Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 01, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | PENNS WOODS BANCORP INC | |
Entity Central Index Key | 716,605 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,733,252 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEET (UNA
CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Noninterest-bearing balances | $ 22,371 | $ 22,044 |
Interest-bearing balances in other financial institutions | 24,754 | 752 |
Total cash and cash equivalents | 47,125 | 22,796 |
Investment securities, available for sale, at fair value | 153,709 | 176,157 |
Investment securities, trading | 60 | 73 |
Loans held for sale | 514 | 757 |
Loans | 1,041,252 | 1,045,207 |
Allowance for loan losses | (12,382) | (12,044) |
Loans, net | 1,028,870 | 1,033,163 |
Premises and equipment, net | 22,158 | 21,830 |
Accrued interest receivable | 3,878 | 3,686 |
Bank-owned life insurance | 26,867 | 26,667 |
Investment in limited partnerships | 746 | 899 |
Goodwill | 17,104 | 17,104 |
Intangibles | 2,078 | 1,240 |
Deferred tax asset | 8,426 | 8,990 |
Other assets | 6,602 | 6,695 |
TOTAL ASSETS | 1,318,137 | 1,320,057 |
LIABILITIES: | ||
Interest-bearing deposits | 790,219 | 751,797 |
Noninterest-bearing deposits | 269,362 | 280,083 |
Total deposits | 1,059,581 | 1,031,880 |
Short-term borrowings | 15,874 | 46,638 |
Long-term borrowings | 91,025 | 91,025 |
Accrued interest payable | 439 | 426 |
Other liabilities | 13,555 | 13,809 |
TOTAL LIABILITIES | 1,180,474 | 1,183,778 |
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; 5,005,534 and 5,004,984 shares issued | 41,713 | 41,708 |
Additional paid-in capital | 50,004 | 49,992 |
Retained earnings | 58,888 | 58,038 |
Accumulated other comprehensive loss: | ||
Net unrealized gain on available for sale securities | 1,324 | 258 |
Defined benefit plan | (4,032) | (4,057) |
Treasury stock at cost, 272,452 and 257,852 shares | (10,234) | (9,660) |
TOTAL SHAREHOLDERS’ EQUITY | 137,663 | 136,279 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,318,137 | $ 1,320,057 |
CONSOLIDATED BALANCE SHEET (UN3
CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 8.33 | $ 8.33 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 5,005,534 | 5,004,984 |
Treasury stock (in shares) | 272,452 | 257,852 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
INTEREST AND DIVIDEND INCOME: | ||
Loans, including fees | $ 10,355 | $ 9,323 |
Investment securities: | ||
Taxable | 622 | 1,014 |
Tax-exempt | 475 | 767 |
Dividend and other interest income | 274 | 293 |
TOTAL INTEREST AND DIVIDEND INCOME | 11,726 | 11,397 |
INTEREST EXPENSE: | ||
Deposits | 834 | 743 |
Short-term borrowings | 26 | 19 |
Long-term borrowings | 492 | 524 |
TOTAL INTEREST EXPENSE | 1,352 | 1,286 |
NET INTEREST INCOME | 10,374 | 10,111 |
PROVISION FOR LOAN LOSSES | 350 | 700 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,024 | 9,411 |
NON-INTEREST INCOME: | ||
Service charges | 532 | 553 |
Net securities gains, available for sale | 435 | 661 |
Net securities gains, trading | 40 | 0 |
Bank-owned life insurance | 184 | 188 |
Gain on sale of loans | 467 | 299 |
Insurance commissions | 206 | 234 |
Brokerage commissions | 255 | 245 |
Other | 878 | 1,080 |
TOTAL NON-INTEREST INCOME | 2,997 | 3,260 |
NON-INTEREST EXPENSE: | ||
Salaries and employee benefits | 4,580 | 4,470 |
Occupancy | 541 | 628 |
Furniture and equipment | 701 | 595 |
Pennsylvania shares tax | 258 | 224 |
Amortization of investment in limited partnerships | 152 | 165 |
Federal Deposit Insurance Corporation deposit insurance | 232 | 215 |
Marketing | 210 | 129 |
Intangible amortization | 87 | 82 |
Other | 2,300 | 1,960 |
TOTAL NON-INTEREST EXPENSE | 9,061 | 8,468 |
INCOME BEFORE INCOME TAX PROVISION | 3,960 | 4,203 |
INCOME TAX PROVISION | 882 | 848 |
NET INCOME | $ 3,078 | $ 3,355 |
EARNINGS PER SHARE - BASIC AND DILUTED (in dollars per share) | $ 0.65 | $ 0.70 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED (in shares) | 4,740,503 | 4,801,505 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $ 0.47 | $ 0.47 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 3,078 | $ 3,355 |
Other comprehensive income: | ||
Change in unrealized gain on available for sale securities | 2,050 | 1,208 |
Tax effect | (697) | (411) |
Net realized gain included in net income | (435) | (661) |
Tax effect | 148 | 225 |
Amortization of unrecognized pension and post-retirement items | 39 | 0 |
Tax effect | (14) | 0 |
Total other comprehensive income | 1,091 | 361 |
Comprehensive income | $ 4,169 | $ 3,716 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TREASURY STOCK |
Beginning Balance (in shares) at Dec. 31, 2014 | 5,002,649 | |||||
Beginning Balance at Dec. 31, 2014 | $ 135,967 | $ 41,688 | $ 49,896 | $ 53,107 | $ (1,667) | $ (7,057) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,355 | 3,355 | ||||
Other comprehensive income | 361 | 361 | ||||
Dividends declared | (2,257) | (2,257) | ||||
Common shares issued for employee stock purchase plan (in shares) | 520 | |||||
Common shares issued for employee stock purchase plan | 23 | $ 5 | 18 | |||
Purchases of treasury stock | (445) | (445) | ||||
Ending Balance (in shares) at Mar. 31, 2015 | 5,003,169 | |||||
Ending Balance at Mar. 31, 2015 | 137,004 | $ 41,693 | 49,914 | 54,205 | (1,306) | (7,502) |
Beginning Balance (in shares) at Dec. 31, 2015 | 5,004,984 | |||||
Beginning Balance at Dec. 31, 2015 | 136,279 | $ 41,708 | 49,992 | 58,038 | (3,799) | (9,660) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,078 | 3,078 | ||||
Other comprehensive income | 1,091 | 1,091 | ||||
Dividends declared | (2,228) | (2,228) | ||||
Common shares issued for employee stock purchase plan (in shares) | 550 | |||||
Common shares issued for employee stock purchase plan | 17 | $ 5 | 12 | |||
Purchases of treasury stock | (574) | (574) | ||||
Ending Balance (in shares) at Mar. 31, 2016 | 5,005,534 | |||||
Ending Balance at Mar. 31, 2016 | $ 137,663 | $ 41,713 | $ 50,004 | $ 58,888 | $ (2,708) | $ (10,234) |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared, per share (in dollars per share) | $ 0.47 | $ 0.47 |
Purchase of treasury stock (in shares) | 14,600 | 9,610 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net Income | $ 3,078 | $ 3,355 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 863 | 826 |
Amortization of intangible assets | 87 | 82 |
Provision for loan losses | 350 | 700 |
Accretion and amortization of investment security discounts and premiums | 228 | 208 |
Net securities gains, available for sale | (435) | (661) |
Originations of loans held for sale | (12,617) | (9,424) |
Proceeds of loans held for sale | 13,327 | 9,210 |
Gain on sale of loans | (467) | (299) |
Net securities gains, trading | (40) | 0 |
Proceeds from the sale of trading securities | 2,930 | 0 |
Purchases of trading securities | (2,877) | 0 |
Earnings on bank-owned life insurance | (184) | (188) |
Decrease in deferred tax asset | 15 | 114 |
Other, net | (1,516) | (2,193) |
Net cash provided by operating activities | 2,742 | 1,730 |
INVESTING ACTIVITIES: | ||
Proceeds from sales of available for sale securities | 19,839 | 15,807 |
Proceeds from calls and maturities of available for sale securities | 6,535 | 5,204 |
Purchases of available for sale securities | (3,270) | (9,217) |
Net decrease (increase) in loans | 3,918 | (28,751) |
Acquisition of premises and equipment | (732) | (128) |
Proceeds from the sale of foreclosed assets | 6 | 476 |
Purchase of bank-owned life insurance | (27) | (27) |
Proceeds from redemption of regulatory stock | 2,155 | 2,265 |
Purchases of regulatory stock | (989) | (2,693) |
Net cash provided by (used for) investing activities | 27,435 | (17,064) |
FINANCING ACTIVITIES: | ||
Net increase in interest-bearing deposits | 38,422 | 12,217 |
Net decrease (increase) in noninterest-bearing deposits | (10,721) | 2,853 |
Proceeds from long-term borrowings | 0 | 15,000 |
Net decrease in short-term borrowings | (30,764) | (10,193) |
Dividends paid | (2,228) | (2,257) |
Issuance of common stock | 17 | 23 |
Purchases of treasury stock | (574) | (445) |
Net cash (used for) provided by provided by financing activities | (5,848) | 17,198 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 24,329 | 1,864 |
CASH AND CASH EQUIVALENTS, BEGINNING | 22,796 | 19,908 |
CASH AND CASH EQUIVALENTS, ENDING | 47,125 | 21,772 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid | 1,339 | 1,228 |
Income taxes paid | 950 | 800 |
Transfer of loans to foreclosed real estate | $ 25 | $ 7 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 “Banks”) 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, 2015 . 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 40 through 48 of the Form 10-K for the year ended December 31, 2015 . 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 Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015 were as follows: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (In Thousands) Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ 258 $ (4,057 ) $ (3,799 ) $ 2,930 $ (4,597 ) $ (1,667 ) Other comprehensive income before reclassifications 1,353 — 1,353 797 — 797 Amounts reclassified from accumulated other comprehensive loss (287 ) 25 (262 ) (436 ) — (436 ) Net current-period other comprehensive income 1,066 25 1,091 361 — 361 Ending balance $ 1,324 $ (4,032 ) $ (2,708 ) $ 3,291 $ (4,597 ) $ (1,306 ) The reclassifications out of accumulated other comprehensive loss as of March 31, 2016 and 2015 were as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Consolidated Statement of Income Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net unrealized gain on available for sale securities $ 435 $ 661 Net securities gains, available for sale Income tax effect (148 ) (225 ) Income tax provision Total reclassifications for the period $ 287 $ 436 Net of tax Net unrecognized pension costs $ (39 ) $ — Salaries and employee benefits Income tax effect 14 — Income tax provision Total reclassifications for the period $ (25 ) $ — Net of tax |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The updates core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operation. 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 update is not expected to have a significant impact on the Company’s financial statements. In May 2015, the FASB issued ASU 2015-08 , Business Combinations - Pushdown Accounting - Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 . This ASU was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This update is not expected to have a significant impact on the Company’s financial statements. In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers (Topic 606) . The amendments in this update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is evaluating the effect of adopting this new accounting update. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting . This ASU adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. This update is not expected to have a significant impact on the Company’s financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update apply to all entities that present a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. This update is not expected to have a significant impact on the Company’s financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (g) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (h) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. 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 March 2016, the FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) . The amendments in this update apply to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a heading instrument under Topic 815 . The standards in this update clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. For all other entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within fiscal years beginning after December 15, 2018. An entity has an option to apply the amendments in this update on e ither a prospective basis or a modified retrospective basis. Early adoption is permitted, including adoption in an interim period. This update is not expected to have a significant impact on the Company’s financial statements. |
Per Share Data
Per Share Data | 3 Months Ended |
Mar. 31, 2016 | |
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. There are 32,500 stock options outstanding, however, since the strike price of $42.03 is greater than the market price the options are not included in the denominator when 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 March 31, 2016 2015 Weighted average common shares issued 5,005,160 5,002,832 Average treasury stock shares (264,657 ) (201,327 ) Weighted average common shares and common stock equivalents used to calculate basic and diluted earnings per share 4,740,503 4,801,505 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and fair values of investment securities available for sale at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS) U.S. Government and agency securities $ 3,474 $ 4 $ (2 ) $ 3,476 Mortgage-backed securities 9,465 337 (51 ) 9,751 Asset-backed securities 1,826 — (33 ) 1,793 State and political securities 68,533 2,044 (2 ) 70,575 Other debt securities 57,080 452 (1,317 ) 56,215 Total debt securities 140,378 2,837 (1,405 ) 141,810 Financial institution equity securities 8,924 834 (23 ) 9,735 Other equity securities 2,401 15 (252 ) 2,164 Total equity securities 11,325 849 (275 ) 11,899 Total investment securities AFS $ 151,703 $ 3,686 $ (1,680 ) $ 153,709 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS) U.S. Government and agency securities $ 3,586 $ — $ (37 ) $ 3,549 Mortgage-backed securities 9,785 284 (60 ) 10,009 Asset-backed securities 1,960 — (20 ) 1,940 State and political securities 84,992 1,797 (234 ) 86,555 Other debt securities 59,832 185 (2,245 ) 57,772 Total debt securities 160,155 2,266 (2,596 ) 159,825 Financial institution equity securities 10,397 1,100 (14 ) 11,483 Other equity securities 5,214 70 (435 ) 4,849 Total equity securities 15,611 1,170 (449 ) 16,332 Total investment securities AFS $ 175,766 $ 3,436 $ (3,045 ) $ 176,157 The amortized cost and fair values of trading investment securities at March 31, 2016 and December 31, 2015 are as follows. March 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading Financial institution equity securities $ 60 $ — $ — $ 60 Total equity securities 60 — — 60 Total trading securities $ 60 $ — $ — $ 60 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading Financial institution equity securities $ 78 $ — $ (5 ) $ 73 Total equity securities 78 — (5 ) 73 Total trading securities $ 78 $ — $ (5 ) $ 73 Total net realized trading gains of $40,000 for the three months ended March 31, 2016 were included in the Consolidated Statement of Income. There were no net realized trading gains for the corresponding period of 2015. 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 March 31, 2016 and December 31, 2015 . March 31, 2016 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 Available for sale (AFS) U.S. Government and agency securities $ — $ — $ 1,378 $ (2 ) $ 1,378 $ (2 ) Mortgage-backed securities 667 (2 ) 3,723 (49 ) 4,390 (51 ) Asset-backed securities 1,533 (29 ) 260 (4 ) 1,793 (33 ) State and political securities 1,396 (2 ) — — 1,396 (2 ) Other debt securities 7,419 (158 ) 22,030 (1,159 ) 29,449 (1,317 ) Total debt securities 11,015 (191 ) 27,391 (1,214 ) 38,406 (1,405 ) Financial institution equity securities 146 (4 ) 48 (19 ) 194 (23 ) Other equity securities 295 (113 ) 1,019 (139 ) 1,314 (252 ) Total equity securities 441 (117 ) 1,067 (158 ) 1,508 (275 ) Total investment securities AFS $ 11,456 $ (308 ) $ 28,458 $ (1,372 ) $ 39,914 $ (1,680 ) December 31, 2015 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 Available for sale (AFS) U.S. Government and agency securities $ — $ — $ 3,549 $ (37 ) $ 3,549 $ (37 ) Mortgage-backed securities 6,081 (60 ) — — 6,081 (60 ) Asset-backed securities 1,626 (16 ) 314 (4 ) 1,940 (20 ) State and political securities 7,345 (47 ) 1,656 (187 ) 9,001 (234 ) Other debt securities 24,381 (530 ) 22,547 (1,715 ) 46,928 (2,245 ) Total debt securities 39,433 (653 ) 28,066 (1,943 ) 67,499 (2,596 ) Financial institution equity securities — — 53 (14 ) 53 (14 ) Other equity securities 2,363 (277 ) 1,001 (158 ) 3,364 (435 ) Total equity securities 2,363 (277 ) 1,054 (172 ) 3,417 (449 ) Total investment securities AFS $ 41,796 $ (930 ) $ 29,120 $ (2,115 ) $ 70,916 $ (3,045 ) At March 31, 2016 there were a total of 13 securities in a continuous unrealized loss position for less than twelve months and 20 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 March 31, 2016 , 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 March 31, 2016 , 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 $ 1,806 $ 1,812 Due after one year to five years 31,032 31,106 Due after five years to ten years 79,232 79,456 Due after ten years 28,308 29,436 Total $ 140,378 $ 141,810 Total gross proceeds from sales of securities available for sale were $19,839,000 and $15,807,000 for the three months ended March 31, 2016 and 2015 , respectively. The following table represents gross realized gains and losses within the available for sale portfolio: Three Months Ended March 31, (In Thousands) 2016 2015 Gross realized gains: State and political securities 299 396 Other debt securities 32 74 Financial institution equity securities 82 155 Other equity securities 144 132 Total gross realized gains $ 557 $ 757 Gross realized losses: U.S. Government and agency securities $ — $ — State and political securities — 22 Other debt securities 81 32 Other equity securities 41 42 Total gross realized losses $ 122 $ 96 The following table represents gross realized gains and losses within the trading portfolios: Three Months Ended March 31, (In Thousands) 2016 2015 Gross realized gains: Financial institution equity securities $ 6 $ — Other equity securities 59 — Total gross realized gains $ 65 $ — Gross realized losses: Financial institution equity securities $ 13 $ — Other equity securities 12 — Total gross realized losses $ 25 $ — There were no impairment charges included in gross realized losses for the three months ended March 31, 2016 and 2015 , respectively. Investment securities with a carrying value of approximately $123,691,000 and $131,089,000 at March 31, 2016 and December 31, 2015 , respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | Loans Management segments the Banks' 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, financial, 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 March 31, 2016 and December 31, 2015 : March 31, 2016 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 152,282 $ 317 $ — $ 292 $ 152,891 Real estate mortgage: Residential 523,897 5,761 308 1,458 531,424 Commercial 296,145 802 — 9,312 306,259 Construction 25,111 — — 278 25,389 Installment loans to individuals 26,290 412 — — 26,702 1,023,725 $ 7,292 $ 308 $ 11,340 1,042,665 Net deferred loan fees and discounts (1,413 ) (1,413 ) Allowance for loan losses (12,382 ) (12,382 ) Loans, net $ 1,009,930 $ 1,028,870 December 31, 2015 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 162,312 $ 164 $ — $ 1,596 $ 164,072 Real estate mortgage: Residential 517,753 6,827 714 889 526,183 Commercial 295,784 720 265 5,770 302,539 Construction 26,545 67 — 212 26,824 Installment loans to individuals 26,572 429 — — 27,001 1,028,966 $ 8,207 $ 979 $ 8,467 1,046,619 Net deferred loan fees and discounts (1,412 ) (1,412 ) Allowance for loan losses (12,044 ) (12,044 ) Loans, net $ 1,015,510 $ 1,033,163 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 March 31, 2016 . 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 $337,000 at March 31, 2016 . 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 following table presents additional information regarding loans acquired in the Luzerne Bank transaction with specific evidence of deterioration in credit quality: (In Thousands) March 31, 2016 December 31, 2015 Outstanding balance $ 437 $ 441 Carrying amount 337 341 There were no material increases or decreases in the expected cash flows of these loans between June 1, 2013 (the “acquisition date”) and March 31, 2016 . There has been no allowance for loan losses recorded for acquired loans with specific evidence of deterioration in credit quality as of March 31, 2016 . The following table presents interest income the Banks 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 months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 4 $ 1 $ 12 $ 8 Real estate mortgage: Residential 32 14 5 9 Commercial 169 64 105 25 Construction 6 — 15 7 $ 211 $ 79 $ 137 $ 49 Impaired Loans Impaired loans are loans for which it is probable the Banks will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Banks evaluate 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 Banks may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired. 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 Banks' policy on non-accrual loans. The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of March 31, 2016 and December 31, 2015 : March 31, 2016 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 304 $ 304 $ — Real estate mortgage: Residential 1,598 1,598 — Commercial 2,595 2,645 — Construction 279 279 — 4,776 4,826 — With an allowance recorded: Commercial, financial, and agricultural 291 291 219 Real estate mortgage: Residential 1,533 1,646 353 Commercial 10,601 10,601 1,984 Construction — — — 12,425 12,538 2,556 Total: Commercial, financial, and agricultural 595 595 219 Real estate mortgage: Residential 3,131 3,244 353 Commercial 13,196 13,246 1,984 Construction 279 279 — $ 17,201 $ 17,364 $ 2,556 December 31, 2015 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 319 $ 319 $ — Real estate mortgage: Residential 1,142 1,142 — Commercial 1,735 1,785 — Construction 212 212 — 3,408 3,458 — With an allowance recorded: Commercial, financial, and agricultural 150 150 75 Real estate mortgage: Residential 1,573 1,703 376 Commercial 10,752 10,752 1,653 Construction — — — 12,475 12,605 2,104 Total: Commercial, financial, and agricultural 469 469 75 Real estate mortgage: Residential 2,715 2,845 376 Commercial 12,487 12,537 1,653 Construction 212 212 — $ 15,883 $ 16,063 $ 2,104 The following table presents the average recorded investment in impaired loans and related interest income recognized for the three months ended for March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 533 $ 4 $ 1 $ 1,149 $ 5 $ 7 Real estate mortgage: Residential 2,899 22 14 1,644 12 5 Commercial 12,829 82 63 14,773 71 25 Construction 245 — 1 719 — 7 $ 16,506 $ 108 $ 79 $ 18,285 $ 88 $ 44 Currently, there is $23,000 committed to be advanced in connection with impaired loans. Troubled Debt Restructurings 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 . There were no loan modifications that were considered TDRs completed during the three months ended March 31, 2016. Loan modifications that are considered TDRs completed during the three months ended March 31, 2015 and were as follows: 2015 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural 2 $ 97 $ 97 Real estate mortgage: Residential 5 234 234 Commercial 1 270 270 Construction — — — 8 $ 601 $ 601 Of the eight new troubled debt restructurings granted for the three months ended March 31, 2015 , two loans totaling $97,000 were granted term concessions and six loans totaling $504,000 were granted concessions due to other default. All of the loans with modifications considered TDRs for the three months ended March 31, 2015 had a specific allowance within the allowance for loan losses. There were five loan modifications considered to be TDRs made during the twelve months previous to March 31, 2016 that defaulted during the three months ended March 31, 2016 . The defaulted loan types and recorded investments at March 31, 2016 are as follows: one commercial loan with a recorded investment of $103,000 , one commercial real estate loan with a recorded investment of $239,000 , and three residential real estate loan with a recorded investment of $173,000 . There was one loan modifications considered TDRs made during the twelve months previous to March 31, 2015 that defaulted during the three months ended March 31, 2015 . The loan that defaulted is a commercial real estate loans with a recorded investment of $48,000 at March 31, 2015 . Troubled debt restructurings amounted to $9,503,000 and $9,645,000 as of March 31, 2016 and December 31, 2015 . The amount of foreclosed residential real estate held at March 31, 2016 and December 31, 2015 , totaled $126,000 and $102,000 , respectively. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at March 31, 2016 and December 31, 2015 , totaled $938,000 and $448,000 , respectively. 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 evaluated for substandard classification. 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 Banks have 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 large commercial relationships 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 March 31, 2016 and December 31, 2015 : March 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 151,347 $ 527,868 $ 284,453 $ 25,111 $ 26,702 $ 1,015,481 Special Mention 1,238 808 5,573 — — 7,619 Substandard 306 2,748 16,233 278 — 19,565 $ 152,891 $ 531,424 $ 306,259 $ 25,389 $ 26,702 $ 1,042,665 December 31, 2015 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 160,734 $ 522,853 $ 277,248 $ 26,612 $ 27,001 $ 1,014,448 Special Mention 1,669 823 8,625 — — 11,117 Substandard 1,669 2,507 16,666 212 — 21,054 $ 164,072 $ 526,183 $ 302,539 $ 26,824 $ 27,001 $ 1,046,619 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 Banks' 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 Banks' 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. However, management may adjust the moving average time frame by up to four quarters to adjust for variances in the economic cycle. 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. Activity in the allowance is presented for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Charge-offs — — — — (51 ) — (51 ) Recoveries — 3 5 3 28 — 39 Provision (278 ) 4 250 (16 ) 44 346 350 Ending Balance $ 1,254 $ 5,123 $ 4,472 $ 147 $ 264 $ 1,122 $ 12,382 Three Months Ended March 31, 2015 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,124 $ 3,755 $ 4,205 $ 786 $ 245 $ 464 $ 10,579 Charge-offs (20 ) (1 ) (449 ) — (56 ) — (526 ) Recoveries 26 24 — 11 12 — 73 Provision 348 449 117 (45 ) (8 ) (161 ) 700 Ending Balance $ 1,478 $ 4,227 $ 3,873 $ 752 $ 193 $ 303 $ 10,826 The Company grants commercial, industrial, residential, and installment loans to customers primarily throughout north-east and central Pennsylvania. Although the Company has a diversified loan portfolio, 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 the following to gross loans at March 31, 2016 and 2015 : March 31, 2016 2015 Owners of residential rental properties 16.27 % 16.20 % Owners of commercial rental properties 14.27 % 14.46 % 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 March 31, 2016 and December 31, 2015 : March 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 219 $ 353 $ 1,984 $ — $ — $ — $ 2,556 Collectively evaluated for impairment 1,035 4,770 2,488 147 264 1,122 9,826 Total ending allowance balance $ 1,254 $ 5,123 $ 4,472 $ 147 $ 264 $ 1,122 $ 12,382 Loans: Individually evaluated for impairment $ 595 $ 2,794 $ 13,196 $ 279 $ — $ 16,864 Loans acquired with deteriorated credit quality — 337 — — — 337 Collectively evaluated for impairment 152,296 528,293 293,063 25,110 26,702 1,025,464 Total ending loans balance $ 152,891 $ 531,424 $ 306,259 $ 25,389 $ 26,702 $ 1,042,665 December 31, 2015 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 75 $ 376 $ 1,653 $ — $ — $ — $ 2,104 Collectively evaluated for impairment 1,457 4,740 2,564 160 243 776 9,940 Total ending allowance balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Loans: Individually evaluated for impairment $ 469 $ 2,374 $ 12,487 $ 212 $ — $ 15,542 Loans acquired with deteriorated credit quality — 341 — — — 341 Collectively evaluated for impairment 163,603 523,468 290,052 26,612 27,001 1,030,736 Total ending loans balance $ 164,072 $ 526,183 $ 302,539 $ 26,824 $ 27,001 $ 1,046,619 |
Net Periodic Benefit Cost-Defin
Net Periodic Benefit Cost-Defined Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
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 13 of the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2015 . The following sets forth the components of the net periodic benefit/cost of the domestic non-contributory defined benefit plan for the three months ended March 31, 2016 and 2015 , respectively: Three Months Ended March 31, (In Thousands) 2016 2015 Service cost $ 17 $ 16 Interest cost 193 189 Expected return on plan assets (251 ) (281 ) Amortization of net loss 39 40 Net periodic benefit cost $ (2 ) $ (36 ) 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, 2015 , that it expected to contribute a minimum of $500,000 to its defined benefit plan in 2016 . As of March 31, 2016 , there were contributions of $250,000 made to the plan with additional contributions of at least $250,000 anticipated during the remainder of 2016 . |
Employee Stock Purchase Plan
Employee Stock Purchase Plan | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 , there were 550 and 520 shares issued under the plan, respectively. |
Off Balance Sheet Risk
Off Balance Sheet Risk | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 : (In Thousands) March 31, 2016 December 31, 2015 Commitments to extend credit $ 247,801 $ 241,936 Standby letters of credit 5,402 4,786 Credit exposure from the sale of assets with recourse 7,167 6,523 $ 260,370 $ 253,245 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , 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. March 31, 2016 (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 $ — $ 3,476 $ — $ 3,476 Mortgage-backed securities — 9,751 — 9,751 Asset-backed securities — 1,793 — 1,793 State and political securities — 70,575 — 70,575 Other debt securities — 56,215 — 56,215 Financial institution equity securities 9,735 — — 9,735 Other equity securities 2,164 — — 2,164 Investment securities, trading: Financial institution equity securities 60 — — 60 Total assets measured on a recurring basis $ 11,959 $ 141,810 $ — $ 153,769 December 31, 2015 (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 $ — $ 3,549 $ — $ 3,549 Mortgage-backed securities — 10,009 — 10,009 Asset-backed securities — 1,940 — 1,940 State and political securities — 86,555 — 86,555 Other debt securities — 57,772 — 57,772 Financial institution equity securities 11,483 — — 11,483 Other equity securities 4,849 — — 4,849 Investment securities, trading: Financial institution equity securities 73 — — 73 Total assets measured on a recurring basis $ 16,405 $ 159,825 $ — $ 176,230 The following table presents the assets reported on the Consolidated Balance Sheet at their fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015 , 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. March 31, 2016 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 14,645 $ 14,645 Other real estate owned — — 1,719 1,719 Total assets measured on a non-recurring basis $ — $ — $ 16,364 $ 16,364 December 31, 2015 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 13,779 $ 13,779 Other real estate owned — — 1,696 1,696 Total assets measured on a non-recurring basis $ — $ — $ 15,475 $ 15,475 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 March 31, 2016 and December 31, 2015 : March 31, 2016 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,370 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (16)% 9,275 Appraisal of collateral Appraisal adjustments (1) 0 to (20)% (13)% Other real estate owned $ 1,719 Appraisal of collateral (1) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. December 31, 2015 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,696 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (17)% 8,083 Appraisal of collateral Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 1,696 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 Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
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 March 31, 2016 and December 31, 2015 : Carrying Fair Fair Value Measurements at March 31, 2016 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 47,125 $ 47,125 $ 47,125 $ — $ — Investment securities: Available for sale 153,709 153,709 11,899 141,810 — Trading 60 60 60 — — Loans held for sale 514 514 514 — — Loans, net 1,028,870 1,068,941 — — 1,068,941 Bank-owned life insurance 26,867 26,867 26,867 — — Accrued interest receivable 3,878 3,878 3,878 — — Financial liabilities: Interest-bearing deposits $ 790,219 $ 779,632 $ 558,909 $ — $ 220,723 Noninterest-bearing deposits 269,362 269,362 269,362 — — Short-term borrowings 15,874 15,874 15,874 — — Long-term borrowings 91,025 92,582 — — 92,582 Accrued interest payable 439 439 439 — — Carrying Fair Fair Value Measurements at December 31, 2015 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 22,796 $ 22,796 $ 22,796 $ — $ — Investment securities: Available for sale 176,157 176,157 16,332 159,825 — Trading 73 73 73 — — Loans held for sale 757 757 757 — — Loans, net 1,033,163 1,045,140 — — 1,045,140 Bank-owned life insurance 26,667 26,667 26,667 — — Accrued interest receivable 3,686 3,686 3,686 — — Financial liabilities: Interest-bearing deposits $ 751,797 $ 729,685 $ 509,206 $ — $ 220,479 Noninterest-bearing deposits 280,083 280,083 280,083 — — Short-term borrowings 46,638 46,638 46,638 — — Long-term borrowings 91,025 91,783 — — 91,783 Accrued interest payable 426 426 426 — — 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 trading 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, financial, 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 9 (Off Balance Sheet Risk). |
Stock Options
Stock Options | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | Stock Options In 2014, the Company adopted the 2014 Equity Incentive Plan designed to help the Company attract, retain, and motivate employees and non-employee directors. Incentive stock options, non-qualified stock options, and restricted stock may be granted as part of the plan. On August 27, 2015, the Company issued 38,750 stock options to a group of employees. Each option granted has a strike price of $42.03 and is exercisable only after five years following the date of the grant of such options. The options expire ten years following the date of the grant of such options. A summary of stock option activity is presented below: March 31, 2016 December 31, 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 34,750 $ 42.03 — $ — Granted — — 38,750 42.03 Exercised — — — — Forfeited (2,250 ) 42.03 (4,000 ) 42.03 Outstanding, end of year 32,500 $ 42.03 34,750 $ 42.03 The estimated fair value of options, including the effect of estimated forfeitures, is recognized as expense on a straightline basis over the options’ vesting periods while ensuring that the cumulative amount of compensation cost recognized at least equals the value of the vested portion of the award at that date. The Company determines the fair value of options granted using the Black-Scholes option-pricing model. The risk-free interest rate is based on the United States Treasury bond with a similar term to the expected life of the options at the grant date. Expected volatility was estimated based on the adjusted historic volatility of the Company’s shares. The expected life was estimated to equal the contractual life of the options. The dividend yield rate was based upon recent historical dividends paid on shares. |
Reclassification of Comparative
Reclassification of Comparative Amounts | 3 Months Ended |
Mar. 31, 2016 | |
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. |
Recent Accounting Pronounceme22
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The updates core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operation. 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 update is not expected to have a significant impact on the Company’s financial statements. In May 2015, the FASB issued ASU 2015-08 , Business Combinations - Pushdown Accounting - Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 . This ASU was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This update is not expected to have a significant impact on the Company’s financial statements. In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers (Topic 606) . The amendments in this update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company is evaluating the effect of adopting this new accounting update. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting . This ASU adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. This update is not expected to have a significant impact on the Company’s financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this update apply to all entities that present a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. This update is not expected to have a significant impact on the Company’s financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (g) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (h) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015 were as follows: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 (In Thousands) Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain on Available for Sale Securities Defined Benefit Plan Total Beginning balance $ 258 $ (4,057 ) $ (3,799 ) $ 2,930 $ (4,597 ) $ (1,667 ) Other comprehensive income before reclassifications 1,353 — 1,353 797 — 797 Amounts reclassified from accumulated other comprehensive loss (287 ) 25 (262 ) (436 ) — (436 ) Net current-period other comprehensive income 1,066 25 1,091 361 — 361 Ending balance $ 1,324 $ (4,032 ) $ (2,708 ) $ 3,291 $ (4,597 ) $ (1,306 ) |
Schedule of reclassifications out of accumulated other comprehensive income | The reclassifications out of accumulated other comprehensive loss as of March 31, 2016 and 2015 were as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Consolidated Statement of Income Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net unrealized gain on available for sale securities $ 435 $ 661 Net securities gains, available for sale Income tax effect (148 ) (225 ) Income tax provision Total reclassifications for the period $ 287 $ 436 Net of tax Net unrecognized pension costs $ (39 ) $ — Salaries and employee benefits Income tax effect 14 — Income tax provision Total reclassifications for the period $ (25 ) $ — Net of tax |
Per Share Data (Tables)
Per Share Data (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Weighted average common shares issued 5,005,160 5,002,832 Average treasury stock shares (264,657 ) (201,327 ) Weighted average common shares and common stock equivalents used to calculate basic and diluted earnings per share 4,740,503 4,801,505 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair values of investment securities available for sale at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS) U.S. Government and agency securities $ 3,474 $ 4 $ (2 ) $ 3,476 Mortgage-backed securities 9,465 337 (51 ) 9,751 Asset-backed securities 1,826 — (33 ) 1,793 State and political securities 68,533 2,044 (2 ) 70,575 Other debt securities 57,080 452 (1,317 ) 56,215 Total debt securities 140,378 2,837 (1,405 ) 141,810 Financial institution equity securities 8,924 834 (23 ) 9,735 Other equity securities 2,401 15 (252 ) 2,164 Total equity securities 11,325 849 (275 ) 11,899 Total investment securities AFS $ 151,703 $ 3,686 $ (1,680 ) $ 153,709 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Available for sale (AFS) U.S. Government and agency securities $ 3,586 $ — $ (37 ) $ 3,549 Mortgage-backed securities 9,785 284 (60 ) 10,009 Asset-backed securities 1,960 — (20 ) 1,940 State and political securities 84,992 1,797 (234 ) 86,555 Other debt securities 59,832 185 (2,245 ) 57,772 Total debt securities 160,155 2,266 (2,596 ) 159,825 Financial institution equity securities 10,397 1,100 (14 ) 11,483 Other equity securities 5,214 70 (435 ) 4,849 Total equity securities 15,611 1,170 (449 ) 16,332 Total investment securities AFS $ 175,766 $ 3,436 $ (3,045 ) $ 176,157 |
Schedule of amortized cost and fair values of investment securities | The amortized cost and fair values of trading investment securities at March 31, 2016 and December 31, 2015 are as follows. March 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading Financial institution equity securities $ 60 $ — $ — $ 60 Total equity securities 60 — — 60 Total trading securities $ 60 $ — $ — $ 60 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair (In Thousands) Cost Gains Losses Value Trading Financial institution equity securities $ 78 $ — $ (5 ) $ 73 Total equity securities 78 — (5 ) 73 Total trading securities $ 78 $ — $ (5 ) $ 73 |
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 March 31, 2016 and December 31, 2015 . March 31, 2016 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 Available for sale (AFS) U.S. Government and agency securities $ — $ — $ 1,378 $ (2 ) $ 1,378 $ (2 ) Mortgage-backed securities 667 (2 ) 3,723 (49 ) 4,390 (51 ) Asset-backed securities 1,533 (29 ) 260 (4 ) 1,793 (33 ) State and political securities 1,396 (2 ) — — 1,396 (2 ) Other debt securities 7,419 (158 ) 22,030 (1,159 ) 29,449 (1,317 ) Total debt securities 11,015 (191 ) 27,391 (1,214 ) 38,406 (1,405 ) Financial institution equity securities 146 (4 ) 48 (19 ) 194 (23 ) Other equity securities 295 (113 ) 1,019 (139 ) 1,314 (252 ) Total equity securities 441 (117 ) 1,067 (158 ) 1,508 (275 ) Total investment securities AFS $ 11,456 $ (308 ) $ 28,458 $ (1,372 ) $ 39,914 $ (1,680 ) December 31, 2015 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 Available for sale (AFS) U.S. Government and agency securities $ — $ — $ 3,549 $ (37 ) $ 3,549 $ (37 ) Mortgage-backed securities 6,081 (60 ) — — 6,081 (60 ) Asset-backed securities 1,626 (16 ) 314 (4 ) 1,940 (20 ) State and political securities 7,345 (47 ) 1,656 (187 ) 9,001 (234 ) Other debt securities 24,381 (530 ) 22,547 (1,715 ) 46,928 (2,245 ) Total debt securities 39,433 (653 ) 28,066 (1,943 ) 67,499 (2,596 ) Financial institution equity securities — — 53 (14 ) 53 (14 ) Other equity securities 2,363 (277 ) 1,001 (158 ) 3,364 (435 ) Total equity securities 2,363 (277 ) 1,054 (172 ) 3,417 (449 ) Total investment securities AFS $ 41,796 $ (930 ) $ 29,120 $ (2,115 ) $ 70,916 $ (3,045 ) |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities at March 31, 2016 , 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 $ 1,806 $ 1,812 Due after one year to five years 31,032 31,106 Due after five years to ten years 79,232 79,456 Due after ten years 28,308 29,436 Total $ 140,378 $ 141,810 |
Schedule of gross realized gains and losses | The following table represents gross realized gains and losses within the available for sale portfolio: Three Months Ended March 31, (In Thousands) 2016 2015 Gross realized gains: State and political securities 299 396 Other debt securities 32 74 Financial institution equity securities 82 155 Other equity securities 144 132 Total gross realized gains $ 557 $ 757 Gross realized losses: U.S. Government and agency securities $ — $ — State and political securities — 22 Other debt securities 81 32 Other equity securities 41 42 Total gross realized losses $ 122 $ 96 The following table represents gross realized gains and losses within the trading portfolios: Three Months Ended March 31, (In Thousands) 2016 2015 Gross realized gains: Financial institution equity securities $ 6 $ — Other equity securities 59 — Total gross realized gains $ 65 $ — Gross realized losses: Financial institution equity securities $ 13 $ — Other equity securities 12 — Total gross realized losses $ 25 $ — |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 : March 31, 2016 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 152,282 $ 317 $ — $ 292 $ 152,891 Real estate mortgage: Residential 523,897 5,761 308 1,458 531,424 Commercial 296,145 802 — 9,312 306,259 Construction 25,111 — — 278 25,389 Installment loans to individuals 26,290 412 — — 26,702 1,023,725 $ 7,292 $ 308 $ 11,340 1,042,665 Net deferred loan fees and discounts (1,413 ) (1,413 ) Allowance for loan losses (12,382 ) (12,382 ) Loans, net $ 1,009,930 $ 1,028,870 December 31, 2015 Past Due Past Due 90 30 To 89 Days Or More Non- (In Thousands) Current Days & Still Accruing Accrual Total Commercial, financial, and agricultural $ 162,312 $ 164 $ — $ 1,596 $ 164,072 Real estate mortgage: Residential 517,753 6,827 714 889 526,183 Commercial 295,784 720 265 5,770 302,539 Construction 26,545 67 — 212 26,824 Installment loans to individuals 26,572 429 — — 27,001 1,028,966 $ 8,207 $ 979 $ 8,467 1,046,619 Net deferred loan fees and discounts (1,412 ) (1,412 ) Allowance for loan losses (12,044 ) (12,044 ) Loans, net $ 1,015,510 $ 1,033,163 |
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) March 31, 2016 December 31, 2015 Outstanding balance $ 437 $ 441 Carrying amount 337 341 |
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 Banks 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 months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 4 $ 1 $ 12 $ 8 Real estate mortgage: Residential 32 14 5 9 Commercial 169 64 105 25 Construction 6 — 15 7 $ 211 $ 79 $ 137 $ 49 |
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 March 31, 2016 and December 31, 2015 : March 31, 2016 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 304 $ 304 $ — Real estate mortgage: Residential 1,598 1,598 — Commercial 2,595 2,645 — Construction 279 279 — 4,776 4,826 — With an allowance recorded: Commercial, financial, and agricultural 291 291 219 Real estate mortgage: Residential 1,533 1,646 353 Commercial 10,601 10,601 1,984 Construction — — — 12,425 12,538 2,556 Total: Commercial, financial, and agricultural 595 595 219 Real estate mortgage: Residential 3,131 3,244 353 Commercial 13,196 13,246 1,984 Construction 279 279 — $ 17,201 $ 17,364 $ 2,556 December 31, 2015 Recorded Unpaid Principal Related (In Thousands) Investment Balance Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 319 $ 319 $ — Real estate mortgage: Residential 1,142 1,142 — Commercial 1,735 1,785 — Construction 212 212 — 3,408 3,458 — With an allowance recorded: Commercial, financial, and agricultural 150 150 75 Real estate mortgage: Residential 1,573 1,703 376 Commercial 10,752 10,752 1,653 Construction — — — 12,475 12,605 2,104 Total: Commercial, financial, and agricultural 469 469 75 Real estate mortgage: Residential 2,715 2,845 376 Commercial 12,487 12,537 1,653 Construction 212 212 — $ 15,883 $ 16,063 $ 2,104 |
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 months ended for March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 533 $ 4 $ 1 $ 1,149 $ 5 $ 7 Real estate mortgage: Residential 2,899 22 14 1,644 12 5 Commercial 12,829 82 63 14,773 71 25 Construction 245 — 1 719 — 7 $ 16,506 $ 108 $ 79 $ 18,285 $ 88 $ 44 |
Schedule of loan modifications that are considered TDRs | Loan modifications that are considered TDRs completed during the three months ended March 31, 2015 and were as follows: 2015 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural 2 $ 97 $ 97 Real estate mortgage: Residential 5 234 234 Commercial 1 270 270 Construction — — — 8 $ 601 $ 601 |
Schedule of credit quality categories | The following table presents the credit quality categories identified above as of March 31, 2016 and December 31, 2015 : March 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 151,347 $ 527,868 $ 284,453 $ 25,111 $ 26,702 $ 1,015,481 Special Mention 1,238 808 5,573 — — 7,619 Substandard 306 2,748 16,233 278 — 19,565 $ 152,891 $ 531,424 $ 306,259 $ 25,389 $ 26,702 $ 1,042,665 December 31, 2015 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Totals Pass $ 160,734 $ 522,853 $ 277,248 $ 26,612 $ 27,001 $ 1,014,448 Special Mention 1,669 823 8,625 — — 11,117 Substandard 1,669 2,507 16,666 212 — 21,054 $ 164,072 $ 526,183 $ 302,539 $ 26,824 $ 27,001 $ 1,046,619 |
Schedule of activity in the allowance | Activity in the allowance is presented for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Charge-offs — — — — (51 ) — (51 ) Recoveries — 3 5 3 28 — 39 Provision (278 ) 4 250 (16 ) 44 346 350 Ending Balance $ 1,254 $ 5,123 $ 4,472 $ 147 $ 264 $ 1,122 $ 12,382 Three Months Ended March 31, 2015 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,124 $ 3,755 $ 4,205 $ 786 $ 245 $ 464 $ 10,579 Charge-offs (20 ) (1 ) (449 ) — (56 ) — (526 ) Recoveries 26 24 — 11 12 — 73 Provision 348 449 117 (45 ) (8 ) (161 ) 700 Ending Balance $ 1,478 $ 4,227 $ 3,873 $ 752 $ 193 $ 303 $ 10,826 |
Schedule of concentration of loan | The Company has a concentration of the following to gross loans at March 31, 2016 and 2015 : March 31, 2016 2015 Owners of residential rental properties 16.27 % 16.20 % Owners of commercial rental properties 14.27 % 14.46 % |
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 March 31, 2016 and December 31, 2015 : March 31, 2016 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 219 $ 353 $ 1,984 $ — $ — $ — $ 2,556 Collectively evaluated for impairment 1,035 4,770 2,488 147 264 1,122 9,826 Total ending allowance balance $ 1,254 $ 5,123 $ 4,472 $ 147 $ 264 $ 1,122 $ 12,382 Loans: Individually evaluated for impairment $ 595 $ 2,794 $ 13,196 $ 279 $ — $ 16,864 Loans acquired with deteriorated credit quality — 337 — — — 337 Collectively evaluated for impairment 152,296 528,293 293,063 25,110 26,702 1,025,464 Total ending loans balance $ 152,891 $ 531,424 $ 306,259 $ 25,389 $ 26,702 $ 1,042,665 December 31, 2015 Commercial, Financial, and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated (In Thousands) Residential Commercial Construction Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 75 $ 376 $ 1,653 $ — $ — $ — $ 2,104 Collectively evaluated for impairment 1,457 4,740 2,564 160 243 776 9,940 Total ending allowance balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Loans: Individually evaluated for impairment $ 469 $ 2,374 $ 12,487 $ 212 $ — $ 15,542 Loans acquired with deteriorated credit quality — 341 — — — 341 Collectively evaluated for impairment 163,603 523,468 290,052 26,612 27,001 1,030,736 Total ending loans balance $ 164,072 $ 526,183 $ 302,539 $ 26,824 $ 27,001 $ 1,046,619 |
Net Periodic Benefit Cost-Def27
Net Periodic Benefit Cost-Defined Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 , respectively: Three Months Ended March 31, (In Thousands) 2016 2015 Service cost $ 17 $ 16 Interest cost 193 189 Expected return on plan assets (251 ) (281 ) Amortization of net loss 39 40 Net periodic benefit cost $ (2 ) $ (36 ) |
Off Balance Sheet Risk (Tables)
Off Balance Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 : (In Thousands) March 31, 2016 December 31, 2015 Commitments to extend credit $ 247,801 $ 241,936 Standby letters of credit 5,402 4,786 Credit exposure from the sale of assets with recourse 7,167 6,523 $ 260,370 $ 253,245 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , 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. March 31, 2016 (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 $ — $ 3,476 $ — $ 3,476 Mortgage-backed securities — 9,751 — 9,751 Asset-backed securities — 1,793 — 1,793 State and political securities — 70,575 — 70,575 Other debt securities — 56,215 — 56,215 Financial institution equity securities 9,735 — — 9,735 Other equity securities 2,164 — — 2,164 Investment securities, trading: Financial institution equity securities 60 — — 60 Total assets measured on a recurring basis $ 11,959 $ 141,810 $ — $ 153,769 December 31, 2015 (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 $ — $ 3,549 $ — $ 3,549 Mortgage-backed securities — 10,009 — 10,009 Asset-backed securities — 1,940 — 1,940 State and political securities — 86,555 — 86,555 Other debt securities — 57,772 — 57,772 Financial institution equity securities 11,483 — — 11,483 Other equity securities 4,849 — — 4,849 Investment securities, trading: Financial institution equity securities 73 — — 73 Total assets measured on a recurring basis $ 16,405 $ 159,825 $ — $ 176,230 |
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 March 31, 2016 and December 31, 2015 , 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. March 31, 2016 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 14,645 $ 14,645 Other real estate owned — — 1,719 1,719 Total assets measured on a non-recurring basis $ — $ — $ 16,364 $ 16,364 December 31, 2015 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 13,779 $ 13,779 Other real estate owned — — 1,696 1,696 Total assets measured on a non-recurring basis $ — $ — $ 15,475 $ 15,475 |
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 March 31, 2016 and December 31, 2015 : March 31, 2016 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,370 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (16)% 9,275 Appraisal of collateral Appraisal adjustments (1) 0 to (20)% (13)% Other real estate owned $ 1,719 Appraisal of collateral (1) (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. December 31, 2015 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,696 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (17)% 8,083 Appraisal of collateral Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 1,696 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 Instr30
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values of financial instruments | The fair values of the Company’s financial instruments are as follows at March 31, 2016 and December 31, 2015 : Carrying Fair Fair Value Measurements at March 31, 2016 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 47,125 $ 47,125 $ 47,125 $ — $ — Investment securities: Available for sale 153,709 153,709 11,899 141,810 — Trading 60 60 60 — — Loans held for sale 514 514 514 — — Loans, net 1,028,870 1,068,941 — — 1,068,941 Bank-owned life insurance 26,867 26,867 26,867 — — Accrued interest receivable 3,878 3,878 3,878 — — Financial liabilities: Interest-bearing deposits $ 790,219 $ 779,632 $ 558,909 $ — $ 220,723 Noninterest-bearing deposits 269,362 269,362 269,362 — — Short-term borrowings 15,874 15,874 15,874 — — Long-term borrowings 91,025 92,582 — — 92,582 Accrued interest payable 439 439 439 — — Carrying Fair Fair Value Measurements at December 31, 2015 (In Thousands) Value Value Level I Level II Level III Financial assets: Cash and cash equivalents $ 22,796 $ 22,796 $ 22,796 $ — $ — Investment securities: Available for sale 176,157 176,157 16,332 159,825 — Trading 73 73 73 — — Loans held for sale 757 757 757 — — Loans, net 1,033,163 1,045,140 — — 1,045,140 Bank-owned life insurance 26,667 26,667 26,667 — — Accrued interest receivable 3,686 3,686 3,686 — — Financial liabilities: Interest-bearing deposits $ 751,797 $ 729,685 $ 509,206 $ — $ 220,479 Noninterest-bearing deposits 280,083 280,083 280,083 — — Short-term borrowings 46,638 46,638 46,638 — — Long-term borrowings 91,025 91,783 — — 91,783 Accrued interest payable 426 426 426 — — |
Stock Options Stock Options (Ta
Stock Options Stock Options (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity is presented below: March 31, 2016 December 31, 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, beginning of year 34,750 $ 42.03 — $ — Granted — — 38,750 42.03 Exercised — — — — Forfeited (2,250 ) 42.03 (4,000 ) 42.03 Outstanding, end of year 32,500 $ 42.03 34,750 $ 42.03 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||
Beginning balance | $ (3,799) | $ (1,667) |
Other comprehensive income before reclassifications | 1,353 | 797 |
Amounts reclassified from accumulated other comprehensive (loss) income | (262) | (436) |
Total other comprehensive income | 1,091 | 361 |
Ending balance | (2,708) | (1,306) |
Net Unrealized Gain on Available for Sale Securities | ||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||
Beginning balance | 258 | 2,930 |
Other comprehensive income before reclassifications | 1,353 | 797 |
Amounts reclassified from accumulated other comprehensive (loss) income | (287) | (436) |
Total other comprehensive income | 1,066 | 361 |
Ending balance | 1,324 | 3,291 |
Defined Benefit Plan | ||
Increase (Decrease} In Accumulated Other Comprehensive Income (Loss), Net Of Tax1 [Roll Forward] | ||
Beginning balance | (4,057) | (4,597) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (loss) income | 25 | 0 |
Total other comprehensive income | 25 | 0 |
Ending balance | $ (4,032) | $ (4,597) |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss - Schedule of Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassifications out of accumulated other comprehensive income | ||
Net securities gains, available for sale | $ 435 | $ 661 |
Salaries and employee benefits | (4,580) | (4,470) |
Income tax provision | (882) | (848) |
NET INCOME | 3,078 | 3,355 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Net Unrealized Gain on Available for Sale Securities | ||
Reclassifications out of accumulated other comprehensive income | ||
Net securities gains, available for sale | 435 | 661 |
Income tax provision | (148) | (225) |
NET INCOME | 287 | 436 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||
Reclassifications out of accumulated other comprehensive income | ||
Salaries and employee benefits | (39) | 0 |
Income tax provision | 14 | 0 |
NET INCOME | $ (25) | $ 0 |
Per Share Data (Details)
Per Share Data (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Convertible securities which would affect denominator in calculating basic and dilutive earnings per share (in shares) | 0 | |
Shares outstanding (in shares) | 32,500 | |
Strike price (in dollars per share) | $ 42.03 | |
Weighted average common shares issued (in shares) | 5,005,160 | 5,002,832 |
Average treasury stock shares (in shares) | (264,657) | (201,327) |
Weighted average common shares and common stock equivalents used to calculate basic and diluted earnings per share (in shares) | 4,740,503 | 4,801,505 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Values of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Available for sale (AFS) | ||
Amortized Cost | $ 151,703 | $ 175,766 |
Gross Unrealized Gains | 3,686 | 3,436 |
Gross Unrealized Losses | (1,680) | (3,045) |
Available for sale | 153,709 | 176,157 |
Debt securities | ||
Available for sale (AFS) | ||
Amortized Cost | 140,378 | 160,155 |
Gross Unrealized Gains | 2,837 | 2,266 |
Gross Unrealized Losses | (1,405) | (2,596) |
Available for sale | 141,810 | 159,825 |
U.S. Government and agency securities | ||
Available for sale (AFS) | ||
Amortized Cost | 3,474 | 3,586 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | (2) | (37) |
Available for sale | 3,476 | 3,549 |
Mortgage-backed securities | ||
Available for sale (AFS) | ||
Amortized Cost | 9,465 | 9,785 |
Gross Unrealized Gains | 337 | 284 |
Gross Unrealized Losses | (51) | (60) |
Available for sale | 9,751 | 10,009 |
Asset-backed securities | ||
Available for sale (AFS) | ||
Amortized Cost | 1,826 | 1,960 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (33) | (20) |
Available for sale | 1,793 | 1,940 |
State and political securities | ||
Available for sale (AFS) | ||
Amortized Cost | 68,533 | 84,992 |
Gross Unrealized Gains | 2,044 | 1,797 |
Gross Unrealized Losses | (2) | (234) |
Available for sale | 70,575 | 86,555 |
Other debt securities | ||
Available for sale (AFS) | ||
Amortized Cost | 57,080 | 59,832 |
Gross Unrealized Gains | 452 | 185 |
Gross Unrealized Losses | (1,317) | (2,245) |
Available for sale | 56,215 | 57,772 |
Other equity securities | ||
Available for sale (AFS) | ||
Amortized Cost | 11,325 | 15,611 |
Gross Unrealized Gains | 849 | 1,170 |
Gross Unrealized Losses | (275) | (449) |
Available for sale | 11,899 | 16,332 |
Financial institution equity securities | ||
Available for sale (AFS) | ||
Amortized Cost | 8,924 | 10,397 |
Gross Unrealized Gains | 834 | 1,100 |
Gross Unrealized Losses | (23) | (14) |
Available for sale | 9,735 | 11,483 |
Other equity securities | ||
Available for sale (AFS) | ||
Amortized Cost | 2,401 | 5,214 |
Gross Unrealized Gains | 15 | 70 |
Gross Unrealized Losses | (252) | (435) |
Available for sale | $ 2,164 | $ 4,849 |
Investment Securities - Trading
Investment Securities - Trading Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | $ 60 | $ 78 |
Trading securities accumulated gross unrealized gain before tax | 0 | 0 |
Trading securities accumulated gross unrealized loss before tax | 0 | (5) |
Trading securities fair value | 60 | 73 |
Financial institution equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 60 | 78 |
Trading securities accumulated gross unrealized gain before tax | 0 | 0 |
Trading securities accumulated gross unrealized loss before tax | 0 | (5) |
Trading securities fair value | 60 | 73 |
Other equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 60 | 78 |
Trading securities accumulated gross unrealized gain before tax | 0 | 0 |
Trading securities accumulated gross unrealized loss before tax | 0 | (5) |
Trading securities fair value | $ 60 | $ 73 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investment securities | ||
Fair value, less than twelve months | $ 11,456 | $ 41,796 |
Gross unrealized losses, less than twelve months | (308) | (930) |
Fair value, twelve months or greater | 28,458 | 29,120 |
Gross unrealized losses, twelve months or greater | (1,372) | (2,115) |
Fair value, total | 39,914 | 70,916 |
Gross unrealized losses, total | (1,680) | (3,045) |
U.S. Government and agency securities | ||
Investment securities | ||
Fair value, less than twelve months | 0 | 0 |
Gross unrealized losses, less than twelve months | 0 | 0 |
Fair value, twelve months or greater | 1,378 | 3,549 |
Gross unrealized losses, twelve months or greater | (2) | (37) |
Fair value, total | 1,378 | 3,549 |
Gross unrealized losses, total | (2) | (37) |
Mortgage-backed securities | ||
Investment securities | ||
Fair value, less than twelve months | 667 | 6,081 |
Gross unrealized losses, less than twelve months | (2) | (60) |
Fair value, twelve months or greater | 3,723 | 0 |
Gross unrealized losses, twelve months or greater | (49) | 0 |
Fair value, total | 4,390 | 6,081 |
Gross unrealized losses, total | (51) | (60) |
Asset-backed securities | ||
Investment securities | ||
Fair value, less than twelve months | 1,533 | 1,626 |
Gross unrealized losses, less than twelve months | (29) | (16) |
Fair value, twelve months or greater | 260 | 314 |
Gross unrealized losses, twelve months or greater | (4) | (4) |
Fair value, total | 1,793 | 1,940 |
Gross unrealized losses, total | (33) | (20) |
State and political securities | ||
Investment securities | ||
Fair value, less than twelve months | 1,396 | 7,345 |
Gross unrealized losses, less than twelve months | (2) | (47) |
Fair value, twelve months or greater | 0 | 1,656 |
Gross unrealized losses, twelve months or greater | 0 | (187) |
Fair value, total | 1,396 | 9,001 |
Gross unrealized losses, total | (2) | (234) |
Other debt securities | ||
Investment securities | ||
Fair value, less than twelve months | 7,419 | 24,381 |
Gross unrealized losses, less than twelve months | (158) | (530) |
Fair value, twelve months or greater | 22,030 | 22,547 |
Gross unrealized losses, twelve months or greater | (1,159) | (1,715) |
Fair value, total | 29,449 | 46,928 |
Gross unrealized losses, total | (1,317) | (2,245) |
Debt securities | ||
Investment securities | ||
Fair value, less than twelve months | 11,015 | 39,433 |
Gross unrealized losses, less than twelve months | (191) | (653) |
Fair value, twelve months or greater | 27,391 | 28,066 |
Gross unrealized losses, twelve months or greater | (1,214) | (1,943) |
Fair value, total | 38,406 | 67,499 |
Gross unrealized losses, total | (1,405) | (2,596) |
Financial institution equity securities | ||
Investment securities | ||
Fair value, less than twelve months | 146 | 0 |
Gross unrealized losses, less than twelve months | (4) | 0 |
Fair value, twelve months or greater | 48 | 53 |
Gross unrealized losses, twelve months or greater | (19) | (14) |
Fair value, total | 194 | 53 |
Gross unrealized losses, total | (23) | (14) |
Other equity securities | ||
Investment securities | ||
Fair value, less than twelve months | 295 | 2,363 |
Gross unrealized losses, less than twelve months | (113) | (277) |
Fair value, twelve months or greater | 1,019 | 1,001 |
Gross unrealized losses, twelve months or greater | (139) | (158) |
Fair value, total | 1,314 | 3,364 |
Gross unrealized losses, total | (252) | (435) |
Other equity securities | ||
Investment securities | ||
Fair value, less than twelve months | 441 | 2,363 |
Gross unrealized losses, less than twelve months | (117) | (277) |
Fair value, twelve months or greater | 1,067 | 1,054 |
Gross unrealized losses, twelve months or greater | (158) | (172) |
Fair value, total | 1,508 | 3,417 |
Gross unrealized losses, total | $ (275) | $ (449) |
Investment Securities - Amort38
Investment Securities - Amortized Cost and Fair Value of Debt Securities (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Amortized Cost | |
Amortized Cost - Due in one year or less | $ 1,806 |
Amortized Cost - Due after one year to five years | 31,032 |
Amortized Cost - Due after five years to ten years | 79,232 |
Amortized Cost - Due after ten years | 28,308 |
Amortized Cost - Total | 140,378 |
Fair Value | |
Fair Value - Due in one year or less | 1,812 |
Fair Value - Due after one year to five years | 31,106 |
Fair Value - Due after five years to ten years | 79,456 |
Fair Value - Due after ten years | 29,436 |
Fair Value - Total | $ 141,810 |
Investment Securities - Total G
Investment Securities - Total Gross Proceeds from Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Gross realized gains and losses | ||
Available-for-sale securities, gross realized gains | $ 557 | $ 757 |
Available-for-sale securities, gross realized losses | 122 | 96 |
Gross realized gains | 65 | 0 |
Gross realized losses | 25 | 0 |
U.S. Government and agency securities | ||
Gross realized gains and losses | ||
Available-for-sale securities, gross realized losses | 0 | 0 |
State and political securities | ||
Gross realized gains and losses | ||
Available-for-sale securities, gross realized gains | 299 | 396 |
Available-for-sale securities, gross realized losses | 0 | 22 |
Other debt securities | ||
Gross realized gains and losses | ||
Available-for-sale securities, gross realized gains | 32 | 74 |
Available-for-sale securities, gross realized losses | 81 | 32 |
Financial institution equity securities | ||
Gross realized gains and losses | ||
Available-for-sale securities, gross realized gains | 82 | 155 |
Gross realized gains | 6 | 0 |
Gross realized losses | 13 | 0 |
Other equity securities | ||
Gross realized gains and losses | ||
Available-for-sale securities, gross realized gains | 144 | 132 |
Available-for-sale securities, gross realized losses | 41 | 42 |
Gross realized gains | 59 | 0 |
Gross realized losses | $ 12 | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)security | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Net realized and unrealized gain (loss) on trading securities | $ 40,000 | ||
Available for sale securities in unrealized loss, positions number of positions, less than twelve months | security | 13 | ||
Available for sale securities in unrealized loss, positions number of positions, greater than twelve months | security | 20 | ||
Proceeds from sales of available for sale securities | $ 19,839,000 | $ 15,807,000 | |
Impairment charges | 0 | $ 0 | |
Investment securities, carrying value | $ 123,691,000 | $ 131,089,000 |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | |||
Mar. 31, 2016USD ($)categoryclasscontractcomponent | Mar. 31, 2015USD ($)loancontract | Dec. 31, 2015USD ($) | Jun. 01, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired financing receivable, unpaid principal balance | $ 17,364,000 | $ 16,063,000 | ||
Financing receivable individually evaluated for impairment minimum amount | 100,000 | |||
Individually evaluated for impairment | $ 100,000 | |||
Payment delays limit (in days) | 90 days | |||
Impaired financing receivable commitment to lend | $ 23,000 | |||
Reasonable period to classify from troubled debt restructuring non performing loans to performing loans (in months) | 6 months | |||
Number of Contracts | contract | 8 | |||
Number of contracts | contract | 5 | |||
Number of loans granted term concessions | loan | 2 | |||
Loans granted term concessions, amount | $ 97,000 | |||
Number of loans granted concessions due to other default | loan | 6 | |||
Loans granted concessions due to other default, amount | $ 504,000 | |||
Recorded investment | $ 9,503,000 | 9,645,000 | ||
Number of categories considered not criticized and rated as, Pass | category | 6 | |||
Minimum period after which loans are considered as substandard (in days) | 90 days | |||
The total number of components that represents the allowance for loan losses | component | 2 | |||
The number of classes that groups of loans are collectively evaluated for impairment | class | 2 | |||
Period considered for quarter moving average which used in calculating historical charge off (in months) | 36 months | |||
Luzerne National Bank Corporation | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value | $ 878,000 | |||
Receivables Acquired with Deteriorated Credit Quality | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, net | $ 337,000 | 341,000 | ||
Financing receivable, allowance for credit losses | $ 0 | |||
Real estate mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of categories in which real estate loans segmented | category | 3 | |||
Purchased loans | Luzerne National Bank Corporation | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired financing receivable, unpaid principal balance | 1,211,000 | |||
Contractually required payments | 1,783,000 | |||
Cash flows expected to be collected | 941,000 | |||
Certain loans acquired in transfer not accounted for as debt securities non accretable yield | 842,000 | |||
Accretable yield | $ 63,000 | |||
Purchased loans | Receivables Acquired with Deteriorated Credit Quality | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, net | $ 337,000 | |||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired financing receivable, unpaid principal balance | $ 13,246,000 | 12,537,000 | ||
Number of Contracts | contract | 1 | |||
Number of contracts | contract | 1 | 1 | ||
Recorded investment | $ 239,000 | $ 48,000 | ||
Commercial | Receivables Acquired with Deteriorated Credit Quality | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, net | $ 0 | 0 | ||
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of contracts | contract | 3 | |||
Recorded investment | $ 173,000 | |||
Commercial Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of contracts | contract | 1 | |||
Recorded investment | $ 103,000 | |||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired financing receivable, unpaid principal balance | 3,244,000 | 2,845,000 | ||
Number of Contracts | contract | 5 | |||
Real estate acquired through foreclosure | 126,000 | 102,000 | ||
Mortgage loans in process of foreclosure, amount | 938,000 | 448,000 | ||
Residential | Receivables Acquired with Deteriorated Credit Quality | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, net | $ 337,000 | $ 341,000 |
Loans - Aging Categories of Loa
Loans - Aging Categories of Loans by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Aging categories of loans by segment | ||||
Current | $ 1,023,725 | $ 1,028,966 | ||
Past Due 30 To 89 Days | 7,292 | 8,207 | ||
Past Due 90 Days Or More & Still Accruing | 308 | 979 | ||
Non-Accrual | 11,340 | 8,467 | ||
Total | 1,042,665 | 1,046,619 | ||
Net deferred loan fees and discounts | (1,413) | (1,412) | ||
Allowance for loan losses | (12,382) | (12,044) | $ (10,826) | $ (10,579) |
Current loans, net | 1,009,930 | 1,015,510 | ||
Loans, net | 1,028,870 | 1,033,163 | ||
Commercial, financial, and agricultural | ||||
Aging categories of loans by segment | ||||
Current | 152,282 | 162,312 | ||
Past Due 30 To 89 Days | 317 | 164 | ||
Past Due 90 Days Or More & Still Accruing | 0 | 0 | ||
Non-Accrual | 292 | 1,596 | ||
Total | 152,891 | 164,072 | ||
Allowance for loan losses | (1,254) | (1,532) | (1,478) | (1,124) |
Residential | ||||
Aging categories of loans by segment | ||||
Current | 523,897 | 517,753 | ||
Past Due 30 To 89 Days | 5,761 | 6,827 | ||
Past Due 90 Days Or More & Still Accruing | 308 | 714 | ||
Non-Accrual | 1,458 | 889 | ||
Total | 531,424 | 526,183 | ||
Allowance for loan losses | (5,123) | (5,116) | (4,227) | (3,755) |
Commercial | ||||
Aging categories of loans by segment | ||||
Current | 296,145 | 295,784 | ||
Past Due 30 To 89 Days | 802 | 720 | ||
Past Due 90 Days Or More & Still Accruing | 0 | 265 | ||
Non-Accrual | 9,312 | 5,770 | ||
Total | 306,259 | 302,539 | ||
Allowance for loan losses | (4,472) | (4,217) | (3,873) | (4,205) |
Construction | ||||
Aging categories of loans by segment | ||||
Current | 25,111 | 26,545 | ||
Past Due 30 To 89 Days | 0 | 67 | ||
Past Due 90 Days Or More & Still Accruing | 0 | 0 | ||
Non-Accrual | 278 | 212 | ||
Total | 25,389 | 26,824 | ||
Allowance for loan losses | (147) | (160) | (752) | (786) |
Installment loans to individuals | ||||
Aging categories of loans by segment | ||||
Current | 26,290 | 26,572 | ||
Past Due 30 To 89 Days | 412 | 429 | ||
Past Due 90 Days Or More & Still Accruing | 0 | 0 | ||
Non-Accrual | 0 | 0 | ||
Total | 26,702 | 27,001 | ||
Allowance for loan losses | $ (264) | $ (243) | $ (193) | $ (245) |
Loans - Loans Acquired in Luzer
Loans - Loans Acquired in Luzerne Bank Transaction (Details) - Luzerne National Bank Corporation - Purchased loans - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | $ 437 | $ 441 |
Carrying amount | $ 337 | $ 341 |
Loans - Interest Income (Detail
Loans - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | $ 211 | $ 137 |
Interest Income Recorded on a Cash Basis | 79 | 49 |
Commercial, financial, and agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 4 | 12 |
Interest Income Recorded on a Cash Basis | 1 | 8 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 32 | 5 |
Interest Income Recorded on a Cash Basis | 14 | 9 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 169 | 105 |
Interest Income Recorded on a Cash Basis | 64 | 25 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Income That Would Have Been Recorded Based on Original Term and Rate | 6 | 15 |
Interest Income Recorded on a Cash Basis | $ 0 | $ 7 |
Loans - Recorded Investment, Un
Loans - Recorded Investment, Unpaid Principal Balance, Related Allowance of Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | $ 4,776 | $ 3,408 |
Recorded Investment, With an allowance recorded | 12,425 | 12,475 |
Recorded Investment | 17,201 | 15,883 |
Unpaid Principal Balance, With no related allowance recorded | 4,826 | 3,458 |
Unpaid Principal Balance, With an allowance recorded | 12,538 | 12,605 |
Unpaid Principal Balance | 17,364 | 16,063 |
Related Allowance | 2,556 | 2,104 |
Commercial, financial, and agricultural | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 304 | 319 |
Recorded Investment, With an allowance recorded | 291 | 150 |
Recorded Investment | 595 | 469 |
Unpaid Principal Balance, With no related allowance recorded | 304 | 319 |
Unpaid Principal Balance, With an allowance recorded | 291 | 150 |
Unpaid Principal Balance | 595 | 469 |
Related Allowance | 219 | 75 |
Residential | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 1,598 | 1,142 |
Recorded Investment, With an allowance recorded | 1,533 | 1,573 |
Recorded Investment | 3,131 | 2,715 |
Unpaid Principal Balance, With no related allowance recorded | 1,598 | 1,142 |
Unpaid Principal Balance, With an allowance recorded | 1,646 | 1,703 |
Unpaid Principal Balance | 3,244 | 2,845 |
Related Allowance | 353 | 376 |
Commercial | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 2,595 | 1,735 |
Recorded Investment, With an allowance recorded | 10,601 | 10,752 |
Recorded Investment | 13,196 | 12,487 |
Unpaid Principal Balance, With no related allowance recorded | 2,645 | 1,785 |
Unpaid Principal Balance, With an allowance recorded | 10,601 | 10,752 |
Unpaid Principal Balance | 13,246 | 12,537 |
Related Allowance | 1,984 | 1,653 |
Construction | ||
Credit Quality and Related Allowance for Loan Losses | ||
Recorded Investment, With no related allowance recorded | 279 | 212 |
Recorded Investment, With an allowance recorded | 0 | 0 |
Recorded Investment | 279 | 212 |
Unpaid Principal Balance, With no related allowance recorded | 279 | 212 |
Unpaid Principal Balance, With an allowance recorded | 0 | 0 |
Unpaid Principal Balance | 279 | 212 |
Related Allowance | $ 0 | $ 0 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Credit Quality and Related Allowance for Loan Losses | ||
Average Investment in Impaired Loans | $ 16,506 | $ 18,285 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 108 | 88 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 79 | 44 |
Commercial, financial, and agricultural | ||
Credit Quality and Related Allowance for Loan Losses | ||
Average Investment in Impaired Loans | 533 | 1,149 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 4 | 5 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 1 | 7 |
Residential | ||
Credit Quality and Related Allowance for Loan Losses | ||
Average Investment in Impaired Loans | 2,899 | 1,644 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 22 | 12 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 14 | 5 |
Commercial | ||
Credit Quality and Related Allowance for Loan Losses | ||
Average Investment in Impaired Loans | 12,829 | 14,773 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 82 | 71 |
Interest Income Recognized on a Cash Basis on Impaired Loans | 63 | 25 |
Construction | ||
Credit Quality and Related Allowance for Loan Losses | ||
Average Investment in Impaired Loans | 245 | 719 |
Interest Income Recognized on an Accrual Basis on Impaired Loans | 0 | 0 |
Interest Income Recognized on a Cash Basis on Impaired Loans | $ 1 | $ 7 |
Loans - Loan Modifications (Det
Loans - Loan Modifications (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($)contract | |
Troubled debt restructurings | |
Number of Contracts | contract | 8 |
Pre-Modification Outstanding Recorded Investment | $ 601 |
Post-Modification Outstanding Recorded Investment | $ 601 |
Commercial, financial, and agricultural | |
Troubled debt restructurings | |
Number of Contracts | contract | 2 |
Pre-Modification Outstanding Recorded Investment | $ 97 |
Post-Modification Outstanding Recorded Investment | $ 97 |
Residential | |
Troubled debt restructurings | |
Number of Contracts | contract | 5 |
Pre-Modification Outstanding Recorded Investment | $ 234 |
Post-Modification Outstanding Recorded Investment | $ 234 |
Commercial | |
Troubled debt restructurings | |
Number of Contracts | contract | 1 |
Pre-Modification Outstanding Recorded Investment | $ 270 |
Post-Modification Outstanding Recorded Investment | $ 270 |
Construction | |
Troubled debt restructurings | |
Number of Contracts | contract | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Credit quality categories | ||
Total | $ 1,042,665 | $ 1,046,619 |
Commercial, financial, and agricultural | ||
Credit quality categories | ||
Total | 152,891 | 164,072 |
Residential | ||
Credit quality categories | ||
Total | 531,424 | 526,183 |
Commercial | ||
Credit quality categories | ||
Total | 306,259 | 302,539 |
Construction | ||
Credit quality categories | ||
Total | 25,389 | 26,824 |
Installment loans to individuals | ||
Credit quality categories | ||
Total | 26,702 | 27,001 |
Pass | ||
Credit quality categories | ||
Total | 1,015,481 | 1,014,448 |
Pass | Commercial, financial, and agricultural | ||
Credit quality categories | ||
Total | 151,347 | 160,734 |
Pass | Residential | ||
Credit quality categories | ||
Total | 527,868 | 522,853 |
Pass | Commercial | ||
Credit quality categories | ||
Total | 284,453 | 277,248 |
Pass | Construction | ||
Credit quality categories | ||
Total | 25,111 | 26,612 |
Pass | Installment loans to individuals | ||
Credit quality categories | ||
Total | 26,702 | 27,001 |
Special Mention | ||
Credit quality categories | ||
Total | 7,619 | 11,117 |
Special Mention | Commercial, financial, and agricultural | ||
Credit quality categories | ||
Total | 1,238 | 1,669 |
Special Mention | Residential | ||
Credit quality categories | ||
Total | 808 | 823 |
Special Mention | Commercial | ||
Credit quality categories | ||
Total | 5,573 | 8,625 |
Special Mention | Construction | ||
Credit quality categories | ||
Total | 0 | 0 |
Special Mention | Installment loans to individuals | ||
Credit quality categories | ||
Total | 0 | 0 |
Substandard | ||
Credit quality categories | ||
Total | 19,565 | 21,054 |
Substandard | Commercial, financial, and agricultural | ||
Credit quality categories | ||
Total | 306 | 1,669 |
Substandard | Residential | ||
Credit quality categories | ||
Total | 2,748 | 2,507 |
Substandard | Commercial | ||
Credit quality categories | ||
Total | 16,233 | 16,666 |
Substandard | Construction | ||
Credit quality categories | ||
Total | 278 | 212 |
Substandard | Installment loans to individuals | ||
Credit quality categories | ||
Total | $ 0 | $ 0 |
Loans - Allowance for Credit Lo
Loans - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan Losses: | ||
Beginning Balance | $ 12,044 | $ 10,579 |
Charge-offs | (51) | (526) |
Recoveries | 39 | 73 |
Provision for loan losses | 350 | 700 |
Provision | 12,382 | 10,826 |
Commercial, financial, and agricultural | ||
Allowance for Loan Losses: | ||
Beginning Balance | 1,532 | 1,124 |
Charge-offs | 0 | (20) |
Recoveries | 0 | 26 |
Provision for loan losses | (278) | 348 |
Provision | 1,254 | 1,478 |
Residential | ||
Allowance for Loan Losses: | ||
Beginning Balance | 5,116 | 3,755 |
Charge-offs | 0 | (1) |
Recoveries | 3 | 24 |
Provision for loan losses | 4 | 449 |
Provision | 5,123 | 4,227 |
Commercial | ||
Allowance for Loan Losses: | ||
Beginning Balance | 4,217 | 4,205 |
Charge-offs | 0 | (449) |
Recoveries | 5 | 0 |
Provision for loan losses | 250 | 117 |
Provision | 4,472 | 3,873 |
Construction | ||
Allowance for Loan Losses: | ||
Beginning Balance | 160 | 786 |
Charge-offs | 0 | 0 |
Recoveries | 3 | 11 |
Provision for loan losses | (16) | (45) |
Provision | 147 | 752 |
Installment loans to individuals | ||
Allowance for Loan Losses: | ||
Beginning Balance | 243 | 245 |
Charge-offs | (51) | (56) |
Recoveries | 28 | 12 |
Provision for loan losses | 44 | (8) |
Provision | 264 | 193 |
Unallocated | ||
Allowance for Loan Losses: | ||
Beginning Balance | 776 | 464 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision for loan losses | 346 | (161) |
Provision | $ 1,122 | $ 303 |
Loans - Schedule of Concentrati
Loans - Schedule of Concentration Risk (Details) - Owners of rental properties - Financing receivable | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Residential | ||
Concentration Risk [Line Items] | ||
Concentration of loans (as a percent) | 16.27% | 16.20% |
Commercial | ||
Concentration Risk [Line Items] | ||
Concentration of loans (as a percent) | 14.27% | 14.46% |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 2,556 | $ 2,104 | ||
Collectively evaluated for impairment | 9,826 | 9,940 | ||
Total ending allowance balance | 12,382 | 12,044 | $ 10,826 | $ 10,579 |
Loans: | ||||
Individually evaluated for impairment | 16,864 | 15,542 | ||
Collectively evaluated for impairment | 1,025,464 | 1,030,736 | ||
Total | 1,042,665 | 1,046,619 | ||
Commercial, financial, and agricultural | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 219 | 75 | ||
Collectively evaluated for impairment | 1,035 | 1,457 | ||
Total ending allowance balance | 1,254 | 1,532 | 1,478 | 1,124 |
Loans: | ||||
Individually evaluated for impairment | 595 | 469 | ||
Collectively evaluated for impairment | 152,296 | 163,603 | ||
Total | 152,891 | 164,072 | ||
Residential | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 353 | 376 | ||
Collectively evaluated for impairment | 4,770 | 4,740 | ||
Total ending allowance balance | 5,123 | 5,116 | 4,227 | 3,755 |
Loans: | ||||
Individually evaluated for impairment | 2,794 | 2,374 | ||
Collectively evaluated for impairment | 528,293 | 523,468 | ||
Total | 531,424 | 526,183 | ||
Commercial | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 1,984 | 1,653 | ||
Collectively evaluated for impairment | 2,488 | 2,564 | ||
Total ending allowance balance | 4,472 | 4,217 | 3,873 | 4,205 |
Loans: | ||||
Individually evaluated for impairment | 13,196 | 12,487 | ||
Collectively evaluated for impairment | 293,063 | 290,052 | ||
Total | 306,259 | 302,539 | ||
Construction | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 147 | 160 | ||
Total ending allowance balance | 147 | 160 | 752 | 786 |
Loans: | ||||
Individually evaluated for impairment | 279 | 212 | ||
Collectively evaluated for impairment | 25,110 | 26,612 | ||
Total | 25,389 | 26,824 | ||
Installment loans to individuals | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 264 | 243 | ||
Total ending allowance balance | 264 | 243 | 193 | 245 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 26,702 | 27,001 | ||
Total | 26,702 | 27,001 | ||
Unallocated | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,122 | 776 | ||
Total ending allowance balance | 1,122 | 776 | $ 303 | $ 464 |
Receivables Acquired with Deteriorated Credit Quality | ||||
Loans: | ||||
Loans acquired with deteriorated credit quality | 337 | 341 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial, financial, and agricultural | ||||
Loans: | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Receivables Acquired with Deteriorated Credit Quality | Residential | ||||
Loans: | ||||
Loans acquired with deteriorated credit quality | 337 | 341 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial | ||||
Loans: | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Receivables Acquired with Deteriorated Credit Quality | Construction | ||||
Loans: | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Receivables Acquired with Deteriorated Credit Quality | Installment loans to individuals | ||||
Loans: | ||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 |
Net Periodic Benefit Cost-Def52
Net Periodic Benefit Cost-Defined Benefit Plans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Net periodic benefit cost of the domestic non-contributory defined benefit plan | |||
Service cost | $ 17,000 | $ 16,000 | |
Interest cost | 193,000 | 189,000 | |
Expected return on plan assets | (251,000) | (281,000) | |
Amortization of net loss | 39,000 | 40,000 | |
Net periodic benefit cost | (2,000) | $ (36,000) | |
Expected contribution to Pension Plan in 2015 | $ 500,000 | ||
Employer contributions made to the defined benefit plan | 250,000 | ||
Anticipated additional contributions anticipated during the remainder of 2015 | $ 250,000 |
Employee Stock Purchase Plan (D
Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan ("Plan") - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 550 | 520 |
Off Balance Sheet Risk (Details
Off Balance Sheet Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 260,370 | $ 253,245 |
Commitments to extend credit | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | 247,801 | 241,936 |
Standby letters of credit | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 5,402 | 4,786 |
Coverage period for instrument (in years) | 1 year | |
Credit exposure from the sale of assets with recourse | ||
Off Balance Sheet Risk | ||
Contract amounts representing credit risk | $ 7,167 | $ 6,523 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Assets (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Total assets | $ 153,769 | $ 176,230 |
U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 3,549 | |
Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 10,009 | |
Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 1,940 | |
State and political securities | ||
Fair Value Measurements | ||
Total assets | 86,555 | |
Other debt securities | ||
Fair Value Measurements | ||
Total assets | 57,772 | |
Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 11,483 | |
Other equity securities | ||
Fair Value Measurements | ||
Total assets | 4,849 | |
Level I | ||
Fair Value Measurements | ||
Total assets | 11,959 | 16,405 |
Level I | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level I | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level I | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level I | State and political securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level I | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level I | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 11,483 | |
Level I | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 4,849 | |
Level II | ||
Fair Value Measurements | ||
Total assets | 141,810 | 159,825 |
Level II | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 3,549 | |
Level II | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 10,009 | |
Level II | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 1,940 | |
Level II | State and political securities | ||
Fair Value Measurements | ||
Total assets | 86,555 | |
Level II | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 57,772 | |
Level II | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level II | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Level III | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | State and political securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Level III | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 3,476 | |
Available-for-sale Securities | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 9,751 | |
Available-for-sale Securities | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 1,793 | |
Available-for-sale Securities | State and political securities | ||
Fair Value Measurements | ||
Total assets | 70,575 | |
Available-for-sale Securities | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 56,215 | |
Available-for-sale Securities | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 9,735 | |
Available-for-sale Securities | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 2,164 | |
Available-for-sale Securities | Level I | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level I | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level I | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level I | State and political securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level I | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level I | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 9,735 | |
Available-for-sale Securities | Level I | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 2,164 | |
Available-for-sale Securities | Level II | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 3,476 | |
Available-for-sale Securities | Level II | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 9,751 | |
Available-for-sale Securities | Level II | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 1,793 | |
Available-for-sale Securities | Level II | State and political securities | ||
Fair Value Measurements | ||
Total assets | 70,575 | |
Available-for-sale Securities | Level II | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 56,215 | |
Available-for-sale Securities | Level II | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level II | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | U.S. Government and agency securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | Mortgage-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | Asset-backed securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | State and political securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | Other debt securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Available-for-sale Securities | Level III | Other equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | |
Trading Securities | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 60 | 73 |
Trading Securities | Level I | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 60 | 73 |
Trading Securities | Level II | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | 0 | 0 |
Trading Securities | Level III | Financial institution equity securities | ||
Fair Value Measurements | ||
Total assets | $ 0 | $ 0 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Assets (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Fair value | $ 16,364 | $ 15,475 |
Level I | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Level II | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Level III | ||
Fair Value Measurements | ||
Fair value | 16,364 | 15,475 |
Impaired loans | ||
Fair Value Measurements | ||
Fair value | 14,645 | 13,779 |
Impaired loans | Level I | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Impaired loans | Level II | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Impaired loans | Level III | ||
Fair Value Measurements | ||
Fair value | 14,645 | 13,779 |
Other real estate owned | ||
Fair Value Measurements | ||
Fair value | 1,719 | 1,696 |
Other real estate owned | Level I | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Other real estate owned | Level II | ||
Fair Value Measurements | ||
Fair value | 0 | 0 |
Other real estate owned | Level III | ||
Fair Value Measurements | ||
Fair value | $ 1,719 | $ 1,696 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||
Fair value | $ 16,364 | $ 15,475 | |
Impaired loans | |||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||
Fair value | 14,645 | 13,779 | |
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 | 1,719 | 1,696 | |
Level III | |||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||
Fair value | 16,364 | 15,475 | |
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 | 14,645 | 13,779 | |
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 | |||
Fair value | $ 5,370 | $ 5,696 | |
Probability of default (as a percent) | 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) | (70.00%) | (70.00%) | |
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) | (16.00%) | (17.00%) | |
Level III | Impaired loans | Appraisal of collateral | |||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||
Fair value | $ 9,275 | $ 8,083 | |
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) | [1] | 0.00% | 0.00% |
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) | [1] | (20.00%) | (20.00%) |
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) | [1] | (13.00%) | (15.00%) |
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 | $ 1,719 | $ 1,696 | |
Level III | Other real estate owned | Appraisal of collateral | |||
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques | |||
Fair value | [1] | $ 1,719 | $ 1,696 |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value of Financial Instr58
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investment securities: | ||
Available for sale | $ 153,709 | $ 176,157 |
Investment securities, trading | 60 | 73 |
Bank-owned life insurance | 26,867 | 26,667 |
Accrued interest receivable | 3,878 | 3,686 |
Financial liabilities: | ||
Interest-bearing deposits | 790,219 | 751,797 |
Noninterest-bearing deposits | 269,362 | 280,083 |
Level I | ||
Financial assets: | ||
Cash and cash equivalents | 47,125 | 22,796 |
Investment securities: | ||
Available for sale | 11,899 | 16,332 |
Investment securities, trading | 60 | 73 |
Loans held for sale | 514 | 757 |
Loans, net | 0 | 0 |
Bank-owned life insurance | 26,867 | 26,667 |
Accrued interest receivable | 3,878 | 3,686 |
Financial liabilities: | ||
Interest-bearing deposits | 558,909 | 509,206 |
Noninterest-bearing deposits | 269,362 | 280,083 |
Short-term borrowings | 15,874 | 46,638 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 439 | 426 |
Level II | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
Available for sale | 141,810 | 159,825 |
Investment securities, trading | 0 | 0 |
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 |
Investment securities, trading | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 1,068,941 | 1,045,140 |
Bank-owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Interest-bearing deposits | 220,723 | 220,479 |
Noninterest-bearing deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 92,582 | 91,783 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 47,125 | 22,796 |
Investment securities: | ||
Available for sale | 153,709 | 176,157 |
Investment securities, trading | 60 | 73 |
Loans held for sale | 514 | 757 |
Loans, net | 1,028,870 | 1,033,163 |
Bank-owned life insurance | 26,867 | 26,667 |
Accrued interest receivable | 3,878 | 3,686 |
Financial liabilities: | ||
Interest-bearing deposits | 790,219 | 751,797 |
Noninterest-bearing deposits | 269,362 | 280,083 |
Short-term borrowings | 15,874 | 46,638 |
Long-term borrowings | 91,025 | 91,025 |
Accrued interest payable | 439 | 426 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 47,125 | 22,796 |
Investment securities: | ||
Available for sale | 153,709 | 176,157 |
Investment securities, trading | 60 | 73 |
Loans held for sale | 514 | 757 |
Loans, net | 1,068,941 | 1,045,140 |
Bank-owned life insurance | 26,867 | 26,667 |
Accrued interest receivable | 3,878 | 3,686 |
Financial liabilities: | ||
Interest-bearing deposits | 779,632 | 729,685 |
Noninterest-bearing deposits | 269,362 | 280,083 |
Short-term borrowings | 15,874 | 46,638 |
Long-term borrowings | 92,582 | 91,783 |
Accrued interest payable | $ 439 | $ 426 |
Stock Options - Additional Info
Stock Options - Additional Information (Details) - $ / shares | Aug. 27, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Employee Stock Purchase Plan | |||
Granted (in shares) | 0 | 38,750 | |
Granted (in dollars per share) | $ 0 | $ 42.03 | |
Employee Stock Option | |||
Employee Stock Purchase Plan | |||
Granted (in shares) | 38,750 | ||
Granted (in dollars per share) | $ 42.03 | ||
Exercisable period (in years) | 5 years | ||
Expiration period (in years) | 10 years |
Stock Options - Schedule of Opt
Stock Options - Schedule of Options Outstanding (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options, Outstanding | |||
Outstanding, beginning of year (in shares) | 34,750 | 0 | |
Granted (in shares) | 0 | 38,750 | |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | (2,250) | (4,000) | |
Outstanding, end of year (in shares) | 32,500 | 34,750 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, weighted average exercise price (in dollars per share) | $ 42.03 | $ 42.03 | $ 0 |
Granted (in dollars per share) | 0 | 42.03 | |
Exercised (in dollars per share) | 0 | 0 | |
Forfeited (in dollars per share) | $ 42.03 | $ 42.03 |
Reclassification of Comparati61
Reclassification of Comparative Amounts (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Reclassification of Comparative Amounts | |
Effect of reclassification adjustment on net income or shareholders' equity | $ 0 |