope of ASC 606 are presented within other income on the consolidated statement of income and are recognized as revenue as the Corporation satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges on deposit accounts, service charges on ATM and debit card transactions, income from fiduciary, investment management and brokerage activities and commissions from insurance sales. ASC 606 did not result in a change to the accounting for any in-scope revenue streams; as such, no cumulative effect adjustment was recorded. On January 1, 2018, the Corporation adopted ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amended the guidance on the classification and measurement of financial instruments. Upon adoption of ASU 2016-01, the Corporation recognized the equity securities fair value change in net income. Previously, the fair value changes were recognized, net of tax, in other comprehensive income (loss). The adoption of this ASU did not have a material effect on the Corporation’s consolidated financial condition or results of operations. The Corporation early adopted ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU required a reclassification from accumulated other comprehensive income to retained earnings for tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The amendments in this ASU would be effective for the Corporation for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this ASU did not have a material effect on the Corporation’s consolidated financial condition or results of operations. The Corporation has evaluated events and transactions occurring subsequent to the balance sheet date of September 30, 2018 , for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
Acquisition of New Windsor Banc
Acquisition of New Windsor Bancorp, Inc. | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition of New Windsor Bancorp, Inc. | Acquisition of New Windsor Bancorp, Inc. On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp Inc. (New Windsor) of Taneytown, Maryland. New Windsor was a locally owned and managed institution with seven locations in north central Maryland that complemented, enhanced and expanded ACNB’s physical presence in north central Maryland. ACNB transacted the acquisition to enhance its competitive strategic position, potential prospective business opportunities, operations, management, prospective financial condition, future earnings and business prospects. Specifically, ACNB believes that the acquisition will enhance its business opportunities in Northern Maryland due to the combined company having a greater market share, market presence and the ability to offer more diverse (i.e. Trust Services) and more profitable products, as well as a broader based and geographically diversified branch system to enhance deposit collection and potentially improve funding costs. The fair value of total assets acquired as a result of the acquisition totaled $319.8 million, loans totaled $263.5 million and deposits totaled $293.3 million. Goodwill recorded in the acquisition was $13.3 million. In accordance with the terms of the Reorganization Agreement, dated November 21, 2016, as amended, New Windsor shareholders received, in aggregate, $4.5 million in cash and 938,360 shares or approximately 13% of the post transaction outstanding shares of the Corporation’s common stock. The transaction was valued at $33.3 million based on the Corporation’s June 30, 2017 closing price of $30.50 as quoted on NASDAQ. The results of the combined entity’s operations are included in the Corporation’s Consolidated Financial Statements from the date of acquisition. The acquisition of New Windsor is being accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid were recorded at estimated fair values on the acquisition date. The following table summarizes the consideration paid for New Windsor and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock New Windsor shares outstanding 1,003,703 Shares paid cash consideration 150,555 Cash consideration (per New Windsor share) $ 30.00 Cash portion of purchase price $ 4,519,995 New Windsor shares outstanding 1,003,703 Shares paid stock consideration 853,148 Exchange ratio 1.10 Total ACNB shares issued 938,360 ACNB’s share price for purposes of calculation $ 30.50 Equity portion of purchase price $ 28,619,980 Cost of shares owned by buyer $ 150,000 Total consideration paid $ 33,289,975 Allocation of Purchase Price In thousands Total Purchase Price $ 33,290 Fair Value of Assets Acquired Cash and cash equivalents 10,964 Investment securities 21,624 Loans held for sale 1,463 Loans 263,450 Restricted stock 486 Premises and equipment 8,624 Core deposit intangible asset 2,418 Other assets 10,792 Total assets 319,821 Fair Value of Liabilities Assumed Non-interest bearing deposits 80,006 Interest bearing deposits 213,327 Subordinated debt 4,688 Other liabilities 1,782 Total liabilities 299,803 Net Assets Acquired 20,018 Goodwill Recorded in Acquisition $ 13,272 Pursuant to the accounting requirements, the Corporation assigned a fair value to the assets acquired and liabilities assumed of New Windsor. ASC 820 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Goodwill and core deposit intangibles are allocated to the banking business segment. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Investment securities available-for-sale The estimated fair values of the investment securities available for sale, primarily comprised of U.S. Government agency mortgage-backed securities, U.S. government agencies and municipal bonds, were determined using Level 2 inputs in the fair value hierarchy. The fair values were determined using independent pricing services. The Corporation’s independent pricing service utilized matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific security but rather relying on the security’s relationship to other benchmark quoted prices. Management reviewed the data and assumptions used in pricing the securities. Loans Acquired loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected life time losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The acquired loans were recorded at fair value at the acquisition date without carryover of New Windsor’s previously established allowance for loan losses. The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $272,646,000 . 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. The credit adjustment on purchased credit 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 Corporation’s expectations of future cash flows for each respective loan. In thousands Gross amortized cost basis at July 1, 2017 $ 272,646 Interest rate fair value adjustment on pools of homogeneous loans (731 ) Credit fair value adjustment on pools of homogeneous loans (4,501 ) Credit fair value adjustment on purchased credit impaired loans (3,964 ) Fair value of acquired loans at July 1, 2017 $ 263,450 For loans acquired without evidence of credit quality deterioration, ACNB prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into homogeneous pools by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value discount of $731,000 . Additionally for loans acquired without credit deterioration, a credit fair value adjustment was calculated using a two-part credit fair value analysis: 1) expected lifetime credit migration losses; and 2) estimated fair value adjustment for certain qualitative factors. The expected lifetime losses were calculated using historical losses observed at the Bank, NWSB and peer banks. ACNB also estimated an environmental factor to apply to each loan type. The environmental factor represents a potential discount which may arise due to general credit and economic factors. A credit fair value discount of $4.5 million was determined. Both the interest rate and credit fair value adjustments relate to loans acquired without evidence of credit quality deterioration will be substantially recognized as interest income on a level yield amortization method over the expected life of the loans. The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date: In thousands Contractual principal and interest at acquisition $ 13,439 Nonaccretable difference (5,651 ) Expected cash flows at acquisition 7,788 Accretable yield (1,458 ) Fair value of purchased impaired loans $ 6,330 Premises and Equipment The Corporation acquired seven branches from New Windsor. The fair value of New Windsor’s premises, including land, buildings, and improvements, was determined based upon independent third-party appraisals and other data in the market in which the premises are located. The Corporation prepared an internal analysis to compare the lease contract obligations to comparable market rental rates. The Corporation believed that the leased contract rates were in a reasonable range of market rental rates and concluded that no fair market value adjustment related to leasehold interest was necessary. Core Deposit Intangible The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate commensurate with market participants. To calculate cash flows, deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available through national brokered CD offering rates. The projected cash flows were developed using projected deposit attrition rates. The core deposit intangible will be amortized over ten years using the sum-of-years digits method. Time Deposits The fair value adjustment for time deposits represents a discount from the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar-term time deposits. The time deposit discount of approximately $847,500 is being amortized into income on a level yield amortization method over the contractual life of the deposits. Long-term Borrowings The Corporation assumed a trust preferred subordinated debt in connection with the acquisition. The fair value of the trust preferred subordinated debt was determined based upon an estimated fair value from an independent brokerage firm. The trust preferred capital note was valued at a discount of $312,500 , which is being amortized into income on a level yield amortization method based upon the assumed market rate, and the term of the trust preferred subordinated debt instrument. |
Earnings Per Share and Restrict
Earnings Per Share and Restricted Stock Plan | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Restricted Stock Plan | Earnings Per Share and Restricted Stock Plan The Corporation has a simple capital structure. Basic earnings per share of common stock is computed based on 7,033,437 and 6,383,149 weighted average shares of common stock outstanding for the nine months ended September 30, 2018 and 2017 , respectively, and 7,038,768 and 7,004,346 for the three months ended September 30, 2018 and 2017 , respectively. All outstanding unvested restricted stock awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. The Corporation has a restricted stock plan available to selected employees and directors of the Corporation and the Bank to advance the best interests of the Corporation and its stockholders. The plan provides those persons who have responsibility for its growth with additional incentives by allowing them to acquire ownership in the Corporation and, thereby, encouraging them to contribute to the success of the Corporation and the Bank. Plan expense is recognized over the vesting period of the stock issued under the plan. As of September 30, 2018 , 26,045 shares were issued to employees under this plan, of which 19,485 were fully vested, no shares vested during the quarter, and the remaining 6,560 will vest over the next two years. $42,000 and $0 of compensation expenses related to the grants were recognized during the three months ended September 30, 2018 and 2017 , respectively. $159,000 and $120,000 of compensation expenses related to the grants were recognized during the nine months ended September 30, 2018 and 2017 , respectively. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Postemployment Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit expense related to the non-contributory, defined benefit pension plan for the three and nine month periods ended September 30 were as follows: Three Months Ended September 30, Nine Months Ended September 30 In thousands 2018 2017 2018 2017 Service cost $ 215 $ 210 $ 645 $ 630 Interest cost 274 284 822 852 Expected return on plan assets (693 ) (630 ) (2,077 ) (1,890 ) Amortization of net loss 129 169 386 507 Net Periodic Benefit Expense $ (75 ) $ 33 $ (224 ) $ 99 The Corporation previously disclosed in its consolidated financial statements for the year ended December 31, 2017 , that it had not yet determined the amount the Bank planned on contributing to the defined benefit plan in 2018 . As of September 30, 2018 , this contribution amount had still not been determined. Effective April 1, 2012, no inactive or former participant in the plan is eligible to again participate in the plan, and no employee hired after March 31, 2012, is eligible to participate in the plan. As of the last annual census, ACNB Bank had a combined 353 active, vested, terminated and retired persons in the plan. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Corporation does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit. Standby letters of credit are written conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year . The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Corporation generally holds collateral and/or personal guarantees supporting these commitments. The Corporation had $4,479,000 in standby letters of credit as of September 30, 2018 . Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees. The current amount of the liability, as of September 30, 2018 , for guarantees under standby letters of credit issued is not material. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized (Losses) Gains on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — SEPTEMBER 30, 2018 $ (3,199 ) $ (5,836 ) $ (9,035 ) BALANCE — DECEMBER 31, 2017 $ (957 ) $ (6,135 ) $ (7,092 ) BALANCE — SEPTEMBER 30, 2017 $ 40 $ (5,429 ) $ (5,389 ) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Corporation has two reporting segments, the Bank and RIG. RIG is managed separately from the banking segment, which includes the Bank and related financial services that the Corporation offers through its banking subsidiary. RIG offers a broad range of property and casualty, life, and health insurance to both commercial and individual clients. Segment information for the nine month periods ended September 30, 2018 and 2017 , is as follows: In thousands Banking Insurance Total 2018 Net interest income and other income from external customers $ 50,015 $ 4,205 $ 54,220 Income before income taxes 19,146 1,211 20,357 Total assets 1,635,033 12,766 1,647,799 Capital expenditures 847 57 904 2017 Net interest income and other income from external customers $ 39,536 $ 3,863 $ 43,399 Income before income taxes 9,099 799 9,898 Total assets 1,598,331 9,304 1,607,635 Capital expenditures 1,087 — 1,087 Segment information for the three month periods ended September 30, 2018 and 2017 , is as follows: In thousands Banking Insurance Total 2018 Net interest income and other income from external customers $ 17,235 $ 1,303 $ 18,538 Income before income taxes 7,115 367 7,482 Total assets 1,635,033 12,766 1,647,799 Capital expenditures 233 16 249 2017 Net interest income and other income from external customers $ 16,321 $ 1,171 $ 17,492 Income before income taxes 2,424 201 2,625 Total assets 1,598,331 9,304 1,607,635 Capital expenditures 284 — 284 Customer renewal lists are amortized over their estimated useful lives which range from eight to thirteen years. Core deposit intangible assets are primarily amortized over 10 years using accelerated methods. Goodwill is not amortized, but rather is analyzed annually for impairment. If certain events occur which might indicate goodwill has been impaired, the goodwill is tested for impairment when such events occur. Tax amortization of goodwill and the intangible assets is deductible for tax purposes. Tax amortization of the goodwill associated with the New Windsor acquisition is not deductible for federal income tax purposes. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Debt securities not classified as held to maturity or trading are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, in other comprehensive income (loss). As of January 1, 2018, equity securities with readily determined fair values are recorded at fair value with changes in fair value recognized in net income. Prior to 2018, fair value changes were reported, net of tax, in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Amortized cost and fair value of securities at September 30, 2018 , and December 31, 2017 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE SEPTEMBER 30, 2018 U.S. Government and agencies $ 125,594 $ — $ 3,518 $ 122,076 Mortgage-backed securities, residential 31,676 107 692 31,091 State and municipal 9,819 54 83 9,790 $ 167,089 $ 161 $ 4,293 $ 162,957 DECEMBER 31, 2017 U.S. Government and agencies $ 105,899 $ 2 $ 1,818 $ 104,083 Mortgage-backed securities, residential 34,473 461 101 34,833 State and municipal 13,227 109 42 13,294 Corporate bonds 5,000 57 — 5,057 CRA mutual fund 1,044 — 9 1,035 Stock in other banks 647 102 — 749 $ 160,290 $ 731 $ 1,970 $ 159,051 SECURITIES HELD TO MATURITY SEPTEMBER 30, 2018 U.S. Government and agencies $ 12,000 $ — $ 117 $ 11,883 Mortgage-backed securities, residential 21,517 — 633 20,884 $ 33,517 $ — $ 750 $ 32,767 DECEMBER 31, 2017 U.S. Government and agencies $ 19,000 $ 2 $ 99 $ 18,903 Mortgage-backed securities, residential 25,829 55 238 25,646 $ 44,829 $ 57 $ 337 $ 44,549 The Corporation adopted ASU 2016-01, Financial Instruments—Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018. The required fair value disclosures are as follows: In thousands Fair Value at January 1, 2018 Unrealized Gains Unrealized Losses Fair Value at September 30, 2018 SEPTEMBER 30, 2018 Equity securities with a readily determinable fair value $ 1,793 $ 31 $ 81 $ 1,743 The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2018 , and December 31, 2017 : Less than 12 Months 12 Months or More Total In thousands Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses SECURITIES AVAILABLE FOR SALE SEPTEMBER 30, 2018 U.S. Government and agencies $ 44,842 $ 771 $ 76,734 $ 2,747 $ 121,576 $ 3,518 Mortgage-backed securities, residential 20,998 493 4,517 199 25,515 692 State and municipal 1,397 19 1,911 64 3,308 83 $ 67,237 $ 1,283 $ 83,162 $ 3,010 $ 150,399 $ 4,293 DECEMBER 31, 2017 U.S. Government and agencies $ 42,775 $ 445 $ 58,279 $ 1,373 $ 101,054 $ 1,818 Mortgage-backed securities, residential 7,228 56 2,845 45 10,073 101 State and municipal 1,042 8 1,950 34 2,992 42 CRA Mutual Fund — — 1,035 9 1,035 9 $ 51,045 $ 509 $ 64,109 $ 1,461 $ 115,154 $ 1,970 SECURITIES HELD TO MATURITY SEPTEMBER 30, 2018 U.S. Government and agencies $ 2,955 $ 45 $ 8,928 $ 72 $ 11,883 $ 117 Mortgage-backed securities, residential 11,386 243 9,498 390 20,884 633 $ 14,341 $ 288 $ 18,426 $ 462 $ 32,767 $ 750 DECEMBER 31, 2017 U.S. Government and agencies $ 4,985 $ 15 $ 10,916 $ 84 $ 15,901 $ 99 Mortgage-backed securities, residential 4,946 29 11,070 209 16,016 238 $ 9,931 $ 44 $ 21,986 $ 293 $ 31,917 $ 337 All mortgage-backed security investments are government sponsored enterprise (GSE) pass-through instruments issued by the Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA) or Federal Home Loan Mortgage Corporation (FHLMC), which guarantee the timely payment of principal on these investments. At September 30, 2018 , seventy-four available for sale U.S. Government and agency securities had unrealized losses that individually did not exceed 7% of amortized cost. Fifty of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At September 30, 2018 , thirty-eight available for sale residential mortgage-backed securities had unrealized losses that individually did not exceed 5% of amortized cost. Seven of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At September 30, 2018 , twelve available for sale state and municipal securities had unrealized losses that individually did not exceed 6% of amortized cost. Eight of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At September 30, 2018 , seven held to maturity U.S. Government and agency securities had unrealized losses that individually did not exceed 2% of amortized cost. Five of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. At September 30, 2018 , thirty-four held to maturity residential mortgage-backed securities had unrealized losses that individually did not exceed 5% of amortized cost. Thirteen of these securities have been in a continuous loss position for 12 months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. In analyzing the issuer’s financial condition, management considers industry analysts’ reports, financial performance, and projected target prices of investment analysts within a one-year time frame. Based on the above information, management has determined that none of these investments are other-than-temporarily impaired. The fair values of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2) which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the security’s relationship to other benchmark quoted prices. The Corporation uses independent service providers to provide matrix pricing. Management routinely sells securities from its available for sale portfolio in an effort to manage and allocate the portfolio. At September 30, 2018 , management had not identified any securities with an unrealized loss that it intends to sell or will be required to sell. In estimating other-than-temporary impairment losses on debt securities, management considers (1) whether management intends to sell the security, or (2) if it is more likely than not that management will be required to sell the security before recovery, or (3) if management does not expect to recover the entire amortized cost basis. In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intention and ability to hold the securities until recovery of unrealized losses. Amortized cost and fair value at September 30, 2018 , by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Available for Sale Held to Maturity In thousands Amortized Cost Fair Value Amortized Cost Fair Value 1 year or less $ 10,050 $ 10,013 $ 6,000 $ 5,980 Over 1 year through 5 years 121,477 118,020 6,000 5,903 Over 5 years through 10 years 3,886 3,833 — — Over 10 years — — — — Mortgage-backed securities, residential 31,676 31,091 21,517 20,884 $ 167,089 $ 162,957 $ 33,517 $ 32,767 The Corporation realized $31,000 and $44,000 gross gains on sales of securities available for sale during the three and nine month periods ended September 30, 2018 , respectively. The corporation did not realize any gross gains or losses on sales of securities during the three and nine month period ended September 30, 2017 . At September 30, 2018 , and December 31, 2017 , securities with a carrying value of $181,820,000 and $157,601,000 , respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans | Loans The Corporation grants commercial, residential, and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout southcentral Pennsylvania and northern Maryland. The ability of the Corporation’s debtors to honor their contracts is dependent upon the real estate values and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The loans receivable portfolio is segmented into commercial, residential mortgage, home equity lines of credit, and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, and commercial real estate construction. The accrual of interest on residential mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer loans (consisting of home equity lines of credit and consumer loan classes) are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses (the “allowance”) is established as losses are estimated to occur through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated statement of condition. The amount of the reserve for unfunded lending commitments is not material to the consolidated financial statements. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as either doubtful, substandard, or special mention. For such loans that are also 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 general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity, and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for the previous twelve quarters for each of these categories of loans, adjusted for qualitative risk factors. These qualitative risk factors include: • lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices; • national, regional and local economic and business conditions, as well as the condition of various market segments, including the impact on the value of underlying collateral for collateral dependent loans; • the nature and volume of the portfolio and terms of loans; • the experience, ability and depth of lending management and staff; • the volume and severity of past due, classified and nonaccrual loans, as well as other loan modifications; and, • the existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. It covers risks that are inherently difficult to quantify including, but not limited to, collateral risk, information risk, and historical charge-off risk. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and/or 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 loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A specific allocation within the allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the Corporation’s impaired loans are measured based on the estimated fair value of the loan’s collateral or the discounted cash flows method. It is the policy of the Corporation to order an updated valuation on all real estate secured loans when the loan becomes 90 days past due and there has not been an updated valuation completed within the previous 12 months. In addition, the Corporation orders third-party valuations on all impaired real estate collateralized loans within 30 days of the loan being classified as impaired. Until the valuations are completed, the Corporation utilizes the most recent independent third-party real estate valuation to estimate the need for a specific allocation to be assigned to the loan. These existing valuations are discounted downward to account for such things as the age of the existing collateral valuation, change in the condition of the real estate, change in local market and economic conditions, and other specific factors involving the collateral. Once the updated valuation is completed, the collateral value is updated accordingly. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging reports, 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. The Corporation actively monitors the values of collateral as well as the age of the valuation of impaired loans. Management believes that the Corporation’s market area is not as volatile as other areas throughout the United States, therefore valuations are ordered at least every 18 months , or more frequently if management believes that there is an indication that the fair value has declined. For impaired loans secured by collateral other than real estate, the Corporation considers the net book value of the collateral, as recorded in the most recent financial statements of the borrower, and determines fair value based on estimates made by management. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructure. Loans whose terms are modified are classified as troubled debt restructured loans if the Corporation grants such borrowers concessions that it would not otherwise consider and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate, a below market interest rate given the risk associated with the loan, or an extension of a loan’s stated maturity date. Nonaccrual troubled debt restructurings may be restored to accrual status if principal and interest payments, under the modified terms, are current for a sustained period of time and, based on a well-documented credit evaluation of the borrower’s financial condition, there is reasonable assurance of repayment. Loans classified as troubled debt restructurings are generally designated as impaired. The allowance calculation methodology includes further segregation of loan classes into credit quality rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are generally evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses and may require the Corporation to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio and economic conditions, management believes the current level of the allowance for loan losses is adequate. Commercial and Industrial Lending — The Corporation originates commercial and industrial 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 based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and may be renewed annually. Commercial and industrial 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 Corporation 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 and industrial loans, an analysis is performed to evaluate the borrower’s character and capacity to repay the loan, the adequacy of the borrower’s capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower’s past, present and future cash flows is also an important aspect of the Corporation’s analysis. Commercial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial Real Estate Lending — The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial loan portfolio is secured primarily by commercial retail space, office buildings, and hotels. Generally, commercial real estate 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. In underwriting these loans, the Corporation 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 commercial real estate loans originated by the Corporation are performed by independent appraisers. Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral. Commercial Real Estate Construction Lending — The Corporation engages in commercial real estate construction lending in its primary market area and surrounding areas. The Corporation’s commercial real estate construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The Corporation’s commercial real estate construction loans are generally secured with the subject property. 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 Corporation 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 project using feasibility studies, market data, etc. Appraisals on properties securing commercial real estate construction loans originated by the Corporation are performed by independent appraisers. Commercial real estate construction loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the uncertainties surrounding total construction costs. Residential Mortgage Lending — One-to-four family residential mortgage loan originations, including home equity closed-end loans, are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. The Corporation offers fixed-rate and adjustable-rate mortgage loans with terms up to a maximum of 30 years for both permanent structures and those under construction. The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The majority of the Corporation’s residential mortgage loans originate with a loan-to-value of 80% or less. Loans in excess of 80% are required to have private mortgage insurance. In underwriting one-to-four family residential real estate loans, the Corporation evaluates both the borrower’s financial ability to repay the loan as agreed and the value of the property securing the loan. Properties securing real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The Corporation has not engaged in subprime residential mortgage originations. Residential mortgage loans present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Home Equity Lines of Credit Lending — The Corporation originates home equity lines of credit primarily within the Corporation’s market area or with customers primarily from the market area. Home equity lines of credit are generated by the Corporation’s marketing efforts, its present customers, walk-in customers, and referrals. 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 home equity lines of credit, the Corporation evaluates both the value of the property securing the loan and the borrower’s financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Home equity lines of credit generally present a moderate level of risk due primarily to general economic conditions, as well as a continued weak housing market. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. Consumer Lending — The Corporation offers a variety of secured and unsecured consumer loans, including those for vehicles and mobile homes and loans secured by savings deposits. These loans originate primarily within the Corporation’s market area or with customers primarily from the market area. Consumer loan terms vary according to the type and value of collateral and the creditworthiness of the borrower. In underwriting consumer loans, a thorough analysis of the borrower’s financial ability to repay the loan as agreed is performed. The ability to repay is determined by the borrower’s employment history, current financial condition, and credit background. Consumer loans may entail greater credit risk than residential mortgage loans or home equity lines of credit, particularly in the case of consumer 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 consumer 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, consumer 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. Acquired Loans Acquired loans (impaired and non-impaired) are initially recorded at their acquisition-date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected lifetime losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Corporation has prepared three separate loan fair value adjustments that it believed a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820-10 for the acquired loan portfolio. The three-separate fair valuation methodology employed are: 1) an interest rate loan fair value adjustment, 2) a general credit fair value adjustment, and 3) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310-30 procedures. The carryover of allowance for loan losses related to acquired loans is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. The allowance for loan losses on acquired loans reflects only those losses incurred after acquisition and represents the present value of cash flows expected at acquisition that is no longer expected to be collected. Acquired loans are marked to fair value on the date of acquisition. In conjunction with the quarterly evaluation of the adequacy of the allowance for loan losses, the Corporation performs an analysis on acquired loans to determine whether or not there has been subsequent deterioration in relation to those loans. If deterioration has occurred, the Corporation will include these loans in the calculation of the allowance for loan losses after the initial valuation, and provide accordingly. Upon acquisition, in accordance with US GAAP, the Corporation has individually determined whether each acquired loan is within the scope of ASC 310-30. The Corporation’s senior lending management reviewed the accounting seller’s loan portfolio on a loan by loan basis to determine if any loans met the two-part definition of an impaired loan as defined by ASC 310-30: 1) Credit deterioration on the loan from its inception until the acquisition date, and 2) It is probable that not all of the contractual cash flows will be collected on the loan. Acquired ASC 310-20 loans, which are loans that did not meet the criteria above, were pooled into groups of similar loans based on various factors including borrower type, loan purpose, and collateral type. For these pools, the Corporation used certain loan information, including outstanding principal balance, estimated expected losses, weighted average maturity, weighted average margin, and weighted average interest rate along with estimated prepayment rates, expected lifetime losses, environment factors to estimate the expected cash flow for each loan pool. With regards to ASC 310-30 loans, for external disclosure purposes, the aggregate contractual cash flows less the aggregate expected cash flows resulted in a credit related non-accretable yield amount. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount. The accretable yield reflects the contractual cash flows management expects to collect above the loan’s acquisition date fair value and will be recognized over the life of the loan on a level-yield basis as a component of interest income. Over the life of the acquired ASC 310-30 loan, the Corporation continues to estimate cash flows expected to be collected. Decreases in expected cash flows, other than from prepayments or rate adjustments, are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the allowance for credit losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized on a prospective basis over the loan’s remaining life. Acquired ASC 310-30 loans that met the criteria for non-accrual of interest prior to acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of expected cash flows on such loans. Accordingly, we do not consider acquired contractually delinquent loans to be non-accruing and continue to recognize interest income on these loans using the accretion model. 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 Corporation’s internal risk rating system as of September 30, 2018 , and December 31, 2017 : In thousands Pass Special Mention Substandard Doubtful Total SEPTEMBER 30, 2018 Originated Loans Commercial and industrial $ 167,353 $ 3,094 $ 171 $ — $ 170,618 Commercial real estate 363,982 18,218 8,421 — 390,621 Commercial real estate construction 13,520 1,005 249 — 14,774 Residential mortgage 378,301 6,909 649 — 385,859 Home equity lines of credit 87,180 235 148 — 87,563 Consumer 14,337 — — — 14,337 Total Originated Loans 1,024,673 29,461 9,638 — 1,063,772 Acquired Loans Commercial and industrial 5,336 123 (4 ) — 5,455 Commercial real estate 120,035 8,616 3,562 — 132,213 Commercial real estate construction 3,223 723 — — 3,946 Residential mortgage 42,522 2,293 2,861 — 47,676 Home equity lines of credit 18,635 88 393 — 19,116 Consumer 268 — — — 268 Total Acquired Loans 190,019 11,843 6,812 — 208,674 Total Loans Commercial and industrial 172,689 3,217 167 — 176,073 Commercial real estate 484,017 26,834 11,983 — 522,834 Commercial real estate construction 16,743 1,728 249 — 18,720 Residential mortgage 420,823 9,202 3,510 — 433,535 Home equity lines of credit 105,815 323 541 — 106,679 Consumer 14,605 — — — 14,605 Total Loans $ 1,214,692 $ 41,304 $ 16,450 $ — $ 1,272,446 In thousands Pass Special Mention Substandard Doubtful Total DECEMBER 31, 2017 Originated Loans Commercial and industrial $ 154,177 $ 3,466 $ 1,812 $ — $ 159,455 Commercial real estate 325,002 17,666 9,277 — 351,945 Commercial real estate construction 27,413 767 250 — 28,430 Residential mortgage 363,195 3,251 478 — 366,924 Home equity lines of credit 81,976 360 — — 82,336 Consumer 14,454 — — — 14,454 Total Originated Loans 966,217 25,510 11,817 — 1,003,544 Acquired Loans Commercial and industrial 6,120 244 10 — 6,374 Commercial real estate 124,852 12,734 3,228 — 140,814 Commercial real estate construction 6,742 388 — — 7,130 Residential mortgage 52,959 2,762 3,248 — 58,969 Home equity lines of credit 24,990 88 378 — 25,456 Consumer 1,525 358 — — 1,883 Total Acquired Loans 217,188 16,574 6,864 — 240,626 Total Loans Commercial and industrial 160,297 3,710 1,822 — 165,829 Commercial real estate 449,854 30,400 12,505 — 492,759 Commercial real estate construction 34,155 1,155 250 — 35,560 Residential mortgage 416,154 6,013 3,726 — 425,893 Home equity lines of credit 106,966 448 378 — 107,792 Consumer 15,979 358 — — 16,337 Total Loans $ 1,183,405 $ 42,084 $ 18,681 $ — $ 1,244,170 The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. In thousands Nine Months Ended September 30, 2018 Balance at beginning of period $ 1,234 Acquisitions of impaired loans — Reclassification from non-accretable differences 288 Accretion to loan interest income (490 ) Balance at end of period $ 1,032 Cash flows expected to be collected on acquired loans are estimated quarterly by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. Improved cash flow expectations for loans or pools are recorded first as a reversal of previously recorded impairment, if any, and then as an increase in prospective yield when all previously recorded impairment has been recaptured. Decreases in expected cash flows are recognized as impairment through a charge to the provision for loan losses and credit to the allowance for loan losses. The following table summarizes information relative to impaired loans by loan portfolio class as of September 30, 2018 , and December 31, 2017 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance SEPTEMBER 30, 2018 Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 7,188 7,188 Commercial real estate construction — — — — — Residential mortgage — — — 533 533 Home equity lines of credit 148 148 148 — — $ 148 $ 148 $ 148 $ 7,721 $ 7,721 DECEMBER 31, 2017 Commercial and industrial $ 1,311 $ 1,311 $ 792 $ 188 $ 188 Commercial real estate 832 832 60 7,528 7,528 Commercial real estate construction — — — — — Residential mortgage 377 377 377 101 101 $ 2,520 $ 2,520 $ 1,229 $ 7,817 $ 7,817 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended September 30, 2018 and 2017 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income SEPTEMBER 30, 2018 Commercial and industrial $ — $ — $ — $ — Commercial real estate — — 7,215 36 Commercial real estate construction — — — — Residential mortgage — — 317 — Home equity lines of credit 74 — — — $ 74 $ — $ 7,532 $ 36 SEPTEMBER 30, 2017 Commercial and industrial $ 1,360 $ — $ 734 $ — Commercial real estate 832 — 7,626 80 Commercial real estate construction — — — — Residential mortgage 378 — 101 — $ 2,570 $ — $ 8,461 $ 80 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the nine months ended September 30, 2018 and 2017 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income SEPTEMBER 30, 2018 Commercial and industrial $ 545 $ — $ 92 $ 44 Commercial real estate — — 7,525 118 Commercial real estate construction — — — — Residential mortgage 94 — 209 — Home equity lines of credit 37 — — — $ 676 $ — $ 7,826 $ 162 SEPTEMBER 30, 2017 Commercial and industrial $ 1,152 $ — $ 934 $ — Commercial real estate 416 — 8,155 293 Commercial real estate construction — — 75 25 Residential mortgage 377 — 238 15 $ 1,945 $ — $ 9,402 $ 333 No additional funds are committed to be advanced in connection with impaired loans. The following table presents nonaccrual loans by loan portfolio class as of September 30, 2018 , and December 31, 2017 , the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands September 30, 2018 December 31, 2017 Commercial and industrial $ — $ 1,499 Commercial real estate 3,281 4,378 Commercial real estate construction — — Residential mortgage 533 478 Home equity lines of credit 148 — $ 3,962 $ 6,355 The Corporation classifies certain loans as troubled debt restructurings when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an exte |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated 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 than the amounts reported at each period end. Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the 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. 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 further 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. Fair value measurement and disclosure guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used, at September 30, 2018 , and December 31, 2017 , are as follows: September 30, 2018 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 122,076 $ — $ 122,076 $ — Mortgage-backed securities, residential 31,091 — 31,091 — State and municipal 9,790 — 9,790 — Total securities available for sale Recurring $ 162,957 $ — $ 162,957 $ — Equity securities with readily determinable fair values Recurring $ 1,743 $ 1,743 $ — $ — Collateral dependent impaired loans Nonrecurring $ 3,907 $ — $ — $ 3,907 December 31, 2017 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 104,083 $ — $ 104,083 $ — Mortgage-backed securities, residential 34,833 — 34,833 — State and municipal 13,294 — 13,294 — Corporate bonds 5,057 — 5,057 — CRA mutual fund 1,035 1,035 — — Stock in other banks 749 749 — — Total securities available for sale Recurring $ 159,051 $ 1,784 $ 157,267 $ — Collateral dependent impaired loans Nonrecurring $ 5,426 $ — $ — $ 5,426 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Dollars in thousands Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average September 30, 2018 Impaired loans $ 3,907 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (28)% December 31, 2017 Impaired loans $ 5,426 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (36)% (a) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’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 Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of certain Corporation financial instruments at September 30, 2018 , and December 31, 2017 : Cash and Cash Equivalents (Carried at Cost) The carrying amounts reported in the consolidated statement of condition for cash and short-term instruments approximate those assets’ fair value. U.S. currency is Level 1 and cash equivalents are Level 2. Securities The fair values of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific security but rather by relying on the security’s relationship to other benchmark quoted prices. The Corporation uses an independent service provider to provide matrix pricing, and uses the valuation of another provider to compare for reasonableness. Loans Held for Sale (Carried at Lower of Cost or Fair Value) The fair values of mortgage loans held for sale are determined based on amounts to be received at settlement by establishing the respective buyer requirement or market interest rates. Loans (Carried at Cost) The fair values of non-impaired loans are estimated using discounted cash flow analyses with the exit pricing concept, as well as using market rates at the balance sheet date that reflect the credit and interest rate risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments, and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired Loans (Generally Carried at Fair Value) Loans for which the Corporation has measured impairment are generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less the valuation allowance and/or charge-offs. Foreclosed Assets Held for Resale The fair value of real estate acquired through foreclosure is based on independent third-party appraisals of the properties. These assets are included as Level 3 fair values, based upon appraisals that consider the sales prices of similar properties in the proximate vicinity. It is the policy of the Corporation to have the initial market value of a foreclosed asset held for resale determined by an independent third-party valuation. If the Corporation already has a valid appraisal on file for the property and that appraisal has been completed within the previous 12 months, another appraisal shall not be required when the Corporation acquires ownership of that real estate. Further, the Corporation shall update the market value of each foreclosed asset with an independent third-party valuation at least every 18 months , or more frequently if management believes that there is an indication that the fair value has declined. These valuations may be adjusted downward to account for specialized use of the property, change in the condition of the real estate, change in local market and economic conditions, and other specific factors involving the collateral. Restricted Investment in Bank Stock (Carried at Cost) The carrying amount of required and restricted investment in correspondent bank stock approximates fair value, and considers the limited marketability of such securities. Accrued Interest Receivable and Payable (Carried at Cost) The carrying amounts of accrued interest receivable and accrued interest payable approximate their fair value. Deposits (Carried at Cost) The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (e.g., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings (Carried at Cost) The carrying amounts of short-term borrowings approximate their fair values. Long-Term Borrowings (Carried at Cost) The fair values of long-term borrowings are estimated using discounted cash flow analysis with the exit pricing concept, based on quoted prices for new borrowings with similar credit risk characteristics, terms, and remaining maturity. The prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. The fair value of the trust preferred subordinated debt, included in long-term borrowings, was determined based upon an estimated fair value from an independent brokerage firm. Off-Balance Sheet Credit-Related Instruments The fair values for the Corporation’s off-balance sheet financial instruments (specifically, lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The following presents the carrying amount, exit pricing concept fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of September 30, 2018 : September 30, 2018 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 18,145 $ 18,145 $ 7,981 $ 10,164 $ — Interest-bearing deposits in banks 45,551 45,551 45,551 — — Equity securities with readily determinable fair value 1,743 1,743 1,743 — — Investment securities available for sale 162,957 162,957 — 162,957 — Investment securities held to maturity 33,517 32,767 — 32,767 — Loans held for sale 1,112 1,112 — 1,112 — Loans, less allowance for loan losses 1,259,032 1,218,667 — — 1,218,667 Accrued interest receivable 4,737 4,737 — 4,737 — Restricted investment in bank stocks 4,529 4,529 — 4,529 — Financial liabilities: Demand deposits and savings 984,704 984,704 — 984,704 — Time deposits 362,539 357,603 — 357,603 — Short-term borrowings 38,525 38,525 — 38,525 — Long-term borrowings 79,725 79,383 — 79,383 — Trust preferred subordinated debt 5,000 4,699 — 4,699 — Accrued interest payable 1,406 1,406 — 1,406 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of December 31, 2017 : December 31, 2017 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 19,304 $ 19,304 $ 8,313 $ 10,991 $ — Interest-bearing deposits in banks 15,137 15,137 15,137 — — Investment securities available for sale 159,051 159,051 1,784 157,267 — Investment securities held to maturity 44,829 44,549 — 44,549 — Loans held for sale 1,736 1,736 — 1,736 — Loans, less allowance for loan losses 1,230,194 1,213,932 — — 1,213,932 Accrued interest receivable 3,670 3,670 — 3,670 — Restricted investment in bank stocks 4,773 4,773 — 4,773 — Financial liabilities: Demand deposits and savings 944,399 944,399 — 944,399 — Time deposits 354,093 351,057 — 351,057 — Short-term borrowings 36,908 36,908 — 36,908 — Long-term borrowings 89,600 89,571 — 89,571 — Trust preferred subordinated debt 5,000 4,692 — 4,692 — Accrued interest payable 1,163 1,163 — 1,163 — Off-balance sheet financial instruments — — — — — |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Repurchase Agreements [Abstract] | |
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) | Securities Sold Under Agreements to Repurchase (Repurchase Agreements) The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Corporation’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Corporation does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Corporation could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Corporation in a segregated custodial account under a tri-party agreement. The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of September 30, 2018 , and December 31, 2017 : Gross Amounts Not Offset in the Statements of Condition In thousands Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Financial Instruments Cash Collateral Pledged Net Amount September 30, 2018 Repurchase agreements Commercial customers and government entities (a) $ 38,525 $ — $ 38,525 $ (38,525 ) $ — $ — December 31, 2017 Repurchase agreements Commercial customers and government entities (a) $ 36,908 $ — $ 36,908 $ (36,908 ) $ — $ — (a) As of September 30, 2018 , and December 31, 2017 , the fair value of securities pledged in connection with repurchase agreements was $43,541,000 and $42,397,000 , respectively. The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of September 30, 2018 : Remaining Contractual Maturity of the Agreements In thousands Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 38,525 $ — $ — $ — $ 38,525 Total $ 38,525 $ — $ — $ — $ 38,525 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Corporation had long-term debt outstanding as follows: In thousands September 30, 2018 December 31, 2017 FHLB advances $ 74,216 $ 85,000 Loan payable to local bank 4,509 4,600 Loan payable to local bank 1,000 — Trust preferred subordinated debt 5,000 5,000 $ 84,725 $ 94,600 The FHLB advances are collateralized by the assets defined in the security agreement and FHLB capital stock. FHLB advances have maturity dates from 2018 to 2022 with a weighted average rate of 2.35% . The loan payable to a local bank has a fixed rate of 4.5% for the first five years and a variable rate of interest with Prime Rate thereafter to final maturity in June 2028. The principal balance of this note may be prepaid at any time without penalty. The loan payable to a local bank is a commercial revolving line of credit which has a variable rate equal to the Wall Street Journal Prime Rate, 5.25% at September 30, 2018. Principal shall be payable when and in amounts demanded by the Bank. The line has an initial expiration date of May 1, 2019. The trust preferred subordinated debt is comprised of debt securities issued by New Windsor in June 2005 and assumed by ACNB Corporation through the acquisition. New Windsor issued $5,000,000 of 6.39% fixed rate capital securities to institutional investors in a private pooled transaction. The proceeds were transferred to New Windsor as trust preferred subordinated debt under the same terms and conditions. The Corporation then contributed the full amount to the Bank in the form of Tier 1 capital. The Corporation has, through various contractual arrangements, fully and unconditionally guaranteed all of the trust obligations with respect to the capital securities. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, customer relationship intangibles and renewal lists, are amortized over their estimated useful lives and subject to periodic impairment testing. Core deposit intangibles are primarily amortized over ten years using accelerated methods. Customer renewal lists are amortized over their estimated useful lives which range from eight to thirteen years. This acquisition of New Windsor resulted in goodwill of approximately $13,272,000 and generated $2,418,000 in core deposit intangibles. Combining goodwill resulting from this transaction with existing goodwill from the 2005 RIG purchase of $6,308,000 , total goodwill included in the Corporation’s consolidated statement of condition is $19,580,000 . Goodwill is not deductible for federal income tax purposes. Goodwill, which has an indefinite useful life, is evaluated for impairment annually and is evaluated for impairment more frequently if events and circumstances indicate that the asset might be impaired. The carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows: In thousands Gross carrying amount Accumulated amortization RIG amortized intangible assets $ 7,263 $ 6,514 New Windsor core deposit intangibles 2,418 539 The RIG intangible assets are being amortized over 10 years on a straight line basis. The New Windsor core deposit intangible is being amortized using a sum of the year’s method over a 10 -year period. Goodwill is subject to impairment testing at the reporting unit level, which must be conducted at least annually. The Corporation performs impairment testing during the fourth quarter of each year, or more frequently if impairment indicators exist. We also continue to monitor other intangibles for impairment and to evaluate carrying amounts, as necessary. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-02, ASU 2018-10 and ASU 2018-11 In February 2016, the FASB issued ASU 2016-02, Leases . From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases. In this ASU, FASB corrects inconsistencies in the guidance and clarifies how to apply certain provisions of the leases standard. The amendment targets 16 issues: • residual value guarantees; • rate implicit in the lease; • lessee reassessment of lease classification; • lessor reassessment of lease term and purchase option; • variable lease payments that depend on an index or a rate; • investment tax credits; • lease term and purchase option; • transition guidance for amounts previously recognized in business combinations; • recognition of certain transition adjustments in earnings rather than equity; • transition guidance for leases previously classified as capital leases under Topic 840; • transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840; • transition guidance for sale and leaseback transactions; • impairment of net investment in the lease; • unguaranteed residual asset; • effect of initial direct costs on rate implicit in the lease; and, • failed sale and leaseback transaction. The effective date and transition requirements are consistent with ASU 2016-02. For entities that have early adopted Topic 842 issued in ASU 2016-02, the amendments are effective upon issuance. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The ASU provides an optional transition method for adopting the new leases guidance in Topic 842 that will eliminate comparative period reporting under the new guidance in the year of adoption. This option addresses preparer feedback about the related costs of presenting comparative periods under Topic 842. Under the optional transition method, only the most recent period presented will reflect the adoption of Topic 842 with a cumulative-effect adjustment to the opening balance of retained earnings, and the comparative prior periods will be reported under the previous guidance in Topic 840. Also, the ASU offers lessors a practical expedient that mirrors the practical expedient already provided to lessees in ASU 2016-02, Leases (Topic 842) . The new practical expedient will allow lessors to elect, by class of underlying asset, to not separate nonlease components from the associated lease component when specified conditions are met. Examples of nonlease components include equipment maintenance services, common area maintenance services in real estate, or other goods or services provided to the lessee apart from the right to use the underlying asset. The practical expedient must be applied consistently for all lease contracts. The effective date and transition requirements for lessors electing the practical expedient for separating components of a contract are the same as the requirements for Topic 842 issued in ASU 2016-02. For entities that have early adopted Topic 842, the ASU provides specific transition guidance for lessors electing the practical expedient. While the Corporation is currently evaluating the timing and impact of adopting ASU 2016-02, ASU 2018-10 and ASU 2018-11, the ultimate impact of adopting ASU 2016-02, ASU 2018-10 and ASU 2018-11 will depend on the Corporation’s lease portfolio as of the adoption date and interest rates at that time. The Corporation expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of committed lease payments as of the date of adoption. The effect on operations and capital adequacy is not expected to be material. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets 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 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. Certain incremental disclosures are required. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within the fiscal year. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. Management has developed a committee to address CECL and the committee is currently evaluating options to comply with the ASU in a timely manner. ASU 2017-08 In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . ASU 2017-08 shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization), rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans, not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Corporation has evaluated the provision of ASU 2017-08 to determine the potential impact of the new standard and has determined that it is not expected to have a significant impact on its consolidated financial condition or results of operations, as the Corporation holds one security that this ASU would impact. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. However, the ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with a zero or negative carrying amount. Therefore, the same one-step impairment assessment will apply to all reporting units. However, for a reporting unit with a zero or negative carrying amount, the ASU adds a requirement to disclose the amount of goodwill allocated to it and the reportable segment in which it is included. For public business entities that are SEC filers, the amendments are effective with their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Corporation has evaluated the provision of ASU 2017-04 to determine the potential impact of the new standard and has determined that it is not expected to have an impact on its consolidated financial condition or results of operations based on the current circumstances. ASU 2018-09 In July 2018, the FASB issued ASU 2018-09, Codification Improvements. The ASU contains various improvements to various topics in the codification, including clarification that an entity must disclose the required and actual amounts of regulatory capital for each measure of regulatory capital for which the entity must comply. For year-end public business entities, the improvements are effective upon issuance, which was July 2018. The Corporation has evaluated the improvements of ASU 2018-09 and determined that the ASU will not impact its consolidated financial condition or results of operations since the Corporation already discloses capital requirements with the Management’s Discussion and Analysis section of the Form 10-Q. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU removes, modifies, and adds to existing fair value measurement disclosure requirements. The following are removed: • transfers between Level 1 and Level 2 of the fair value hierarchy; • the policy for determining when transfers between any of the three levels have occurred; and, • the valuation processes used for Level 3 measurements. The following are modified: • a clarification that the Level 3 measurement uncertainty disclosure should communicate information about the uncertainty at the balance sheet date. The following are new: • for public entities, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 instruments held at the balance sheet date; and, • for public entities, the range and weighted average of significant unobservable inputs used for Level 3 measurements. For certain unobservable inputs, an option to disclose other quantitative information in place of the weighted average is available to the extent that it would be a more reasonable and rational method to reflect the distribution of unobservable inputs. The ASU is effective for all entities in fiscal years beginning after December 15, 2019, including interim periods, which is first effective for calendar year entities in the March 31, 2020, interim financial statements. Early adoption is permitted. In addition, an entity may early adopt any of the removed or modified disclosures immediately and delay adoption of the new disclosures until the effective date. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. ASU 2018-14 In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The ASU removes the following disclosures: • the amounts in accumulated other comprehensive income that the entity expects to recognize in net periodic benefit cost during the next fiscal year; • the amount and timing of plan assets expected to be returned to the employer; and, • certain related party disclosures. The ASU clarifies the following disclosure requirements: • the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets must be disclosed; and, • the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets must be disclosed. The ASU adds the following disclosure requirements: • the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and, • an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for public business entities in fiscal years ending after December 15, 2020. Early adoption is permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-02, ASU 2018-10 and ASU 2018-11 In February 2016, the FASB issued ASU 2016-02, Leases . From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases. In this ASU, FASB corrects inconsistencies in the guidance and clarifies how to apply certain provisions of the leases standard. The amendment targets 16 issues: • residual value guarantees; • rate implicit in the lease; • lessee reassessment of lease classification; • lessor reassessment of lease term and purchase option; • variable lease payments that depend on an index or a rate; • investment tax credits; • lease term and purchase option; • transition guidance for amounts previously recognized in business combinations; • recognition of certain transition adjustments in earnings rather than equity; • transition guidance for leases previously classified as capital leases under Topic 840; • transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840; • transition guidance for sale and leaseback transactions; • impairment of net investment in the lease; • unguaranteed residual asset; • effect of initial direct costs on rate implicit in the lease; and, • failed sale and leaseback transaction. The effective date and transition requirements are consistent with ASU 2016-02. For entities that have early adopted Topic 842 issued in ASU 2016-02, the amendments are effective upon issuance. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The ASU provides an optional transition method for adopting the new leases guidance in Topic 842 that will eliminate comparative period reporting under the new guidance in the year of adoption. This option addresses preparer feedback about the related costs of presenting comparative periods under Topic 842. Under the optional transition method, only the most recent period presented will reflect the adoption of Topic 842 with a cumulative-effect adjustment to the opening balance of retained earnings, and the comparative prior periods will be reported under the previous guidance in Topic 840. Also, the ASU offers lessors a practical expedient that mirrors the practical expedient already provided to lessees in ASU 2016-02, Leases (Topic 842) . The new practical expedient will allow lessors to elect, by class of underlying asset, to not separate nonlease components from the associated lease component when specified conditions are met. Examples of nonlease components include equipment maintenance services, common area maintenance services in real estate, or other goods or services provided to the lessee apart from the right to use the underlying asset. The practical expedient must be applied consistently for all lease contracts. The effective date and transition requirements for lessors electing the practical expedient for separating components of a contract are the same as the requirements for Topic 842 issued in ASU 2016-02. For entities that have early adopted Topic 842, the ASU provides specific transition guidance for lessors electing the practical expedient. While the Corporation is currently evaluating the timing and impact of adopting ASU 2016-02, ASU 2018-10 and ASU 2018-11, the ultimate impact of adopting ASU 2016-02, ASU 2018-10 and ASU 2018-11 will depend on the Corporation’s lease portfolio as of the adoption date and interest rates at that time. The Corporation expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of committed lease payments as of the date of adoption. The effect on operations and capital adequacy is not expected to be material. ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires credit losses on most financial assets 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 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. Certain incremental disclosures are required. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within the fiscal year. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. Management has developed a committee to address CECL and the committee is currently evaluating options to comply with the ASU in a timely manner. ASU 2017-08 In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities . ASU 2017-08 shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization), rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans, not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Corporation has evaluated the provision of ASU 2017-08 to determine the potential impact of the new standard and has determined that it is not expected to have a significant impact on its consolidated financial condition or results of operations, as the Corporation holds one security that this ASU would impact. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 of the goodwill impairment test. As such, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. However, the ASU eliminates the requirement to perform a qualitative assessment for any reporting unit with a zero or negative carrying amount. Therefore, the same one-step impairment assessment will apply to all reporting units. However, for a reporting unit with a zero or negative carrying amount, the ASU adds a requirement to disclose the amount of goodwill allocated to it and the reportable segment in which it is included. For public business entities that are SEC filers, the amendments are effective with their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Corporation has evaluated the provision of ASU 2017-04 to determine the potential impact of the new standard and has determined that it is not expected to have an impact on its consolidated financial condition or results of operations based on the current circumstances. ASU 2018-09 In July 2018, the FASB issued ASU 2018-09, Codification Improvements. The ASU contains various improvements to various topics in the codification, including clarification that an entity must disclose the required and actual amounts of regulatory capital for each measure of regulatory capital for which the entity must comply. For year-end public business entities, the improvements are effective upon issuance, which was July 2018. The Corporation has evaluated the improvements of ASU 2018-09 and determined that the ASU will not impact its consolidated financial condition or results of operations since the Corporation already discloses capital requirements with the Management’s Discussion and Analysis section of the Form 10-Q. ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU removes, modifies, and adds to existing fair value measurement disclosure requirements. The following are removed: • transfers between Level 1 and Level 2 of the fair value hierarchy; • the policy for determining when transfers between any of the three levels have occurred; and, • the valuation processes used for Level 3 measurements. The following are modified: • a clarification that the Level 3 measurement uncertainty disclosure should communicate information about the uncertainty at the balance sheet date. The following are new: • for public entities, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 instruments held at the balance sheet date; and, • for public entities, the range and weighted average of significant unobservable inputs used for Level 3 measurements. For certain unobservable inputs, an option to disclose other quantitative information in place of the weighted average is available to the extent that it would be a more reasonable and rational method to reflect the distribution of unobservable inputs. The ASU is effective for all entities in fiscal years beginning after December 15, 2019, including interim periods, which is first effective for calendar year entities in the March 31, 2020, interim financial statements. Early adoption is permitted. In addition, an entity may early adopt any of the removed or modified disclosures immediately and delay adoption of the new disclosures until the effective date. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. ASU 2018-14 In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The ASU removes the following disclosures: • the amounts in accumulated other comprehensive income that the entity expects to recognize in net periodic benefit cost during the next fiscal year; • the amount and timing of plan assets expected to be returned to the employer; and, • certain related party disclosures. The ASU clarifies the following disclosure requirements: • the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets must be disclosed; and, • the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets must be disclosed. The ASU adds the following disclosure requirements: • the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and, • an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for public business entities in fiscal years ending after December 15, 2020. Early adoption is permitted. The Corporation is currently evaluating the impact this ASU will have on its consolidated financial condition or results of operations. |
Acquisition of New Windsor Ba_2
Acquisition of New Windsor Bancorp, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Purchase price consideration in common stock | The following table summarizes the consideration paid for New Windsor and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock New Windsor shares outstanding 1,003,703 Shares paid cash consideration 150,555 Cash consideration (per New Windsor share) $ 30.00 Cash portion of purchase price $ 4,519,995 New Windsor shares outstanding 1,003,703 Shares paid stock consideration 853,148 Exchange ratio 1.10 Total ACNB shares issued 938,360 ACNB’s share price for purposes of calculation $ 30.50 Equity portion of purchase price $ 28,619,980 Cost of shares owned by buyer $ 150,000 Total consideration paid $ 33,289,975 Allocation of Purchase Price In thousands Total Purchase Price $ 33,290 Fair Value of Assets Acquired Cash and cash equivalents 10,964 Investment securities 21,624 Loans held for sale 1,463 Loans 263,450 Restricted stock 486 Premises and equipment 8,624 Core deposit intangible asset 2,418 Other assets 10,792 Total assets 319,821 Fair Value of Liabilities Assumed Non-interest bearing deposits 80,006 Interest bearing deposits 213,327 Subordinated debt 4,688 Other liabilities 1,782 Total liabilities 299,803 Net Assets Acquired 20,018 Goodwill Recorded in Acquisition $ 13,272 |
Fair value adjustments | 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. The credit adjustment on purchased credit 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 Corporation’s expectations of future cash flows for each respective loan. In thousands Gross amortized cost basis at July 1, 2017 $ 272,646 Interest rate fair value adjustment on pools of homogeneous loans (731 ) Credit fair value adjustment on pools of homogeneous loans (4,501 ) Credit fair value adjustment on purchased credit impaired loans (3,964 ) Fair value of acquired loans at July 1, 2017 $ 263,450 |
Acquired purchased credit impaired loans receivable | The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date: In thousands Contractual principal and interest at acquisition $ 13,439 Nonaccretable difference (5,651 ) Expected cash flows at acquisition 7,788 Accretable yield (1,458 ) Fair value of purchased impaired loans $ 6,330 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Postemployment Benefits [Abstract] | |
Schedule of net periodic benefit expense (income) | The components of net periodic benefit expense related to the non-contributory, defined benefit pension plan for the three and nine month periods ended September 30 were as follows: Three Months Ended September 30, Nine Months Ended September 30 In thousands 2018 2017 2018 2017 Service cost $ 215 $ 210 $ 645 $ 630 Interest cost 274 284 822 852 Expected return on plan assets (693 ) (630 ) (2,077 ) (1,890 ) Amortization of net loss 129 169 386 507 Net Periodic Benefit Expense $ (75 ) $ 33 $ (224 ) $ 99 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive loss | The components of accumulated other comprehensive loss, net of taxes, are as follows: In thousands Unrealized (Losses) Gains on Securities Pension Liability Accumulated Other Comprehensive Loss BALANCE — SEPTEMBER 30, 2018 $ (3,199 ) $ (5,836 ) $ (9,035 ) BALANCE — DECEMBER 31, 2017 $ (957 ) $ (6,135 ) $ (7,092 ) BALANCE — SEPTEMBER 30, 2017 $ 40 $ (5,429 ) $ (5,389 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information for the nine month periods ended September 30, 2018 and 2017 , is as follows: In thousands Banking Insurance Total 2018 Net interest income and other income from external customers $ 50,015 $ 4,205 $ 54,220 Income before income taxes 19,146 1,211 20,357 Total assets 1,635,033 12,766 1,647,799 Capital expenditures 847 57 904 2017 Net interest income and other income from external customers $ 39,536 $ 3,863 $ 43,399 Income before income taxes 9,099 799 9,898 Total assets 1,598,331 9,304 1,607,635 Capital expenditures 1,087 — 1,087 Segment information for the three month periods ended September 30, 2018 and 2017 , is as follows: In thousands Banking Insurance Total 2018 Net interest income and other income from external customers $ 17,235 $ 1,303 $ 18,538 Income before income taxes 7,115 367 7,482 Total assets 1,635,033 12,766 1,647,799 Capital expenditures 233 16 249 2017 Net interest income and other income from external customers $ 16,321 $ 1,171 $ 17,492 Income before income taxes 2,424 201 2,625 Total assets 1,598,331 9,304 1,607,635 Capital expenditures 284 — 284 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | Amortized cost and fair value of securities at September 30, 2018 , and December 31, 2017 , were as follows: In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value SECURITIES AVAILABLE FOR SALE SEPTEMBER 30, 2018 U.S. Government and agencies $ 125,594 $ — $ 3,518 $ 122,076 Mortgage-backed securities, residential 31,676 107 692 31,091 State and municipal 9,819 54 83 9,790 $ 167,089 $ 161 $ 4,293 $ 162,957 DECEMBER 31, 2017 U.S. Government and agencies $ 105,899 $ 2 $ 1,818 $ 104,083 Mortgage-backed securities, residential 34,473 461 101 34,833 State and municipal 13,227 109 42 13,294 Corporate bonds 5,000 57 — 5,057 CRA mutual fund 1,044 — 9 1,035 Stock in other banks 647 102 — 749 $ 160,290 $ 731 $ 1,970 $ 159,051 SECURITIES HELD TO MATURITY SEPTEMBER 30, 2018 U.S. Government and agencies $ 12,000 $ — $ 117 $ 11,883 Mortgage-backed securities, residential 21,517 — 633 20,884 $ 33,517 $ — $ 750 $ 32,767 DECEMBER 31, 2017 U.S. Government and agencies $ 19,000 $ 2 $ 99 $ 18,903 Mortgage-backed securities, residential 25,829 55 238 25,646 $ 44,829 $ 57 $ 337 $ 44,549 The required fair value disclosures are as follows: In thousands Fair Value at January 1, 2018 Unrealized Gains Unrealized Losses Fair Value at September 30, 2018 SEPTEMBER 30, 2018 Equity securities with a readily determinable fair value $ 1,793 $ 31 $ 81 $ 1,743 |
Schedule of unrealized losses and fair value | The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2018 , and December 31, 2017 : Less than 12 Months 12 Months or More Total In thousands Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses SECURITIES AVAILABLE FOR SALE SEPTEMBER 30, 2018 U.S. Government and agencies $ 44,842 $ 771 $ 76,734 $ 2,747 $ 121,576 $ 3,518 Mortgage-backed securities, residential 20,998 493 4,517 199 25,515 692 State and municipal 1,397 19 1,911 64 3,308 83 $ 67,237 $ 1,283 $ 83,162 $ 3,010 $ 150,399 $ 4,293 DECEMBER 31, 2017 U.S. Government and agencies $ 42,775 $ 445 $ 58,279 $ 1,373 $ 101,054 $ 1,818 Mortgage-backed securities, residential 7,228 56 2,845 45 10,073 101 State and municipal 1,042 8 1,950 34 2,992 42 CRA Mutual Fund — — 1,035 9 1,035 9 $ 51,045 $ 509 $ 64,109 $ 1,461 $ 115,154 $ 1,970 SECURITIES HELD TO MATURITY SEPTEMBER 30, 2018 U.S. Government and agencies $ 2,955 $ 45 $ 8,928 $ 72 $ 11,883 $ 117 Mortgage-backed securities, residential 11,386 243 9,498 390 20,884 633 $ 14,341 $ 288 $ 18,426 $ 462 $ 32,767 $ 750 DECEMBER 31, 2017 U.S. Government and agencies $ 4,985 $ 15 $ 10,916 $ 84 $ 15,901 $ 99 Mortgage-backed securities, residential 4,946 29 11,070 209 16,016 238 $ 9,931 $ 44 $ 21,986 $ 293 $ 31,917 $ 337 |
Schedule of amortized cost and fair value by contractual maturity | Amortized cost and fair value at September 30, 2018 , by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Available for Sale Held to Maturity In thousands Amortized Cost Fair Value Amortized Cost Fair Value 1 year or less $ 10,050 $ 10,013 $ 6,000 $ 5,980 Over 1 year through 5 years 121,477 118,020 6,000 5,903 Over 5 years through 10 years 3,886 3,833 — — Over 10 years — — — — Mortgage-backed securities, residential 31,676 31,091 21,517 20,884 $ 167,089 $ 162,957 $ 33,517 $ 32,767 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of classes of 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 Corporation’s internal risk rating system as of September 30, 2018 , and December 31, 2017 : In thousands Pass Special Mention Substandard Doubtful Total SEPTEMBER 30, 2018 Originated Loans Commercial and industrial $ 167,353 $ 3,094 $ 171 $ — $ 170,618 Commercial real estate 363,982 18,218 8,421 — 390,621 Commercial real estate construction 13,520 1,005 249 — 14,774 Residential mortgage 378,301 6,909 649 — 385,859 Home equity lines of credit 87,180 235 148 — 87,563 Consumer 14,337 — — — 14,337 Total Originated Loans 1,024,673 29,461 9,638 — 1,063,772 Acquired Loans Commercial and industrial 5,336 123 (4 ) — 5,455 Commercial real estate 120,035 8,616 3,562 — 132,213 Commercial real estate construction 3,223 723 — — 3,946 Residential mortgage 42,522 2,293 2,861 — 47,676 Home equity lines of credit 18,635 88 393 — 19,116 Consumer 268 — — — 268 Total Acquired Loans 190,019 11,843 6,812 — 208,674 Total Loans Commercial and industrial 172,689 3,217 167 — 176,073 Commercial real estate 484,017 26,834 11,983 — 522,834 Commercial real estate construction 16,743 1,728 249 — 18,720 Residential mortgage 420,823 9,202 3,510 — 433,535 Home equity lines of credit 105,815 323 541 — 106,679 Consumer 14,605 — — — 14,605 Total Loans $ 1,214,692 $ 41,304 $ 16,450 $ — $ 1,272,446 In thousands Pass Special Mention Substandard Doubtful Total DECEMBER 31, 2017 Originated Loans Commercial and industrial $ 154,177 $ 3,466 $ 1,812 $ — $ 159,455 Commercial real estate 325,002 17,666 9,277 — 351,945 Commercial real estate construction 27,413 767 250 — 28,430 Residential mortgage 363,195 3,251 478 — 366,924 Home equity lines of credit 81,976 360 — — 82,336 Consumer 14,454 — — — 14,454 Total Originated Loans 966,217 25,510 11,817 — 1,003,544 Acquired Loans Commercial and industrial 6,120 244 10 — 6,374 Commercial real estate 124,852 12,734 3,228 — 140,814 Commercial real estate construction 6,742 388 — — 7,130 Residential mortgage 52,959 2,762 3,248 — 58,969 Home equity lines of credit 24,990 88 378 — 25,456 Consumer 1,525 358 — — 1,883 Total Acquired Loans 217,188 16,574 6,864 — 240,626 Total Loans Commercial and industrial 160,297 3,710 1,822 — 165,829 Commercial real estate 449,854 30,400 12,505 — 492,759 Commercial real estate construction 34,155 1,155 250 — 35,560 Residential mortgage 416,154 6,013 3,726 — 425,893 Home equity lines of credit 106,966 448 378 — 107,792 Consumer 15,979 358 — — 16,337 Total Loans $ 1,183,405 $ 42,084 $ 18,681 $ — $ 1,244,170 |
Schedule of changes In accretable yields of acquired loans | The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table. In thousands Nine Months Ended September 30, 2018 Balance at beginning of period $ 1,234 Acquisitions of impaired loans — Reclassification from non-accretable differences 288 Accretion to loan interest income (490 ) Balance at end of period $ 1,032 |
Summary of information relative to impaired loans by loan portfolio class | The following table summarizes information relative to impaired loans by loan portfolio class as of September 30, 2018 , and December 31, 2017 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance SEPTEMBER 30, 2018 Commercial and industrial $ — $ — $ — $ — $ — Commercial real estate — — — 7,188 7,188 Commercial real estate construction — — — — — Residential mortgage — — — 533 533 Home equity lines of credit 148 148 148 — — $ 148 $ 148 $ 148 $ 7,721 $ 7,721 DECEMBER 31, 2017 Commercial and industrial $ 1,311 $ 1,311 $ 792 $ 188 $ 188 Commercial real estate 832 832 60 7,528 7,528 Commercial real estate construction — — — — — Residential mortgage 377 377 377 101 101 $ 2,520 $ 2,520 $ 1,229 $ 7,817 $ 7,817 |
Summary of information in regards to the average of impaired loans and related income by loan portfolio class | The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended September 30, 2018 and 2017 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income SEPTEMBER 30, 2018 Commercial and industrial $ — $ — $ — $ — Commercial real estate — — 7,215 36 Commercial real estate construction — — — — Residential mortgage — — 317 — Home equity lines of credit 74 — — — $ 74 $ — $ 7,532 $ 36 SEPTEMBER 30, 2017 Commercial and industrial $ 1,360 $ — $ 734 $ — Commercial real estate 832 — 7,626 80 Commercial real estate construction — — — — Residential mortgage 378 — 101 — $ 2,570 $ — $ 8,461 $ 80 The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the nine months ended September 30, 2018 and 2017 : Impaired Loans with Allowance Impaired Loans with No Allowance In thousands Average Recorded Investment Interest Income Average Recorded Investment Interest Income SEPTEMBER 30, 2018 Commercial and industrial $ 545 $ — $ 92 $ 44 Commercial real estate — — 7,525 118 Commercial real estate construction — — — — Residential mortgage 94 — 209 — Home equity lines of credit 37 — — — $ 676 $ — $ 7,826 $ 162 SEPTEMBER 30, 2017 Commercial and industrial $ 1,152 $ — $ 934 $ — Commercial real estate 416 — 8,155 293 Commercial real estate construction — — 75 25 Residential mortgage 377 — 238 15 $ 1,945 $ — $ 9,402 $ 333 |
Schedule of nonaccrual loans by loan portfolio class | The following table presents nonaccrual loans by loan portfolio class as of September 30, 2018 , and December 31, 2017 , the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments: In thousands September 30, 2018 December 31, 2017 Commercial and industrial $ — $ 1,499 Commercial real estate 3,281 4,378 Commercial real estate construction — — Residential mortgage 533 478 Home equity lines of credit 148 — $ 3,962 $ 6,355 |
Schedule of classes of 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 September 30, 2018 , and December 31, 2017 : In thousands 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Receivable Loans Receivable >90 Days and Accruing SEPTEMBER 30, 2018 Originated Loans Commercial and industrial $ 69 $ — $ 4 $ 73 $ 170,545 $ 170,618 $ 4 Commercial real estate 186 569 2,575 3,330 387,291 390,621 — Commercial real estate construction — — — — 14,774 14,774 — Residential mortgage 298 1,254 1,535 3,087 382,772 385,859 1,001 Home equity lines of credit 364 — 323 687 86,876 87,563 175 Consumer 51 24 33 108 14,229 14,337 33 Total originated loans 968 1,847 4,470 7,285 1,056,487 1,063,772 1,213 Acquired Loans Commercial and industrial — — — — 5,455 5,455 — Commercial real estate 218 — 857 1,075 131,138 132,213 857 Commercial real estate construction — — 77 77 3,869 3,946 77 Residential mortgage 16 3 125 144 47,532 47,676 125 Home equity lines of credit 641 63 70 774 18,342 19,116 70 Consumer — — — — 268 268 — Total acquired loans 875 66 1,129 2,070 206,604 208,674 1,129 Total Loans Commercial and industrial 69 — 4 73 176,000 176,073 4 Commercial real estate 404 569 3,432 4,405 518,429 522,834 857 Commercial real estate construction — — 77 77 18,643 18,720 77 Residential mortgage 314 1,257 1,660 3,231 430,304 433,535 1,126 Home equity lines of credit 1,005 63 393 1,461 105,218 106,679 245 Consumer 51 24 33 108 14,497 14,605 33 Total Loans $ 1,843 $ 1,913 $ 5,599 $ 9,355 $ 1,263,091 $ 1,272,446 $ 2,342 In thousands 30-59 Days Past Due 60-89 Days Past Due >90 Days Past Due Total Past Due Current Total Loans Receivable Loans Receivable >90 Days and Accruing DECEMBER 31, 2017 Originated Loans Commercial and industrial $ 55 $ 76 $ 1,503 $ 1,634 $ 157,821 $ 159,455 $ 4 Commercial real estate 436 317 1,400 2,153 349,792 351,945 88 Commercial real estate construction 252 — — 252 28,178 28,430 — Residential mortgage 3,006 646 1,500 5,152 361,772 366,924 1,022 Home equity lines of credit 254 29 183 466 81,870 82,336 183 Consumer 72 26 3 101 14,353 14,454 3 Total originated loans 4,075 1,094 4,589 9,758 993,786 1,003,544 1,300 Acquired Loans Commercial and industrial 83 — — 83 6,291 6,374 — Commercial real estate 916 — — 916 139,898 140,814 — Commercial real estate construction — — — — 7,130 7,130 — Residential mortgage 930 304 137 1,371 57,598 58,969 137 Home equity lines of credit 83 — 70 153 25,303 25,456 70 Consumer — — — — 1,883 1,883 — Total acquired loans 2,012 304 207 2,523 238,103 240,626 207 Total Loans Commercial and industrial 138 76 1,503 1,717 164,112 165,829 4 Commercial real estate 1,352 317 1,400 3,069 489,690 492,759 88 Commercial real estate construction 252 — — 252 35,308 35,560 — Residential mortgage 3,936 950 1,637 6,523 419,370 425,893 1,159 Home equity lines of credit 337 29 253 619 107,173 107,792 253 Consumer 72 26 3 101 16,236 16,337 3 Total Loans $ 6,087 $ 1,398 $ 4,796 $ 12,281 $ 1,231,889 $ 1,244,170 $ 1,507 |
Summary of allowance for loan losses and recorded investment in loans receivable | The following tables summarize the allowance for loan losses and recorded investment in loans receivable: In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total AS OF AND FOR THE PERIOD ENDED SEPTEMBER 30, 2018 Allowance for Loan Losses Beginning balance - July 1, 2018 $ 2,433 $ 5,721 $ 146 $ 2,840 $ 564 $ 673 $ 766 $ 13,143 Charge-offs (33 ) — — — — (29 ) — (62 ) Recoveries 22 — 103 8 — — — 133 Provisions 185 123 (50 ) (95 ) 131 (9 ) (85 ) 200 Ending balance - September 30, 2018 $ 2,607 $ 5,844 $ 199 $ 2,753 $ 695 $ 635 $ 681 $ 13,414 Beginning balance - January 1, 2018 $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Charge-offs (911 ) (33 ) — (489 ) — (66 ) — (1,499 ) Recoveries 33 — 103 30 — 1 — 167 Provisions 266 649 (30 ) (14 ) 83 (49 ) (135 ) 770 Ending balance - September 30, 2018 $ 2,607 $ 5,844 $ 199 $ 2,753 $ 695 $ 635 $ 681 $ 13,414 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ 148 $ — $ — $ 148 Ending balance: collectively evaluated for impairment $ 2,607 $ 5,844 $ 199 $ 2,753 $ 547 $ 635 $ 681 $ 13,266 Loans Receivable Ending balance $ 176,073 $ 522,834 $ 18,720 $ 433,535 $ 106,679 $ 14,605 $ — $ 1,272,446 Ending balance: individually evaluated for impairment $ — $ 7,188 $ — $ 533 $ 148 $ — $ — $ 7,869 Ending balance: collectively evaluated for impairment $ 176,073 $ 515,646 $ 18,720 $ 433,002 $ 106,531 $ 14,605 $ — $ 1,264,577 AS OF AND FOR THE PERIOD ENDED SEPTEMBER 30, 2017 Allowance for Loan Losses Beginning Balance - July 1, 2017 $ 3,246 $ 5,210 $ 135 $ 3,368 $ 607 $ 815 $ 767 $ 14,148 Charge-offs (60 ) — — (15 ) (9 ) (18 ) — (102 ) Recoveries 8 — 40 10 — 1 — 59 Provisions 73 195 (31 ) (101 ) 29 12 (177 ) — Ending balance - September 30, 2017 $ 3,267 $ 5,405 $ 144 $ 3,262 $ 627 $ 810 $ 590 $ 14,105 Beginning Balance - January 1, 2017 $ 3,055 $ 4,968 $ 147 $ 3,478 $ 648 $ 923 $ 975 $ 14,194 Charge-offs (129 ) — — (32 ) (9 ) (102 ) — (272 ) Recoveries 17 61 40 52 — 13 — 183 Provisions 324 376 (43 ) (236 ) (12 ) (24 ) (385 ) — Ending balance - September 30, 2017 $ 3,267 $ 5,405 $ 144 $ 3,262 $ 627 $ 810 $ 590 $ 14,105 Ending balance: individually evaluated for impairment $ 698 $ 117 $ — $ 377 $ — $ — $ — $ 1,192 Ending balance: collectively evaluated for impairment $ 2,569 $ 5,288 $ 144 $ 2,885 $ 627 $ 810 $ 590 $ 12,913 Loans Receivable Ending balance $ 169,037 $ 483,673 $ 39,779 $ 421,732 $ 105,113 $ 17,036 $ — $ 1,236,370 Ending balance: individually evaluated for impairment $ 1,743 $ 8,413 $ — $ 478 $ — $ — $ — $ 10,634 Ending balance: collectively evaluated for impairment $ 167,294 $ 475,260 $ 39,779 $ 421,254 $ 105,113 $ 17,036 $ — $ 1,225,736 In thousands Commercial and Industrial Commercial Real Estate Commercial Real Estate Construction Residential Mortgage Home Equity Lines of Credit Consumer Unallocated Total AS OF DECEMBER 31, 2017 Allowance for Loan Losses Ending balance $ 3,219 $ 5,228 $ 126 $ 3,226 $ 612 $ 749 $ 816 $ 13,976 Ending balance: individually evaluated for impairment $ 792 $ 60 $ — $ 377 $ — $ — $ — $ 1,229 Ending balance: collectively evaluated for impairment $ 2,427 $ 5,168 $ 126 $ 2,849 $ 612 $ 749 $ 816 $ 12,747 Loans Receivable Ending balance $ 165,829 $ 492,759 $ 35,560 $ 425,893 $ 107,792 $ 16,337 $ — $ 1,244,170 Ending balance: individually evaluated for impairment $ 1,499 $ 8,360 $ — $ 478 $ — $ — $ — $ 10,337 Ending balance: collectively evaluated for impairment $ 164,330 $ 484,399 $ 35,560 $ 425,415 $ 107,792 $ 16,337 $ — $ 1,233,833 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements by level within the fair value hierarchy and the basis of measurement used | For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used, at September 30, 2018 , and December 31, 2017 , are as follows: September 30, 2018 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 122,076 $ — $ 122,076 $ — Mortgage-backed securities, residential 31,091 — 31,091 — State and municipal 9,790 — 9,790 — Total securities available for sale Recurring $ 162,957 $ — $ 162,957 $ — Equity securities with readily determinable fair values Recurring $ 1,743 $ 1,743 $ — $ — Collateral dependent impaired loans Nonrecurring $ 3,907 $ — $ — $ 3,907 December 31, 2017 In thousands Basis Total Level 1 Level 2 Level 3 U.S. Government and agencies $ 104,083 $ — $ 104,083 $ — Mortgage-backed securities, residential 34,833 — 34,833 — State and municipal 13,294 — 13,294 — Corporate bonds 5,057 — 5,057 — CRA mutual fund 1,035 1,035 — — Stock in other banks 749 749 — — Total securities available for sale Recurring $ 159,051 $ 1,784 $ 157,267 $ — Collateral dependent impaired loans Nonrecurring $ 5,426 $ — $ — $ 5,426 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Dollars in thousands Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average September 30, 2018 Impaired loans $ 3,907 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (28)% December 31, 2017 Impaired loans $ 5,426 Appraisal of collateral (a) Appraisal adjustments (b) (10) - (50)% (36)% (a) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal. |
Schedule of carrying amount, exit pricing concept fair value and placement in the fair value hierarchy | The following presents the carrying amount, exit pricing concept fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of September 30, 2018 : September 30, 2018 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 18,145 $ 18,145 $ 7,981 $ 10,164 $ — Interest-bearing deposits in banks 45,551 45,551 45,551 — — Equity securities with readily determinable fair value 1,743 1,743 1,743 — — Investment securities available for sale 162,957 162,957 — 162,957 — Investment securities held to maturity 33,517 32,767 — 32,767 — Loans held for sale 1,112 1,112 — 1,112 — Loans, less allowance for loan losses 1,259,032 1,218,667 — — 1,218,667 Accrued interest receivable 4,737 4,737 — 4,737 — Restricted investment in bank stocks 4,529 4,529 — 4,529 — Financial liabilities: Demand deposits and savings 984,704 984,704 — 984,704 — Time deposits 362,539 357,603 — 357,603 — Short-term borrowings 38,525 38,525 — 38,525 — Long-term borrowings 79,725 79,383 — 79,383 — Trust preferred subordinated debt 5,000 4,699 — 4,699 — Accrued interest payable 1,406 1,406 — 1,406 — Off-balance sheet financial instruments — — — — — The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of December 31, 2017 : December 31, 2017 In thousands Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 19,304 $ 19,304 $ 8,313 $ 10,991 $ — Interest-bearing deposits in banks 15,137 15,137 15,137 — — Investment securities available for sale 159,051 159,051 1,784 157,267 — Investment securities held to maturity 44,829 44,549 — 44,549 — Loans held for sale 1,736 1,736 — 1,736 — Loans, less allowance for loan losses 1,230,194 1,213,932 — — 1,213,932 Accrued interest receivable 3,670 3,670 — 3,670 — Restricted investment in bank stocks 4,773 4,773 — 4,773 — Financial liabilities: Demand deposits and savings 944,399 944,399 — 944,399 — Time deposits 354,093 351,057 — 351,057 — Short-term borrowings 36,908 36,908 — 36,908 — Long-term borrowings 89,600 89,571 — 89,571 — Trust preferred subordinated debt 5,000 4,692 — 4,692 — Accrued interest payable 1,163 1,163 — 1,163 — Off-balance sheet financial instruments — — — — — |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Repurchase Agreements [Abstract] | |
Schedule of short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement | The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreement as of September 30, 2018 , and December 31, 2017 : Gross Amounts Not Offset in the Statements of Condition In thousands Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Condition Net Amounts of Liabilities Presented in the Statements of Condition Financial Instruments Cash Collateral Pledged Net Amount September 30, 2018 Repurchase agreements Commercial customers and government entities (a) $ 38,525 $ — $ 38,525 $ (38,525 ) $ — $ — December 31, 2017 Repurchase agreements Commercial customers and government entities (a) $ 36,908 $ — $ 36,908 $ (36,908 ) $ — $ — (a) As of September 30, 2018 , and December 31, 2017 , the fair value of securities pledged in connection with repurchase agreements was $43,541,000 and $42,397,000 , respectively. |
Schedule of remaining contractual maturity of the master netting arrangement or repurchase agreements | The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of September 30, 2018 : Remaining Contractual Maturity of the Agreements In thousands Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 38,525 $ — $ — $ — $ 38,525 Total $ 38,525 $ — $ — $ — $ 38,525 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | The Corporation had long-term debt outstanding as follows: In thousands September 30, 2018 December 31, 2017 FHLB advances $ 74,216 $ 85,000 Loan payable to local bank 4,509 4,600 Loan payable to local bank 1,000 — Trust preferred subordinated debt 5,000 5,000 $ 84,725 $ 94,600 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows: In thousands Gross carrying amount Accumulated amortization RIG amortized intangible assets $ 7,263 $ 6,514 New Windsor core deposit intangibles 2,418 539 |
Basis of Presentation and Nat_2
Basis of Presentation and Nature of Operations (Details) | 9 Months Ended |
Sep. 30, 2018bank | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of community banking office locations, ACNB | 22 |
Number of community banking office locations, NWSB | 7 |
Acquisition of New Windsor Ba_3
Acquisition of New Windsor Bancorp, Inc. - Narrative (Details) | Jul. 01, 2017USD ($)bank$ / sharesshares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)bank | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017$ / shares |
Business Acquisition [Line Items] | |||||||
Number of community banking office locations, NWSB | bank | 7 | ||||||
Goodwill | $ 19,580,000 | $ 19,580,000 | $ 19,580,000 | $ 19,580,000 | $ 19,580,000 | ||
Merger related expenses | 0 | $ 4,305,000 | $ 0 | $ 4,675,000 | |||
Core deposit intangibles | |||||||
Business Acquisition [Line Items] | |||||||
Amortization period | 10 years | ||||||
New Windsor | |||||||
Business Acquisition [Line Items] | |||||||
Number of community banking office locations, NWSB | bank | 7 | ||||||
Fair Value of total assets acquired | $ 319,821,000 | ||||||
Fair value of total loans acquired | 263,450,000 | ||||||
Fair value of total deposits acquired | 293,300,000 | ||||||
Goodwill | 13,272,000 | $ 13,272,000 | $ 13,272,000 | ||||
Cash portion of purchase price | $ 4,519,995 | ||||||
Percent of post transaction outstanding shares of the Corporation's common stock issued in merger | 13.00% | ||||||
Total consideration paid | $ 33,289,975 | ||||||
ACNB’s share price for purposes of calculation (in dollars per share) | $ / shares | $ 30.50 | $ 30.50 | |||||
Loans receivable, gross amortized cost basis | $ 272,646,000 | ||||||
Interest rate fair value discount | 731,000 | ||||||
Credit fair value discount | 4,501,000 | ||||||
New Windsor | Long-term Borrowings | |||||||
Business Acquisition [Line Items] | |||||||
Liabilities, fair value discount | $ 312,500 | ||||||
New Windsor | Core deposit intangibles | |||||||
Business Acquisition [Line Items] | |||||||
Amortization period | 10 years | 10 years | |||||
New Windsor | Time Deposits | |||||||
Business Acquisition [Line Items] | |||||||
Assets, fair value premium (discount) | $ 847,500 | ||||||
New Windsor | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Shares of common stock issued in merger (in shares) | shares | 938,360 |
Acquisition of New Windsor Ba_4
Acquisition of New Windsor Bancorp, Inc. - Purchase Price Consideration in Common Stock (Details) - USD ($) | Jul. 01, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Shares outstanding | 7,042,224 | 7,023,658 | 7,019,645 | ||
Fair Value of Liabilities Assumed | |||||
Goodwill Recorded in Acquisition | $ 19,580,000 | $ 19,580,000 | $ 19,580,000 | ||
NW Bancorp | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Cash consideration (per New Windsor share) (in dollars per share) | $ 30 | ||||
Cash portion of purchase price | $ 4,519,995 | ||||
ACNB’s share price for purposes of calculation (in dollars per share) | $ 30.50 | $ 30.50 | |||
Equity portion of purchase price | $ 28,619,980 | ||||
Cost of shares owned by buyer | 150,000 | ||||
Total consideration paid | 33,289,975 | ||||
Fair Value of Assets Acquired | |||||
Cash and cash equivalents | 10,964,000 | ||||
Investment securities | 21,624,000 | ||||
Loans held for sale | 1,463,000 | ||||
Loans | 263,450,000 | ||||
Restricted stock | 486,000 | ||||
Premises and equipment | 8,624,000 | ||||
Core deposit intangible asset | 2,418,000 | ||||
Other assets | 10,792,000 | ||||
Total assets | 319,821,000 | ||||
Fair Value of Liabilities Assumed | |||||
Non-interest bearing deposits | 80,006,000 | ||||
Interest bearing deposits | 213,327,000 | ||||
Subordinated debt | 4,688,000 | ||||
Other liabilities | 1,782,000 | ||||
Total liabilities | 299,803,000 | ||||
Net Assets Acquired | 20,018,000 | ||||
Goodwill Recorded in Acquisition | $ 13,272,000 | $ 13,272,000 | |||
NW Bancorp | Common Stock | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Exchange ratio | 1.10 | ||||
Total ACNB shares issued | 938,360 | ||||
NW Bancorp | NW Bancorp | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Shares outstanding | 1,003,703 | ||||
Shares paid cash consideration | 150,555 | ||||
Shares paid stock consideration | 853,148 |
Acquisition of New Windsor Ba_5
Acquisition of New Windsor Bancorp, Inc. - Fair Value Adjustments (Details) - New Windsor $ in Thousands | Jul. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at July 1, 2017 | $ 272,646 |
Interest rate fair value adjustment on pools of homogeneous loans | (731) |
Credit fair value adjustment on pools of homogeneous loans | (4,501) |
Fair value of acquired loans at July 1, 2017 | 263,450 |
Purchased credit impaired loans | |
Business Acquisition [Line Items] | |
Credit fair value adjustment on pools of homogeneous loans | $ (3,964) |
Acquisition of New Windsor Ba_6
Acquisition of New Windsor Bancorp, Inc. - Acquired Purchased Credit Impaired Loans Receivable (Details) - New Windsor $ in Thousands | Jul. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Contractual principal and interest at acquisition | $ 13,439 |
Nonaccretable difference | (5,651) |
Expected cash flows at acquisition | 7,788 |
Accretable yield | (1,458) |
Fair value of purchased impaired loans | $ 6,330 |
Earnings Per Share and Restri_2
Earnings Per Share and Restricted Stock Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares of common stock outstanding (in shares) | 7,038,768 | 7,004,346 | 7,033,437 | 6,383,149 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued under plan (in shares) | 26,045 | 26,045 | ||
Shares fully vested (in shares) | 19,485 | 19,485 | ||
Shares expected to vest over next two years (in shares) | 6,560 | 6,560 | ||
Vesting period (in years) | 2 years | |||
Compensation expense | $ 42,000 | $ 0 | $ 159,000 | $ 120,000 |
Retirement Benefits (Details)
Retirement Benefits (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)person | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)person | Sep. 30, 2017USD ($) | |
Postemployment Benefits [Abstract] | ||||
Service cost | $ 215 | $ 210 | $ 645 | $ 630 |
Interest cost | 274 | 284 | 822 | 852 |
Expected return on plan assets | (693) | (630) | (2,077) | (1,890) |
Amortization of net loss | 129 | 169 | 386 | 507 |
Net Periodic Benefit Expense | $ (75) | $ 33 | $ (224) | $ 99 |
Number of active, vested, terminated and retired persons in the Plan | person | 353 | 353 |
Guarantees (Details)
Guarantees (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Guarantor Obligations [Line Items] | |
Line of credit facility expiration period | 1 year |
Standby Letters of Credit | |
Guarantor Obligations [Line Items] | |
Guarantees amount | $ 4,479 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | $ 164,512 | $ 153,966 | $ 153,256 | $ 120,061 |
Unrealized (Losses) Gains on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | (3,199) | (957) | 40 | |
Pension Liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | (5,836) | (6,135) | (5,429) | |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Components of accumulated other comprehensive loss | $ (9,035) | $ (7,092) | $ (5,389) | $ (6,024) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reporting segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net interest income and other income from external customers | $ 18,538 | $ 17,492 | $ 54,220 | $ 43,399 | |
Income before income taxes | 7,482 | 2,625 | 20,357 | 9,898 | |
Total assets | 1,647,799 | 1,607,635 | 1,647,799 | 1,607,635 | $ 1,595,432 |
Capital expenditures | 249 | 284 | $ 904 | 1,087 | |
Core deposit intangibles | |||||
Segment Reporting Information [Line Items] | |||||
Amortization period | 10 years | ||||
Minimum | Customer lists | |||||
Segment Reporting Information [Line Items] | |||||
Amortization period | 8 years | ||||
Maximum | Customer lists | |||||
Segment Reporting Information [Line Items] | |||||
Amortization period | 13 years | ||||
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income and other income from external customers | 17,235 | 16,321 | $ 50,015 | 39,536 | |
Income before income taxes | 7,115 | 2,424 | 19,146 | 9,099 | |
Total assets | 1,635,033 | 1,598,331 | 1,635,033 | 1,598,331 | |
Capital expenditures | 233 | 284 | 847 | 1,087 | |
Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income and other income from external customers | 1,303 | 1,171 | 4,205 | 3,863 | |
Income before income taxes | 367 | 201 | 1,211 | 799 | |
Total assets | 12,766 | 9,304 | 12,766 | 9,304 | |
Capital expenditures | $ 16 | $ 0 | $ 57 | $ 0 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | $ 167,089 | $ 160,290 | |
Gross Unrealized Gains | 161 | 731 | |
Gross Unrealized Losses | 4,293 | 1,970 | |
Fair Value | 162,957 | 159,051 | |
SECURITIES HELD TO MATURITY | |||
Amortized Cost | 33,517 | 44,829 | $ 47,369 |
Gross Unrealized Gains | 0 | 57 | |
Gross Unrealized Losses | 750 | 337 | |
Fair Value | 32,767 | 44,549 | $ 47,373 |
U.S. Government and agencies | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 125,594 | 105,899 | |
Gross Unrealized Gains | 0 | 2 | |
Gross Unrealized Losses | 3,518 | 1,818 | |
Fair Value | 122,076 | 104,083 | |
SECURITIES HELD TO MATURITY | |||
Amortized Cost | 12,000 | 19,000 | |
Gross Unrealized Gains | 0 | 2 | |
Gross Unrealized Losses | 117 | 99 | |
Fair Value | 11,883 | 18,903 | |
Mortgage-backed securities, residential | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 31,676 | 34,473 | |
Gross Unrealized Gains | 107 | 461 | |
Gross Unrealized Losses | 692 | 101 | |
Fair Value | 31,091 | 34,833 | |
SECURITIES HELD TO MATURITY | |||
Amortized Cost | 21,517 | 25,829 | |
Gross Unrealized Gains | 0 | 55 | |
Gross Unrealized Losses | 633 | 238 | |
Fair Value | 20,884 | 25,646 | |
State and municipal | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 9,819 | 13,227 | |
Gross Unrealized Gains | 54 | 109 | |
Gross Unrealized Losses | 83 | 42 | |
Fair Value | $ 9,790 | 13,294 | |
Corporate bonds | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 5,000 | ||
Gross Unrealized Gains | 57 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 5,057 | ||
CRA mutual fund | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 1,044 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 9 | ||
Fair Value | 1,035 | ||
Stock in other banks | |||
SECURITIES AVAILABLE FOR SALE | |||
Amortized Cost | 647 | ||
Gross Unrealized Gains | 102 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 749 |
Securities - Schedule of Requir
Securities - Schedule of Required Fair Value Disclosures for Equity Securities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |
Fair Value at January 1, 2018 | $ 0 |
Fair Value at September 30, 2018 | 1,743 |
Accounting Standards Update 2016-01 | |
Equity Securities, FV-NI, Realized Gain (Loss) [Roll Forward] | |
Fair Value at January 1, 2018 | 1,793 |
Unrealized Gains | 31 |
Unrealized Losses | 81 |
Fair Value at September 30, 2018 | $ 1,743 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | $ 67,237 | $ 51,045 |
Unrealized Losses, Less than 12 Months | 1,283 | 509 |
Fair Value, 12 Months or More | 83,162 | 64,109 |
Unrealized Losses, 12 Months or More | 3,010 | 1,461 |
Total Fair Value | 150,399 | 115,154 |
Total Unrealized Losses | 4,293 | 1,970 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 14,341 | 9,931 |
Unrealized Losses, Less than 12 Months | 288 | 44 |
Fair Value, 12 Months or More | 18,426 | 21,986 |
Unrealized Losses, 12 Months or More | 462 | 293 |
Total Fair Value | 32,767 | 31,917 |
Total Unrealized Losses | 750 | 337 |
U.S. Government and agencies | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 44,842 | 42,775 |
Unrealized Losses, Less than 12 Months | 771 | 445 |
Fair Value, 12 Months or More | 76,734 | 58,279 |
Unrealized Losses, 12 Months or More | 2,747 | 1,373 |
Total Fair Value | 121,576 | 101,054 |
Total Unrealized Losses | 3,518 | 1,818 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 2,955 | 4,985 |
Unrealized Losses, Less than 12 Months | 45 | 15 |
Fair Value, 12 Months or More | 8,928 | 10,916 |
Unrealized Losses, 12 Months or More | 72 | 84 |
Total Fair Value | 11,883 | 15,901 |
Total Unrealized Losses | 117 | 99 |
Mortgage-backed securities, residential | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 20,998 | 7,228 |
Unrealized Losses, Less than 12 Months | 493 | 56 |
Fair Value, 12 Months or More | 4,517 | 2,845 |
Unrealized Losses, 12 Months or More | 199 | 45 |
Total Fair Value | 25,515 | 10,073 |
Total Unrealized Losses | 692 | 101 |
SECURITIES HELD TO MATURITY | ||
Fair Value, Less than 12 Months | 11,386 | 4,946 |
Unrealized Losses, Less than 12 Months | 243 | 29 |
Fair Value, 12 Months or More | 9,498 | 11,070 |
Unrealized Losses, 12 Months or More | 390 | 209 |
Total Fair Value | 20,884 | 16,016 |
Total Unrealized Losses | 633 | 238 |
State and municipal | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 1,397 | 1,042 |
Unrealized Losses, Less than 12 Months | 19 | 8 |
Fair Value, 12 Months or More | 1,911 | 1,950 |
Unrealized Losses, 12 Months or More | 64 | 34 |
Total Fair Value | 3,308 | 2,992 |
Total Unrealized Losses | $ 83 | 42 |
CRA Mutual Fund | ||
SECURITIES AVAILABLE FOR SALE | ||
Fair Value, Less than 12 Months | 0 | |
Unrealized Losses, Less than 12 Months | 0 | |
Fair Value, 12 Months or More | 1,035 | |
Unrealized Losses, 12 Months or More | 9 | |
Total Fair Value | 1,035 | |
Total Unrealized Losses | $ 9 |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)Security | Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Gross gains on sales of securities available for sale | $ | $ 31,000 | $ 44,000 | |
Carrying value of securities pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes | $ | $ 181,820,000 | $ 181,820,000 | $ 157,601,000 |
U.S. Government and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale securities in unrealized loss positions | 74 | 74 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 7.00% | 7.00% | |
Available for sale securities in unrealized loss positions for 12 months or more | 50 | 50 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held to maturity securities in unrealized loss positions | 7 | 7 | |
Held to maturity securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 2.00% | 2.00% | |
Held to maturity securities in unrealized loss positions for 12 months or more | 5 | 5 | |
Mortgage-backed securities, residential | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale securities in unrealized loss positions | 38 | 38 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 5.00% | 5.00% | |
Available for sale securities in unrealized loss positions for 12 months or more | 7 | 7 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held to maturity securities in unrealized loss positions | 34 | 34 | |
Held to maturity securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 5.00% | 5.00% | |
Held to maturity securities in unrealized loss positions for 12 months or more | 13 | 13 | |
State and municipal | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale securities in unrealized loss positions | 12 | 12 | |
Available for sale securities in unrealized loss positions, percentage of amortized cost (individually did not exceed) | 6.00% | 6.00% | |
Available for sale securities in unrealized loss positions for 12 months or more | 8 | 8 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Available for Sale Amortized Cost | |||
1 year or less | $ 10,050 | ||
Over 1 year through 5 years | 121,477 | ||
Over 5 years through 10 years | 3,886 | ||
Over 10 years | 0 | ||
Total amortized cost | 167,089 | $ 160,290 | |
Available for Sale Fair Value | |||
1 year or less | 10,013 | ||
Over 1 year through 5 years | 118,020 | ||
Over 5 years through 10 years | 3,833 | ||
Over 10 years | 0 | ||
Total securities available for sale | 162,957 | 159,051 | |
Held-to-Maturity Amortized Cost | |||
1 year or less | 6,000 | ||
Over 1 year through 5 years | 6,000 | ||
Over 5 years through 10 years | 0 | ||
Over 10 years | 0 | ||
Total amortized costs | 33,517 | 44,829 | $ 47,369 |
Held-to-Maturity Fair Value | |||
1 year or less | 5,980 | ||
Over 1 year through 5 years | 5,903 | ||
Over 5 years through 10 years | 0 | ||
Over 10 years | 0 | ||
Securities held to maturity, fair value | 32,767 | 44,549 | $ 47,373 |
Mortgage-backed securities, residential | |||
Available for Sale Amortized Cost | |||
Without single maturity date | 31,676 | ||
Total amortized cost | 31,676 | 34,473 | |
Available for Sale Fair Value | |||
Without single maturity date | 31,091 | ||
Total securities available for sale | 31,091 | 34,833 | |
Held-to-Maturity Amortized Cost | |||
Without single maturity date | 21,517 | ||
Total amortized costs | 21,517 | 25,829 | |
Held-to-Maturity Fair Value | |||
Without single maturity date | 20,884 | ||
Securities held to maturity, fair value | $ 20,884 | $ 25,646 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | Jul. 01, 2017USD ($) | Sep. 30, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period for order of valuations (at least) | 18 months | ||
Number of troubled debt restructured loan paid off | Contract | 1 | 1 | |
Number of loans which has periodic late payments | Contract | 1 | ||
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | $ 800 | $ 848 | |
Residential mortgage and commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due to discontinue accrual interest on financing receivable | 90 days | ||
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period past due for write-off of financing receivable (no later than) | 120 days | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of financing receivable, updated valuation on real estate secured loans, 90 days past due | 90 days | ||
Number of previous months with no updated valuation completed for corporation to update valuation | 12 months | ||
Impaired financing receivable, valuation on real estate collateralized loans | 30 days | ||
Entity Loan Modification Program | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from paid off troubled debt restructured loans | $ 832 | 283 | |
New Windsor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest rate fair value discount | $ 731 | ||
Credit fair value discount | $ 4,501 | ||
Maximum | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Maximum | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 30 years | ||
Loan-to-value ratio (no greater than) | 80.00% | ||
Loan-to-value ratio that requires private mortgage insurance (in excess of) | 80.00% | ||
Maximum | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable term | 20 years | ||
Loan-to-value ratio (no greater than) | 90.00% | ||
Nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | $ 2,500 | 3,400 | |
Accrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Modifications, Recorded Investment | $ 3,900 | $ 4,000 |
Loans - Schedule of Classes of
Loans - Schedule of Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 1,272,446 | $ 1,244,170 | $ 1,236,370 |
Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,214,692 | 1,183,405 | |
Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 41,304 | 42,084 | |
Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 16,450 | 18,681 | |
Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 176,073 | 165,829 | 169,037 |
Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 172,689 | 160,297 | |
Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,217 | 3,710 | |
Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 167 | 1,822 | |
Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 522,834 | 492,759 | 483,673 |
Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 484,017 | 449,854 | |
Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 26,834 | 30,400 | |
Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 11,983 | 12,505 | |
Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 18,720 | 35,560 | 39,779 |
Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 16,743 | 34,155 | |
Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,728 | 1,155 | |
Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 249 | 250 | |
Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 433,535 | 425,893 | 421,732 |
Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 420,823 | 416,154 | |
Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 9,202 | 6,013 | |
Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,510 | 3,726 | |
Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 106,679 | 107,792 | 105,113 |
Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 105,815 | 106,966 | |
Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 323 | 448 | |
Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 541 | 378 | |
Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,605 | 16,337 | $ 17,036 |
Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,605 | 15,979 | |
Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 358 | |
Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,063,772 | 1,003,544 | |
Originated Loans | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,024,673 | 966,217 | |
Originated Loans | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 29,461 | 25,510 | |
Originated Loans | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 9,638 | 11,817 | |
Originated Loans | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 170,618 | 159,455 | |
Originated Loans | Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 167,353 | 154,177 | |
Originated Loans | Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,094 | 3,466 | |
Originated Loans | Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 171 | 1,812 | |
Originated Loans | Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 390,621 | 351,945 | |
Originated Loans | Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 363,982 | 325,002 | |
Originated Loans | Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 18,218 | 17,666 | |
Originated Loans | Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 8,421 | 9,277 | |
Originated Loans | Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,774 | 28,430 | |
Originated Loans | Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 13,520 | 27,413 | |
Originated Loans | Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1,005 | 767 | |
Originated Loans | Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 249 | 250 | |
Originated Loans | Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 385,859 | 366,924 | |
Originated Loans | Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 378,301 | 363,195 | |
Originated Loans | Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 6,909 | 3,251 | |
Originated Loans | Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 649 | 478 | |
Originated Loans | Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 87,563 | 82,336 | |
Originated Loans | Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 87,180 | 81,976 | |
Originated Loans | Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 235 | 360 | |
Originated Loans | Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 148 | 0 | |
Originated Loans | Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,337 | 14,454 | |
Originated Loans | Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,337 | 14,454 | |
Originated Loans | Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Originated Loans | Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 208,674 | 240,626 | |
Acquired Loans | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 190,019 | 217,188 | |
Acquired Loans | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 11,843 | 16,574 | |
Acquired Loans | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 6,812 | 6,864 | |
Acquired Loans | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 5,455 | 6,374 | |
Acquired Loans | Commercial and industrial | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 5,336 | 6,120 | |
Acquired Loans | Commercial and industrial | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 123 | 244 | |
Acquired Loans | Commercial and industrial | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | (4) | 10 | |
Acquired Loans | Commercial and industrial | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 132,213 | 140,814 | |
Acquired Loans | Commercial real estate | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 120,035 | 124,852 | |
Acquired Loans | Commercial real estate | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 8,616 | 12,734 | |
Acquired Loans | Commercial real estate | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,562 | 3,228 | |
Acquired Loans | Commercial real estate | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,946 | 7,130 | |
Acquired Loans | Commercial real estate construction | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 3,223 | 6,742 | |
Acquired Loans | Commercial real estate construction | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 723 | 388 | |
Acquired Loans | Commercial real estate construction | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Commercial real estate construction | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 47,676 | 58,969 | |
Acquired Loans | Residential mortgage | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 42,522 | 52,959 | |
Acquired Loans | Residential mortgage | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,293 | 2,762 | |
Acquired Loans | Residential mortgage | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 2,861 | 3,248 | |
Acquired Loans | Residential mortgage | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 19,116 | 25,456 | |
Acquired Loans | Home equity lines of credit | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 18,635 | 24,990 | |
Acquired Loans | Home equity lines of credit | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 88 | 88 | |
Acquired Loans | Home equity lines of credit | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 393 | 378 | |
Acquired Loans | Home equity lines of credit | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 268 | 1,883 | |
Acquired Loans | Consumer | Pass | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 268 | 1,525 | |
Acquired Loans | Consumer | Special Mention | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 358 | |
Acquired Loans | Consumer | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 0 | 0 | |
Acquired Loans | Consumer | Doubtful | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 0 | $ 0 |
Loans - Schedule of Change in A
Loans - Schedule of Change in Accretable Yields of Acquired Loans (Details) - Acquired Loans Accounted For Under ASC 310-30 $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 1,234 |
Acquisitions of impaired loans | 0 |
Reclassification from non-accretable differences | 288 |
Accretion to loan interest income | (490) |
Balance at end of period | $ 1,032 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | $ 148 | $ 2,520 |
Impaired Loans with Allowance: Unpaid Principal Balance | 148 | 2,520 |
Impaired Loans with Allowance: Related Allowance | 148 | 1,229 |
Impaired Loans with No Allowance: Recorded Investment | 7,721 | 7,817 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 7,721 | 7,817 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 1,311 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 1,311 |
Impaired Loans with Allowance: Related Allowance | 0 | 792 |
Impaired Loans with No Allowance: Recorded Investment | 0 | 188 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 0 | 188 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 832 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 832 |
Impaired Loans with Allowance: Related Allowance | 0 | 60 |
Impaired Loans with No Allowance: Recorded Investment | 7,188 | 7,528 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 7,188 | 7,528 |
Commercial real estate construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 0 |
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 0 | 377 |
Impaired Loans with Allowance: Unpaid Principal Balance | 0 | 377 |
Impaired Loans with Allowance: Related Allowance | 0 | 377 |
Impaired Loans with No Allowance: Recorded Investment | 533 | 101 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 533 | $ 101 |
Home equity lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 148 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 148 | |
Impaired Loans with Allowance: Related Allowance | 148 | |
Impaired Loans with No Allowance: Recorded Investment | 0 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 0 |
Loans - Summary of Average of I
Loans - Summary of Average of Impaired Loans and Related Interest Income by Loan Portfolio Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | $ 74 | $ 2,570 | $ 676 | $ 1,945 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 7,532 | 8,461 | 7,826 | 9,402 |
Impaired Loans with No Allowance: Interest Income | 36 | 80 | 162 | 333 |
Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 1,360 | 545 | 1,152 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 734 | 92 | 934 |
Impaired Loans with No Allowance: Interest Income | 0 | 0 | 44 | 0 |
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 832 | 0 | 416 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 7,215 | 7,626 | 7,525 | 8,155 |
Impaired Loans with No Allowance: Interest Income | 36 | 80 | 118 | 293 |
Commercial real estate construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 0 | 0 | 75 |
Impaired Loans with No Allowance: Interest Income | 0 | 0 | 0 | 25 |
Residential mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 0 | 378 | 94 | 377 |
Impaired Loans with Allowance: Interest Income | 0 | 0 | 0 | 0 |
Impaired Loans with No Allowance: Average Recorded Investment | 317 | 101 | 209 | 238 |
Impaired Loans with No Allowance: Interest Income | 0 | $ 0 | 0 | $ 15 |
Home equity lines of credit | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with Allowance: Average Recorded Investment | 74 | 37 | ||
Impaired Loans with Allowance: Interest Income | 0 | 0 | ||
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 0 | ||
Impaired Loans with No Allowance: Interest Income | $ 0 | $ 0 |
Loans - Schedule of Nonaccrual
Loans - Schedule of Nonaccrual Loans by Classes of the Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Purchase credit impaired loans, net of unamortized fair value adjustments | $ 6,900 | |
Total nonaccrual loans | 3,962 | $ 6,355 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 1,499 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 3,281 | 4,378 |
Commercial real estate construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | 533 | 478 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual loans | $ 148 | $ 0 |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio Summarized by the Past Due Status (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 9,355 | $ 12,281 | |
Current | 1,263,091 | 1,231,889 | |
Total Loans Receivable | 1,272,446 | 1,244,170 | $ 1,236,370 |
Loans Receivable greater than 90 Days and Accruing | 2,342 | 1,507 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,843 | 6,087 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,913 | 1,398 | |
Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,599 | 4,796 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 73 | 1,717 | |
Current | 176,000 | 164,112 | |
Total Loans Receivable | 176,073 | 165,829 | 169,037 |
Loans Receivable greater than 90 Days and Accruing | 4 | 4 | |
Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 69 | 138 | |
Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 76 | |
Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 1,503 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,405 | 3,069 | |
Current | 518,429 | 489,690 | |
Total Loans Receivable | 522,834 | 492,759 | 483,673 |
Loans Receivable greater than 90 Days and Accruing | 857 | 88 | |
Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 404 | 1,352 | |
Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 569 | 317 | |
Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,432 | 1,400 | |
Commercial real estate construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 77 | 252 | |
Current | 18,643 | 35,308 | |
Total Loans Receivable | 18,720 | 35,560 | 39,779 |
Loans Receivable greater than 90 Days and Accruing | 77 | 0 | |
Commercial real estate construction | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 252 | |
Commercial real estate construction | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 77 | 0 | |
Residential mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,231 | 6,523 | |
Current | 430,304 | 419,370 | |
Total Loans Receivable | 433,535 | 425,893 | 421,732 |
Loans Receivable greater than 90 Days and Accruing | 1,126 | 1,159 | |
Residential mortgage | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 314 | 3,936 | |
Residential mortgage | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,257 | 950 | |
Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,660 | 1,637 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,461 | 619 | |
Current | 105,218 | 107,173 | |
Total Loans Receivable | 106,679 | 107,792 | 105,113 |
Loans Receivable greater than 90 Days and Accruing | 245 | 253 | |
Home equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,005 | 337 | |
Home equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 63 | 29 | |
Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 393 | 253 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 108 | 101 | |
Current | 14,497 | 16,236 | |
Total Loans Receivable | 14,605 | 16,337 | $ 17,036 |
Loans Receivable greater than 90 Days and Accruing | 33 | 3 | |
Consumer | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 51 | 72 | |
Consumer | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 24 | 26 | |
Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 33 | 3 | |
Originated Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,285 | 9,758 | |
Current | 1,056,487 | 993,786 | |
Total Loans Receivable | 1,063,772 | 1,003,544 | |
Loans Receivable greater than 90 Days and Accruing | 1,213 | 1,300 | |
Originated Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 968 | 4,075 | |
Originated Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,847 | 1,094 | |
Originated Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,470 | 4,589 | |
Originated Loans | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 73 | 1,634 | |
Current | 170,545 | 157,821 | |
Total Loans Receivable | 170,618 | 159,455 | |
Loans Receivable greater than 90 Days and Accruing | 4 | 4 | |
Originated Loans | Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 69 | 55 | |
Originated Loans | Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 76 | |
Originated Loans | Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 1,503 | |
Originated Loans | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,330 | 2,153 | |
Current | 387,291 | 349,792 | |
Total Loans Receivable | 390,621 | 351,945 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 88 | |
Originated Loans | Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 186 | 436 | |
Originated Loans | Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 569 | 317 | |
Originated Loans | Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,575 | 1,400 | |
Originated Loans | Commercial real estate construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 252 | |
Current | 14,774 | 28,178 | |
Total Loans Receivable | 14,774 | 28,430 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Originated Loans | Commercial real estate construction | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 252 | |
Originated Loans | Commercial real estate construction | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Originated Loans | Residential mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,087 | 5,152 | |
Current | 382,772 | 361,772 | |
Total Loans Receivable | 385,859 | 366,924 | |
Loans Receivable greater than 90 Days and Accruing | 1,001 | 1,022 | |
Originated Loans | Residential mortgage | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 298 | 3,006 | |
Originated Loans | Residential mortgage | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,254 | 646 | |
Originated Loans | Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,535 | 1,500 | |
Originated Loans | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 687 | 466 | |
Current | 86,876 | 81,870 | |
Total Loans Receivable | 87,563 | 82,336 | |
Loans Receivable greater than 90 Days and Accruing | 175 | 183 | |
Originated Loans | Home equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 364 | 254 | |
Originated Loans | Home equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 29 | |
Originated Loans | Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 323 | 183 | |
Originated Loans | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 108 | 101 | |
Current | 14,229 | 14,353 | |
Total Loans Receivable | 14,337 | 14,454 | |
Loans Receivable greater than 90 Days and Accruing | 33 | 3 | |
Originated Loans | Consumer | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 51 | 72 | |
Originated Loans | Consumer | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 24 | 26 | |
Originated Loans | Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 33 | 3 | |
Acquired Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,070 | 2,523 | |
Current | 206,604 | 238,103 | |
Total Loans Receivable | 208,674 | 240,626 | |
Loans Receivable greater than 90 Days and Accruing | 1,129 | 207 | |
Acquired Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 875 | 2,012 | |
Acquired Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 66 | 304 | |
Acquired Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,129 | 207 | |
Acquired Loans | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 83 | |
Current | 5,455 | 6,291 | |
Total Loans Receivable | 5,455 | 6,374 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 83 | |
Acquired Loans | Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial and industrial | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,075 | 916 | |
Current | 131,138 | 139,898 | |
Total Loans Receivable | 132,213 | 140,814 | |
Loans Receivable greater than 90 Days and Accruing | 857 | 0 | |
Acquired Loans | Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 218 | 916 | |
Acquired Loans | Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 857 | 0 | |
Acquired Loans | Commercial real estate construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 77 | 0 | |
Current | 3,869 | 7,130 | |
Total Loans Receivable | 3,946 | 7,130 | |
Loans Receivable greater than 90 Days and Accruing | 77 | 0 | |
Acquired Loans | Commercial real estate construction | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate construction | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Commercial real estate construction | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 77 | 0 | |
Acquired Loans | Residential mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 144 | 1,371 | |
Current | 47,532 | 57,598 | |
Total Loans Receivable | 47,676 | 58,969 | |
Loans Receivable greater than 90 Days and Accruing | 125 | 137 | |
Acquired Loans | Residential mortgage | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 16 | 930 | |
Acquired Loans | Residential mortgage | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3 | 304 | |
Acquired Loans | Residential mortgage | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 125 | 137 | |
Acquired Loans | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 774 | 153 | |
Current | 18,342 | 25,303 | |
Total Loans Receivable | 19,116 | 25,456 | |
Loans Receivable greater than 90 Days and Accruing | 70 | 70 | |
Acquired Loans | Home equity lines of credit | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 641 | 83 | |
Acquired Loans | Home equity lines of credit | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 63 | 0 | |
Acquired Loans | Home equity lines of credit | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 70 | 70 | |
Acquired Loans | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 268 | 1,883 | |
Total Loans Receivable | 268 | 1,883 | |
Loans Receivable greater than 90 Days and Accruing | 0 | 0 | |
Acquired Loans | Consumer | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Consumer | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Acquired Loans | Consumer | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Loans - Schedule of Allowance f
Loans - Schedule of Allowance for Loan Losses and Recorded Investment in Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | $ 13,143 | $ 14,148 | $ 13,976 | $ 14,194 | |||
Charge-offs | (62) | (102) | (1,499) | (272) | |||
Recoveries | 133 | 59 | 167 | 183 | |||
Provisions | 200 | 0 | 770 | 0 | |||
Allowance for Loan Losses, Ending Balance | 13,414 | 14,105 | 13,414 | 14,105 | |||
Allowance for Loan Losses, Ending Balance | 13,143 | 14,148 | 13,976 | 14,194 | $ 13,414 | $ 13,976 | $ 14,105 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 148 | 1,229 | 1,192 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 13,266 | 12,747 | 12,913 | ||||
Total Loans Receivable | 1,272,446 | 1,244,170 | 1,236,370 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 7,869 | 10,337 | 10,634 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,264,577 | 1,233,833 | 1,225,736 | ||||
Commercial and Industrial | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 2,433 | 3,246 | 3,219 | 3,055 | |||
Charge-offs | (33) | (60) | (911) | (129) | |||
Recoveries | 22 | 8 | 33 | 17 | |||
Provisions | 185 | 73 | 266 | 324 | |||
Allowance for Loan Losses, Ending Balance | 2,607 | 3,267 | 2,607 | 3,267 | |||
Allowance for Loan Losses, Ending Balance | 2,433 | 3,246 | 3,219 | 3,055 | 2,607 | 3,219 | 3,267 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 792 | 698 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,607 | 2,427 | 2,569 | ||||
Total Loans Receivable | 176,073 | 165,829 | 169,037 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 1,499 | 1,743 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 176,073 | 164,330 | 167,294 | ||||
Commercial Real Estate | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 5,721 | 5,210 | 5,228 | 4,968 | |||
Charge-offs | 0 | 0 | (33) | 0 | |||
Recoveries | 0 | 0 | 0 | 61 | |||
Provisions | 123 | 195 | 649 | 376 | |||
Allowance for Loan Losses, Ending Balance | 5,844 | 5,405 | 5,844 | 5,405 | |||
Allowance for Loan Losses, Ending Balance | 5,721 | 5,210 | 5,228 | 4,968 | 5,844 | 5,228 | 5,405 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 60 | 117 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 5,844 | 5,168 | 5,288 | ||||
Total Loans Receivable | 522,834 | 492,759 | 483,673 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 7,188 | 8,360 | 8,413 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 515,646 | 484,399 | 475,260 | ||||
Commercial Real Estate Construction | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 146 | 135 | 126 | 147 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 103 | 40 | 103 | 40 | |||
Provisions | (50) | (31) | (30) | (43) | |||
Allowance for Loan Losses, Ending Balance | 199 | 144 | 199 | 144 | |||
Allowance for Loan Losses, Ending Balance | 146 | 135 | 126 | 147 | 199 | 126 | 144 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 199 | 126 | 144 | ||||
Total Loans Receivable | 18,720 | 35,560 | 39,779 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 18,720 | 35,560 | 39,779 | ||||
Residential Mortgage | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 2,840 | 3,368 | 3,226 | 3,478 | |||
Charge-offs | 0 | (15) | (489) | (32) | |||
Recoveries | 8 | 10 | 30 | 52 | |||
Provisions | (95) | (101) | (14) | (236) | |||
Allowance for Loan Losses, Ending Balance | 2,753 | 3,262 | 2,753 | 3,262 | |||
Allowance for Loan Losses, Ending Balance | 2,840 | 3,368 | 3,226 | 3,478 | 2,753 | 3,226 | 3,262 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 377 | 377 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,753 | 2,849 | 2,885 | ||||
Total Loans Receivable | 433,535 | 425,893 | 421,732 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 533 | 478 | 478 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 433,002 | 425,415 | 421,254 | ||||
Home Equity Lines of Credit | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 564 | 607 | 612 | 648 | |||
Charge-offs | 0 | (9) | 0 | (9) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions | 131 | 29 | 83 | (12) | |||
Allowance for Loan Losses, Ending Balance | 695 | 627 | 695 | 627 | |||
Allowance for Loan Losses, Ending Balance | 564 | 607 | 612 | 648 | 695 | 612 | 627 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 148 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 547 | 612 | 627 | ||||
Total Loans Receivable | 106,679 | 107,792 | 105,113 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 148 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 106,531 | 107,792 | 105,113 | ||||
Consumer | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 673 | 815 | 749 | 923 | |||
Charge-offs | (29) | (18) | (66) | (102) | |||
Recoveries | 0 | 1 | 1 | 13 | |||
Provisions | (9) | 12 | (49) | (24) | |||
Allowance for Loan Losses, Ending Balance | 635 | 810 | 635 | 810 | |||
Allowance for Loan Losses, Ending Balance | 673 | 815 | 749 | 923 | 635 | 749 | 810 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 635 | 749 | 810 | ||||
Total Loans Receivable | 14,605 | 16,337 | 17,036 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 14,605 | 16,337 | 17,036 | ||||
Unallocated | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Allowance for Loan Losses, Beginning Balance | 766 | 767 | 816 | 975 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Provisions | (85) | (177) | (135) | (385) | |||
Allowance for Loan Losses, Ending Balance | 681 | 590 | 681 | 590 | |||
Allowance for Loan Losses, Ending Balance | $ 766 | $ 767 | $ 816 | $ 975 | 681 | 816 | 590 |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 681 | 816 | 590 | ||||
Total Loans Receivable | 0 | 0 | 0 | ||||
Loans receivables: Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | $ 162,957 | $ 159,051 | $ 158,392 |
Equity securities with readily determinable fair values | 1,743 | 0 | $ 0 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 1,784 | |
Equity securities with readily determinable fair values | 1,743 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 162,957 | 157,267 | |
Equity securities with readily determinable fair values | 0 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Equity securities with readily determinable fair values | 0 | ||
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 1,784 | |
Equity securities with readily determinable fair values | 1,743 | ||
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 162,957 | 157,267 | |
Equity securities with readily determinable fair values | 0 | ||
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Equity securities with readily determinable fair values | 0 | ||
Recurring | U.S. Government and agencies | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Recurring | U.S. Government and agencies | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 122,076 | 104,083 | |
Recurring | U.S. Government and agencies | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Recurring | Mortgage-backed securities, residential | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Recurring | Mortgage-backed securities, residential | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 31,091 | 34,833 | |
Recurring | Mortgage-backed securities, residential | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Recurring | State and municipal | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Recurring | State and municipal | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 9,790 | 13,294 | |
Recurring | State and municipal | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Recurring | Corporate bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | ||
Recurring | Corporate bonds | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 5,057 | ||
Recurring | Corporate bonds | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | ||
Recurring | CRA mutual fund | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 1,035 | ||
Recurring | CRA mutual fund | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | ||
Recurring | CRA mutual fund | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | ||
Recurring | Stock in other banks | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 749 | ||
Recurring | Stock in other banks | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | ||
Recurring | Stock in other banks | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | ||
Nonrecurring | Collateral dependent impaired loans | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Nonrecurring | Collateral dependent impaired loans | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 0 | 0 | |
Nonrecurring | Collateral dependent impaired loans | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 3,907 | 5,426 | |
Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 162,957 | 159,051 | |
Equity securities with readily determinable fair values | 1,743 | ||
Fair Value | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 162,957 | 159,051 | |
Equity securities with readily determinable fair values | 1,743 | ||
Fair Value | Recurring | U.S. Government and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 122,076 | 104,083 | |
Fair Value | Recurring | Mortgage-backed securities, residential | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 31,091 | 34,833 | |
Fair Value | Recurring | State and municipal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 9,790 | 13,294 | |
Fair Value | Recurring | Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 5,057 | ||
Fair Value | Recurring | CRA mutual fund | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 1,035 | ||
Fair Value | Recurring | Stock in other banks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 749 | ||
Fair Value | Nonrecurring | Collateral dependent impaired loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 3,907 | $ 5,426 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Additional Quantitative Information (Details) - Nonrecurring - Collateral dependent impaired loans - Level 3 $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 3,907 | $ 5,426 |
Measurement Input, Discount Rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.28 | 0.36 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.10 | 0.10 |
Measurement Input, Discount Rate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average | 0.50 | 0.50 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Period for order of valuations (at least) | 18 months |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Carrying Amount, Fair Value and Placement in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financial assets: | |||
Interest-bearing deposits in banks | $ 45,551 | $ 15,137 | $ 31,609 |
Equity securities with readily determinable fair values | 1,743 | 0 | 0 |
Debt securities available for sale | 162,957 | 159,051 | 158,392 |
Investment securities held to maturity | 32,767 | 44,549 | 47,373 |
Restricted investment in bank stocks | 4,529 | 4,773 | $ 4,821 |
Level 1 | |||
Financial assets: | |||
Cash and due from banks | 7,981 | 8,313 | |
Interest-bearing deposits in banks | 45,551 | 15,137 | |
Equity securities with readily determinable fair values | 1,743 | ||
Debt securities available for sale | 0 | 1,784 | |
Investment securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, less allowance for loan losses | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Restricted investment in bank stocks | 0 | 0 | |
Financial liabilities: | |||
Demand deposits and savings | 0 | 0 | |
Time deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Trust preferred subordinated debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Off-balance sheet financial instruments | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Cash and due from banks | 10,164 | 10,991 | |
Interest-bearing deposits in banks | 0 | 0 | |
Equity securities with readily determinable fair values | 0 | ||
Debt securities available for sale | 162,957 | 157,267 | |
Investment securities held to maturity | 32,767 | 44,549 | |
Loans held for sale | 1,112 | 1,736 | |
Loans, less allowance for loan losses | 0 | 0 | |
Accrued interest receivable | 4,737 | 3,670 | |
Restricted investment in bank stocks | 4,529 | 4,773 | |
Financial liabilities: | |||
Demand deposits and savings | 984,704 | 944,399 | |
Time deposits | 357,603 | 351,057 | |
Short-term borrowings | 38,525 | 36,908 | |
Long-term borrowings | 79,383 | 89,571 | |
Trust preferred subordinated debt | 4,699 | 4,692 | |
Accrued interest payable | 1,406 | 1,163 | |
Off-balance sheet financial instruments | 0 | 0 | |
Level 3 | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits in banks | 0 | 0 | |
Equity securities with readily determinable fair values | 0 | ||
Debt securities available for sale | 0 | 0 | |
Investment securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, less allowance for loan losses | 1,218,667 | 1,213,932 | |
Accrued interest receivable | 0 | 0 | |
Restricted investment in bank stocks | 0 | 0 | |
Financial liabilities: | |||
Demand deposits and savings | 0 | 0 | |
Time deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Trust preferred subordinated debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Off-balance sheet financial instruments | 0 | 0 | |
Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 18,145 | 19,304 | |
Interest-bearing deposits in banks | 45,551 | 15,137 | |
Equity securities with readily determinable fair values | 1,743 | ||
Debt securities available for sale | 162,957 | 159,051 | |
Investment securities held to maturity | 33,517 | 44,829 | |
Loans held for sale | 1,112 | 1,736 | |
Loans, less allowance for loan losses | 1,259,032 | 1,230,194 | |
Accrued interest receivable | 4,737 | 3,670 | |
Restricted investment in bank stocks | 4,529 | 4,773 | |
Financial liabilities: | |||
Demand deposits and savings | 984,704 | 944,399 | |
Time deposits | 362,539 | 354,093 | |
Short-term borrowings | 38,525 | 36,908 | |
Long-term borrowings | 79,725 | 89,600 | |
Trust preferred subordinated debt | 5,000 | 5,000 | |
Accrued interest payable | 1,406 | 1,163 | |
Off-balance sheet financial instruments | 0 | 0 | |
Fair Value | |||
Financial assets: | |||
Cash and due from banks | 18,145 | 19,304 | |
Interest-bearing deposits in banks | 45,551 | 15,137 | |
Equity securities with readily determinable fair values | 1,743 | ||
Debt securities available for sale | 162,957 | 159,051 | |
Investment securities held to maturity | 32,767 | 44,549 | |
Loans held for sale | 1,112 | 1,736 | |
Loans, less allowance for loan losses | 1,218,667 | 1,213,932 | |
Accrued interest receivable | 4,737 | 3,670 | |
Restricted investment in bank stocks | 4,529 | 4,773 | |
Financial liabilities: | |||
Demand deposits and savings | 984,704 | 944,399 | |
Time deposits | 357,603 | 351,057 | |
Short-term borrowings | 38,525 | 36,908 | |
Long-term borrowings | 79,383 | 89,571 | |
Trust preferred subordinated debt | 4,699 | 4,692 | |
Accrued interest payable | 1,406 | 1,163 | |
Off-balance sheet financial instruments | $ 0 | $ 0 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase (Repurchase Agreements) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 38,525 | $ 36,908 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 38,525 | 36,908 |
Financial Instruments | (38,525) | (36,908) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Fair value of securities pledged in connection with repurchase agreements | 43,541 | $ 42,397 |
Total | 38,525 | |
U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 38,525 | |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 38,525 | |
Overnight and Continuous | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 38,525 | |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Up to 30 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
30 - 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
30 - 90 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | 0 | |
Greater than 90 Days | U.S. Treasury and agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total | $ 0 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 84,725 | $ 94,600 | $ 96,850 |
FHLB Advances | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 74,216 | 85,000 | |
Weighted average rate percentage | 2.35% | ||
Trust preferred subordinated debt | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 5,000 | 5,000 | |
Interest rate percentage | 6.39% | ||
Trust preferred subordinated debt issued | $ 5,000 | ||
Loan payable to local bank, 4.5% | Loan payable to local bank | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 4,509 | 4,600 | |
Interest rate percentage | 4.50% | ||
Period of fixed interest rate | 5 years | ||
Loan payable to local bank, 5.25% | Loan payable to local bank | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 1,000 | $ 0 | |
Loan payable to local bank, 5.25% | Loan payable to local bank | Wall Street Journal Prime Rate | |||
Debt Instrument [Line Items] | |||
Interest rate percentage | 5.30% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 19,580 | $ 19,580 | $ 19,580 | |
RIG | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 6,308 | |||
New Windsor | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 13,272 | $ 13,272 | ||
Customer lists | RIG | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | |||
Gross carrying amount of intangible asset | $ 7,263 | |||
Accumulated amortization of intangible asset | $ 6,514 | |||
Customer lists | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 8 years | |||
Customer lists | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 13 years | |||
Core deposit intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | |||
Core deposit intangibles | New Windsor | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 10 years | 10 years | ||
Gross carrying amount of intangible asset | $ 2,418 | |||
Accumulated amortization of intangible asset | $ 539 |