Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 01, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'PENNS WOODS BANCORP INC | ' |
Entity Central Index Key | '0000716605 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 4,807,903 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS: | ' | ' |
Noninterest-bearing balances | $19,556 | $23,723 |
Interest-bearing balances in other financial institutions | 5,686 | 770 |
Federal funds sold | 0 | 113 |
Total cash and cash equivalents | 25,242 | 24,606 |
Investment securities available for sale, at fair value | 233,634 | 288,612 |
Loans held for sale | 1,602 | 1,626 |
Loans | 890,727 | 818,344 |
Allowance for loan losses | -9,250 | -10,144 |
Loans, net | 881,477 | 808,200 |
Premises and equipment, net | 21,509 | 20,184 |
Accrued interest receivable | 4,298 | 4,696 |
Bank-owned life insurance | 25,781 | 25,410 |
Investment in limited partnerships | 1,725 | 2,221 |
Goodwill | 17,104 | 17,104 |
Intangibles | 1,538 | 1,801 |
Deferred tax asset | 7,036 | 9,889 |
Other assets | 6,176 | 7,646 |
TOTAL ASSETS | 1,227,122 | 1,211,995 |
LIABILITIES: | ' | ' |
Interest-bearing deposits | 756,540 | 755,625 |
Noninterest-bearing deposits | 232,588 | 217,377 |
Total deposits | 989,128 | 973,002 |
Short-term borrowings | 17,213 | 26,716 |
Long-term borrowings | 71,202 | 71,202 |
Accrued interest payable | 411 | 405 |
Other liabilities | 12,164 | 12,855 |
TOTAL LIABILITIES | 1,090,118 | 1,084,180 |
SHAREHOLDERS’ EQUITY: | ' | ' |
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, par value $8.33, 15,000,000 shares authorized; 5,001,972 and 4,999,929 shares issued | 41,682 | 41,665 |
Additional paid-in capital | 49,871 | 49,800 |
Retained earnings | 52,482 | 47,554 |
Accumulated other comprehensive loss: | ' | ' |
Net unrealized gain (loss) on available for sale securities | 2,514 | -2,169 |
Defined benefit plan | -2,725 | -2,725 |
Treasury stock at cost, 192,340 and 180,596 shares | -6,820 | -6,310 |
TOTAL SHAREHOLDERS’ EQUITY | 137,004 | 127,815 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $1,227,122 | $1,211,995 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $8.33 | $8.33 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 5,001,972 | 4,999,929 |
Treasury stock, shares | 192,340 | 180,596 |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
INTEREST AND DIVIDEND INCOME: | ' | ' | ' | ' |
Loans, including fees | $9,298 | $9,211 | $27,023 | $23,256 |
Investment securities: | ' | ' | ' | ' |
Taxable | 1,198 | 1,570 | 4,062 | 4,520 |
Tax-exempt | 837 | 1,124 | 2,660 | 3,553 |
Dividend and other interest income | 127 | 74 | 401 | 208 |
TOTAL INTEREST AND DIVIDEND INCOME | 11,460 | 11,979 | 34,146 | 31,537 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Deposits | 748 | 855 | 2,247 | 2,406 |
Short-term borrowings | 5 | 16 | 32 | 63 |
Long-term borrowings | 489 | 479 | 1,431 | 1,480 |
TOTAL INTEREST EXPENSE | 1,242 | 1,350 | 3,710 | 3,949 |
NET INTEREST INCOME | 10,218 | 10,629 | 30,436 | 27,588 |
PROVISION FOR LOAN LOSSES | 460 | 600 | 1,245 | 1,675 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,758 | 10,029 | 29,191 | 25,913 |
NON-INTEREST INCOME: | ' | ' | ' | ' |
Service charges | 620 | 671 | 1,822 | 1,651 |
Securities gains (losses), net | 2,145 | -3 | 3,025 | 2,257 |
Bank-owned life insurance | 185 | 199 | 736 | 481 |
Gain on sale of loans | 602 | 551 | 1,313 | 1,204 |
Insurance commissions | 212 | 286 | 915 | 797 |
Brokerage commissions | 282 | 250 | 804 | 797 |
Other | 878 | 888 | 2,449 | 1,923 |
TOTAL NON-INTEREST INCOME | 4,924 | 2,842 | 11,064 | 9,110 |
NON-INTEREST EXPENSE: | ' | ' | ' | ' |
Salaries and employee benefits | 4,126 | 4,515 | 12,796 | 11,025 |
Occupancy | 547 | 554 | 1,729 | 1,302 |
Furniture and equipment | 591 | 422 | 1,910 | 1,242 |
Pennsylvania shares tax | 232 | 225 | 738 | 617 |
Amortization of investment in limited partnerships | 165 | 165 | 496 | 496 |
Federal Deposit Insurance Corporation deposit insurance | 193 | 173 | 572 | 421 |
Marketing | 144 | 156 | 380 | 371 |
Intangible amortization | 82 | 91 | 263 | 122 |
Other | 2,233 | 2,674 | 6,494 | 6,195 |
TOTAL NON-INTEREST EXPENSE | 8,313 | 8,975 | 25,378 | 21,791 |
INCOME BEFORE INCOME TAX PROVISION | 6,369 | 3,896 | 14,877 | 13,232 |
INCOME TAX PROVISION | 1,576 | 650 | 3,152 | 2,643 |
NET INCOME | $4,793 | $3,246 | $11,725 | $10,589 |
EARNINGS PER SHARE - BASIC (in dollars per share) | $0.99 | $0.67 | $2.43 | $2.48 |
EARNINGS PER SHARE - DILUTED (in dollars per share) | $0.99 | $0.67 | $2.43 | $2.48 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 4,820,346 | 4,818,494 | 4,820,041 | 4,272,989 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 4,820,346 | 4,818,494 | 4,820,041 | 4,272,989 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $0.47 | $0.47 | $1.41 | $1.66 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $4,793 | $3,246 | $11,725 | $10,589 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Change in unrealized gain (loss) on available for sale securities | 863 | -1,647 | 10,121 | -14,354 |
Tax effect | -293 | 560 | -3,442 | 4,881 |
Net realized (gain) loss included in net income | -2,145 | 3 | -3,025 | -2,257 |
Tax effect | 729 | -1 | 1,029 | 767 |
Total other comprehensive (loss) income | -846 | -1,085 | 4,683 | -10,963 |
Comprehensive income (loss) | $3,947 | $2,161 | $16,408 | ($374) |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2012 | $93,726 | $33,492 | $18,157 | $43,030 | $5,357 | ($6,310) |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 4,019,112 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 10,589 | ' | ' | 10,589 | ' | ' |
Other comprehensive (loss) income | -10,963 | ' | ' | ' | -10,963 | ' |
Dividends declared | -7,295 | ' | ' | -7,295 | ' | ' |
Common shares issued for employee stock purchase plan (in shares) | ' | 1,394 | ' | ' | ' | ' |
Common shares issued for employee stock purchase plan | 59 | 12 | 47 | ' | ' | ' |
Common shares issued for acquisition of Luzerne National Bank Corporation (in shares) | ' | 978,977 | ' | ' | ' | ' |
Common shares issued for acquisition of Luzerne National Bank Corporation | 39,736 | 8,158 | 31,578 | ' | ' | ' |
Ending Balance at Sep. 30, 2013 | 125,852 | 41,662 | 49,782 | 46,324 | -5,606 | -6,310 |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 4,999,483 | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 127,815 | 41,665 | 49,800 | 47,554 | -4,894 | -6,310 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 4,999,929 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 11,725 | ' | ' | 11,725 | ' | ' |
Other comprehensive (loss) income | 4,683 | ' | ' | ' | 4,683 | ' |
Dividends declared | -6,797 | ' | ' | -6,797 | ' | ' |
Common shares issued for employee stock purchase plan (in shares) | ' | 2,043 | ' | ' | ' | ' |
Common shares issued for employee stock purchase plan | 88 | 17 | 71 | ' | ' | ' |
Purchases of treasury stock | -510 | ' | ' | ' | ' | -510 |
Ending Balance at Sep. 30, 2014 | $137,004 | $41,682 | $49,871 | $52,482 | ($211) | ($6,820) |
Ending Balance (in shares) at Sep. 30, 2014 | ' | 5,001,972 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_CHAN1
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ' |
Dividends declared, per share (in dollars per share) | $1.41 |
Purchase of Treasury Stock (in shares) | 11,744 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
OPERATING ACTIVITIES: | ' | ' |
Net Income | $11,725 | $10,589 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,351 | 1,475 |
Amortization of intangible assets | 263 | 122 |
Provision for loan losses | 1,245 | 1,675 |
Accretion and amortization of investment security discounts and premiums | 509 | -44 |
Securities gains, net | -3,025 | -2,257 |
Originations of loans held for sale | -38,703 | -42,985 |
Proceeds of loans held for sale | 40,040 | 46,375 |
Gain on sale of loans | -1,313 | -1,204 |
Earnings on bank-owned life insurance | -736 | -481 |
Decrease (increase) in deferred tax asset | 440 | -86 |
Other, net | 309 | -1,212 |
Net cash provided by operating activities | 13,105 | 11,967 |
Investment securities available for sale: | ' | ' |
Proceeds from sales | 98,815 | 69,898 |
Proceeds from calls, maturities, and repayments of principal | 5,731 | 12,775 |
Purchases | -39,774 | -71,221 |
Net increase in loans | -74,874 | -43,401 |
Acquisition of bank premises and equipment | -2,459 | -2,744 |
Proceeds from the sale of foreclosed assets | 534 | 0 |
Purchase of bank-owned life insurance | -30 | -981 |
Proceeds from bank-owned life insurance death benefit | 367 | 0 |
Proceeds from redemption of regulatory stock | 1,654 | 2,237 |
Purchases of regulatory stock | -1,837 | -980 |
Acquisition, net of cash acquired | 0 | 17,487 |
Net cash used for investing activities | -11,873 | -16,930 |
FINANCING ACTIVITIES: | ' | ' |
Net increase in interest-bearing deposits | 915 | 38,636 |
Net increase in noninterest-bearing deposits | 15,211 | 17,903 |
Repayment of long-term borrowings | 0 | -5,528 |
Net decrease in short-term borrowings | -9,503 | -20,910 |
Dividends paid | -6,797 | -7,295 |
Issuance of common stock | 88 | 59 |
Purchases of treasury stock | -510 | 0 |
Net cash (used for) provided by financing activities | -596 | 22,865 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 636 | 17,902 |
CASH AND CASH EQUIVALENTS, BEGINNING | 24,606 | 15,142 |
CASH AND CASH EQUIVALENTS, ENDING | 25,242 | 33,044 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Interest paid | 3,704 | 3,880 |
Income taxes paid | 2,415 | 2,770 |
Transfer of loans to foreclosed real estate | 352 | 185 |
Non-cash assets acquired: | ' | ' |
Securities available for sale | 0 | 21,783 |
Loans | 0 | 250,377 |
Premises and equipment, net | 0 | 8,014 |
Accrued interest receivable | 0 | 726 |
Bank-owned life insurance | 0 | 7,419 |
Intangibles | 0 | 2,015 |
Other assets | 0 | 2,636 |
Goodwill | 0 | 14,072 |
Noncash Assets Acquired | 0 | 307,042 |
Liabilities assumed: | ' | ' |
Deferred tax liability | 0 | 76 |
Interest-bearing deposits | 0 | 194,438 |
Noninterest-bearing deposits | 0 | 82,518 |
Short-term borrowings | 0 | 2,766 |
Accrued interest payable | 0 | 103 |
Other liabilities | 0 | 4,892 |
Noncash Liabilities Assumed | 0 | 284,793 |
Net non-cash assets acquired | 0 | 22,249 |
Cash acquired | $0 | $20,363 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the accounts of Penns Woods Bancorp, Inc. (the “Company”) and its wholly-owned subsidiaries: Woods Investment Company, Inc., Woods Real Estate Development Company, Inc., Luzerne Bank, and Jersey Shore State Bank (Jersey Shore State Bank and Luzerne Bank are referred to together as the “Bank”) and Jersey Shore State Bank’s wholly-owned subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group (“The M Group”). All significant inter-company balances and transactions have been eliminated in the consolidation. | |
The interim financial statements are unaudited, but in the opinion of management reflect all adjustments necessary for the fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
The accounting policies followed in the presentation of interim financial results are the same as those followed on an annual basis. These policies are presented on pages 38 through 43 of the Annual Report on Form 10-K for the year ended December 31, 2013. | |
In reference to the attached financial statements, all adjustments are of a normal recurring nature pursuant to Rule 10-01(b) (8) of Regulation S-X. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
The changes in accumulated other comprehensive loss by component as of September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
(In Thousands) | Net Unrealized Gain (Loss) on Available | Defined | Total | Net Unrealized Gain | Defined | Total | |||||||||||||||||||
for Sale Securities | Benefit | (Loss) on Available | Benefit | ||||||||||||||||||||||
Plan | for Sale Securities | Plan | |||||||||||||||||||||||
Balance, June 30, | $ | 3,360 | $ | (2,725 | ) | $ | 635 | $ | 286 | $ | (4,807 | ) | $ | (4,521 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 570 | — | 570 | (1,087 | ) | — | (1,087 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,416 | ) | — | (1,416 | ) | 2 | — | 2 | |||||||||||||||||
Net current-period other comprehensive loss | (846 | ) | — | (846 | ) | (1,085 | ) | — | (1,085 | ) | |||||||||||||||
Balance, September 30 | $ | 2,514 | $ | (2,725 | ) | $ | (211 | ) | $ | (799 | ) | $ | (4,807 | ) | $ | (5,606 | ) | ||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(In Thousands) | Net Unrealized Gain (Loss) on Available | Defined | Total | Net Unrealized Gain | Defined | Total | |||||||||||||||||||
for Sale Securities | Benefit | (Loss) on Available | Benefit | ||||||||||||||||||||||
Plan | for Sale Securities | Plan | |||||||||||||||||||||||
Balance, December 31 | $ | (2,169 | ) | $ | (2,725 | ) | $ | (4,894 | ) | $ | 10,164 | $ | (4,807 | ) | $ | 5,357 | |||||||||
Other comprehensive (loss) income before reclassifications | 6,679 | — | 6,679 | (9,473 | ) | — | (9,473 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (1,996 | ) | — | (1,996 | ) | (1,490 | ) | — | (1,490 | ) | |||||||||||||||
Net current-period other comprehensive (loss) income | 4,683 | — | 4,683 | (10,963 | ) | — | (10,963 | ) | |||||||||||||||||
Balance, September 30 | $ | 2,514 | $ | (2,725 | ) | $ | (211 | ) | $ | (799 | ) | $ | (4,807 | ) | $ | (5,606 | ) | ||||||||
The reclassifications out of accumulated other comprehensive loss as of September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item | |||||||||||||||||||||||
in the Consolidated | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Statement of Income | |||||||||||||||||||||||
Net unrealized gain (loss) on available for sale securities | $ | 2,145 | $ | (3 | ) | Securities gains (losses), net | |||||||||||||||||||
Income tax effect | 729 | (1 | ) | Income tax provision | |||||||||||||||||||||
Total reclassifications for the period | $ | 1,416 | $ | (2 | ) | Net of tax | |||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item | |||||||||||||||||||||||
in the Consolidated | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | Statement of Income | |||||||||||||||||||||||
Net unrealized gain on available for sale securities | $ | 3,025 | $ | 2,257 | Securities gains (losses), net | ||||||||||||||||||||
Income tax effect | 1,029 | 767 | Income tax provision | ||||||||||||||||||||||
Total reclassifications for the period | $ | 1,996 | $ | 1,490 | Net of tax | ||||||||||||||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In January 2014, FASB issued ASU 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In January 2014, the FASB issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor, and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. | |
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. | |
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In August 2014, the FASB issued ASU 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this update require that a mortgage loan be de-recognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). The amendments in this update provide guidance in accounting principles generally accepted in the United States of America about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. |
Per_Share_Data
Per Share Data | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Per Share Data | ' | ||||||||||||
Per Share Data | |||||||||||||
There are no convertible securities which would affect the denominator in calculating basic and dilutive earnings per share. Net income as presented on the consolidated statement of income will be used as the numerator. The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and dilutive earnings per share computation. | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Weighted average common shares issued | 5,001,505 | 4,999,090 | 5,000,827 | 4,453,585 | |||||||||
Average treasury stock shares | (181,159 | ) | (180,596 | ) | (180,786 | ) | (180,596 | ) | |||||
Weighted average common shares and common stock equivalents used to calculate basic and diluted earnings per share | 4,820,346 | 4,818,494 | 4,820,041 | 4,272,989 | |||||||||
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||
The amortized cost and fair values of investment securities at September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
(In Thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Available for sale (AFS) | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | 5,935 | $ | 1 | $ | (140 | ) | $ | 5,796 | ||||||||||||||||
Mortgage-backed securities | 10,689 | 495 | (49 | ) | 11,135 | ||||||||||||||||||||
Asset-backed securities | 2,536 | 38 | (3 | ) | 2,571 | ||||||||||||||||||||
State and political securities | 108,801 | 3,779 | (798 | ) | 111,782 | ||||||||||||||||||||
Other debt securities | 90,130 | 932 | (1,326 | ) | 89,736 | ||||||||||||||||||||
Total debt securities | 218,091 | 5,245 | (2,316 | ) | 221,020 | ||||||||||||||||||||
Financial institution equity securities | 8,304 | 938 | (21 | ) | 9,221 | ||||||||||||||||||||
Other equity securities | 3,430 | 64 | (101 | ) | 3,393 | ||||||||||||||||||||
Total equity securities | 11,734 | 1,002 | (122 | ) | 12,614 | ||||||||||||||||||||
Total investment securities AFS | $ | 229,825 | $ | 6,247 | $ | (2,438 | ) | $ | 233,634 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
(In Thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Available for sale (AFS) | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | 9,989 | $ | 17 | $ | (83 | ) | $ | 9,923 | ||||||||||||||||
Mortgage-backed securities | 9,966 | 694 | (68 | ) | 10,592 | ||||||||||||||||||||
Asset-backed securities | 6,700 | 43 | (179 | ) | 6,564 | ||||||||||||||||||||
State and political securities | 145,121 | 2,120 | (5,446 | ) | 141,795 | ||||||||||||||||||||
Other debt securities | 108,939 | 879 | (3,045 | ) | 106,773 | ||||||||||||||||||||
Total debt securities | 280,715 | 3,753 | (8,821 | ) | 275,647 | ||||||||||||||||||||
Financial institution equity securities | 8,842 | 1,820 | — | 10,662 | |||||||||||||||||||||
Other equity securities | 2,342 | 28 | (67 | ) | 2,303 | ||||||||||||||||||||
Total equity securities | 11,184 | 1,848 | (67 | ) | 12,965 | ||||||||||||||||||||
Total investment securities AFS | $ | 291,899 | $ | 5,601 | $ | (8,888 | ) | $ | 288,612 | ||||||||||||||||
The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government and agency securities | $ | 1,010 | $ | (1 | ) | $ | 3,816 | $ | (139 | ) | $ | 4,826 | $ | (140 | ) | ||||||||||
Mortgage-backed securities | 3,903 | (40 | ) | 891 | (9 | ) | 4,794 | (49 | ) | ||||||||||||||||
Asset-backed securities | — | — | 567 | (3 | ) | 567 | (3 | ) | |||||||||||||||||
State and political securities | 1,816 | (11 | ) | 7,722 | (787 | ) | 9,538 | (798 | ) | ||||||||||||||||
Other debt securities | 24,535 | (565 | ) | 27,188 | (761 | ) | 51,723 | (1,326 | ) | ||||||||||||||||
Total debt securities | 31,264 | (617 | ) | 40,184 | (1,699 | ) | 71,448 | (2,316 | ) | ||||||||||||||||
Financial institution equity securities | 369 | (21 | ) | — | — | 369 | (21 | ) | |||||||||||||||||
Other equity securities | 366 | (67 | ) | 766 | (34 | ) | 1,132 | (101 | ) | ||||||||||||||||
Total equity securities | 735 | (88 | ) | 766 | (34 | ) | 1,501 | (122 | ) | ||||||||||||||||
Total | $ | 31,999 | $ | (705 | ) | $ | 40,950 | $ | (1,733 | ) | $ | 72,949 | $ | (2,438 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government and agency securities | $ | 7,740 | $ | (83 | ) | $ | — | $ | — | $ | 7,740 | $ | (83 | ) | |||||||||||
Mortgage-backed securities | 2,483 | (68 | ) | — | — | 2,483 | (68 | ) | |||||||||||||||||
Asset-backed securities | 3,847 | (177 | ) | 712 | (2 | ) | 4,559 | (179 | ) | ||||||||||||||||
State and political securities | 42,577 | (2,558 | ) | 8,233 | (2,888 | ) | 50,810 | (5,446 | ) | ||||||||||||||||
Other debt securities | 73,254 | (3,045 | ) | — | — | 73,254 | (3,045 | ) | |||||||||||||||||
Total debt securities | 129,901 | (5,931 | ) | 8,945 | (2,890 | ) | 138,846 | (8,821 | ) | ||||||||||||||||
Financial institution equity securities | — | — | — | — | — | — | |||||||||||||||||||
Other equity securities | 274 | (22 | ) | 655 | (45 | ) | 929 | (67 | ) | ||||||||||||||||
Total equity securities | 274 | (22 | ) | 655 | (45 | ) | 929 | (67 | ) | ||||||||||||||||
Total | $ | 130,175 | $ | (5,953 | ) | $ | 9,600 | $ | (2,935 | ) | $ | 139,775 | $ | (8,888 | ) | ||||||||||
At September 30, 2014 there were a total of 28 securities in a continuous unrealized loss position for less than twelve months and 35 individual securities that were in a continuous unrealized loss position for twelve months or greater. | |||||||||||||||||||||||||
The Company reviews its position quarterly and has determined that, at September 30, 2014, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes, sector credit ratings changes, or company-specific ratings changes that are not expected to result in the non-collection of principal and interest during the period. | |||||||||||||||||||||||||
The amortized cost and fair value of debt securities at September 30, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
(In Thousands) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 4,650 | $ | 4,718 | |||||||||||||||||||||
Due after one year to five years | 34,283 | 34,465 | |||||||||||||||||||||||
Due after five years to ten years | 100,281 | 99,983 | |||||||||||||||||||||||
Due after ten years | 78,877 | 81,854 | |||||||||||||||||||||||
Total | $ | 218,091 | $ | 221,020 | |||||||||||||||||||||
Total gross proceeds from sales of securities available for sale were $98,815,000 and $69,898,000 for the nine months ended September 30, 2014 and 2013, respectively. The following table represents gross realized gains and losses on those transactions: | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
(In Thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Gross realized gains: | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | — | $ | — | $ | 49 | $ | — | |||||||||||||||||
Mortgage-backed securities | 13 | — | 89 | — | |||||||||||||||||||||
State and political securities | 1,361 | 276 | 2,093 | 1,917 | |||||||||||||||||||||
Other debt securities | 149 | 163 | 611 | 462 | |||||||||||||||||||||
Financial institution equity securities | 582 | — | 710 | 130 | |||||||||||||||||||||
Other equity securities | 86 | — | 205 | 250 | |||||||||||||||||||||
Total gross realized gains | $ | 2,191 | $ | 439 | $ | 3,757 | $ | 2,759 | |||||||||||||||||
Gross realized losses: | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | — | $ | — | $ | 45 | $ | — | |||||||||||||||||
State and political securities | 9 | 415 | 412 | 475 | |||||||||||||||||||||
Other debt securities | 37 | 27 | 209 | 27 | |||||||||||||||||||||
Other equity securities | — | — | 66 | — | |||||||||||||||||||||
Total gross realized losses | $ | 46 | $ | 442 | $ | 732 | $ | 502 | |||||||||||||||||
There were no impairment charges included in gross realized losses for the three and nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Investment securities with a carrying value of approximately $128,672,000 and $141,876,000 at September 30, 2014 and December 31, 2013, respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law. |
Federal_Home_Loan_Bank_Stock
Federal Home Loan Bank Stock | 9 Months Ended |
Sep. 30, 2014 | |
Federal Home Loan Bank Stock | ' |
Federal Home Loan Bank Stock | ' |
Federal Home Loan Bank Stock | |
Jersey Shore State Bank and Luzerne Bank are both members of the Federal Home Loan Bank (“FHLB”) of Pittsburgh and as such, are required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment as necessary. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. | |
Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. Management considered that the FHLB maintains regulatory capital ratios in excess of all regulatory capital requirements, liquidity appears adequate, new shares of FHLB stock continue to change hands at the $100 par value, and the payment of dividends. |
Credit_Quality_and_Related_All
Credit Quality and Related Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Credit Quality and Related Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
Credit Quality and Related Allowance for Loan Losses | |||||||||||||||||||||||||||||
Management segments the Bank’s loan portfolio to a level that enables risk and performance monitoring according to similar risk characteristics. Loans are segmented based on the underlying collateral characteristics. Categories include commercial and agricultural, real estate, and installment loans to individuals. Real estate loans are further segmented into three categories: residential, commercial and construction. | |||||||||||||||||||||||||||||
The following table presents the related aging categories of loans, by segment, as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Past Due | Past Due 90 | ||||||||||||||||||||||||||||
30 To 89 | Days Or More | Non- | |||||||||||||||||||||||||||
(In Thousands) | Current | Days | & Still Accruing | Accrual | Total | ||||||||||||||||||||||||
Commercial and agricultural | $ | 123,317 | $ | 142 | $ | — | $ | 820 | $ | 124,279 | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 432,722 | 1,742 | 202 | 808 | 435,474 | ||||||||||||||||||||||||
Commercial | 277,696 | 2,235 | — | 9,452 | 289,383 | ||||||||||||||||||||||||
Construction | 21,132 | 10 | — | 1,012 | 22,154 | ||||||||||||||||||||||||
Installment loans to individuals | 20,408 | 311 | — | — | 20,719 | ||||||||||||||||||||||||
875,275 | $ | 4,440 | $ | 202 | $ | 12,092 | 892,009 | ||||||||||||||||||||||
Net deferred loan fees and discounts | (1,282 | ) | (1,282 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (9,250 | ) | (9,250 | ) | |||||||||||||||||||||||||
Loans, net | $ | 864,743 | $ | 881,477 | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Past Due | Past Due 90 | ||||||||||||||||||||||||||||
30 To 89 | Days Or More | Non- | |||||||||||||||||||||||||||
(In Thousands) | Current | Days | & Still Accruing | Accrual | Total | ||||||||||||||||||||||||
Commercial and agricultural | $ | 104,419 | $ | 502 | $ | — | $ | 108 | $ | 105,029 | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 392,300 | 6,424 | 531 | 526 | 399,781 | ||||||||||||||||||||||||
Commercial | 272,745 | 2,533 | — | 7,198 | 282,476 | ||||||||||||||||||||||||
Construction | 15,967 | — | 73 | 1,242 | 17,282 | ||||||||||||||||||||||||
Installment loans to individuals | 14,170 | 477 | — | — | 14,647 | ||||||||||||||||||||||||
799,601 | $ | 9,936 | $ | 604 | $ | 9,074 | 819,215 | ||||||||||||||||||||||
Net deferred loan fees and discounts | (871 | ) | (871 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (10,144 | ) | (10,144 | ) | |||||||||||||||||||||||||
Loans, net | $ | 788,586 | $ | 808,200 | |||||||||||||||||||||||||
Purchased loans acquired are recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. | |||||||||||||||||||||||||||||
Upon the acquisition of Luzerne Bank on June 1, 2013, the Company evaluated whether each acquired loan (regardless of size) was within the scope of ASC 310-30, Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality. Purchased credit-impaired loans are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. There were no material increases or decreases in the expected cash flows of these loans between June 1, 2013 (the “acquisition date”) and September 30, 2014. The fair value of purchased credit-impaired loans, on the acquisition date, was determined, primarily based on the fair value of loan collateral. The carrying value of purchased loans acquired with deteriorated credit quality was $655,000 at September 30, 2014. | |||||||||||||||||||||||||||||
On the acquisition date, the preliminary estimate of the unpaid principal balance for all loans evidencing credit impairment acquired in the Luzerne Bank acquisition was $1,211,000 and the estimated fair value of the loans was $878,000. Total contractually required payments on these loans, including interest, at the acquisition date was $1,783,000. However, the Company’s preliminary estimate of expected cash flows was $941,000. At such date, the Company established a credit risk related non-accretable discount (a discount representing amounts which are not expected to be collected from either the customer or liquidation of collateral) of $842,000 relating to these impaired loans, reflected in the recorded net fair value. Such amount is reflected as a non-accretable fair value adjustment to loans. The Company further estimated the timing and amount of expected cash flows in excess of the estimated fair value and established an accretable discount of $63,000 on the acquisition date relating to these impaired loans. | |||||||||||||||||||||||||||||
The carrying value of the loans acquired in the Luzerne Bank transaction with specific evidence of deterioration in credit quality was determined by projecting discounted contractual cash flows. The table below presents the components of the purchase accounting adjustments related to the purchased impaired loans acquired in the Luzerne Bank acquisition as of June 1, 2013: | |||||||||||||||||||||||||||||
Changes in the amortizable yield for purchased credit-impaired loans were as follows for the nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
(In Thousands) | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
Balance at beginning of period or at acquisition | $ | 35 | $ | 63 | |||||||||||||||||||||||||
Accretion | (12 | ) | (17 | ) | |||||||||||||||||||||||||
Balance at end of period | $ | 23 | $ | 46 | |||||||||||||||||||||||||
The following table presents additional information regarding loans acquired in the Luzerne Bank transaction with specific evidence of deterioration in credit quality: | |||||||||||||||||||||||||||||
(In Thousands) | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Outstanding balance | $ | 755 | $ | 1,224 | |||||||||||||||||||||||||
Carrying amount | 655 | 868 | |||||||||||||||||||||||||||
There were no material increases or decreases in the expected cash flows of these loans between June 1, 2013 (the “acquisition date”) and September 30, 2014. There has been no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of September 30, 2014. | |||||||||||||||||||||||||||||
The following table presents interest income the Bank would have recorded if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Interest Income That | Interest | Interest Income That | Interest | |||||||||||||||||||||||||
Would Have Been | Income | Would Have Been | Income | ||||||||||||||||||||||||||
Recorded Based on | Recorded on | Recorded Based on | Recorded on | ||||||||||||||||||||||||||
Original Term and Rate | a Cash Basis | Original Term and Rate | a Cash Basis | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 17 | $ | 20 | $ | — | $ | — | |||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 31 | 8 | 13 | 10 | |||||||||||||||||||||||||
Commercial | 147 | 66 | 49 | 5 | |||||||||||||||||||||||||
Construction | 18 | — | 16 | 8 | |||||||||||||||||||||||||
$ | 213 | $ | 94 | $ | 78 | $ | 23 | ||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Interest Income That | Interest | Interest Income That | Interest | |||||||||||||||||||||||||
Would Have Been | Income | Would Have Been | Income | ||||||||||||||||||||||||||
Recorded Based on | Recorded on | Recorded Based on | Recorded on | ||||||||||||||||||||||||||
Original Term and Rate | a Cash Basis | Original Term and Rate | a Cash Basis | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 34 | $ | 21 | $ | 4 | $ | — | |||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 38 | 17 | 67 | 22 | |||||||||||||||||||||||||
Commercial | 422 | 152 | 165 | 89 | |||||||||||||||||||||||||
Construction | 53 | — | 97 | 33 | |||||||||||||||||||||||||
$ | 547 | $ | 190 | $ | 333 | $ | 144 | ||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Impaired loans are loans for which it is probable the Bank will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Bank evaluates such loans for impairment individually and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. The Bank may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral. | |||||||||||||||||||||||||||||
Management evaluates individual loans in all of the commercial segments for possible impairment if the loan is greater than $100,000 and if the loan is either on non-accrual status or has a risk rating of substandard. Management may also elect to measure an individual loan for impairment if less than $100,000 on a case-by-case basis. | |||||||||||||||||||||||||||||
Mortgage loans on one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Interest income for impaired loans is recorded consistent with the Bank’s policy on nonaccrual loans. | |||||||||||||||||||||||||||||
The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Recorded | Unpaid Principal | Related | |||||||||||||||||||||||||||
(In Thousands) | Investment | Balance | Allowance | ||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | $ | 620 | $ | 620 | $ | — | |||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 613 | 713 | — | ||||||||||||||||||||||||||
Commercial | 2,601 | 2,601 | — | ||||||||||||||||||||||||||
Construction | 510 | 510 | — | ||||||||||||||||||||||||||
4,344 | 4,444 | — | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | 516 | 516 | 150 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 741 | 764 | 80 | ||||||||||||||||||||||||||
Commercial | 8,335 | 8,834 | 1,079 | ||||||||||||||||||||||||||
Construction | 805 | 1,660 | 171 | ||||||||||||||||||||||||||
10,397 | 11,774 | 1,480 | |||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial and agricultural | 1,136 | 1,136 | 150 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,354 | 1,477 | 80 | ||||||||||||||||||||||||||
Commercial | 10,936 | 11,435 | 1,079 | ||||||||||||||||||||||||||
Construction | 1,315 | 2,170 | 171 | ||||||||||||||||||||||||||
$ | 14,741 | $ | 16,218 | $ | 1,480 | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Recorded | Unpaid Principal | Related | |||||||||||||||||||||||||||
(In Thousands) | Investment | Balance | Allowance | ||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 916 | 1,173 | — | ||||||||||||||||||||||||||
Commercial | 623 | 879 | — | ||||||||||||||||||||||||||
Construction | 528 | 528 | — | ||||||||||||||||||||||||||
2,067 | 2,580 | — | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | 532 | 532 | 224 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 319 | 342 | 65 | ||||||||||||||||||||||||||
Commercial | 7,598 | 7,742 | 2,153 | ||||||||||||||||||||||||||
Construction | 512 | 1,367 | 113 | ||||||||||||||||||||||||||
8,961 | 9,983 | 2,555 | |||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial and agricultural | 532 | 532 | 224 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,235 | 1,515 | 65 | ||||||||||||||||||||||||||
Commercial | 8,221 | 8,621 | 2,153 | ||||||||||||||||||||||||||
Construction | 1,040 | 1,895 | 113 | ||||||||||||||||||||||||||
$ | 11,028 | $ | 12,563 | $ | 2,555 | ||||||||||||||||||||||||
The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended for September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Average | Interest Income | Interest Income | Average | Interest Income | Interest Income | |||||||||||||||||||||||
Investment in | Recognized on an | Recognized on a | Investment in | Recognized on an | Recognized on a | ||||||||||||||||||||||||
Impaired Loans | Accrual Basis on | Cash Basis on | Impaired Loans | Accrual Basis on | Cash Basis on | ||||||||||||||||||||||||
Impaired Loans | Impaired Loans | Impaired Loans | Impaired Loans | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 824 | $ | 5 | $ | 20 | $ | 786 | $ | 7 | $ | — | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,219 | 18 | 7 | 1,652 | 28 | 10 | |||||||||||||||||||||||
Commercial | 10,901 | 34 | 65 | 8,277 | 45 | 5 | |||||||||||||||||||||||
Construction | 1,169 | 8 | — | 1,119 | 1 | 8 | |||||||||||||||||||||||
$ | 14,113 | $ | 65 | $ | 92 | $ | 11,834 | $ | 81 | $ | 23 | ||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Average | Interest Income | Interest Income | Average | Interest Income | Interest Income | |||||||||||||||||||||||
Investment in | Recognized on an | Recognized on a | Investment in | Recognized on an | Recognized on a | ||||||||||||||||||||||||
Impaired Loans | Accrual Basis on | Cash Basis on | Impaired Loans | Accrual Basis on | Cash Basis on | ||||||||||||||||||||||||
Impaired Loans | Impaired Loans | Impaired Loans | Impaired Loans | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 675 | $ | 18 | $ | 20 | $ | 869 | $ | 20 | $ | — | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,195 | 32 | 14 | 2,110 | 45 | 21 | |||||||||||||||||||||||
Commercial | 10,240 | 95 | 79 | 11,278 | 138 | 89 | |||||||||||||||||||||||
Construction | 1,102 | 10 | 8 | 4,071 | 1 | 561 | |||||||||||||||||||||||
$ | 13,212 | $ | 155 | $ | 121 | $ | 18,328 | $ | 204 | $ | 671 | ||||||||||||||||||
Currently, there is $0 committed to be advanced in connection with impaired loans. | |||||||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||||||
The loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (“TDR”), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. | |||||||||||||||||||||||||||||
Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands, Except Number of Contracts) | Number | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
of | of | ||||||||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||||||
Commercial and agricultural | 3 | $ | 620 | $ | 620 | — | $ | — | $ | — | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1 | 105 | 105 | — | — | — | |||||||||||||||||||||||
Commercial | 3 | 636 | 636 | 2 | 1,634 | 1,634 | |||||||||||||||||||||||
7 | $ | 1,361 | $ | 1,361 | 2 | $ | 1,634 | $ | 1,634 | ||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands, Except Number of Contracts) | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | ||||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
Commercial and agricultural | 3 | $ | 620 | $ | 620 | — | $ | — | $ | — | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1 | 105 | 105 | 2 | 61 | 61 | |||||||||||||||||||||||
Commercial | 3 | 636 | 636 | 4 | 1,898 | 1,898 | |||||||||||||||||||||||
7 | $ | 1,361 | $ | 1,361 | 6 | $ | 1,959 | $ | 1,959 | ||||||||||||||||||||
There was one loan modification considered a troubled debt restructuring made during the twelve months previous to September 30, 2014 that defaulted during the nine months ended September 30, 2014. The loan that defaulted is a commercial real estate loan with a recorded investment of $122,000 at September 30, 2014. | |||||||||||||||||||||||||||||
Troubled debt restructurings amounted to $12,558,000 and $11,472,000 as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||
Internal Risk Ratings | |||||||||||||||||||||||||||||
Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Loans in the doubtful category exhibit the same weaknesses found in the substandard loans, however, the weaknesses are more pronounced. Such loans are static and collection in full is improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Loans classified loss are considered uncollectible and charge-off is imminent. | |||||||||||||||||||||||||||||
To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the pass category unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. An external annual loan review of all commercial relationships $800,000 or greater is performed, as well as a sample of smaller transactions. Confirmation of the appropriate risk category is included in the review. Detailed reviews, including plans for resolution, are performed on loans classified as substandard, doubtful, or loss on a quarterly basis. | |||||||||||||||||||||||||||||
The following table presents the credit quality categories identified above as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Totals | |||||||||||||||||||||||
Pass | $ | 116,755 | $ | 433,579 | $ | 266,751 | $ | 21,442 | $ | 20,719 | $ | 859,246 | |||||||||||||||||
Special Mention | 6,240 | 1,476 | 7,674 | 216 | — | 15,606 | |||||||||||||||||||||||
Substandard | 1,284 | 419 | 14,958 | 496 | — | 17,157 | |||||||||||||||||||||||
$ | 124,279 | $ | 435,474 | $ | 289,383 | $ | 22,154 | $ | 20,719 | $ | 892,009 | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Totals | |||||||||||||||||||||||
Pass | $ | 99,256 | $ | 398,327 | $ | 259,505 | $ | 13,608 | $ | 14,647 | $ | 785,343 | |||||||||||||||||
Special Mention | 4,529 | 598 | 10,181 | 214 | — | 15,522 | |||||||||||||||||||||||
Substandard | 1,244 | 856 | 12,790 | 3,460 | — | 18,350 | |||||||||||||||||||||||
$ | 105,029 | $ | 399,781 | $ | 282,476 | $ | 17,282 | $ | 14,647 | $ | 819,215 | ||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated future loss experience, and the amount of non-performing loans. | |||||||||||||||||||||||||||||
The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (previously discussed) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. | |||||||||||||||||||||||||||||
Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. Allowances are segmented based on collateral characteristics previously disclosed, and consistent with credit quality monitoring. Loans that are collectively evaluated for impairment are grouped into two classes for evaluation. A general allowance is determined for “Pass” rated credits, while a separate pool allowance is provided for “Criticized” rated credits that are not individually evaluated for impairment. | |||||||||||||||||||||||||||||
For the general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. A historical charge-off factor is calculated utilizing a twelve quarter moving average. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. | |||||||||||||||||||||||||||||
Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management also monitors industry loss factors by loan segment for applicable adjustments to actual loss experience. | |||||||||||||||||||||||||||||
Management reviews the loan portfolio on a quarterly basis in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. | |||||||||||||||||||||||||||||
There has been no allowance for loan losses recorded for loans acquired in the Luzerne Bank transaction with or without specific evidence of deterioration in credit quality as of June 1, 2013 as well as those acquired without specific evidence of deterioration in credit quality as of September 30, 2014. | |||||||||||||||||||||||||||||
Activity in the allowance is presented for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 694 | $ | 3,262 | $ | 3,394 | $ | 718 | $ | 198 | $ | 545 | $ | 8,811 | |||||||||||||||
Charge-offs | — | (2 | ) | — | — | (36 | ) | — | (38 | ) | |||||||||||||||||||
Recoveries | 1 | 6 | — | — | 10 | — | 17 | ||||||||||||||||||||||
Provision | 133 | 157 | 283 | 67 | 64 | (244 | ) | 460 | |||||||||||||||||||||
Ending Balance | $ | 828 | $ | 3,423 | $ | 3,677 | $ | 785 | $ | 236 | $ | 301 | $ | 9,250 | |||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 540 | $ | 3,045 | $ | 3,988 | $ | 843 | $ | 141 | $ | 847 | $ | 9,404 | |||||||||||||||
Charge-offs | — | (105 | ) | (193 | ) | (100 | ) | (29 | ) | — | (427 | ) | |||||||||||||||||
Recoveries | 39 | (2 | ) | 1 | 1 | 14 | — | 53 | |||||||||||||||||||||
Provision | (59 | ) | 520 | (31 | ) | 8 | 14 | 148 | 600 | ||||||||||||||||||||
Ending Balance | $ | 520 | $ | 3,458 | $ | 3,765 | $ | 752 | $ | 140 | $ | 995 | $ | 9,630 | |||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 474 | $ | 3,917 | $ | 4,079 | $ | 741 | $ | 139 | $ | 794 | $ | 10,144 | |||||||||||||||
Charge-offs | — | (65 | ) | (2,038 | ) | — | (104 | ) | — | (2,207 | ) | ||||||||||||||||||
Recoveries | 12 | 9 | — | — | 47 | — | 68 | ||||||||||||||||||||||
Provision | 342 | (438 | ) | 1,636 | 44 | 154 | (493 | ) | 1,245 | ||||||||||||||||||||
Ending Balance | $ | 828 | $ | 3,423 | $ | 3,677 | $ | 785 | $ | 236 | $ | 301 | $ | 9,250 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 361 | $ | 1,954 | $ | 3,831 | $ | 950 | $ | 144 | $ | 377 | $ | 7,617 | |||||||||||||||
Charge-offs | — | (239 | ) | (199 | ) | (100 | ) | (79 | ) | — | (617 | ) | |||||||||||||||||
Recoveries | 52 | 3 | 7 | 851 | 42 | — | 955 | ||||||||||||||||||||||
Provision | 107 | 1,740 | 126 | (949 | ) | 33 | 618 | 1,675 | |||||||||||||||||||||
Ending Balance | $ | 520 | $ | 3,458 | $ | 3,765 | $ | 752 | $ | 140 | $ | 995 | $ | 9,630 | |||||||||||||||
The Company grants commercial, industrial, residential, and installment loans to customers throughout north-east and central Pennsylvania. Although the Company has a diversified loan portfolio at September 30, 2014, a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic conditions within this region. | |||||||||||||||||||||||||||||
The Company has a concentration of loans at September 30, 2014 and 2013 as follows: | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Owners of residential rental properties | 15.98 | % | 15.73 | % | |||||||||||||||||||||||||
Owners of commercial rental properties | 14.9 | % | 13.2 | % | |||||||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 150 | $ | 80 | $ | 1,079 | $ | 171 | $ | — | $ | — | $ | 1,480 | |||||||||||||||
Collectively evaluated for impairment | 678 | 3,343 | 2,598 | 614 | 236 | 301 | 7,770 | ||||||||||||||||||||||
Total ending allowance balance | $ | 828 | $ | 3,423 | $ | 3,677 | $ | 785 | $ | 236 | $ | 301 | $ | 9,250 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,136 | $ | 1,005 | $ | 10,630 | $ | 1,315 | $ | — | $ | 14,086 | |||||||||||||||||
Loans acquired with deteriorated credit quality | — | 349 | 306 | — | — | 655 | |||||||||||||||||||||||
Collectively evaluated for impairment | 123,143 | 434,120 | 278,447 | 20,839 | 20,719 | 877,268 | |||||||||||||||||||||||
Total ending loans balance | $ | 124,279 | $ | 435,474 | $ | 289,383 | $ | 22,154 | $ | 20,719 | $ | 892,009 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 224 | $ | 65 | $ | 2,153 | $ | 113 | $ | — | $ | — | $ | 2,555 | |||||||||||||||
Collectively evaluated for impairment | 250 | 3,852 | 1,926 | 628 | 139 | 794 | 7,589 | ||||||||||||||||||||||
Total ending allowance balance | $ | 474 | $ | 3,917 | $ | 4,079 | $ | 741 | $ | 139 | $ | 794 | $ | 10,144 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 532 | $ | 881 | $ | 7,707 | $ | 1,040 | $ | — | $ | 10,160 | |||||||||||||||||
Loans acquired with deteriorated credit quality | — | 354 | 514 | — | 868 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 104,497 | 398,546 | 274,255 | 16,242 | 14,647 | 808,187 | |||||||||||||||||||||||
Total ending loans balance | $ | 105,029 | $ | 399,781 | $ | 282,476 | $ | 17,282 | $ | 14,647 | $ | 819,215 | |||||||||||||||||
Net_Periodic_Benefit_CostDefin
Net Periodic Benefit Cost-Defined Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | ' | ||||||||||||||||
Net Periodic Benefit Cost-Defined Benefit Plans | ' | ||||||||||||||||
Net Periodic Benefit Cost-Defined Benefit Plans | |||||||||||||||||
For a detailed disclosure on the Company’s pension and employee benefits plans, please refer to Note 12 of the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||
The following sets forth the components of the net periodic benefit cost of the domestic non-contributory defined benefit plan for the three and nine months ended September 30, 2014 and 2013, respectively: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
(In Thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 140 | $ | 160 | $ | 420 | $ | 478 | |||||||||
Interest cost | 215 | 192 | 644 | 578 | |||||||||||||
Expected return on plan assets | (288 | ) | (246 | ) | (865 | ) | (738 | ) | |||||||||
Amortization of prior service cost | — | 6 | — | 19 | |||||||||||||
Amortization of net loss | 52 | 120 | 157 | 359 | |||||||||||||
Net periodic cost | $ | 119 | $ | 232 | $ | 356 | $ | 696 | |||||||||
Employer Contributions | |||||||||||||||||
The Company previously disclosed in its consolidated financial statements, included in the Annual Report on Form 10-K for the year ended December 31, 2013, that it expected to contribute a minimum of $600,000 to its defined benefit plan in 2014. As of September 30, 2014, there were contributions of $635,000 made to the plan with additional contributions of at least $180,000 anticipated during the remainder of 2014. |
Employee_Stock_Purchase_Plan
Employee Stock Purchase Plan | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Employee Stock Purchase Plan | ' |
Employee Stock Purchase Plan | |
The Company maintains an Employee Stock Purchase Plan (“Plan”). The Plan is intended to encourage employee participation in the ownership and economic progress of the Company. The Plan allows for up to 1,000,000 shares to be purchased by employees. The purchase price of the shares is 95% of market value with an employee eligible to purchase up to the lesser of 15% of base compensation or $12,000 in market value annually. During the nine months ended September 30, 2014 and 2013, there were 2,043 and 1,394 shares issued under the plan, respectively. |
Off_Balance_Sheet_Risk
Off Balance Sheet Risk | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Off Balance Sheet Risk | ' | ||||||||
Off Balance Sheet Risk | ' | ||||||||
Off Balance Sheet Risk | |||||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are primarily comprised of commitments to extend credit, standby letters of credit, and credit exposure from the sale of assets with recourse. These instruments involve, to varying degrees, elements of credit, interest rate, or liquidity risk in excess of the amount recognized in the consolidated balance sheet. The contract amounts of these instruments express the extent of involvement the Company has in particular classes of financial instruments. | |||||||||
The Company’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company may require collateral or other security to support financial instruments with off-balance sheet credit risk. | |||||||||
Financial instruments whose contract amounts represent credit risk are as follows at September 30, 2014 and December 31, 2013: | |||||||||
(In Thousands) | September 30, 2014 | December 31, 2013 | |||||||
Commitments to extend credit | $ | 245,514 | $ | 185,415 | |||||
Standby letters of credit | 7,150 | 4,379 | |||||||
Credit exposure from the sale of assets with recourse | 2,757 | — | |||||||
$ | 252,664 | $ | 189,794 | ||||||
Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, on an extension of credit is based on management’s credit assessment of the counterparty. | |||||||||
Standby letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance related contracts. The coverage period for these instruments is typically a one year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the coverage period. For secured letters of credit, the collateral is typically Bank deposit instruments or customer business assets. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. | |||||||||||||||||
Level I: | Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | ||||||||||||||||
Level II: | Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. | ||||||||||||||||
Level III: | Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | ||||||||||||||||
This hierarchy requires the use of observable market data when available. | |||||||||||||||||
The following table presents the assets reported on the balance sheet at their fair value on a recurring basis as of September 30, 2014 and December 31, 2013, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Investment securities, available for sale: | |||||||||||||||||
U.S. Government and agency securities | $ | — | $ | 5,796 | $ | — | $ | 5,796 | |||||||||
Mortgage-backed securities | — | 11,135 | — | 11,135 | |||||||||||||
Asset-backed securities | — | 2,571 | — | 2,571 | |||||||||||||
State and political securities | — | 111,782 | — | 111,782 | |||||||||||||
Other debt securities | — | 89,736 | — | 89,736 | |||||||||||||
Financial institution equity securities | 9,221 | — | — | 9,221 | |||||||||||||
Other equity securities | 3,393 | — | — | 3,393 | |||||||||||||
Total assets measured on a recurring basis | $ | 12,614 | $ | 221,020 | $ | — | $ | 233,634 | |||||||||
December 31, 2013 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Investment securities, available for sale: | |||||||||||||||||
U.S. Government and agency securities | $ | — | $ | 9,923 | $ | — | $ | 9,923 | |||||||||
Mortgage-backed securities | — | 10,592 | — | 10,592 | |||||||||||||
Asset-backed securities | — | 6,564 | — | 6,564 | |||||||||||||
State and political securities | — | 141,795 | — | 141,795 | |||||||||||||
Other debt securities | — | 106,773 | — | 106,773 | |||||||||||||
Financial institution equity securities | 10,662 | — | — | 10,662 | |||||||||||||
Other equity securities | 2,303 | — | — | 2,303 | |||||||||||||
Total assets measured on a recurring basis | $ | 12,965 | $ | 275,647 | $ | — | $ | 288,612 | |||||||||
The following table presents the assets reported on the consolidated balance sheet at their fair value on a non-recurring basis as of September 30, 2014 and December 31, 2013, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 13,261 | $ | 13,261 | |||||||||
Other real estate owned | — | — | 1,555 | 1,555 | |||||||||||||
Total assets measured on a non-recurring basis | $ | — | $ | — | $ | 14,816 | $ | 14,816 | |||||||||
December 31, 2013 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 8,473 | $ | 8,473 | |||||||||
Other real estate owned | — | — | 1,898 | 1,898 | |||||||||||||
Total assets measured on a non-recurring basis | $ | — | $ | — | $ | 10,371 | $ | 10,371 | |||||||||
The following tables present a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of September 30, 2014 and December 31, 2013: | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Quantitative Information About Level III Fair Value Measurements | |||||||||||||||||
(In Thousands) | Fair Value | Valuation Technique(s) | Unobservable Inputs | Range | Weighted Average | ||||||||||||
Impaired loans | $ | 13,261 | Discounted cash flow | Temporary reduction in payment amount | 0 to -91% | 14% | |||||||||||
Probability of default | —% | —% | |||||||||||||||
Appraisal of collateral | Appraisal adjustments (1) | 0 to -32% | 19% | ||||||||||||||
Other real estate owned | $ | 1,555 | Appraisal of collateral (1) | ||||||||||||||
(1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Quantitative Information About Level III Fair Value Measurements | |||||||||||||||||
(In Thousands) | Fair Value | Valuation Technique(s) | Unobservable Inputs | Range | Weighted Average | ||||||||||||
Impaired loans | $ | 8,473 | Discounted cash flow | Temporary reduction in payment amount | 0 to -91% | -18% | |||||||||||
Probability of default | —% | —% | |||||||||||||||
Appraisal of collateral | Appraisal adjustments (1) | 0 to -44% | -21% | ||||||||||||||
Other real estate owned | $ | 1,898 | Appraisal of collateral (1) | ||||||||||||||
(1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | |||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s impaired loans using the discounted cash flow valuation technique include temporary changes in payment amounts and the probability of default. Significant increases (decreases) in payment amounts would result in significantly higher (lower) fair value measurements. The probability of default is 0% for impaired loans using the discounted cash flow valuation technique because all defaulted impaired loans are valued using the appraisal of collateral valuation technique. | |||||||||||||||||
The significant unobservable input used in the fair value measurement of the Company’s impaired loans using the appraisal of collateral valuation technique include appraisal adjustments, which are adjustments to appraisals by management for qualitative factors such as economic conditions and estimated liquidation expenses. The significant unobservable input used in the fair value measurement of the Company’s other real estate owned are the same inputs used to value impaired loans using the appraisal of collateral valuation technique. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The Company is required to disclose fair values for its financial instruments. Fair values are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Also, it is the Company’s general practice and intention to hold most of its financial instruments to maturity and not to engage in trading or sales activities. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the fair values. | |||||||||||||||||||||
Fair values have been determined by the Company using historical data and an estimation methodology suitable for each category of financial instruments. The Company’s fair values, methods, and assumptions are set forth below for the Company’s other financial instruments. | |||||||||||||||||||||
As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Company, are not considered financial instruments but have value, this fair value of financial instruments would not represent the full market value of the Company. | |||||||||||||||||||||
The fair values of the Company’s financial instruments are as follows at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Carrying | Fair | Fair Value Measurements at September 30, 2014 | |||||||||||||||||||
(In Thousands) | Value | Value | Level I | Level II | Level III | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 25,242 | $ | 25,242 | $ | 25,242 | $ | — | $ | — | |||||||||||
Investment securities: | |||||||||||||||||||||
Available for sale | 233,634 | 233,634 | 12,614 | 221,020 | — | ||||||||||||||||
Loans held for sale | 1,602 | 1,602 | 1,602 | — | — | ||||||||||||||||
Loans, net | 881,477 | 880,287 | — | — | 880,287 | ||||||||||||||||
Bank-owned life insurance | 25,781 | 25,781 | 25,781 | — | — | ||||||||||||||||
Accrued interest receivable | 4,298 | 4,298 | 4,298 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Interest-bearing deposits | $ | 756,540 | $ | 734,161 | $ | 516,131 | $ | — | $ | 218,030 | |||||||||||
Noninterest-bearing deposits | 232,588 | 232,588 | 232,588 | — | — | ||||||||||||||||
Short-term borrowings | 17,213 | 17,213 | 17,213 | — | — | ||||||||||||||||
Long-term borrowings | 71,202 | 73,194 | — | — | 73,194 | ||||||||||||||||
Accrued interest payable | 411 | 411 | 411 | — | — | ||||||||||||||||
Carrying | Fair | Fair Value Measurements at December 31, 2013 | |||||||||||||||||||
(In Thousands) | Value | Value | Level I | Level II | Level III | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 24,606 | $ | 24,606 | $ | 24,606 | $ | — | $ | — | |||||||||||
Investment securities: | |||||||||||||||||||||
Available for sale | 288,612 | 288,612 | 12,965 | 275,647 | — | ||||||||||||||||
Loans held for sale | 1,626 | 1,626 | 1,626 | — | — | ||||||||||||||||
Loans, net | 808,200 | 808,895 | — | — | 808,895 | ||||||||||||||||
Bank-owned life insurance | 25,410 | 25,410 | 25,410 | — | — | ||||||||||||||||
Accrued interest receivable | 4,696 | 4,696 | 4,696 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Interest-bearing deposits | $ | 755,625 | $ | 724,456 | $ | 488,818 | $ | — | $ | 235,638 | |||||||||||
Noninterest-bearing deposits | 217,377 | 217,377 | 217,377 | — | — | ||||||||||||||||
Short-term borrowings | 26,716 | 26,716 | 26,716 | — | — | ||||||||||||||||
Long-term borrowings | 71,202 | 73,248 | — | — | 73,248 | ||||||||||||||||
Accrued interest payable | 405 | 405 | 405 | — | — | ||||||||||||||||
Cash and Cash Equivalents, Loans Held for Sale, Accrued Interest Receivable, Short-term Borrowings, and Accrued Interest Payable: | |||||||||||||||||||||
The fair value is equal to the carrying value. | |||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||
The fair value of investment securities available for sale and held to maturity is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Regulatory stocks’ fair value is equal to the carrying value. | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial and agricultural, commercial real estate, residential real estate, construction real estate, and installment loans to individuals. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories. | |||||||||||||||||||||
The fair value of performing loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Company’s historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions. | |||||||||||||||||||||
Fair value for significant nonperforming loans is based on recent external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discounted rates are judgmentally determined using available market information and specific borrower information. | |||||||||||||||||||||
Bank-Owned Life Insurance: | |||||||||||||||||||||
The fair value is equal to the cash surrender value of the life insurance policies. | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. | |||||||||||||||||||||
The fair value estimates above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible. | |||||||||||||||||||||
Long Term Borrowings: | |||||||||||||||||||||
The fair value of long term borrowings is based on the discounted value of contractual cash flows. | |||||||||||||||||||||
Commitments to Extend Credit, Standby Letters of Credit, and Financial Guarantees Written: | |||||||||||||||||||||
There is no material difference between the notional amount and the estimated fair value of off-balance sheet items. The contractual amounts of unfunded commitments and letters of credit are presented in Note 10 (Off Balance Sheet Risk). |
Reclassification_of_Comparativ
Reclassification of Comparative Amounts | 9 Months Ended |
Sep. 30, 2014 | |
Reclassification of Comparative Amounts | ' |
Reclassification of Comparative Amounts | ' |
Reclassification of Comparative Amounts | |
Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders’ equity. |
Acquisition_of_Luzerne_Nationa
Acquisition of Luzerne National Bank Corporation | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Acquisition of Luzerne National Bank Corporation | ' |
Acquisition of Luzerne National Bank Corporation | |
On June 1, 2013, the Company closed on a merger transaction pursuant to which Penns Woods Bancorp, Inc. acquired Luzerne National Bank Corporation in a stock and cash transaction. The acquisition extended the Company’s footprint into Luzerne and Lackawanna Counties, Pennsylvania. | |
Luzerne National Bank Corporation was the holding company for Luzerne Bank, a Pennsylvania bank that conducted its business from a main office in Luzerne, Pennsylvania with eight branch offices in Luzerne County and one loan production office in Lackawanna County, all in northeastern Pennsylvania. Since June 1, 2013, the loan production office in Lackawanna County has been closed. | |
Under the terms of the merger agreement, the Company acquired all of the outstanding shares of Luzerne National Bank Corporation for a total purchase price of approximately $42,612,000. As a result of the acquisition, the Company issued 978,977 common shares, or 20.35% of the total shares outstanding as of September 30, 2014, to former shareholders of Luzerne National Bank Corporation. Luzerne Bank is operating as an independent bank under the Penns Woods Bancorp, Inc. umbrella. | |
The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, and historical loss factors of Luzerne Bank. Real estate acquired through foreclosure was primarily valued based on appraised collateral values. The Company also recorded an identifiable intangible asset representing the core deposit base of Luzerne Bank based on management’s evaluation of the cost of such deposits relative to alternative funding sources. The Company also recorded an identifiable intangible asset representing the trade name of Luzerne Bank based on management’s evaluation of the value of the name in the market. Management used significant estimates including the average lives of depository accounts, future interest rate levels, and the cost of servicing various depository products. Management used market quotations to determine the fair value of investment securities. | |
The business combination resulted in the acquisition of loans with and without evidence of credit quality deterioration. Luzerne Bank’s loans were deemed impaired at the acquisition date if the Company did not expect to receive all contractually required cash flows due to concerns about credit quality. Such loans were fair valued and the difference between contractually required payments at the acquisition date and cash flows expected to be collected was recorded as a non-accretable difference. At the acquisition date, the Company recorded $1,211,000 of purchased credit-impaired loans subject to a non-accretable difference of $842,000. The method of measuring carrying value of purchased loans differs from loans originated by the Company (originated loans), and as such, the Company identifies purchased loans and purchased loans with a credit quality discount and originated loans at amortized cost. | |
Luzerne Bank’s loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and payment speeds. At acquisition, Luzerne Bank’s loan portfolio without evidence of deterioration totaled $249,789,000 and was recorded at a fair value of $249,500,000. | |
CAUTIONARY STATEMENT FOR PURPOSES OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 | |
This Report contains certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements which are other than statements of historical fact. The Company cautions readers that the following important factors, among others, may have affected and could in the future affect the Company’s actual results and could cause the Company’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, with which the Company must comply, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effect of changes in the business cycle and downturns in the local, regional or national economies; and (vi) our ability to successfully integrate the business of Luzerne Bank. | |
You should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Quarterly Report on Form 10-Q, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In January 2014, FASB issued ASU 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In January 2014, the FASB issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor, and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. | |
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. | |
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In August 2014, the FASB issued ASU 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this update require that a mortgage loan be de-recognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). The amendments in this update provide guidance in accounting principles generally accepted in the United States of America about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income by component | ' | ||||||||||||||||||||||||
The changes in accumulated other comprehensive loss by component as of September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
(In Thousands) | Net Unrealized Gain (Loss) on Available | Defined | Total | Net Unrealized Gain | Defined | Total | |||||||||||||||||||
for Sale Securities | Benefit | (Loss) on Available | Benefit | ||||||||||||||||||||||
Plan | for Sale Securities | Plan | |||||||||||||||||||||||
Balance, June 30, | $ | 3,360 | $ | (2,725 | ) | $ | 635 | $ | 286 | $ | (4,807 | ) | $ | (4,521 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 570 | — | 570 | (1,087 | ) | — | (1,087 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,416 | ) | — | (1,416 | ) | 2 | — | 2 | |||||||||||||||||
Net current-period other comprehensive loss | (846 | ) | — | (846 | ) | (1,085 | ) | — | (1,085 | ) | |||||||||||||||
Balance, September 30 | $ | 2,514 | $ | (2,725 | ) | $ | (211 | ) | $ | (799 | ) | $ | (4,807 | ) | $ | (5,606 | ) | ||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(In Thousands) | Net Unrealized Gain (Loss) on Available | Defined | Total | Net Unrealized Gain | Defined | Total | |||||||||||||||||||
for Sale Securities | Benefit | (Loss) on Available | Benefit | ||||||||||||||||||||||
Plan | for Sale Securities | Plan | |||||||||||||||||||||||
Balance, December 31 | $ | (2,169 | ) | $ | (2,725 | ) | $ | (4,894 | ) | $ | 10,164 | $ | (4,807 | ) | $ | 5,357 | |||||||||
Other comprehensive (loss) income before reclassifications | 6,679 | — | 6,679 | (9,473 | ) | — | (9,473 | ) | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (1,996 | ) | — | (1,996 | ) | (1,490 | ) | — | (1,490 | ) | |||||||||||||||
Net current-period other comprehensive (loss) income | 4,683 | — | 4,683 | (10,963 | ) | — | (10,963 | ) | |||||||||||||||||
Balance, September 30 | $ | 2,514 | $ | (2,725 | ) | $ | (211 | ) | $ | (799 | ) | $ | (4,807 | ) | $ | (5,606 | ) | ||||||||
Schedule of reclassifications out of accumulated other comprehensive income | ' | ||||||||||||||||||||||||
The reclassifications out of accumulated other comprehensive loss as of September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item | |||||||||||||||||||||||
in the Consolidated | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Statement of Income | |||||||||||||||||||||||
Net unrealized gain (loss) on available for sale securities | $ | 2,145 | $ | (3 | ) | Securities gains (losses), net | |||||||||||||||||||
Income tax effect | 729 | (1 | ) | Income tax provision | |||||||||||||||||||||
Total reclassifications for the period | $ | 1,416 | $ | (2 | ) | Net of tax | |||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item | |||||||||||||||||||||||
in the Consolidated | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | Statement of Income | |||||||||||||||||||||||
Net unrealized gain on available for sale securities | $ | 3,025 | $ | 2,257 | Securities gains (losses), net | ||||||||||||||||||||
Income tax effect | 1,029 | 767 | Income tax provision | ||||||||||||||||||||||
Total reclassifications for the period | $ | 1,996 | $ | 1,490 | Net of tax | ||||||||||||||||||||
Per_Share_Data_Tables
Per Share Data (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of weighted average common shares (denominator) used in the basic and dilutive earnings per share computation | ' | ||||||||||||
The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and dilutive earnings per share computation. | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Weighted average common shares issued | 5,001,505 | 4,999,090 | 5,000,827 | 4,453,585 | |||||||||
Average treasury stock shares | (181,159 | ) | (180,596 | ) | (180,786 | ) | (180,596 | ) | |||||
Weighted average common shares and common stock equivalents used to calculate basic and diluted earnings per share | 4,820,346 | 4,818,494 | 4,820,041 | 4,272,989 | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of amortized cost and fair values of investment securities | ' | ||||||||||||||||||||||||
The amortized cost and fair values of investment securities at September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
(In Thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Available for sale (AFS) | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | 5,935 | $ | 1 | $ | (140 | ) | $ | 5,796 | ||||||||||||||||
Mortgage-backed securities | 10,689 | 495 | (49 | ) | 11,135 | ||||||||||||||||||||
Asset-backed securities | 2,536 | 38 | (3 | ) | 2,571 | ||||||||||||||||||||
State and political securities | 108,801 | 3,779 | (798 | ) | 111,782 | ||||||||||||||||||||
Other debt securities | 90,130 | 932 | (1,326 | ) | 89,736 | ||||||||||||||||||||
Total debt securities | 218,091 | 5,245 | (2,316 | ) | 221,020 | ||||||||||||||||||||
Financial institution equity securities | 8,304 | 938 | (21 | ) | 9,221 | ||||||||||||||||||||
Other equity securities | 3,430 | 64 | (101 | ) | 3,393 | ||||||||||||||||||||
Total equity securities | 11,734 | 1,002 | (122 | ) | 12,614 | ||||||||||||||||||||
Total investment securities AFS | $ | 229,825 | $ | 6,247 | $ | (2,438 | ) | $ | 233,634 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
(In Thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||
Available for sale (AFS) | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | 9,989 | $ | 17 | $ | (83 | ) | $ | 9,923 | ||||||||||||||||
Mortgage-backed securities | 9,966 | 694 | (68 | ) | 10,592 | ||||||||||||||||||||
Asset-backed securities | 6,700 | 43 | (179 | ) | 6,564 | ||||||||||||||||||||
State and political securities | 145,121 | 2,120 | (5,446 | ) | 141,795 | ||||||||||||||||||||
Other debt securities | 108,939 | 879 | (3,045 | ) | 106,773 | ||||||||||||||||||||
Total debt securities | 280,715 | 3,753 | (8,821 | ) | 275,647 | ||||||||||||||||||||
Financial institution equity securities | 8,842 | 1,820 | — | 10,662 | |||||||||||||||||||||
Other equity securities | 2,342 | 28 | (67 | ) | 2,303 | ||||||||||||||||||||
Total equity securities | 11,184 | 1,848 | (67 | ) | 12,965 | ||||||||||||||||||||
Total investment securities AFS | $ | 291,899 | $ | 5,601 | $ | (8,888 | ) | $ | 288,612 | ||||||||||||||||
Schedule of gross unrealized losses and fair value | ' | ||||||||||||||||||||||||
The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government and agency securities | $ | 1,010 | $ | (1 | ) | $ | 3,816 | $ | (139 | ) | $ | 4,826 | $ | (140 | ) | ||||||||||
Mortgage-backed securities | 3,903 | (40 | ) | 891 | (9 | ) | 4,794 | (49 | ) | ||||||||||||||||
Asset-backed securities | — | — | 567 | (3 | ) | 567 | (3 | ) | |||||||||||||||||
State and political securities | 1,816 | (11 | ) | 7,722 | (787 | ) | 9,538 | (798 | ) | ||||||||||||||||
Other debt securities | 24,535 | (565 | ) | 27,188 | (761 | ) | 51,723 | (1,326 | ) | ||||||||||||||||
Total debt securities | 31,264 | (617 | ) | 40,184 | (1,699 | ) | 71,448 | (2,316 | ) | ||||||||||||||||
Financial institution equity securities | 369 | (21 | ) | — | — | 369 | (21 | ) | |||||||||||||||||
Other equity securities | 366 | (67 | ) | 766 | (34 | ) | 1,132 | (101 | ) | ||||||||||||||||
Total equity securities | 735 | (88 | ) | 766 | (34 | ) | 1,501 | (122 | ) | ||||||||||||||||
Total | $ | 31,999 | $ | (705 | ) | $ | 40,950 | $ | (1,733 | ) | $ | 72,949 | $ | (2,438 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
(In Thousands) | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
U.S. Government and agency securities | $ | 7,740 | $ | (83 | ) | $ | — | $ | — | $ | 7,740 | $ | (83 | ) | |||||||||||
Mortgage-backed securities | 2,483 | (68 | ) | — | — | 2,483 | (68 | ) | |||||||||||||||||
Asset-backed securities | 3,847 | (177 | ) | 712 | (2 | ) | 4,559 | (179 | ) | ||||||||||||||||
State and political securities | 42,577 | (2,558 | ) | 8,233 | (2,888 | ) | 50,810 | (5,446 | ) | ||||||||||||||||
Other debt securities | 73,254 | (3,045 | ) | — | — | 73,254 | (3,045 | ) | |||||||||||||||||
Total debt securities | 129,901 | (5,931 | ) | 8,945 | (2,890 | ) | 138,846 | (8,821 | ) | ||||||||||||||||
Financial institution equity securities | — | — | — | — | — | — | |||||||||||||||||||
Other equity securities | 274 | (22 | ) | 655 | (45 | ) | 929 | (67 | ) | ||||||||||||||||
Total equity securities | 274 | (22 | ) | 655 | (45 | ) | 929 | (67 | ) | ||||||||||||||||
Total | $ | 130,175 | $ | (5,953 | ) | $ | 9,600 | $ | (2,935 | ) | $ | 139,775 | $ | (8,888 | ) | ||||||||||
Schedule of amortized cost and fair value of debt securities by contractual maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair value of debt securities at September 30, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
(In Thousands) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 4,650 | $ | 4,718 | |||||||||||||||||||||
Due after one year to five years | 34,283 | 34,465 | |||||||||||||||||||||||
Due after five years to ten years | 100,281 | 99,983 | |||||||||||||||||||||||
Due after ten years | 78,877 | 81,854 | |||||||||||||||||||||||
Total | $ | 218,091 | $ | 221,020 | |||||||||||||||||||||
Schedule of gross realized gains and losses | ' | ||||||||||||||||||||||||
The following table represents gross realized gains and losses on those transactions: | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
(In Thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Gross realized gains: | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | — | $ | — | $ | 49 | $ | — | |||||||||||||||||
Mortgage-backed securities | 13 | — | 89 | — | |||||||||||||||||||||
State and political securities | 1,361 | 276 | 2,093 | 1,917 | |||||||||||||||||||||
Other debt securities | 149 | 163 | 611 | 462 | |||||||||||||||||||||
Financial institution equity securities | 582 | — | 710 | 130 | |||||||||||||||||||||
Other equity securities | 86 | — | 205 | 250 | |||||||||||||||||||||
Total gross realized gains | $ | 2,191 | $ | 439 | $ | 3,757 | $ | 2,759 | |||||||||||||||||
Gross realized losses: | |||||||||||||||||||||||||
U.S. Government and agency securities | $ | — | $ | — | $ | 45 | $ | — | |||||||||||||||||
State and political securities | 9 | 415 | 412 | 475 | |||||||||||||||||||||
Other debt securities | 37 | 27 | 209 | 27 | |||||||||||||||||||||
Other equity securities | — | — | 66 | — | |||||||||||||||||||||
Total gross realized losses | $ | 46 | $ | 442 | $ | 732 | $ | 502 | |||||||||||||||||
Credit_Quality_and_Related_All1
Credit Quality and Related Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of related aging categories of loans by segment | ' | ||||||||||||||||||||||||||||
The following table presents the related aging categories of loans, by segment, as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Past Due | Past Due 90 | ||||||||||||||||||||||||||||
30 To 89 | Days Or More | Non- | |||||||||||||||||||||||||||
(In Thousands) | Current | Days | & Still Accruing | Accrual | Total | ||||||||||||||||||||||||
Commercial and agricultural | $ | 123,317 | $ | 142 | $ | — | $ | 820 | $ | 124,279 | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 432,722 | 1,742 | 202 | 808 | 435,474 | ||||||||||||||||||||||||
Commercial | 277,696 | 2,235 | — | 9,452 | 289,383 | ||||||||||||||||||||||||
Construction | 21,132 | 10 | — | 1,012 | 22,154 | ||||||||||||||||||||||||
Installment loans to individuals | 20,408 | 311 | — | — | 20,719 | ||||||||||||||||||||||||
875,275 | $ | 4,440 | $ | 202 | $ | 12,092 | 892,009 | ||||||||||||||||||||||
Net deferred loan fees and discounts | (1,282 | ) | (1,282 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (9,250 | ) | (9,250 | ) | |||||||||||||||||||||||||
Loans, net | $ | 864,743 | $ | 881,477 | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Past Due | Past Due 90 | ||||||||||||||||||||||||||||
30 To 89 | Days Or More | Non- | |||||||||||||||||||||||||||
(In Thousands) | Current | Days | & Still Accruing | Accrual | Total | ||||||||||||||||||||||||
Commercial and agricultural | $ | 104,419 | $ | 502 | $ | — | $ | 108 | $ | 105,029 | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 392,300 | 6,424 | 531 | 526 | 399,781 | ||||||||||||||||||||||||
Commercial | 272,745 | 2,533 | — | 7,198 | 282,476 | ||||||||||||||||||||||||
Construction | 15,967 | — | 73 | 1,242 | 17,282 | ||||||||||||||||||||||||
Installment loans to individuals | 14,170 | 477 | — | — | 14,647 | ||||||||||||||||||||||||
799,601 | $ | 9,936 | $ | 604 | $ | 9,074 | 819,215 | ||||||||||||||||||||||
Net deferred loan fees and discounts | (871 | ) | (871 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (10,144 | ) | (10,144 | ) | |||||||||||||||||||||||||
Loans, net | $ | 788,586 | $ | 808,200 | |||||||||||||||||||||||||
Schedule of changes in the amortizable yield for purchased credit-impaired loans | ' | ||||||||||||||||||||||||||||
Changes in the amortizable yield for purchased credit-impaired loans were as follows for the nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
(In Thousands) | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||
Balance at beginning of period or at acquisition | $ | 35 | $ | 63 | |||||||||||||||||||||||||
Accretion | (12 | ) | (17 | ) | |||||||||||||||||||||||||
Balance at end of period | $ | 23 | $ | 46 | |||||||||||||||||||||||||
Schedule of additional information regarding loans acquired and accounted | ' | ||||||||||||||||||||||||||||
The following table presents additional information regarding loans acquired in the Luzerne Bank transaction with specific evidence of deterioration in credit quality: | |||||||||||||||||||||||||||||
(In Thousands) | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Outstanding balance | $ | 755 | $ | 1,224 | |||||||||||||||||||||||||
Carrying amount | 655 | 868 | |||||||||||||||||||||||||||
Schedule of interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans | ' | ||||||||||||||||||||||||||||
The following table presents interest income the Bank would have recorded if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Interest Income That | Interest | Interest Income That | Interest | |||||||||||||||||||||||||
Would Have Been | Income | Would Have Been | Income | ||||||||||||||||||||||||||
Recorded Based on | Recorded on | Recorded Based on | Recorded on | ||||||||||||||||||||||||||
Original Term and Rate | a Cash Basis | Original Term and Rate | a Cash Basis | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 17 | $ | 20 | $ | — | $ | — | |||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 31 | 8 | 13 | 10 | |||||||||||||||||||||||||
Commercial | 147 | 66 | 49 | 5 | |||||||||||||||||||||||||
Construction | 18 | — | 16 | 8 | |||||||||||||||||||||||||
$ | 213 | $ | 94 | $ | 78 | $ | 23 | ||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Interest Income That | Interest | Interest Income That | Interest | |||||||||||||||||||||||||
Would Have Been | Income | Would Have Been | Income | ||||||||||||||||||||||||||
Recorded Based on | Recorded on | Recorded Based on | Recorded on | ||||||||||||||||||||||||||
Original Term and Rate | a Cash Basis | Original Term and Rate | a Cash Basis | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 34 | $ | 21 | $ | 4 | $ | — | |||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 38 | 17 | 67 | 22 | |||||||||||||||||||||||||
Commercial | 422 | 152 | 165 | 89 | |||||||||||||||||||||||||
Construction | 53 | — | 97 | 33 | |||||||||||||||||||||||||
$ | 547 | $ | 190 | $ | 333 | $ | 144 | ||||||||||||||||||||||
Schedule of recorded investment, unpaid principal balance, and related allowance of impaired loans by segment | ' | ||||||||||||||||||||||||||||
The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Recorded | Unpaid Principal | Related | |||||||||||||||||||||||||||
(In Thousands) | Investment | Balance | Allowance | ||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | $ | 620 | $ | 620 | $ | — | |||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 613 | 713 | — | ||||||||||||||||||||||||||
Commercial | 2,601 | 2,601 | — | ||||||||||||||||||||||||||
Construction | 510 | 510 | — | ||||||||||||||||||||||||||
4,344 | 4,444 | — | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | 516 | 516 | 150 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 741 | 764 | 80 | ||||||||||||||||||||||||||
Commercial | 8,335 | 8,834 | 1,079 | ||||||||||||||||||||||||||
Construction | 805 | 1,660 | 171 | ||||||||||||||||||||||||||
10,397 | 11,774 | 1,480 | |||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial and agricultural | 1,136 | 1,136 | 150 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,354 | 1,477 | 80 | ||||||||||||||||||||||||||
Commercial | 10,936 | 11,435 | 1,079 | ||||||||||||||||||||||||||
Construction | 1,315 | 2,170 | 171 | ||||||||||||||||||||||||||
$ | 14,741 | $ | 16,218 | $ | 1,480 | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Recorded | Unpaid Principal | Related | |||||||||||||||||||||||||||
(In Thousands) | Investment | Balance | Allowance | ||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 916 | 1,173 | — | ||||||||||||||||||||||||||
Commercial | 623 | 879 | — | ||||||||||||||||||||||||||
Construction | 528 | 528 | — | ||||||||||||||||||||||||||
2,067 | 2,580 | — | |||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial and agricultural | 532 | 532 | 224 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 319 | 342 | 65 | ||||||||||||||||||||||||||
Commercial | 7,598 | 7,742 | 2,153 | ||||||||||||||||||||||||||
Construction | 512 | 1,367 | 113 | ||||||||||||||||||||||||||
8,961 | 9,983 | 2,555 | |||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial and agricultural | 532 | 532 | 224 | ||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,235 | 1,515 | 65 | ||||||||||||||||||||||||||
Commercial | 8,221 | 8,621 | 2,153 | ||||||||||||||||||||||||||
Construction | 1,040 | 1,895 | 113 | ||||||||||||||||||||||||||
$ | 11,028 | $ | 12,563 | $ | 2,555 | ||||||||||||||||||||||||
Schedule of average recorded investment in impaired loans and related interest income recognized | ' | ||||||||||||||||||||||||||||
The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended for September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Average | Interest Income | Interest Income | Average | Interest Income | Interest Income | |||||||||||||||||||||||
Investment in | Recognized on an | Recognized on a | Investment in | Recognized on an | Recognized on a | ||||||||||||||||||||||||
Impaired Loans | Accrual Basis on | Cash Basis on | Impaired Loans | Accrual Basis on | Cash Basis on | ||||||||||||||||||||||||
Impaired Loans | Impaired Loans | Impaired Loans | Impaired Loans | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 824 | $ | 5 | $ | 20 | $ | 786 | $ | 7 | $ | — | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,219 | 18 | 7 | 1,652 | 28 | 10 | |||||||||||||||||||||||
Commercial | 10,901 | 34 | 65 | 8,277 | 45 | 5 | |||||||||||||||||||||||
Construction | 1,169 | 8 | — | 1,119 | 1 | 8 | |||||||||||||||||||||||
$ | 14,113 | $ | 65 | $ | 92 | $ | 11,834 | $ | 81 | $ | 23 | ||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | Average | Interest Income | Interest Income | Average | Interest Income | Interest Income | |||||||||||||||||||||||
Investment in | Recognized on an | Recognized on a | Investment in | Recognized on an | Recognized on a | ||||||||||||||||||||||||
Impaired Loans | Accrual Basis on | Cash Basis on | Impaired Loans | Accrual Basis on | Cash Basis on | ||||||||||||||||||||||||
Impaired Loans | Impaired Loans | Impaired Loans | Impaired Loans | ||||||||||||||||||||||||||
Commercial and agricultural | $ | 675 | $ | 18 | $ | 20 | $ | 869 | $ | 20 | $ | — | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1,195 | 32 | 14 | 2,110 | 45 | 21 | |||||||||||||||||||||||
Commercial | 10,240 | 95 | 79 | 11,278 | 138 | 89 | |||||||||||||||||||||||
Construction | 1,102 | 10 | 8 | 4,071 | 1 | 561 | |||||||||||||||||||||||
$ | 13,212 | $ | 155 | $ | 121 | $ | 18,328 | $ | 204 | $ | 671 | ||||||||||||||||||
Schedule of loan modifications that are considered TDRs | ' | ||||||||||||||||||||||||||||
Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands, Except Number of Contracts) | Number | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
of | of | ||||||||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||||||
Commercial and agricultural | 3 | $ | 620 | $ | 620 | — | $ | — | $ | — | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1 | 105 | 105 | — | — | — | |||||||||||||||||||||||
Commercial | 3 | 636 | 636 | 2 | 1,634 | 1,634 | |||||||||||||||||||||||
7 | $ | 1,361 | $ | 1,361 | 2 | $ | 1,634 | $ | 1,634 | ||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands, Except Number of Contracts) | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||
of | Outstanding | Outstanding | of | Outstanding | Outstanding | ||||||||||||||||||||||||
Contracts | Recorded | Recorded | Contracts | Recorded | Recorded | ||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
Commercial and agricultural | 3 | $ | 620 | $ | 620 | — | $ | — | $ | — | |||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||
Residential | 1 | 105 | 105 | 2 | 61 | 61 | |||||||||||||||||||||||
Commercial | 3 | 636 | 636 | 4 | 1,898 | 1,898 | |||||||||||||||||||||||
7 | $ | 1,361 | $ | 1,361 | 6 | $ | 1,959 | $ | 1,959 | ||||||||||||||||||||
Schedule of credit quality categories | ' | ||||||||||||||||||||||||||||
The following table presents the credit quality categories identified above as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Totals | |||||||||||||||||||||||
Pass | $ | 116,755 | $ | 433,579 | $ | 266,751 | $ | 21,442 | $ | 20,719 | $ | 859,246 | |||||||||||||||||
Special Mention | 6,240 | 1,476 | 7,674 | 216 | — | 15,606 | |||||||||||||||||||||||
Substandard | 1,284 | 419 | 14,958 | 496 | — | 17,157 | |||||||||||||||||||||||
$ | 124,279 | $ | 435,474 | $ | 289,383 | $ | 22,154 | $ | 20,719 | $ | 892,009 | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Totals | |||||||||||||||||||||||
Pass | $ | 99,256 | $ | 398,327 | $ | 259,505 | $ | 13,608 | $ | 14,647 | $ | 785,343 | |||||||||||||||||
Special Mention | 4,529 | 598 | 10,181 | 214 | — | 15,522 | |||||||||||||||||||||||
Substandard | 1,244 | 856 | 12,790 | 3,460 | — | 18,350 | |||||||||||||||||||||||
$ | 105,029 | $ | 399,781 | $ | 282,476 | $ | 17,282 | $ | 14,647 | $ | 819,215 | ||||||||||||||||||
Schedule of activity in the allowance | ' | ||||||||||||||||||||||||||||
Activity in the allowance is presented for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 694 | $ | 3,262 | $ | 3,394 | $ | 718 | $ | 198 | $ | 545 | $ | 8,811 | |||||||||||||||
Charge-offs | — | (2 | ) | — | — | (36 | ) | — | (38 | ) | |||||||||||||||||||
Recoveries | 1 | 6 | — | — | 10 | — | 17 | ||||||||||||||||||||||
Provision | 133 | 157 | 283 | 67 | 64 | (244 | ) | 460 | |||||||||||||||||||||
Ending Balance | $ | 828 | $ | 3,423 | $ | 3,677 | $ | 785 | $ | 236 | $ | 301 | $ | 9,250 | |||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 540 | $ | 3,045 | $ | 3,988 | $ | 843 | $ | 141 | $ | 847 | $ | 9,404 | |||||||||||||||
Charge-offs | — | (105 | ) | (193 | ) | (100 | ) | (29 | ) | — | (427 | ) | |||||||||||||||||
Recoveries | 39 | (2 | ) | 1 | 1 | 14 | — | 53 | |||||||||||||||||||||
Provision | (59 | ) | 520 | (31 | ) | 8 | 14 | 148 | 600 | ||||||||||||||||||||
Ending Balance | $ | 520 | $ | 3,458 | $ | 3,765 | $ | 752 | $ | 140 | $ | 995 | $ | 9,630 | |||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 474 | $ | 3,917 | $ | 4,079 | $ | 741 | $ | 139 | $ | 794 | $ | 10,144 | |||||||||||||||
Charge-offs | — | (65 | ) | (2,038 | ) | — | (104 | ) | — | (2,207 | ) | ||||||||||||||||||
Recoveries | 12 | 9 | — | — | 47 | — | 68 | ||||||||||||||||||||||
Provision | 342 | (438 | ) | 1,636 | 44 | 154 | (493 | ) | 1,245 | ||||||||||||||||||||
Ending Balance | $ | 828 | $ | 3,423 | $ | 3,677 | $ | 785 | $ | 236 | $ | 301 | $ | 9,250 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Beginning Balance | $ | 361 | $ | 1,954 | $ | 3,831 | $ | 950 | $ | 144 | $ | 377 | $ | 7,617 | |||||||||||||||
Charge-offs | — | (239 | ) | (199 | ) | (100 | ) | (79 | ) | — | (617 | ) | |||||||||||||||||
Recoveries | 52 | 3 | 7 | 851 | 42 | — | 955 | ||||||||||||||||||||||
Provision | 107 | 1,740 | 126 | (949 | ) | 33 | 618 | 1,675 | |||||||||||||||||||||
Ending Balance | $ | 520 | $ | 3,458 | $ | 3,765 | $ | 752 | $ | 140 | $ | 995 | $ | 9,630 | |||||||||||||||
Schedule of concentration of loan | ' | ||||||||||||||||||||||||||||
The Company has a concentration of loans at September 30, 2014 and 2013 as follows: | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Owners of residential rental properties | 15.98 | % | 15.73 | % | |||||||||||||||||||||||||
Owners of commercial rental properties | 14.9 | % | 13.2 | % | |||||||||||||||||||||||||
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | ' | ||||||||||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 150 | $ | 80 | $ | 1,079 | $ | 171 | $ | — | $ | — | $ | 1,480 | |||||||||||||||
Collectively evaluated for impairment | 678 | 3,343 | 2,598 | 614 | 236 | 301 | 7,770 | ||||||||||||||||||||||
Total ending allowance balance | $ | 828 | $ | 3,423 | $ | 3,677 | $ | 785 | $ | 236 | $ | 301 | $ | 9,250 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,136 | $ | 1,005 | $ | 10,630 | $ | 1,315 | $ | — | $ | 14,086 | |||||||||||||||||
Loans acquired with deteriorated credit quality | — | 349 | 306 | — | — | 655 | |||||||||||||||||||||||
Collectively evaluated for impairment | 123,143 | 434,120 | 278,447 | 20,839 | 20,719 | 877,268 | |||||||||||||||||||||||
Total ending loans balance | $ | 124,279 | $ | 435,474 | $ | 289,383 | $ | 22,154 | $ | 20,719 | $ | 892,009 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Commercial and | Real Estate Mortgages | Installment Loans | |||||||||||||||||||||||||||
(In Thousands) | Agricultural | Residential | Commercial | Construction | to Individuals | Unallocated | Totals | ||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 224 | $ | 65 | $ | 2,153 | $ | 113 | $ | — | $ | — | $ | 2,555 | |||||||||||||||
Collectively evaluated for impairment | 250 | 3,852 | 1,926 | 628 | 139 | 794 | 7,589 | ||||||||||||||||||||||
Total ending allowance balance | $ | 474 | $ | 3,917 | $ | 4,079 | $ | 741 | $ | 139 | $ | 794 | $ | 10,144 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 532 | $ | 881 | $ | 7,707 | $ | 1,040 | $ | — | $ | 10,160 | |||||||||||||||||
Loans acquired with deteriorated credit quality | — | 354 | 514 | — | 868 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 104,497 | 398,546 | 274,255 | 16,242 | 14,647 | 808,187 | |||||||||||||||||||||||
Total ending loans balance | $ | 105,029 | $ | 399,781 | $ | 282,476 | $ | 17,282 | $ | 14,647 | $ | 819,215 | |||||||||||||||||
Net_Periodic_Benefit_CostDefin1
Net Periodic Benefit Cost-Defined Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | ' | ||||||||||||||||
Schedule of components of the net periodic benefit cost of the domestic non-contributory defined benefit plan | ' | ||||||||||||||||
The following sets forth the components of the net periodic benefit cost of the domestic non-contributory defined benefit plan for the three and nine months ended September 30, 2014 and 2013, respectively: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
(In Thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 140 | $ | 160 | $ | 420 | $ | 478 | |||||||||
Interest cost | 215 | 192 | 644 | 578 | |||||||||||||
Expected return on plan assets | (288 | ) | (246 | ) | (865 | ) | (738 | ) | |||||||||
Amortization of prior service cost | — | 6 | — | 19 | |||||||||||||
Amortization of net loss | 52 | 120 | 157 | 359 | |||||||||||||
Net periodic cost | $ | 119 | $ | 232 | $ | 356 | $ | 696 | |||||||||
Off_Balance_Sheet_Risk_Tables
Off Balance Sheet Risk (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Off Balance Sheet Risk | ' | ||||||||
Schedule of Financial instruments whose contract amounts represent credit risk | ' | ||||||||
Financial instruments whose contract amounts represent credit risk are as follows at September 30, 2014 and December 31, 2013: | |||||||||
(In Thousands) | September 30, 2014 | December 31, 2013 | |||||||
Commitments to extend credit | $ | 245,514 | $ | 185,415 | |||||
Standby letters of credit | 7,150 | 4,379 | |||||||
Credit exposure from the sale of assets with recourse | 2,757 | — | |||||||
$ | 252,664 | $ | 189,794 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of assets reported on the balance sheet at their fair value on a recurring basis | ' | ||||||||||||||||
The following table presents the assets reported on the balance sheet at their fair value on a recurring basis as of September 30, 2014 and December 31, 2013, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Investment securities, available for sale: | |||||||||||||||||
U.S. Government and agency securities | $ | — | $ | 5,796 | $ | — | $ | 5,796 | |||||||||
Mortgage-backed securities | — | 11,135 | — | 11,135 | |||||||||||||
Asset-backed securities | — | 2,571 | — | 2,571 | |||||||||||||
State and political securities | — | 111,782 | — | 111,782 | |||||||||||||
Other debt securities | — | 89,736 | — | 89,736 | |||||||||||||
Financial institution equity securities | 9,221 | — | — | 9,221 | |||||||||||||
Other equity securities | 3,393 | — | — | 3,393 | |||||||||||||
Total assets measured on a recurring basis | $ | 12,614 | $ | 221,020 | $ | — | $ | 233,634 | |||||||||
December 31, 2013 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Investment securities, available for sale: | |||||||||||||||||
U.S. Government and agency securities | $ | — | $ | 9,923 | $ | — | $ | 9,923 | |||||||||
Mortgage-backed securities | — | 10,592 | — | 10,592 | |||||||||||||
Asset-backed securities | — | 6,564 | — | 6,564 | |||||||||||||
State and political securities | — | 141,795 | — | 141,795 | |||||||||||||
Other debt securities | — | 106,773 | — | 106,773 | |||||||||||||
Financial institution equity securities | 10,662 | — | — | 10,662 | |||||||||||||
Other equity securities | 2,303 | — | — | 2,303 | |||||||||||||
Total assets measured on a recurring basis | $ | 12,965 | $ | 275,647 | $ | — | $ | 288,612 | |||||||||
Schedule of assets reported on the consolidated balance sheet at their fair value on a non-recurring basis | ' | ||||||||||||||||
The following table presents the assets reported on the consolidated balance sheet at their fair value on a non-recurring basis as of September 30, 2014 and December 31, 2013, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 13,261 | $ | 13,261 | |||||||||
Other real estate owned | — | — | 1,555 | 1,555 | |||||||||||||
Total assets measured on a non-recurring basis | $ | — | $ | — | $ | 14,816 | $ | 14,816 | |||||||||
December 31, 2013 | |||||||||||||||||
(In Thousands) | Level I | Level II | Level III | Total | |||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 8,473 | $ | 8,473 | |||||||||
Other real estate owned | — | — | 1,898 | 1,898 | |||||||||||||
Total assets measured on a non-recurring basis | $ | — | $ | — | $ | 10,371 | $ | 10,371 | |||||||||
Schedule of listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ||||||||||||||||
The following tables present a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of September 30, 2014 and December 31, 2013: | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Quantitative Information About Level III Fair Value Measurements | |||||||||||||||||
(In Thousands) | Fair Value | Valuation Technique(s) | Unobservable Inputs | Range | Weighted Average | ||||||||||||
Impaired loans | $ | 13,261 | Discounted cash flow | Temporary reduction in payment amount | 0 to -91% | 14% | |||||||||||
Probability of default | —% | —% | |||||||||||||||
Appraisal of collateral | Appraisal adjustments (1) | 0 to -32% | 19% | ||||||||||||||
Other real estate owned | $ | 1,555 | Appraisal of collateral (1) | ||||||||||||||
(1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Quantitative Information About Level III Fair Value Measurements | |||||||||||||||||
(In Thousands) | Fair Value | Valuation Technique(s) | Unobservable Inputs | Range | Weighted Average | ||||||||||||
Impaired loans | $ | 8,473 | Discounted cash flow | Temporary reduction in payment amount | 0 to -91% | -18% | |||||||||||
Probability of default | —% | —% | |||||||||||||||
Appraisal of collateral | Appraisal adjustments (1) | 0 to -44% | -21% | ||||||||||||||
Other real estate owned | $ | 1,898 | Appraisal of collateral (1) | ||||||||||||||
(1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Schedule of fair values of financial instruments | ' | ||||||||||||||||||||
The fair values of the Company’s financial instruments are as follows at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Carrying | Fair | Fair Value Measurements at September 30, 2014 | |||||||||||||||||||
(In Thousands) | Value | Value | Level I | Level II | Level III | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 25,242 | $ | 25,242 | $ | 25,242 | $ | — | $ | — | |||||||||||
Investment securities: | |||||||||||||||||||||
Available for sale | 233,634 | 233,634 | 12,614 | 221,020 | — | ||||||||||||||||
Loans held for sale | 1,602 | 1,602 | 1,602 | — | — | ||||||||||||||||
Loans, net | 881,477 | 880,287 | — | — | 880,287 | ||||||||||||||||
Bank-owned life insurance | 25,781 | 25,781 | 25,781 | — | — | ||||||||||||||||
Accrued interest receivable | 4,298 | 4,298 | 4,298 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Interest-bearing deposits | $ | 756,540 | $ | 734,161 | $ | 516,131 | $ | — | $ | 218,030 | |||||||||||
Noninterest-bearing deposits | 232,588 | 232,588 | 232,588 | — | — | ||||||||||||||||
Short-term borrowings | 17,213 | 17,213 | 17,213 | — | — | ||||||||||||||||
Long-term borrowings | 71,202 | 73,194 | — | — | 73,194 | ||||||||||||||||
Accrued interest payable | 411 | 411 | 411 | — | — | ||||||||||||||||
Carrying | Fair | Fair Value Measurements at December 31, 2013 | |||||||||||||||||||
(In Thousands) | Value | Value | Level I | Level II | Level III | ||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 24,606 | $ | 24,606 | $ | 24,606 | $ | — | $ | — | |||||||||||
Investment securities: | |||||||||||||||||||||
Available for sale | 288,612 | 288,612 | 12,965 | 275,647 | — | ||||||||||||||||
Loans held for sale | 1,626 | 1,626 | 1,626 | — | — | ||||||||||||||||
Loans, net | 808,200 | 808,895 | — | — | 808,895 | ||||||||||||||||
Bank-owned life insurance | 25,410 | 25,410 | 25,410 | — | — | ||||||||||||||||
Accrued interest receivable | 4,696 | 4,696 | 4,696 | — | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Interest-bearing deposits | $ | 755,625 | $ | 724,456 | $ | 488,818 | $ | — | $ | 235,638 | |||||||||||
Noninterest-bearing deposits | 217,377 | 217,377 | 217,377 | — | — | ||||||||||||||||
Short-term borrowings | 26,716 | 26,716 | 26,716 | — | — | ||||||||||||||||
Long-term borrowings | 71,202 | 73,248 | — | — | 73,248 | ||||||||||||||||
Accrued interest payable | 405 | 405 | 405 | — | — | ||||||||||||||||
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | $635 | ($4,521) | ($4,894) | $5,357 |
Other comprehensive income (loss) before reclassifications | 570 | -1,087 | 6,679 | -9,473 |
Amounts reclassified from accumulated other comprehensive income (loss) | -1,416 | 2 | -1,996 | -1,490 |
Total other comprehensive (loss) income | -846 | -1,085 | 4,683 | -10,963 |
Ending Balance | -211 | -5,606 | -211 | -5,606 |
Net Unrealized Gain (Loss) on Available for Sale Securities | ' | ' | ' | ' |
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | 3,360 | 286 | -2,169 | 10,164 |
Other comprehensive income (loss) before reclassifications | 570 | -1,087 | 6,679 | -9,473 |
Amounts reclassified from accumulated other comprehensive income (loss) | -1,416 | 2 | -1,996 | -1,490 |
Total other comprehensive (loss) income | -846 | -1,085 | 4,683 | -10,963 |
Ending Balance | 2,514 | -799 | 2,514 | -799 |
Defined Benefit Plan | ' | ' | ' | ' |
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | -2,725 | -4,807 | -2,725 | -4,807 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Ending Balance | ($2,725) | ($4,807) | ($2,725) | ($4,807) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassifications out of accumulated other comprehensive income | ' | ' | ' | ' |
Securities gains (losses), net | $2,145 | ($3) | $3,025 | $2,257 |
Income tax provision | -1,576 | -650 | -3,152 | -2,643 |
NET INCOME | 4,793 | 3,246 | 11,725 | 10,589 |
Net Unrealized Gain (Loss) on Available for Sale Securities | Amount Reclassified from Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassifications out of accumulated other comprehensive income | ' | ' | ' | ' |
Securities gains (losses), net | 2,145 | -3 | 3,025 | 2,257 |
Income tax provision | -729 | 1 | -1,029 | -767 |
NET INCOME | $1,416 | ($2) | $1,996 | $1,490 |
Per_Share_Data_Details
Per Share Data (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Convertible securities which would affect denominator in calculating basic and dilutive earnings per share (in shares) | 0 | 0 | 0 | 0 |
Weighted average common shares issued | 5,001,505 | 4,999,090 | 5,000,827 | 4,453,585 |
Average treasury stock shares | -181,159 | -180,596 | -180,786 | -180,596 |
Weighted average common shares and common stock equivalents used to calculate basic and diluted earnings per share | 4,820,346 | 4,818,494 | 4,820,041 | 4,272,989 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available for sale (AFS) | ' | ' |
Amortized Cost | $229,825 | $291,899 |
Gross Unrealized Gains | 6,247 | 5,601 |
Gross Unrealized Losses | -2,438 | -8,888 |
Fair Value | 233,634 | 288,612 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 31,999 | 130,175 |
Gross Unrealized Losses, Less than Twelve Months | -705 | -5,953 |
Fair value, Twelve Months or Greater | 40,950 | 9,600 |
Gross Unrealized Losses, Twelve Months or Greater | -1,733 | -2,935 |
Fair Value, Total | 72,949 | 139,775 |
Gross Unrealized Losses, Total | -2,438 | -8,888 |
Debt securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 218,091 | 280,715 |
Gross Unrealized Gains | 5,245 | 3,753 |
Gross Unrealized Losses | -2,316 | -8,821 |
Fair Value | 221,020 | 275,647 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 31,264 | 129,901 |
Gross Unrealized Losses, Less than Twelve Months | -617 | -5,931 |
Fair value, Twelve Months or Greater | 40,184 | 8,945 |
Gross Unrealized Losses, Twelve Months or Greater | -1,699 | -2,890 |
Fair Value, Total | 71,448 | 138,846 |
Gross Unrealized Losses, Total | -2,316 | -8,821 |
U.S. Government and agency securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 5,935 | 9,989 |
Gross Unrealized Gains | 1 | 17 |
Gross Unrealized Losses | -140 | -83 |
Fair Value | 5,796 | 9,923 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 1,010 | 7,740 |
Gross Unrealized Losses, Less than Twelve Months | -1 | -83 |
Fair value, Twelve Months or Greater | 3,816 | 0 |
Gross Unrealized Losses, Twelve Months or Greater | -139 | 0 |
Fair Value, Total | 4,826 | 7,740 |
Gross Unrealized Losses, Total | -140 | -83 |
Mortgage-backed securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 10,689 | 9,966 |
Gross Unrealized Gains | 495 | 694 |
Gross Unrealized Losses | -49 | -68 |
Fair Value | 11,135 | 10,592 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 3,903 | 2,483 |
Gross Unrealized Losses, Less than Twelve Months | -40 | -68 |
Fair value, Twelve Months or Greater | 891 | 0 |
Gross Unrealized Losses, Twelve Months or Greater | -9 | 0 |
Fair Value, Total | 4,794 | 2,483 |
Gross Unrealized Losses, Total | -49 | -68 |
Asset-backed securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 2,536 | 6,700 |
Gross Unrealized Gains | 38 | 43 |
Gross Unrealized Losses | -3 | -179 |
Fair Value | 2,571 | 6,564 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 0 | 3,847 |
Gross Unrealized Losses, Less than Twelve Months | 0 | -177 |
Fair value, Twelve Months or Greater | 567 | 712 |
Gross Unrealized Losses, Twelve Months or Greater | -3 | -2 |
Fair Value, Total | 567 | 4,559 |
Gross Unrealized Losses, Total | -3 | -179 |
State and political securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 108,801 | 145,121 |
Gross Unrealized Gains | 3,779 | 2,120 |
Gross Unrealized Losses | -798 | -5,446 |
Fair Value | 111,782 | 141,795 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 1,816 | 42,577 |
Gross Unrealized Losses, Less than Twelve Months | -11 | -2,558 |
Fair value, Twelve Months or Greater | 7,722 | 8,233 |
Gross Unrealized Losses, Twelve Months or Greater | -787 | -2,888 |
Fair Value, Total | 9,538 | 50,810 |
Gross Unrealized Losses, Total | -798 | -5,446 |
Other debt securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 90,130 | 108,939 |
Gross Unrealized Gains | 932 | 879 |
Gross Unrealized Losses | -1,326 | -3,045 |
Fair Value | 89,736 | 106,773 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 24,535 | 73,254 |
Gross Unrealized Losses, Less than Twelve Months | -565 | -3,045 |
Fair value, Twelve Months or Greater | 27,188 | 0 |
Gross Unrealized Losses, Twelve Months or Greater | -761 | 0 |
Fair Value, Total | 51,723 | 73,254 |
Gross Unrealized Losses, Total | -1,326 | -3,045 |
Other equity securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 11,734 | 11,184 |
Gross Unrealized Gains | 1,002 | 1,848 |
Gross Unrealized Losses | -122 | -67 |
Fair Value | 12,614 | 12,965 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 735 | 274 |
Gross Unrealized Losses, Less than Twelve Months | -88 | -22 |
Fair value, Twelve Months or Greater | 766 | 655 |
Gross Unrealized Losses, Twelve Months or Greater | -34 | -45 |
Fair Value, Total | 1,501 | 929 |
Gross Unrealized Losses, Total | -122 | -67 |
Financial institution equity securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 8,304 | 8,842 |
Gross Unrealized Gains | 938 | 1,820 |
Gross Unrealized Losses | -21 | 0 |
Fair Value | 9,221 | 10,662 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 369 | 0 |
Gross Unrealized Losses, Less than Twelve Months | -21 | 0 |
Fair value, Twelve Months or Greater | 0 | 0 |
Gross Unrealized Losses, Twelve Months or Greater | 0 | 0 |
Fair Value, Total | 369 | 0 |
Gross Unrealized Losses, Total | -21 | 0 |
Other equity securities | ' | ' |
Available for sale (AFS) | ' | ' |
Amortized Cost | 3,430 | 2,342 |
Gross Unrealized Gains | 64 | 28 |
Gross Unrealized Losses | -101 | -67 |
Fair Value | 3,393 | 2,303 |
Gross unrealized losses and fair value | ' | ' |
Fair Value, Less than Twelve Months | 366 | 274 |
Gross Unrealized Losses, Less than Twelve Months | -67 | -22 |
Fair value, Twelve Months or Greater | 766 | 655 |
Gross Unrealized Losses, Twelve Months or Greater | -34 | -45 |
Fair Value, Total | 1,132 | 929 |
Gross Unrealized Losses, Total | ($101) | ($67) |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
security | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Number of individual securities that were in a continuous unrealized loss position for less than twelve months | 28 | ' |
Number of individual securities that were in a continuous unrealized loss position for greater than twelve months | 35 | ' |
Available for Sale, Amortized Cost | ' | ' |
Amortized Cost - Due in one year or less | $4,650 | ' |
Amortized Cost - Due after one year to five years | 34,283 | ' |
Amortized Cost - Due after five years to ten years | 100,281 | ' |
Amortized Cost - Due after ten years | 78,877 | ' |
Amortized Cost - Total | 218,091 | ' |
Available for Sale, Fair Value | ' | ' |
Fair Value - Due in one year or less | 4,718 | ' |
Fair Value - Due after one year to five years | 34,465 | ' |
Fair Value - Due after five years to ten years | 99,983 | ' |
Fair Value - Due after ten years | 81,854 | ' |
Fair Value - Total | 221,020 | ' |
Gross proceeds from sales of securities | $98,815 | $69,898 |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | $2,191 | $439 | $3,757 | $2,759 | ' |
Gross realized losses | 46 | 442 | 732 | 502 | ' |
Investment securities, approximate carrying value | 128,672 | ' | 128,672 | ' | 141,876 |
U.S. Government and agency securities | ' | ' | ' | ' | ' |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | 0 | 0 | 49 | 0 | ' |
Gross realized losses | 0 | 0 | 45 | 0 | ' |
Mortgage-backed securities | ' | ' | ' | ' | ' |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | 13 | 0 | 89 | 0 | ' |
State and political securities | ' | ' | ' | ' | ' |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | 1,361 | 276 | 2,093 | 1,917 | ' |
Gross realized losses | 9 | 415 | 412 | 475 | ' |
Other debt securities | ' | ' | ' | ' | ' |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | 149 | 163 | 611 | 462 | ' |
Gross realized losses | 37 | 27 | 209 | 27 | ' |
Financial institution equity securities | ' | ' | ' | ' | ' |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | 582 | 0 | 710 | 130 | ' |
Other equity securities | ' | ' | ' | ' | ' |
Gross realized gains and losses | ' | ' | ' | ' | ' |
Gross realized gains | 86 | 0 | 205 | 250 | ' |
Gross realized losses | $0 | $0 | $66 | $0 | ' |
Federal_Home_Loan_Bank_Stock_D
Federal Home Loan Bank Stock (Details) (USD $) | Sep. 30, 2014 |
Federal Home Loan Bank Stock | ' |
FHLB stock, par value (in dollars per share) | $100 |
Credit_Quality_and_Related_All2
Credit Quality and Related Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 16 Months Ended | 4 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 01, 2013 | |
Luzerne acquisition | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Real estate mortgages | Residential | Residential | Residential | Residential | Residential | Residential | Residential | Residential | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Construction | Construction | Construction | Construction | Construction | Construction | Construction | Construction | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Purchased loans | Purchased loans | Purchased loans | Purchased loans | Purchased loans | |||||||||
category | Luzerne acquisition | Luzerne acquisition | Luzerne acquisition | Luzerne acquisition | |||||||||||||||||||||||||||||||||||||||||||||||||
Loan credit quality and related allowance for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of categories in which real estate loans are segmented | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aging categories of loans by segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | $875,275,000 | ' | $875,275,000 | ' | ' | $799,601,000 | ' | ' | ' | $123,317,000 | ' | $123,317,000 | ' | ' | $104,419,000 | ' | ' | ' | $432,722,000 | ' | $432,722,000 | ' | ' | $392,300,000 | ' | ' | $277,696,000 | ' | $277,696,000 | ' | ' | $272,745,000 | ' | ' | $21,132,000 | ' | $21,132,000 | ' | ' | $15,967,000 | ' | ' | $20,408,000 | ' | $14,170,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Past Due 30 To 89 Days | 4,440,000 | ' | 4,440,000 | ' | ' | 9,936,000 | ' | ' | ' | 142,000 | ' | 142,000 | ' | ' | 502,000 | ' | ' | ' | 1,742,000 | ' | 1,742,000 | ' | ' | 6,424,000 | ' | ' | 2,235,000 | ' | 2,235,000 | ' | ' | 2,533,000 | ' | ' | 10,000 | ' | 10,000 | ' | ' | 0 | ' | ' | 311,000 | ' | 477,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Past Due 90 Days Or More & Still Accruing | 202,000 | ' | 202,000 | ' | ' | 604,000 | ' | ' | ' | 0 | ' | 0 | ' | ' | 0 | ' | ' | ' | 202,000 | ' | 202,000 | ' | ' | 531,000 | ' | ' | 0 | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | 0 | ' | ' | 73,000 | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-Accrual | 12,092,000 | ' | 12,092,000 | ' | ' | 9,074,000 | ' | ' | ' | 820,000 | ' | 820,000 | ' | ' | 108,000 | ' | ' | ' | 808,000 | ' | 808,000 | ' | ' | 526,000 | ' | ' | 9,452,000 | ' | 9,452,000 | ' | ' | 7,198,000 | ' | ' | 1,012,000 | ' | 1,012,000 | ' | ' | 1,242,000 | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 892,009,000 | ' | 892,009,000 | ' | ' | 819,215,000 | ' | ' | ' | 124,279,000 | ' | 124,279,000 | ' | ' | 105,029,000 | ' | ' | ' | 435,474,000 | ' | 435,474,000 | ' | ' | 399,781,000 | ' | ' | 289,383,000 | ' | 289,383,000 | ' | ' | 282,476,000 | ' | ' | 22,154,000 | ' | 22,154,000 | ' | ' | 17,282,000 | ' | ' | 20,719,000 | ' | 14,647,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net deferred loan fees and discounts | -1,282,000 | ' | -1,282,000 | ' | ' | -871,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | -9,250,000 | -9,630,000 | -9,250,000 | -9,630,000 | -8,811,000 | -10,144,000 | -9,404,000 | -7,617,000 | ' | -828,000 | -520,000 | -828,000 | -520,000 | -694,000 | -474,000 | -540,000 | -361,000 | ' | -3,423,000 | -3,458,000 | -3,423,000 | -3,458,000 | -3,262,000 | -3,917,000 | -3,045,000 | -1,954,000 | -3,677,000 | -3,765,000 | -3,677,000 | -3,765,000 | -3,394,000 | -4,079,000 | -3,988,000 | -3,831,000 | -785,000 | -752,000 | -785,000 | -752,000 | -718,000 | -741,000 | -843,000 | -950,000 | -236,000 | -198,000 | -139,000 | -140,000 | -141,000 | -144,000 | ' | ' | ' | ' | ' |
Current loans, net | 864,743,000 | ' | 864,743,000 | ' | ' | 788,586,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans, net | 881,477,000 | ' | 881,477,000 | ' | ' | 808,200,000 | ' | ' | 249,789,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Material increases or decreases in the expected cash flows from credit-impaired loans since acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Components of the purchase accounting adjustments related to the purchased impaired loans acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | 16,218,000 | ' | 16,218,000 | ' | ' | 12,563,000 | ' | ' | ' | 1,136,000 | ' | 1,136,000 | ' | ' | 532,000 | ' | ' | ' | 1,477,000 | ' | 1,477,000 | ' | ' | 1,515,000 | ' | ' | 11,435,000 | ' | 11,435,000 | ' | ' | 8,621,000 | ' | ' | 2,170,000 | ' | 2,170,000 | ' | ' | 1,895,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,211,000 |
Estimated fair value | ' | ' | ' | ' | ' | ' | ' | ' | 878,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,783,000 |
Expected cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 941,000 |
Non-accretable discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 842,000 |
Accretable discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 | 23,000 | ' | ' |
Changes in the amortizable yield for purchased credit-impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period or at acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,000 | 35,000 | ' | ' |
Accretion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -17,000 | -12,000 | ' | ' |
Balance at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 | 23,000 | ' | ' |
Acquired Loans with Specific Evidence of Deterioration in Credit Quality (ASC 310-30) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 755,000 | 1,224,000 | ' |
Carrying amount | 655,000 | ' | 655,000 | ' | ' | 868,000 | ' | ' | ' | 0 | ' | 0 | ' | ' | 0 | ' | ' | ' | 349,000 | ' | 349,000 | ' | ' | 354,000 | ' | ' | 306,000 | ' | 306,000 | ' | ' | 514,000 | ' | ' | 0 | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | 655,000 | ' | 655,000 | 868,000 | ' |
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 213,000 | 78,000 | 547,000 | 333,000 | ' | ' | ' | ' | ' | 17,000 | 0 | 34,000 | 4,000 | ' | ' | ' | ' | ' | 31,000 | 13,000 | 38,000 | 67,000 | ' | ' | ' | ' | 147,000 | 49,000 | 422,000 | 165,000 | ' | ' | ' | ' | 18,000 | 16,000 | 53,000 | 97,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Income Recorded on a Cash Basis | $94,000 | $23,000 | $190,000 | $144,000 | ' | ' | ' | ' | ' | $20,000 | $0 | $21,000 | $0 | ' | ' | ' | ' | ' | $8,000 | $10,000 | $17,000 | $22,000 | ' | ' | ' | ' | $66,000 | $5,000 | $152,000 | $89,000 | ' | ' | ' | ' | $0 | $8,000 | $0 | $33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit_Quality_and_Related_All3
Credit Quality and Related Allowance for Loan Losses (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | ' | ' | ' |
Minimum amount to evaluate individual loans for possible impairment | ' | ' | $100,000 | ' | ' |
Maximum amount to evaluate individual loans for possible impairment on a case by case basis | ' | ' | 100,000 | ' | ' |
Payment delays period up to which loans are not classified as impaired, maximum | ' | ' | '90 days | ' | ' |
Credit Quality and Related Allowance for Loan Losses | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 4,344,000 | ' | 4,344,000 | ' | 2,067,000 |
Unpaid Principal Balance, With no related allowance recorded | 4,444,000 | ' | 4,444,000 | ' | 2,580,000 |
Recorded Investment, With an allowance recorded | 10,397,000 | ' | 10,397,000 | ' | 8,961,000 |
Unpaid Principal Balance, With an allowance recorded | 11,774,000 | ' | 11,774,000 | ' | 9,983,000 |
Recorded Investment | 14,741,000 | ' | 14,741,000 | ' | 11,028,000 |
Unpaid Principal Balance | 16,218,000 | ' | 16,218,000 | ' | 12,563,000 |
Related Allowance | 1,480,000 | ' | 1,480,000 | ' | 2,555,000 |
Average Investment in Impaired Loans | 14,113,000 | 11,834,000 | 13,212,000 | 18,328,000 | ' |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 65,000 | 81,000 | 155,000 | 204,000 | ' |
Interest Income Recognized on a Cash Basis on Impaired Loans | 92,000 | 23,000 | 121,000 | 671,000 | ' |
Amount committed to be advanced in connection with impaired loans | 0 | ' | 0 | ' | ' |
Commercial and agricultural | ' | ' | ' | ' | ' |
Credit Quality and Related Allowance for Loan Losses | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 620,000 | ' | 620,000 | ' | 0 |
Unpaid Principal Balance, With no related allowance recorded | 620,000 | ' | 620,000 | ' | 0 |
Recorded Investment, With an allowance recorded | 516,000 | ' | 516,000 | ' | 532,000 |
Unpaid Principal Balance, With an allowance recorded | 516,000 | ' | 516,000 | ' | 532,000 |
Recorded Investment | 1,136,000 | ' | 1,136,000 | ' | 532,000 |
Unpaid Principal Balance | 1,136,000 | ' | 1,136,000 | ' | 532,000 |
Related Allowance | 150,000 | ' | 150,000 | ' | 224,000 |
Average Investment in Impaired Loans | 824,000 | 786,000 | 675,000 | 869,000 | ' |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 5,000 | 7,000 | 18,000 | 20,000 | ' |
Interest Income Recognized on a Cash Basis on Impaired Loans | 20,000 | 0 | 20,000 | 0 | ' |
Residential Real Estate Mortgage | ' | ' | ' | ' | ' |
Credit Quality and Related Allowance for Loan Losses | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 613,000 | ' | 613,000 | ' | 916,000 |
Unpaid Principal Balance, With no related allowance recorded | 713,000 | ' | 713,000 | ' | 1,173,000 |
Recorded Investment, With an allowance recorded | 741,000 | ' | 741,000 | ' | 319,000 |
Unpaid Principal Balance, With an allowance recorded | 764,000 | ' | 764,000 | ' | 342,000 |
Recorded Investment | 1,354,000 | ' | 1,354,000 | ' | 1,235,000 |
Unpaid Principal Balance | 1,477,000 | ' | 1,477,000 | ' | 1,515,000 |
Related Allowance | 80,000 | ' | 80,000 | ' | 65,000 |
Average Investment in Impaired Loans | 1,219,000 | 1,652,000 | 1,195,000 | 2,110,000 | ' |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 18,000 | 28,000 | 32,000 | 45,000 | ' |
Interest Income Recognized on a Cash Basis on Impaired Loans | 7,000 | 10,000 | 14,000 | 21,000 | ' |
Commercial | ' | ' | ' | ' | ' |
Credit Quality and Related Allowance for Loan Losses | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 2,601,000 | ' | 2,601,000 | ' | 623,000 |
Unpaid Principal Balance, With no related allowance recorded | 2,601,000 | ' | 2,601,000 | ' | 879,000 |
Recorded Investment, With an allowance recorded | 8,335,000 | ' | 8,335,000 | ' | 7,598,000 |
Unpaid Principal Balance, With an allowance recorded | 8,834,000 | ' | 8,834,000 | ' | 7,742,000 |
Recorded Investment | 10,936,000 | ' | 10,936,000 | ' | 8,221,000 |
Unpaid Principal Balance | 11,435,000 | ' | 11,435,000 | ' | 8,621,000 |
Related Allowance | 1,079,000 | ' | 1,079,000 | ' | 2,153,000 |
Average Investment in Impaired Loans | 10,901,000 | 8,277,000 | 10,240,000 | 11,278,000 | ' |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 34,000 | 45,000 | 95,000 | 138,000 | ' |
Interest Income Recognized on a Cash Basis on Impaired Loans | 65,000 | 5,000 | 79,000 | 89,000 | ' |
Construction | ' | ' | ' | ' | ' |
Credit Quality and Related Allowance for Loan Losses | ' | ' | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 510,000 | ' | 510,000 | ' | 528,000 |
Unpaid Principal Balance, With no related allowance recorded | 510,000 | ' | 510,000 | ' | 528,000 |
Recorded Investment, With an allowance recorded | 805,000 | ' | 805,000 | ' | 512,000 |
Unpaid Principal Balance, With an allowance recorded | 1,660,000 | ' | 1,660,000 | ' | 1,367,000 |
Recorded Investment | 1,315,000 | ' | 1,315,000 | ' | 1,040,000 |
Unpaid Principal Balance | 2,170,000 | ' | 2,170,000 | ' | 1,895,000 |
Related Allowance | 171,000 | ' | 171,000 | ' | 113,000 |
Average Investment in Impaired Loans | 1,169,000 | 1,119,000 | 1,102,000 | 4,071,000 | ' |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 8,000 | 1,000 | 10,000 | 1,000 | ' |
Interest Income Recognized on a Cash Basis on Impaired Loans | $0 | $8,000 | $8,000 | $561,000 | ' |
Credit_Quality_and_Related_All4
Credit Quality and Related Allowance for Loan Losses (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
contract | contract | contract | contract | ||
Troubled debt restructurings | ' | ' | ' | ' | ' |
Reasonable period for classification of troubled debt restructuring nonperforming loans to performing status | ' | ' | '6 months | ' | ' |
Number of Contracts | 7 | 2 | 7 | 6 | ' |
Pre-Modification Outstanding Recorded Investment | $1,361 | $1,634 | $1,361 | $1,959 | ' |
Post-Modification Outstanding Recorded Investment | 1,361 | 1,634 | 1,361 | 1,959 | ' |
Troubled debt restructurings | 12,558 | ' | 12,558 | ' | 11,472 |
Commercial and agricultural | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of Contracts | 3 | 0 | 3 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 620 | 0 | 620 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 620 | 0 | 620 | 0 | ' |
Residential | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of Contracts | 1 | 0 | 1 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | 105 | 0 | 105 | 61 | ' |
Post-Modification Outstanding Recorded Investment | 105 | 0 | 105 | 61 | ' |
Commercial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of Contracts | 3 | 2 | 3 | 4 | ' |
Pre-Modification Outstanding Recorded Investment | 636 | 1,634 | 636 | 1,898 | ' |
Post-Modification Outstanding Recorded Investment | 636 | 1,634 | 636 | 1,898 | ' |
Number of contracts defaulted | ' | ' | 1 | ' | ' |
Recorded investment | ' | ' | $122 | ' | ' |
Credit_Quality_and_Related_All5
Credit Quality and Related Allowance for Loan Losses (Details 4) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
category | ||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' |
Number of categories considered not criticized and rated as "Pass" | 6 | ' |
Minimum period after which loans are considered as substandard | '90 days | ' |
Minimum amount after which external annual loan review is performed | $800,000 | ' |
Credit quality categories | ' | ' |
Total | 892,009,000 | 819,215,000 |
Commercial and agricultural | ' | ' |
Credit quality categories | ' | ' |
Total | 124,279,000 | 105,029,000 |
Residential | ' | ' |
Credit quality categories | ' | ' |
Total | 435,474,000 | 399,781,000 |
Commercial | ' | ' |
Credit quality categories | ' | ' |
Total | 289,383,000 | 282,476,000 |
Construction | ' | ' |
Credit quality categories | ' | ' |
Total | 22,154,000 | 17,282,000 |
Installment loans to individuals | ' | ' |
Credit quality categories | ' | ' |
Total | 20,719,000 | 14,647,000 |
Pass | ' | ' |
Credit quality categories | ' | ' |
Total | 859,246,000 | 785,343,000 |
Pass | Commercial and agricultural | ' | ' |
Credit quality categories | ' | ' |
Total | 116,755,000 | 99,256,000 |
Pass | Residential | ' | ' |
Credit quality categories | ' | ' |
Total | 433,579,000 | 398,327,000 |
Pass | Commercial | ' | ' |
Credit quality categories | ' | ' |
Total | 266,751,000 | 259,505,000 |
Pass | Construction | ' | ' |
Credit quality categories | ' | ' |
Total | 21,442,000 | 13,608,000 |
Pass | Installment loans to individuals | ' | ' |
Credit quality categories | ' | ' |
Total | 20,719,000 | 14,647,000 |
Special Mention | ' | ' |
Credit quality categories | ' | ' |
Total | 15,606,000 | 15,522,000 |
Special Mention | Commercial and agricultural | ' | ' |
Credit quality categories | ' | ' |
Total | 6,240,000 | 4,529,000 |
Special Mention | Residential | ' | ' |
Credit quality categories | ' | ' |
Total | 1,476,000 | 598,000 |
Special Mention | Commercial | ' | ' |
Credit quality categories | ' | ' |
Total | 7,674,000 | 10,181,000 |
Special Mention | Construction | ' | ' |
Credit quality categories | ' | ' |
Total | 216,000 | 214,000 |
Special Mention | Installment loans to individuals | ' | ' |
Credit quality categories | ' | ' |
Total | 0 | 0 |
Substandard | ' | ' |
Credit quality categories | ' | ' |
Total | 17,157,000 | 18,350,000 |
Substandard | Commercial and agricultural | ' | ' |
Credit quality categories | ' | ' |
Total | 1,284,000 | 1,244,000 |
Substandard | Residential | ' | ' |
Credit quality categories | ' | ' |
Total | 419,000 | 856,000 |
Substandard | Commercial | ' | ' |
Credit quality categories | ' | ' |
Total | 14,958,000 | 12,790,000 |
Substandard | Construction | ' | ' |
Credit quality categories | ' | ' |
Total | 496,000 | 3,460,000 |
Substandard | Installment loans to individuals | ' | ' |
Credit quality categories | ' | ' |
Total | $0 | $0 |
Credit_Quality_and_Related_All6
Credit Quality and Related Allowance for Loan Losses (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 01, 2013 | |
component | quarter | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Commercial and agricultural | Residential | Residential | Residential | Residential | Residential | Residential | Residential | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Construction | Construction | Construction | Construction | Construction | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Unallocated | Unallocated | Unallocated | Unallocated | Unallocated | Purchased loans | Purchased loans | ||||
class | component | Financing receivable | Financing receivable | Financing receivable | Financing receivable | ||||||||||||||||||||||||||||||||||||
class | Owners of rental properties | Owners of rental properties | Owners of rental properties | Owners of rental properties | |||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The total number of components that represents the allowance for loan losses | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The number of classes that groups of loans are collectively evaluated for impairment | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period considered for quarter moving average which is a factor to calculate historical charge-off | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Activity in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 |
Changes in allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | 8,811,000 | 9,404,000 | 10,144,000 | 7,617,000 | ' | 694,000 | 540,000 | 474,000 | 361,000 | ' | 3,262,000 | 3,045,000 | 3,917,000 | 1,954,000 | ' | ' | ' | 3,394,000 | 3,988,000 | 4,079,000 | 3,831,000 | ' | ' | ' | 718,000 | 843,000 | 741,000 | 950,000 | ' | 198,000 | 141,000 | 139,000 | 144,000 | ' | 545,000 | 847,000 | 794,000 | 377,000 | ' | ' | ' |
Charge-offs | -38,000 | -427,000 | -2,207,000 | -617,000 | ' | 0 | 0 | 0 | 0 | ' | -2,000 | -105,000 | -65,000 | -239,000 | ' | ' | ' | 0 | -193,000 | -2,038,000 | -199,000 | ' | ' | ' | 0 | -100,000 | 0 | -100,000 | ' | -36,000 | -29,000 | -104,000 | -79,000 | ' | 0 | 0 | 0 | 0 | ' | ' | ' |
Recoveries | 17,000 | 53,000 | 68,000 | 955,000 | ' | 1,000 | 39,000 | 12,000 | 52,000 | ' | 6,000 | -2,000 | 9,000 | 3,000 | ' | ' | ' | 0 | 1,000 | 0 | 7,000 | ' | ' | ' | 0 | 1,000 | 0 | 851,000 | ' | 10,000 | 14,000 | 47,000 | 42,000 | ' | 0 | 0 | 0 | 0 | ' | ' | ' |
Provision for loan losses | 460,000 | 600,000 | 1,245,000 | 1,675,000 | ' | 133,000 | -59,000 | 342,000 | 107,000 | ' | 157,000 | 520,000 | -438,000 | 1,740,000 | ' | ' | ' | 283,000 | -31,000 | 1,636,000 | 126,000 | ' | ' | ' | 67,000 | 8,000 | 44,000 | -949,000 | ' | 64,000 | 14,000 | 154,000 | 33,000 | ' | -244,000 | 148,000 | -493,000 | 618,000 | ' | ' | ' |
Ending Balance | 9,250,000 | 9,630,000 | 9,250,000 | 9,630,000 | ' | 828,000 | 520,000 | 828,000 | 520,000 | ' | 3,423,000 | 3,458,000 | 3,423,000 | 3,458,000 | ' | ' | ' | 3,677,000 | 3,765,000 | 3,677,000 | 3,765,000 | ' | ' | ' | 785,000 | 752,000 | 785,000 | 752,000 | ' | 236,000 | 140,000 | 236,000 | 140,000 | ' | 301,000 | 995,000 | 301,000 | 995,000 | ' | ' | ' |
Concentration of loans (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.98% | 15.73% | ' | ' | ' | ' | ' | 14.90% | 13.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 1,480,000 | ' | 1,480,000 | ' | 2,555,000 | 150,000 | ' | 150,000 | ' | 224,000 | 80,000 | ' | 80,000 | ' | 65,000 | ' | ' | 1,079,000 | ' | 1,079,000 | ' | 2,153,000 | ' | ' | 171,000 | ' | 171,000 | ' | 113,000 | 0 | ' | 0 | ' | 0 | 0 | ' | 0 | ' | 0 | ' | ' |
Collectively evaluated for impairment | 7,770,000 | ' | 7,770,000 | ' | 7,589,000 | 678,000 | ' | 678,000 | ' | 250,000 | 3,343,000 | ' | 3,343,000 | ' | 3,852,000 | ' | ' | 2,598,000 | ' | 2,598,000 | ' | 1,926,000 | ' | ' | 614,000 | ' | 614,000 | ' | 628,000 | 236,000 | ' | 236,000 | ' | 139,000 | 301,000 | ' | 301,000 | ' | 794,000 | ' | ' |
Total ending allowance balance | 9,250,000 | 9,630,000 | 9,250,000 | 9,630,000 | ' | 828,000 | 520,000 | 828,000 | 520,000 | ' | 3,423,000 | 3,458,000 | 3,423,000 | 3,458,000 | ' | ' | ' | 3,677,000 | 3,765,000 | 3,677,000 | 3,765,000 | ' | ' | ' | 785,000 | 752,000 | 785,000 | 752,000 | ' | 236,000 | 140,000 | 236,000 | 140,000 | ' | 301,000 | 995,000 | 301,000 | 995,000 | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 14,086,000 | ' | 14,086,000 | ' | 10,160,000 | 1,136,000 | ' | 1,136,000 | ' | 532,000 | 1,005,000 | ' | 1,005,000 | ' | 881,000 | ' | ' | 10,630,000 | ' | 10,630,000 | ' | 7,707,000 | ' | ' | 1,315,000 | ' | 1,315,000 | ' | 1,040,000 | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Loans acquired with deteriorated credit quality | 655,000 | ' | 655,000 | ' | 868,000 | 0 | ' | 0 | ' | 0 | 349,000 | ' | 349,000 | ' | 354,000 | ' | ' | 306,000 | ' | 306,000 | ' | 514,000 | ' | ' | 0 | ' | 0 | ' | 0 | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 655,000 | ' |
Collectively evaluated for impairment | 877,268,000 | ' | 877,268,000 | ' | 808,187,000 | 123,143,000 | ' | 123,143,000 | ' | 104,497,000 | 434,120,000 | ' | 434,120,000 | ' | 398,546,000 | ' | ' | 278,447,000 | ' | 278,447,000 | ' | 274,255,000 | ' | ' | 20,839,000 | ' | 20,839,000 | ' | 16,242,000 | 20,719,000 | ' | 20,719,000 | ' | 14,647,000 | ' | ' | ' | ' | ' | ' | ' |
Total | $892,009,000 | ' | $892,009,000 | ' | $819,215,000 | $124,279,000 | ' | $124,279,000 | ' | $105,029,000 | $435,474,000 | ' | $435,474,000 | ' | $399,781,000 | ' | ' | $289,383,000 | ' | $289,383,000 | ' | $282,476,000 | ' | ' | $22,154,000 | ' | $22,154,000 | ' | $17,282,000 | $20,719,000 | ' | $20,719,000 | ' | $14,647,000 | ' | ' | ' | ' | ' | ' | ' |
Net_Periodic_Benefit_CostDefin2
Net Periodic Benefit Cost-Defined Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Net periodic benefit cost of the domestic non-contributory defined benefit plan | ' | ' | ' | ' | ' |
Service cost | $140,000 | $160,000 | $420,000 | $478,000 | ' |
Interest cost | 215,000 | 192,000 | 644,000 | 578,000 | ' |
Expected return on plan assets | -288,000 | -246,000 | -865,000 | -738,000 | ' |
Amortization of prior service cost | 0 | 6,000 | 0 | 19,000 | ' |
Amortization of net loss | 52,000 | 120,000 | 157,000 | 359,000 | ' |
Net periodic cost | 119,000 | 232,000 | 356,000 | 696,000 | ' |
Expected contribution to Pension Plan in 2014 | ' | ' | ' | ' | 600,000 |
Employer contributions made to the defined benefit plan | ' | ' | 635,000 | ' | ' |
Anticipated additional contributions anticipated during the remainder of 2014 | $180,000 | ' | $180,000 | ' | ' |
Employee_Stock_Purchase_Plan_D
Employee Stock Purchase Plan (Details) (Employee Stock Purchase Plan ("Plan"), USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Stock Purchase Plan ("Plan") | ' | ' |
Employee Stock Purchase Plan | ' | ' |
Number of shares allowed to be purchased by employees | 1,000,000 | ' |
Purchase price of the shares with respect to market value (as a percent) | 95.00% | ' |
Maximum percentage of base compensation | 15.00% | ' |
Maximum market value | $12,000 | ' |
Number of shares issued under the plan | 2,043 | 1,394 |
Off_Balance_Sheet_Risk_Details
Off Balance Sheet Risk (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Off Balance Sheet Risk | ' | ' |
Contract amounts representing credit risk | $252,664 | $189,794 |
Commitments to extend credit | ' | ' |
Off Balance Sheet Risk | ' | ' |
Contract amounts representing credit risk | 245,514 | 185,415 |
Standby letters of credit | ' | ' |
Off Balance Sheet Risk | ' | ' |
Contract amounts representing credit risk | 7,150 | 4,379 |
Coverage period for instrument | '1 year | ' |
Credit exposure from the sale of assets with recourse | ' | ' |
Off Balance Sheet Risk | ' | ' |
Contract amounts representing credit risk | $2,757 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Recurring | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | $233,634 | $288,612 | ||
Recurring | U.S. Government and agency securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 5,796 | 9,923 | ||
Recurring | Mortgage-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 11,135 | 10,592 | ||
Recurring | Asset-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 2,571 | 6,564 | ||
Recurring | State and political securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 111,782 | 141,795 | ||
Recurring | Other debt securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 89,736 | 106,773 | ||
Recurring | Financial institution equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 9,221 | 10,662 | ||
Recurring | Other equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 3,393 | 2,303 | ||
Recurring | Level I | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 12,614 | 12,965 | ||
Recurring | Level I | U.S. Government and agency securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level I | Mortgage-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level I | Asset-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level I | State and political securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level I | Other debt securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level I | Financial institution equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 9,221 | 10,662 | ||
Recurring | Level I | Other equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 3,393 | 2,303 | ||
Recurring | Level II | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 221,020 | 275,647 | ||
Recurring | Level II | U.S. Government and agency securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 5,796 | 9,923 | ||
Recurring | Level II | Mortgage-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 11,135 | 10,592 | ||
Recurring | Level II | Asset-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 2,571 | 6,564 | ||
Recurring | Level II | State and political securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 111,782 | 141,795 | ||
Recurring | Level II | Other debt securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 89,736 | 106,773 | ||
Recurring | Level II | Financial institution equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level II | Other equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | U.S. Government and agency securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | Mortgage-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | Asset-backed securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | State and political securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | Other debt securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | Financial institution equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Recurring | Level III | Other equity securities | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 14,816 | 10,371 | ||
Non-recurring | Impaired loans | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 13,261 | 8,473 | ||
Non-recurring | Other real estate owned | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 1,555 | 1,898 | ||
Non-recurring | Level I | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | Level I | Impaired loans | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | Level I | Other real estate owned | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | Level II | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | Level II | Impaired loans | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | Level II | Other real estate owned | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 0 | 0 | ||
Non-recurring | Level III | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 14,816 | 10,371 | ||
Non-recurring | Level III | Impaired loans | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | 13,261 | 8,473 | ||
Non-recurring | Level III | Other real estate owned | ' | ' | ||
Fair Value Measurements | ' | ' | ||
Total assets | $1,555 | [1] | $1,898 | [1] |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Non-recurring, USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Fair Value | 14,816 | 10,371 | ||
Impaired loans | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Fair Value | 13,261 | 8,473 | ||
Other real estate owned | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Fair Value | 1,555 | 1,898 | ||
Level III | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Fair Value | 14,816 | 10,371 | ||
Level III | Impaired loans | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Fair Value | 13,261 | 8,473 | ||
Level III | Impaired loans | Discounted cash flow | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Probability of default (as a percent) | 0.00% | 0.00% | ||
Level III | Impaired loans | Discounted cash flow | Minimum | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Temporary reduction in payment amount (as a percent) | 0.00% | 0.00% | ||
Level III | Impaired loans | Discounted cash flow | Maximum | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Temporary reduction in payment amount (as a percent) | -91.00% | -91.00% | ||
Level III | Impaired loans | Discounted cash flow | Weighted Average | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Temporary reduction in payment amount (as a percent) | 14.00% | -18.00% | ||
Level III | Impaired loans | Appraisal of collateral | Minimum | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Appraisal adjustments (as a percent) | 0.00% | [1] | 0.00% | [1] |
Level III | Impaired loans | Appraisal of collateral | Maximum | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Appraisal adjustments (as a percent) | -32.00% | [1] | -44.00% | [1] |
Level III | Impaired loans | Appraisal of collateral | Weighted Average | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Appraisal adjustments (as a percent) | 19.00% | [1] | -21.00% | [1] |
Level III | Other real estate owned | ' | ' | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | ' | ' | ||
Fair Value | 1,555 | [1] | 1,898 | [1] |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment securities: | ' | ' |
Available for sale | $233,634 | $288,612 |
Bank-owned life insurance | 25,781 | 25,410 |
Accrued interest receivable | 4,298 | 4,696 |
Financial liabilities: | ' | ' |
Interest-bearing deposits | 756,540 | 755,625 |
Noninterest-bearing deposits | 232,588 | 217,377 |
Level I | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 25,242 | 24,606 |
Investment securities: | ' | ' |
Available for sale | 12,614 | 12,965 |
Loans held for sale | 1,602 | 1,626 |
Loans, net | 0 | 0 |
Bank-owned life insurance | 25,781 | 25,410 |
Accrued interest receivable | 4,298 | 4,696 |
Financial liabilities: | ' | ' |
Interest-bearing deposits | 516,131 | 488,818 |
Noninterest-bearing deposits | 232,588 | 217,377 |
Short-term borrowings | 17,213 | 26,716 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 411 | 405 |
Level II | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities: | ' | ' |
Available for sale | 221,020 | 275,647 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ' | ' |
Interest-bearing deposits | 0 | 0 |
Noninterest-bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level III | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities: | ' | ' |
Available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 880,287 | 808,895 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ' | ' |
Interest-bearing deposits | 218,030 | 235,638 |
Noninterest-bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 73,194 | 73,248 |
Accrued interest payable | 0 | 0 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 25,242 | 24,606 |
Investment securities: | ' | ' |
Available for sale | 233,634 | 288,612 |
Loans held for sale | 1,602 | 1,626 |
Loans, net | 881,477 | 808,200 |
Bank-owned life insurance | 25,781 | 25,410 |
Accrued interest receivable | 4,298 | 4,696 |
Financial liabilities: | ' | ' |
Interest-bearing deposits | 756,540 | 755,625 |
Noninterest-bearing deposits | 232,588 | 217,377 |
Short-term borrowings | 17,213 | 26,716 |
Long-term borrowings | 71,202 | 71,202 |
Accrued interest payable | 411 | 405 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 25,242 | 24,606 |
Investment securities: | ' | ' |
Available for sale | 233,634 | 288,612 |
Loans held for sale | 1,602 | 1,626 |
Loans, net | 880,287 | 808,895 |
Bank-owned life insurance | 25,781 | 25,410 |
Accrued interest receivable | 4,298 | 4,696 |
Financial liabilities: | ' | ' |
Interest-bearing deposits | 734,161 | 724,456 |
Noninterest-bearing deposits | 232,588 | 217,377 |
Short-term borrowings | 17,213 | 26,716 |
Long-term borrowings | 73,194 | 73,248 |
Accrued interest payable | $411 | $405 |
Reclassification_of_Comparativ1
Reclassification of Comparative Amounts (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Reclassification of Comparative Amounts | ' |
Effect of reclassification adjustment on net income or shareholders' equity | $0 |
Acquisition_of_Luzerne_Nationa1
Acquisition of Luzerne National Bank Corporation (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 01, 2013 | Sep. 30, 2014 | Jun. 01, 2013 |
In Thousands, except Share data, unless otherwise specified | Luzerne National Bank Corporation | Luzerne National Bank Corporation | Luzerne National Bank Corporation | ||
office | |||||
Acquisition of Luzerne National Bank Corporation | ' | ' | ' | ' | ' |
Number of branch offices acquired | ' | ' | 8 | ' | ' |
Number of loan production offices acquired | ' | ' | 1 | ' | ' |
Purchase Price Consideration - Cash for Common Stock | ' | ' | ' | ' | ' |
Total Purchase Price | ' | ' | ' | ' | $42,612 |
Purchase Price Consideration in Common Stock | ' | ' | ' | ' | ' |
Penns Woods Bancorp, Inc. shares issued | ' | ' | 978,977 | ' | ' |
Percentage of the total shares outstanding, issued | ' | ' | ' | 20.35% | ' |
Purchased credit-impaired loans | 14,741 | 11,028 | ' | ' | 1,211 |
Non-accretable difference on purchased credit-impaired loans | ' | ' | ' | ' | 842 |
Loan portfolio without evidence of deterioration | 881,477 | 808,200 | ' | ' | 249,789 |
Loan portfolio without evidence of deterioration at fair value | ' | ' | ' | ' | $249,500 |