Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Arrow Financial Corporation | |
Entity Central Index Key | 717,538 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 13,920,322 | |
Entity Well-known Seasoned Filer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
ASSETS | |||
Cash and Due From Banks | $ 55,683 | $ 43,024 | $ 66,556 |
Interest-Bearing Deposits at Banks | 24,983 | 14,331 | 35,503 |
Investment Securities: | |||
Available-for-Sale | 315,459 | 346,996 | 339,190 |
Held-to-Maturity (Approximate Fair Value of $343,899 at September 30, 2017; $343,751 at December 31, 2016; and $347,441 at September 30, 2016) | 341,526 | 345,427 | 338,238 |
Other Investments | 6,704 | 10,912 | 5,371 |
Loans | 1,908,799 | 1,753,268 | 1,707,216 |
Allowance for Loan Losses | (17,695) | (17,012) | (16,975) |
Net Loans | 1,891,104 | 1,736,256 | 1,690,241 |
Premises and Equipment, Net | 26,432 | 26,938 | 26,718 |
Goodwill | 21,873 | 21,873 | 21,873 |
Other Intangible Assets, Net | 2,395 | 2,696 | 2,802 |
Other Assets | 58,303 | 56,789 | 53,993 |
Total Assets | 2,744,462 | 2,605,242 | 2,580,485 |
LIABILITIES | |||
Noninterest-Bearing Deposits | 448,515 | 387,280 | 381,760 |
Interest-Bearing Checking Accounts | 967,250 | 877,988 | 993,221 |
Savings Deposits | 696,805 | 651,965 | 629,201 |
Time Deposits over $250,000 | 28,464 | 32,878 | 45,237 |
Other Time Deposits | 166,082 | 166,435 | 163,768 |
Total Deposits | 2,307,116 | 2,116,546 | 2,213,187 |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 61,419 | 35,836 | 38,589 |
Federal Home Loan Bank Overnight Advances | 33,000 | 123,000 | 0 |
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | 55,000 |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 |
Other Liabilities | 23,279 | 22,008 | 24,501 |
Total Liabilities | 2,499,814 | 2,372,390 | 2,351,277 |
STOCKHOLDERS’ EQUITY | |||
Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized | 0 | 0 | 0 |
Common Stock, $1 Par Value; 20,000,000 Shares Authorized (18,481,301 Shares Issued and Outstanding at September 30, 2017; 17,943,201 at December 31, 2016 and 17,943,201 at September 30, 2016) | 18,481 | 17,943 | 17,943 |
Additional Paid-in Capital | 289,294 | 270,880 | 269,680 |
Retained Earnings | 22,581 | 28,644 | 25,400 |
Unallocated ESOP Shares (20,050 Shares at September 30, 2017; 19,466 Shares at December 31, 2016 and 38,396 Shares at September 30, 2016) | (400) | (400) | (750) |
Accumulated Other Comprehensive Loss | (6,135) | (6,834) | (5,442) |
Treasury Stock, at Cost (4,570,291 Shares at September 30, 2017; 4,441,093 Shares at December 31, 2016 and 4,479,257 Shares at September 30, 2016) | (79,173) | (77,381) | (77,623) |
Total Stockholders’ Equity | 244,648 | 232,852 | 229,208 |
Total Liabilities and Stockholders’ Equity | $ 2,744,462 | $ 2,605,242 | $ 2,580,485 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parenthetical - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Held-to-Maturity Securities, at Fair Value | $ 343,899 | $ 343,751 | $ 347,441 |
Preferred Stock, par value, in dollars per share | $ 5 | $ 5 | $ 5 |
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Common Stock, par value, in dollars per share | $ 1 | $ 1 | $ 1 |
Common Stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common Stock, shares issued | 18,481,301 | 17,943,201 | 17,943,201 |
Unallocated ESOP Shares ,in shares | 20,050 | 19,466 | 38,396 |
Treasury Stock, in shares | 4,570,291 | 4,441,093 | 4,479,257 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||||
INTEREST AND DIVIDEND INCOME | |||||||||
Interest and Fees on Loans | $ 17,996 | $ 15,833 | $ 51,693 | $ 46,565 | |||||
Interest on Deposits at Banks | 104 | 34 | 242 | 100 | |||||
Interest and Dividends on Investment Securities: | |||||||||
Fully Taxable | 1,924 | 1,889 | 5,927 | 5,994 | |||||
Exempt from Federal Taxes | 1,575 | 1,526 | 4,660 | 4,486 | |||||
Total Interest and Dividend Income | 21,599 | 19,282 | 62,522 | 57,145 | |||||
INTEREST EXPENSE | |||||||||
Interest-Bearing Checking Accounts | 376 | 320 | 1,088 | 941 | |||||
Savings Deposits | 356 | 231 | 963 | 677 | |||||
Time Deposits over $250,000 | 66 | 61 | 187 | 133 | |||||
Other Time Deposits | 241 | 231 | 702 | 677 | |||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 13 | 9 | 29 | 24 | |||||
Federal Home Loan Bank Advances | 700 | 390 | 1,651 | 1,013 | |||||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 197 | 163 | 564 | 487 | |||||
Total Interest Expense | 1,949 | 1,405 | 5,184 | 3,952 | |||||
NET INTEREST INCOME | 19,650 | 17,877 | 57,338 | 53,193 | |||||
Provision for Loan Losses | 800 | 480 | 1,580 | 1,550 | |||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 18,850 | 17,397 | 55,758 | 51,643 | |||||
NONINTEREST INCOME | |||||||||
Income From Fiduciary Activities | 2,116 | 1,923 | 6,284 | 5,854 | |||||
Fees for Other Services to Customers | 2,453 | 2,491 | 7,122 | 7,144 | |||||
Insurance Commissions | 2,113 | 2,127 | 6,426 | 6,468 | |||||
Net Gain on Securities Transactions | 10 | 0 | 10 | 144 | |||||
Net Gain on Sales of Loans | 182 | 310 | 431 | 649 | |||||
Other Operating Income | 267 | 263 | 620 | 925 | |||||
Total Noninterest Income | 7,141 | 7,114 | 20,893 | 21,184 | |||||
NONINTEREST EXPENSE | |||||||||
Salaries and Employee Benefits | 9,251 | 8,693 | 27,343 | 25,223 | |||||
Occupancy Expenses, Net | 2,371 | 2,425 | 7,410 | 7,223 | |||||
FDIC Assessments | 225 | 217 | 679 | 844 | |||||
Other Operating Expense | 3,701 | 3,747 | 11,229 | 11,047 | |||||
Total Noninterest Expense | 15,548 | 15,082 | 46,661 | 44,337 | |||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 10,443 | 9,429 | 29,990 | 28,490 | |||||
Provision for Income Taxes | 3,027 | 2,691 | 8,735 | 8,556 | |||||
NET INCOME | $ 7,416 | $ 6,738 | $ 21,255 | $ 19,934 | |||||
Average Shares Outstanding: | |||||||||
Basic, in shares | 13,889 | [1] | 13,810 | [2] | 13,889 | [1] | 13,775 | [2] | |
Diluted, in shares | [2] | 13,966 | [1] | 13,901 | 13,981 | [1] | 13,842 | ||
Per Common Share: | |||||||||
Basic Earnings, in dollars per share | $ 0.53 | [1] | $ 0.49 | [2] | $ 1.53 | [1] | $ 1.45 | [2] | |
Diluted Earnings, in dollars per share | $ 0.53 | [1] | $ 0.48 | [2] | $ 1.52 | [1] | $ 1.44 | [2] | |
[1] | Cash dividends paid per share have been adjusted for the September 28, 2017 3% stock dividend. | ||||||||
[2] | Share and Per Share Amounts have been restated for the September 28, 2017 3% stock dividend. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Statement of Comprehensive Income [Abstract] | ||||||||
Net Income | $ 7,416 | $ 6,738 | $ 21,255 | $ 19,934 | ||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Net Unrealized Securities Holding Gains (Losses) Arising During the Period | 9 | [1] | (810) | [1] | 465 | 2,309 | [1] | |
Reclassification Adjustments for Securities Gains Included in Net Income | (6) | [1] | 0 | [1] | (6) | [2] | (88) | [1] |
Amortization of Net Retirement Plan Actuarial Loss | 64 | [1] | 111 | [1] | 245 | 314 | [1] | |
Accretion of Net Retirement Plan Prior Service Credit | (2) | [1] | (1) | [1] | (5) | (5) | [1] | |
Other Comprehensive Income (Loss) | 65 | (700) | 699 | 2,530 | ||||
Comprehensive Income | $ 7,481 | $ 6,038 | $ 21,954 | $ 22,464 | ||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Unallocated ESOP Shares | Accumulated Other Comprehensive Loss | Treasury Stock | ||
Stockholders' Equity, Beginning Balance at Dec. 31, 2015 | $ 213,971 | $ 17,421 | $ 250,680 | $ 32,139 | $ (1,100) | $ (7,972) | $ (77,197) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 19,934 | 19,934 | |||||||
Other Comprehensive Income | 2,530 | [1] | 2,530 | ||||||
Stock Dividend | 522 | 16,415 | (16,937) | ||||||
Cash Dividends Paid | (9,736) | (9,736) | [2] | ||||||
Stock Options Exercised, Net | 1,775 | 980 | 795 | ||||||
Shares Issued Under the Directors' Stock Plan | 112 | 76 | 36 | ||||||
Shares Issued Under the Employee Stock Purchase Plan | 358 | 229 | 129 | ||||||
Shares Issued for Dividend Reinvestment Plans | 1,302 | 862 | 440 | ||||||
Stock-Based Compensation Expense | 215 | 215 | |||||||
Tax Benefit for Disposition of Stock Options | 63 | 63 | |||||||
Purchases of Treasury Stock | (1,826) | (1,826) | |||||||
Allocation of ESOP Stock | 510 | 160 | 350 | ||||||
Stockholders' Equity, Ending Balance at Sep. 30, 2016 | 229,208 | 17,943 | 269,680 | 25,400 | (750) | (5,442) | (77,623) | ||
Stockholders' Equity, Beginning Balance at Dec. 31, 2016 | 232,852 | 17,943 | 270,880 | 28,644 | (400) | (6,834) | (77,381) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 21,255 | 21,255 | |||||||
Other Comprehensive Income | 699 | [1] | 699 | ||||||
Stock Dividend | 538 | 16,661 | (17,199) | ||||||
Cash Dividends Paid | (10,119) | (10,119) | |||||||
Stock Options Exercised, Net | 734 | 335 | 399 | ||||||
Shares Issued Under the Directors' Stock Plan | 126 | 84 | 42 | ||||||
Shares Issued Under the Employee Stock Purchase Plan | 351 | 230 | 121 | ||||||
Shares Issued for Dividend Reinvestment Plans | 1,256 | 843 | 413 | ||||||
Stock-Based Compensation Expense | 261 | 261 | |||||||
Purchases of Treasury Stock | (2,767) | (2,767) | |||||||
Stockholders' Equity, Ending Balance at Sep. 30, 2017 | $ 244,648 | $ 18,481 | $ 289,294 | $ 22,581 | $ (400) | $ (6,135) | $ (79,173) | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. | ||||||||
[2] | Cash dividends paid per share have been adjusted for the September 28, 2017 3% stock dividend. |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity Parenthetical - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends Paid, per Share, in dollars per share | $ 0.728 | $ 0.707 |
Exercised, in shares | 34,889 | 80,449 |
Shares Issued Under Directors Stock Plan, in shares | 3,927 | 3,522 |
Shares Issued Under Employee Stock Purchase Plan, in shares | 10,869 | 13,041 |
Shares Issued for Dividend Reinvestment Plans - Shares | 37,525 | 44,448 |
Purchase of Treasury Stock, in shares | 83,256 | 64,146 |
Allocation of ESOP Stock, in shares | 17,997 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 21,255 | $ 19,934 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Provision for Loan Losses | 1,580 | 1,550 |
Depreciation and Amortization | 4,247 | 4,605 |
Allocation of ESOP Stock | 0 | 510 |
Net Gains on the Sale of Securities Available-for-Sale | (10) | (144) |
Loans Originated and Held-for-Sale | (14,890) | (20,025) |
Proceeds from the Sale of Loans Held-for-Sale | 14,481 | 19,557 |
Net Gains on the Sale of Loans | (431) | (649) |
Net Losses on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 197 | 120 |
Contributions to Retirement Benefit Plans | (640) | (534) |
Deferred Income Tax Benefit | (20) | (464) |
Shares Issued Under the Directors’ Stock Plan | 126 | 112 |
Stock-Based Compensation Expense | 261 | 215 |
Tax Benefit from Exercise of Stock Options | 112 | 0 |
Net Increase in Other Assets | (1,689) | (3,045) |
Net Increase in Other Liabilities | 1,819 | 3,427 |
Net Cash Provided By Operating Activities | 26,398 | 25,169 |
Cash Flows from Investing Activities: | ||
Proceeds from the Sale of Securities Available-for-Sale | 10,015 | 10,568 |
Proceeds from the Maturities and Calls of Securities Available-for-Sale | 43,617 | 65,965 |
Purchases of Securities Available-for-Sale | (22,503) | (10,920) |
Proceeds from the Maturities and Calls of Securities Held-to-Maturity | 39,062 | 42,295 |
Purchases of Securities Held-to-Maturity | (36,018) | (60,786) |
Net Increase in Loans | (156,643) | (133,616) |
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets | 830 | 1,743 |
Purchase of Premises and Equipment | (1,335) | (1,083) |
Proceeds from the Sale of a Subsidiary, Net | 72 | 72 |
Net Decrease in Other Investments | 4,208 | 3,468 |
Net Cash Used By Investing Activities | (118,695) | (82,294) |
Cash Flows from Financing Activities: | ||
Net Increase in Deposits | 190,570 | 182,764 |
Net Increase (Decrease) in Short-Term Federal Home Loan Bank Borrowings | (90,000) | (82,000) |
Net Increase (Decrease) in Short-Term Borrowings | 25,583 | 15,416 |
Purchase of Treasury Stock | (2,767) | (1,826) |
Stock Options Exercised, Net | 734 | 1,775 |
Shares Issued Under the Employee Stock Purchase Plan | 351 | 358 |
Tax Benefit from Exercise of Stock Options | 0 | 63 |
Shares Issued for Dividend Reinvestment Plans | 1,256 | 1,302 |
Cash Dividends Paid | (10,119) | (9,736) |
Net Cash Provided By Financing Activities | 115,608 | 108,116 |
Net Increase in Cash and Cash Equivalents | 23,311 | 50,991 |
Cash and Cash Equivalents at Beginning of Period | 57,355 | 51,068 |
Cash and Cash Equivalents at End of Period | 80,666 | 102,059 |
Supplemental Disclosures to Statements of Cash Flow Information: | ||
Interest on Deposits and Borrowings | 5,168 | 3,932 |
Income Taxes | 8,404 | 9,761 |
Non-cash Investing and Financing Activity: | ||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets | $ 1,055 | $ 856 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES In the opinion of the management of Arrow Financial Corporation (Arrow), the accompanying unaudited consolidated interim financial statements contain all of the adjustments necessary to present fairly the financial position as of September 30, 2017 , December 31, 2016 and September 30, 2016 ; the results of operations for the three- and nine -month periods ended September 30, 2017 and 2016 ; the consolidated statements of comprehensive income for the three- and nine -month periods ended September 30, 2017 and 2016 ; the changes in stockholders' equity for the nine -month periods ended September 30, 2017 and 2016 ; and the cash flows for the nine -month periods ended September 30, 2017 and 2016 . All such adjustments are of a normal recurring nature. Certain prior period amounts have been reclassified to conform to the current presentation, including a new requirement to present time deposits with balances greater than $250,000 which were previously presented as balances of $100,000 or greater. The preparation of financial statements requires the use of management estimates. The unaudited consolidated interim financial statements should be read in conjunction with the audited annual consolidated financial statements of Arrow for the year ended December 31, 2016 , included in Arrow's 2016 Form 10-K. New Accounting Standards Updates (ASU): Effective January 1, 2017, Arrow adopted FASB accounting standard ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting," which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award is exercised or expires are recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Excess tax benefits are also recognized at the time an award is exercised compared to the previous requirement to delay recognition until the deduction reduces taxes payable. All tax related cash flows recognized on stock-based compensation expense are classified as an operating activity in our consolidated statements of cash flows on a prospective basis. Accordingly, prior periods have not been adjusted. ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur when estimating stock-based compensation expense rather than the previous requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under previous guidance, withholding of equity awards in excess of the minimum statutory requirement resulted in liability classification for the entire award. The related cash remittance by the employer for employee taxes is treated as a financing activity in the statement of cash flows. The annual effect of the 2017 tax provision will primarily depend upon the share price of Arrow common stock which affects the probability of exercise of certain stock options and the magnitude of windfalls upon exercise. Income tax benefits from stock options exercised in the period reduced our effective tax rate for the nine months ended September 30, 2017 , which resulted in an increase in earnings of approximately $112 thousand , representing earnings per share of less than $0.01 . In addition, during 2017, through the date of this report, the FASB issued 13 accounting standards updates. Some of the standards listed below did not have an immediate impact on Arrow, but could in the future. ASU 2014-09 - Revenue from Contracts with Customers will change revenue recognition guidance under GAAP and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. Initially, ASU 2014-09 was effective for Arrow on January 1, 2017; however, in August 2015, the FASB issued ASU No. 2015-14 - Revenue from Contracts with Customers - Deferral of the Effective Date, which deferred the effective date to January 1, 2018. Early adoption is not permitted. In addition, the FASB has begun to issue targeted updates to clarify specific implementation issues of ASU 2014-09. These updates include ASU No. 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10 - Identifying Performance Obligations and Licensing, ASU No. 2016-12 - Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20 - Technical Corrections and Improvements to Top 606 - Revenue from Contract with Customers. We are currently in the process of identifying any required changes to our revenue recognition policies. We do not expect that the adoption of this change in accounting for revenue will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" will significantly change the income statement impact of equity investments. For Arrow, the standard is effective for the first quarter of 2018, and will require that equity investments be measured at fair value, with changes in fair value measured in net income. As of September 30, 2017 , we hold $1.5 million of fair value in equity investments and we do not expect that the adoption of this change in accounting for equity investments will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2016-02 "Leases" will require the recognition of operating leases. For Arrow, the standard becomes effective in the first quarter of 2019. We do not expect that the adoption of this change in accounting for operating leases will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. As of September 30, 2017 , we have less than $ 2.6 million in minimum lease payments for existing operating leases of branch and insurance locations with varying expiration dates from 2017 to 2031. ASU 2016-13 "Financial Instruments - Credit Losses" will change the way we and other financial entities recognize losses on assets measured at amortized costs and change the method for recognizing credit losses on securities available-for-sale. Currently, loan losses are recognized using an "incurred loss" methodology. Under ASU 2016-13, the methodology will change to a current expected loss over the life of the loan. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under ASU 2016-13, the amount of the credit loss is carried as a valuation allowance and can be reversed. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. At this time we have not calculated the estimated impact that this Update will have on our Allowance for Loan Losses, however, we anticipate it will have a significant impact on the methodology process we utilize to calculate the allowance. ASU 2017-01 "Business Combinations" defines when a set of assets and activities constitutes a business for the purposes of determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Currently, the three elements required to be present in a business are inputs, processes, and outputs. The amendments in this Update allow for a business to consist of inputs, processes, and the ability to create output. For Arrow, the standard becomes effective in the first quarter of 2018. This Update will likely have no effect on our accounting for acquisitions and dispositions of businesses. ASU 2017-04 "Intangibles-Goodwill and Other" changes the procedures for evaluating impairment of goodwill. Prior to this Update, entities were required to perform procedures to determine the fair value of the underlying assets and liabilities following the guidance for determining the fair value of assets and liabilities in a business combination. This additional step to impairment testing has been eliminated. Under the amendments in this Update, entities should perform goodwill impairment testing by comparing the fair value of a reporting unit to its carrying value. This amendment should reduce the cost and complexity of evaluating goodwill for impairment. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted. This amendment will not affect our assessment of goodwill impairment since we currently perform the analysis of comparing carrying value to fair value of our reporting units that have goodwill and we have not had to perform a Step 2 Impairment Test to date. ASU 2017-07 "Compensation-Retirement Benefits" improves the presentation of net periodic pension cost and net periodic post-retirement benefit cost by requiring that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. For Arrow, the standard becomes effective in the first quarter of 2018, however, early adoption is permitted. We do not expect that the adoption of this change in accounting for pension costs will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2017-08 "Receivables-Nonrefundable Fees and Other Costs" amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted as early as the first quarter of 2017. We do not expect that the adoption of this change in accounting for certain callable debt securities will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2017-09 "Compensation-Stock Compensation" provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance highlights the requirements for applying modification accounting and the exception criteria relating to changes in share-based payment terms. For Arrow, the standard becomes effective in the first quarter of 2018, however, early adoption is permitted as early as the third quarter of 2017. We do not expect that the adoption of this change in accounting for share-based payment awards will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (In Thousands) The following table is the schedule of Available-For-Sale Securities at September 30, 2017 , December 31, 2016 and September 30, 2016 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2017 Available-For-Sale Securities, at Amortized Cost $ 146,976 $ 11,875 $ 152,858 $ 2,500 $ 1,120 $ 315,329 Available-For-Sale Securities, at Fair Value 146,978 11,902 152,806 2,299 1,474 315,459 Gross Unrealized Gains 152 27 964 — 354 1,497 Gross Unrealized Losses 150 — 1,016 201 — 1,367 Available-For-Sale Securities, Pledged as Collateral 206,637 Maturities of Debt Securities, at Amortized Cost: Within One Year $ — $ 9,068 $ 3,649 $ 1,500 $ 14,217 From 1 - 5 Years 146,976 1,890 114,127 — 262,993 From 5 - 10 Years — 397 35,082 — 35,479 Over 10 Years — 520 — 1,000 1,520 Maturities of Debt Securities, at Fair Value: Within One Year $ — $ 9,076 $ 3,691 $ 1,499 $ 14,266 From 1 - 5 Years 146,978 1,910 114,202 — 263,090 From 5 - 10 Years — 396 34,913 — 35,309 Over 10 Years — 520 — 800 1,320 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 89,563 $ — $ 85,091 $ 500 $ — $ 175,154 12 Months or Longer — — — 1,800 — 1,800 Total $ 89,563 $ — $ 85,091 $ 2,300 $ — $ 176,954 Number of Securities in a Continuous Loss Position 23 — 31 3 — 57 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 150 $ — $ 1,016 $ — $ — $ 1,166 12 Months or Longer — — — 201 — 201 Total $ 150 $ — $ 1,016 $ 201 $ — $ 1,367 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ 64,711 US Treasury Obligations, 64,730 US Agency Obligations, 82,265 US Agency Obligations, 82,248 US Government Agency Securities, at Amortized Cost $ 503 US Government Agency Securities, at Fair Value 505 Government Sponsored Entity Securities, at Amortized Cost 152,355 Government Sponsored Entity 152,301 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities December 31, 2016 Available-For-Sale Securities, at Amortized Cost $ 147,110 $ 27,684 $ 168,189 $ 3,512 $ 1,120 $ 347,615 Available-For-Sale Securities, at Fair Value 147,377 27,690 167,239 3,308 1,382 346,996 Gross Unrealized Gains 304 24 986 — 262 1,576 Gross Unrealized Losses 37 18 1,936 204 — 2,195 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 262,852 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 70,605 $ 12,165 $ 126,825 $ 500 $ — $ 210,095 12 Months or Longer — 7,377 — 2,809 — 10,186 Total $ 70,605 $ 19,542 $ 126,825 $ 3,309 $ — $ 220,281 Number of Securities in a Continuous Loss Position 19 84 40 4 — 147 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 37 $ 13 $ 1,936 $ 1 $ — $ 1,987 12 Months or Longer — 5 — 203 — 208 Total $ 37 $ 18 $ 1,936 $ 204 $ — $ 2,195 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ 54,701 US Treasury Obligations, 54,706 US Agency Obligations, 92,409 US Agency Obligations, 92,671 US Government Agency Securities, at Amortized Cost $ 3,694 US Government Agency Securities, at Fair Value 3,724 Government Sponsored Entity Securities, at Amortized Cost 164,495 Government Sponsored Entity 163,515 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2016 Available-For-Sale Securities, at Amortized Cost $ 152,511 $ 31,562 $ 144,598 $ 4,500 $ 1,120 $ 334,291 Available-For-Sale Securities, at Fair Value 153,926 31,628 148,087 4,299 1,250 339,190 Gross Unrealized Gains 1,415 69 3,489 — 130 5,103 Gross Unrealized Losses — 3 — 201 — 204 Available-For-Sale Securities, Pledged as Collateral 277,832 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ 9,237 $ — $ 1,022 $ — $ 10,259 12 Months or Longer — — — 1,800 — 1,800 Total $ — $ 9,237 $ — $ 2,822 $ — $ 12,059 Number of Securities in a Continuous Loss Position — 1 2 3 — 6 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ 3 $ — $ 1 $ — $ 4 12 Months or Longer — — — 200 — 200 Total $ — $ 3 $ — $ 201 $ — $ 204 Disaggregated Details: US Agency Obligations, $ 152,511 US Agency Obligations, 153,926 US Government Agency Securities, at Amortized Cost $ 10,849 US Government Agency Securities, at Fair Value 11,003 Government Sponsored Entity Securities, at Amortized Cost 133,749 Government Sponsored Entity 137,084 The following table is the schedule of Held-To-Maturity Securities at September 30, 2017 , December 31, 2016 and September 30, 2016 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2017 Held-To-Maturity Securities, at Amortized Cost $ 277,738 $ 63,788 $ — $ 341,526 Held-To-Maturity Securities, at Fair Value 279,384 64,515 — 343,899 Gross Unrealized Gains 2,977 738 — 3,715 Gross Unrealized Losses 1,331 11 — 1,342 Held-To-Maturity Securities, Pledged as Collateral 325,096 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 39,609 $ — $ — $ 39,609 From 1 - 5 Years 79,412 54,504 — 133,916 From 5 - 10 Years 154,981 9,284 — 164,265 Over 10 Years 3,736 — — 3,736 Maturities of Debt Securities, at Fair Value: Within One Year $ 39,782 $ — $ — $ 39,782 From 1 - 5 Years 80,944 55,120 — 136,064 From 5 - 10 Years 154,892 9,395 — 164,287 Over 10 Years 3,766 — — 3,766 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 78,238 $ 3,544 $ — $ 81,782 12 Months or Longer 13,331 — — 13,331 Total $ 91,569 $ 3,544 $ — $ 95,113 Number of Securities in a Continuous Loss Position 252 7 — 259 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,034 $ 11 $ — $ 1,045 12 Months or Longer 297 — — 297 Total $ 1,331 $ 11 $ — $ 1,342 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,792 US Government Agency Securities, at Fair Value 2,799 Government Sponsored Entity Securities, at Amortized Cost 60,996 Government Sponsored Entity 61,716 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Total Held-To Maturity Securities December 31, 2016 Held-To-Maturity Securities, at Amortized Cost $ 268,892 $ 75,535 $ 1,000 $ 345,427 Held-To-Maturity Securities, at Fair Value 267,127 75,624 1,000 343,751 Gross Unrealized Gains 2,058 258 — 2,316 Gross Unrealized Losses 3,823 169 — 3,992 Held-To-Maturity Securities, Pledged as Collateral 321,202 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 107,255 $ 13,306 $ — $ 120,561 12 Months or Longer 12,363 — — 12,363 Total $ 119,618 $ 13,306 $ — $ 132,924 Number of Securities in a Continuous Loss Position 347 13 — 360 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 3,129 $ 169 $ — $ 3,298 12 Months or Longer 694 — — 694 Total $ 3,823 $ 169 $ — $ 3,992 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,206 US Government Agency Securities, at Fair Value 3,222 Government Sponsored Entity Securities, at Amortized Cost 72,329 Government Sponsored Entity 72,402 September 30, 2016 Held-To-Maturity Securities, at Amortized Cost $ 257,255 $ 79,983 $ 1,000 $ 338,238 Held-To-Maturity Securities, at Fair Value 263,897 82,544 1,000 347,441 Gross Unrealized Gains 6,712 2,561 — 9,273 Gross Unrealized Losses 70 — — 70 Held-To-Maturity Securities, Pledged as Collateral 320.774 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 11,891 $ — $ — $ 11,891 12 Months or Longer 1,172 — — 1,172 Total $ 13,063 $ — $ — $ 13,063 Number of Securities in a Continuous Loss Position 3 — — 3 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 68 $ — $ — $ 68 12 Months or Longer 2 — — 2 Total $ 70 $ — $ — $ 70 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2016 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,497 US Government Agency Securities, at Fair Value 3,622 Government Sponsored Entity Securities, at Amortized Cost 76,486 Government Sponsored Entity 78,922 In the tables above, maturities of mortgage-backed-securities - residential are included based on their expected average lives. Actual maturities will differ from the table above because issuers may have the right to call or prepay obligations with, or without, prepayment penalties. Securities in a continuous loss position, in the tables above for September 30, 2017 , December 31, 2016 and September 30, 2016 , do not reflect any deterioration of the credit worthiness of the issuing entities. U.S. Government and Agency issues, including agency-backed collateralized mortgage obligations and mortgage-backed securities, are all rated at least Aaa by Moody's or AA+ by Standard and Poor's. The state and municipal obligations are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. Obligations issued by school districts are supported by state aid. For any non-rated municipal securities, credit analysis is performed in-house based upon data that has been submitted by the issuers to the NY State Comptroller. That analysis reflects satisfactory credit worthiness of the municipalities. Corporate and other debt securities continue to be rated above investment grade according to Moody's and Standard and Poor's. Subsequent to September 30, 2017 , and through the date of filing this report, there were no securities downgraded below investment grade. The unrealized losses on these temporarily impaired securities are primarily the result of changes in interest rates for fixed rate securities where the interest rate received is less than the current rate available for new offerings of similar securities, changes in market spreads as a result of shifts in supply and demand, and/or changes in the level of prepayments for mortgage related securities. Because we do not currently intend to sell any temporarily impaired securities, and because it is not more likely-than-not that we would be required to sell the securities prior to recovery, the impairment is considered temporary. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | LOANS (In Thousands) Loan Categories and Past Due Loans The following table presents loan balances outstanding as of September 30, 2017 , December 31, 2016 and September 30, 2016 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers an amortizing loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $1,323 , $483 and $1,414 as of September 30, 2017 , December 31, 2016 and September 30, 2016 , respectively, are included in the residential real estate balances for current loans. Commercial Commercial Real Estate Consumer Residential Total September 30, 2017 Loans Past Due 30-59 Days $ 122 $ 442 $ 4,781 $ 1,675 $ 7,020 Loans Past Due 60-89 Days — — 914 77 991 Loans Past Due 90 or more Days 102 807 291 1,742 2,942 Total Loans Past Due 224 1,249 5,986 3,494 10,953 Current Loans 125,136 439,467 586,043 747,200 1,897,846 Total Loans $ 125,360 $ 440,716 $ 592,029 $ 750,694 $ 1,908,799 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 41 $ 926 $ 967 Nonaccrual Loans 609 1,249 507 3,117 5,482 December 31, 2016 Loans Past Due 30-59 Days $ 112 $ 121 $ 5,593 $ 2,368 $ 8,194 Loans Past Due 60-89 Days 29 — 898 142 1,069 Loans Past Due 90 or more Days 148 — 513 1,975 2,636 Total Loans Past Due 289 121 7,004 4,485 11,899 Current Loans 104,866 431,525 530,357 674,621 1,741,369 Total Loans $ 105,155 $ 431,646 $ 537,361 $ 679,106 $ 1,753,268 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 158 $ 1,043 $ 1,201 Nonaccrual Loans $ 155 $ 875 $ 589 $ 2,574 4,193 September 30, 2016 Loans Past Due 30-59 Days $ 38 $ — $ 3,793 $ 271 $ 4,102 Loans Past Due 60-89 Days 67 — 1,412 1,450 2,929 Loans Past Due 90 or more Days 160 1,106 343 1,467 3,076 Total Loans Past Due 265 1,106 5,548 3,188 10,107 Current Loans 102,789 427,905 518,155 648,260 1,697,109 Total Loans $ 103,054 $ 429,011 $ 523,703 $ 651,448 $ 1,707,216 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ — $ 548 $ 548 Nonaccrual Loans $ 160 $ 3,689 $ 532 $ 1,726 6,107 The Company disaggregates its loan portfolio into the following four categories: Commercial - The Company offers a variety of loan options to meet the specific needs of commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. These loans carry a higher risk than commercial real estate loans due to the nature of the underlying collateral, which can be business assets such as equipment and accounts receivable and generally have a lower liquidation value than real estate. In the event of default by the borrower, the Company may be required to liquidate collateral at deeply discounted values. To reduce the risk, management usually obtains personal guarantees of the borrowers. Commercial Real Estate - The Company offers commercial real estate loans to finance real estate purchases, refinancings, expansions and improvements to commercial properties. Commercial real estate loans are made to finance the purchases of real property which generally consists of real estate with completed structures. These commercial real estate loans are secured by first liens on the real estate, which may include apartments, commercial structures, housing businesses, healthcare facilities, and both owner- and non owner-occupied facilities. These loans are typically less risky than commercial loans, since they are secured by real estate and buildings, and are generally originated in amounts of no more than 80% of the appraised value of the property. However, the Company also offers commercial construction and land development loans to finance projects, primarily within the communities that we serve. Many projects will ultimately be used by the borrowers' businesses, while others are developed for resale. These real estate loans are also secured by first liens on the real estate, which may include apartments, commercial structures, housing business, healthcare facilities and both owner-occupied and non-owner-occupied facilities. There is enhanced risk during the construction period, since the loan is secured by an incomplete project. Consumer Loans - The Company offers a variety of consumer installment loans to finance personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to five years, based upon the nature of the collateral and the size of the loan. In addition to installment loans, the Company also offers personal lines of credit and overdraft protection. Several loans are unsecured, which carry a higher risk of loss. Also included in this category are automobile loans. The Company primarily finances the purchases of automobiles indirectly through dealer relationships located throughout upstate New York and Vermont. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from three to seven years. Indirect consumer loans are underwritten on a secured basis using the underlying collateral being financed. Residential Real Estate Mortgages - Residential real estate loans consist primarily of loans secured by first or second mortgages on primary residences. We originate adjustable-rate and fixed-rate one-to-four-family residential real estate loans for the construction, purchase or refinancing of an existing mortgage. These loans are collateralized primarily by owner-occupied properties generally located in the Company’s market area. Loans on one-to-four-family residential real estate are generally originated in amounts of no more than 85% of the purchase price or appraised value (whichever is lower), or have private mortgage insurance. The Company’s underwriting analysis for residential mortgage loans typically includes credit verification, independent appraisals, and a review of the borrower’s financial condition. Mortgage title insurance and hazard insurance are normally required. It is the Company's general practice to underwrite residential real estate loans to secondary market standards. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. In addition, the Company offers fixed home equity loans as well as home equity lines of credit to consumers to finance home improvements, debt consolidation, education and other uses. Company policy allows for a maximum loan to value ratio of 80%, although periodically higher advances are allowed. The Company originates home equity lines of credit and second mortgage loans (loans secured by a second junior lien position on one-to-four-family residential real estate). Risk is generally reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower's financial condition, and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate. Allowance for Loan Losses The following table presents a roll-forward of the allowance for loan losses and other information pertaining to the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Unallocated Total Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ — $ 17,442 Charge-offs — (342 ) (280 ) — — (622 ) Recoveries 1 — 74 — — 75 Provision (46 ) 446 509 (109 ) — 800 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ — $ 17,695 June 30, 2016 $ 1,128 $ 5,816 $ 5,742 $ 4,026 $ 86 $ 16,798 Charge-offs (34 ) — (243 ) (90 ) — (367 ) Recoveries 5 — 59 — — 64 Provision (76 ) (75 ) 513 166 (48 ) 480 September 30, 2016 $ 1,023 $ 5,741 $ 6,071 $ 4,102 $ 38 $ 16,975 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Unallocated Total Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: December 31, 2016 $ 1,017 $ 5,677 $ 6,120 $ 4,198 $ — $ 17,012 Charge-offs (2 ) (342 ) (847 ) (6 ) — (1,197 ) Recoveries 8 — 292 — — 300 Provision (143 ) (248 ) 2,043 (72 ) — 1,580 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ — $ 17,695 December 31, 2015 $ 1,827 $ 4,520 $ 5,554 $ 3,790 $ 347 $ 16,038 Charge-offs (86 ) — (591 ) (107 ) — (784 ) Recoveries 20 — 150 1 — 171 Provision (738 ) 1,221 958 418 (309 ) 1,550 September 30, 2016 $ 1,023 $ 5,741 $ 6,071 $ 4,102 $ 38 $ 16,975 September 30, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 104 $ — $ — $ 34 $ — $ 138 Allowance for loan losses - Loans Collectively Evaluated for Impairment 776 5,087 7,608 4,086 — 17,557 Ending Loan Balance - Individually Evaluated for Impairment 489 1,543 104 1,139 — 3,275 Ending Loan Balance - Collectively Evaluated for Impairment $ 124,871 $ 439,172 $ 591,925 $ 749,556 $ — $ 1,905,524 December 31, 2016 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ — $ — $ — $ — $ — Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,017 5,677 6,120 4,198 — 17,012 Ending Loan Balance - Individually Evaluated for Impairment — 890 91 1,098 — 2,079 Ending Loan Balance - Collectively Evaluated for Impairment $ 105,155 $ 430,756 $ 537,270 $ 678,008 $ — $ 1,751,189 September 30, 2016 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ 240 $ — $ — $ — $ 240 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,023 5,501 6,071 4,102 38 16,735 Ending Loan Balance - Individually Evaluated for Impairment — 3,538 90 317 — 3,945 Ending Loan Balance - Collectively Evaluated for Impairment $ 103,054 $ 425,473 $ 523,613 $ 651,131 $ — $ 1,703,271 Through the provision for loan losses, an allowance for loan losses is maintained that reflects the best estimate of the inherent risk of loss in the Company’s loan portfolio as of the balance sheet date. Additions are made to the allowance for loan losses through a periodic provision for loan losses. Actual loan losses are charged against the allowance for loan losses when loans are deemed uncollectible and recoveries of amounts previously charged off are recorded as credits to the allowance for loan losses. Loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with certain criticized and classified commercial-related relationships. In addition, the independent internal loan review department performs periodic reviews of the risk ratings on individual loans in the commercial loan portfolio. We use a two-step process to determine the provision for loan losses and the amount of the allowance for loan losses. We measure impairment of impaired loans on a quarterly basis. Impaired loans are generally nonaccrual loans over $250 thousand and all troubled debt restructured loans. Impaired loans are generally considered to be collateral dependent with the specific reserve, if any, determined based on the value of the collateral less estimated costs to sell. The remainder of the portfolio is evaluated on a pooled basis. For each homogeneous loan pool, we estimate a total loss factor based on the historical net loss rates adjusted for applicable qualitative factors. We update the total loss factors assigned to each loan category on a quarterly basis. For the commercial and commercial real estate categories, we further segregate the loan categories by credit risk profile (pools of loans graded satisfactory, special mention and substandard). Additional description of the credit risk classifications is detailed in the Credit Quality Indicators section of this note. We determine the annualized historical net loss rate for each loan category using a trailing three-year net charge-off average. We then apply a loss emergence period factor to the historical net loss rate to account for the time it takes to identify the loss after a loss-causing event. While historical net loss experience provides a reasonable starting point for analysis, historical net losses, or even recent trends in net losses, do not by themselves form a sufficient basis to determine the appropriate level of the allowance for loan losses. Therefore, we also consider and adjust historical net loss factors for qualitative factors that impact the inherent risk of loss associated with the loan categories within the total loan portfolio. These include: • Changes in the volume and severity of past due, nonaccrual and adversely classified loans • Changes in the nature and volume of the portfolio and in the terms of loans • Changes in the value of the underlying collateral for collateral dependent loans • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses • Changes in the quality of the loan review system • Changes in the experience, ability, and depth of lending management and other relevant staff • Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio • The existence and effect of any concentrations of credit, and changes in the level of such concentrations • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio or pool While not a significant part of the allowance for loan losses methodology, in 2016, we maintained an unallocated portion of the total allowance for loan losses related to the overall level of imprecision inherent in the estimation of the appropriate level of allowance for loan losses. Credit Quality Indicators The following table presents the credit quality indicators by loan category at September 30, 2017 , December 31, 2016 and September 30, 2016 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total September 30, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 120,622 $ 411,685 $ — $ — $ 532,307 Special Mention 1,394 1,401 — — 2,795 Substandard 3,344 26,822 — — 30,166 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 591,499 $ 746,652 $ 1,338,151 Nonperforming — — 530 4,043 4,573 December 31, 2016 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 95,722 $ 396,907 $ — $ — $ 492,629 Special Mention 1,359 7,008 — — 8,367 Substandard 8,074 27,731 — — 35,805 Doubtful — — — — — Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 536,614 $ 675,489 $ 1,212,103 Nonperforming — — 747 3,617 4,364 September 30, 2016 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 93,903 $ 392,697 $ — $ — $ 486,600 Special Mention 1,274 10,472 — — 11,746 Substandard 7,877 25,842 — — 33,719 Doubtful — — — — — Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 523,171 $ 649,093 $ 1,172,264 Nonperforming — — 532 2,355 2,887 We use an internally developed system of five credit quality indicators to rate the credit worthiness of each commercial loan defined as follows: 1) Satisfactory - "Satisfactory" borrowers have acceptable financial condition with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt. Borrowers have satisfactory repayment histories and primary and secondary sources of repayment can be clearly identified; 2) Special Mention - Loans in this category have potential weaknesses that deserve management ’ s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution ’ s credit position at some future date. "Special mention" assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Loans which might be assigned this risk rating include loans to borrowers with deteriorating financial strength and/or earnings record and loans with potential for problems due to weakening economic or market conditions; 3) Substandard - Loans classified as “ substandard ” are inadequately protected by the current sound net worth or paying capacity of the borrower or the collateral pledged, if any. Loans in this category have well defined weaknesses that jeopardize the repayment. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. “ Substandard ” loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard; 4) Doubtful - Loans classified as “ doubtful ” have all of the weaknesses inherent in those classified as “ substandard ” with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values highly questionable and improbable. Although possibility of loss is extremely high, classification of these loans as “ loss ” has been deferred due to specific pending factors or events which may strengthen the value (i.e. possibility of additional collateral, injection of capital, collateral liquidation, debt restructure, economic recovery, etc). Loans classified as “ doubtful ” need to be placed on non-accrual; and 5) Loss - Loans classified as “ loss ” are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. As of the date of the balance sheet, all loans in this category have been charged-off to the allowance for loan losses. Large commercial loans are evaluated on an annual basis, unless the credit quality indicator falls to a level of "special mention" or below, when the loan is evaluated quarterly. The credit quality indicator is one of the factors used to determine any loss, as further described in this footnote. For the purposes of the table above, nonperforming consumer and residential loans are those loans on nonaccrual status or are 90 days or more past due and still accruing interest. Impaired Loans The following table presents information on impaired loans based on whether the impaired loan has a recorded related allowance or has no recorded related allowance: Impaired Loans Commercial Commercial Real Estate Consumer Residential Total September 30, 2017 Recorded Investment: With No Related Allowance $ — $ 818 $ 104 $ 851 $ 1,773 With a Related Allowance 489 725 — 288 1,502 Unpaid Principal Balance: With No Related Allowance — 818 90 850 1,758 With a Related Allowance 489 723 — 288 1,500 December 31, 2016 Recorded Investment: With No Related Allowance $ — $ 890 $ 91 $ 1,098 $ 2,079 With a Related Allowance — — — — — Unpaid Principal Balance: With No Related Allowance — 890 91 1,098 2,079 With a Related Allowance — — — — — September 30, 2016 Recorded Investment: With No Related Allowance $ — $ 898 $ 90 $ 317 $ 1,305 With a Related Allowance — 2,640 — — 2,640 Unpaid Principal Balance: With No Related Allowance — 898 90 317 $ 1,305 With a Related Allowance — 2,640 — — 2,640 For the Quarter Ended: September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 998 $ 96 $ 827 $ 1,921 With a Related Allowance 496 363 — 288 1,147 Interest Income Recognized: With No Related Allowance — — 1 — 1 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2016 Average Recorded Balance: With No Related Allowance $ — $ 1,374 $ 92 $ 479 $ 1,945 With a Related Allowance — 2,166 — — 2,166 Interest Income Recognized: With No Related Allowance — 3 2 — 5 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — Impaired Loans Commercial Commercial Real Estate Consumer Residential Total For the Year-To-Date Period Ended: September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 854 $ 98 $ 975 $ 1,927 With a Related Allowance 245 363 — 144 752 Interest Income Recognized: With No Related Allowance — — 3 — 3 With a Related Allowance — — — 4 4 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2016 Average Recorded Balance: With No Related Allowance $ 78 $ 1,635 $ 102 $ 481 $ 2,296 With a Related Allowance — 1,320 — — 1,320 Interest Income Recognized: With No Related Allowance — 14 4 — 18 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — At September 30, 2017 , December 31, 2016 and September 30, 2016 , all impaired loans were considered to be collateral dependent and were therefore evaluated for impairment based on the fair value of collateral less estimated cost to sell. Interest income recognized in the table above, represents income earned after the loans became impaired and includes restructured loans in compliance with their modified terms and nonaccrual loans where we have recognized interest income on a cash basis. Loans Modified in Trouble Debt Restructurings The following table presents information on loans modified in trouble debt restructurings during the periods indicated. All loans were modified under Arrow's own programs. The principal modification, for all the modifications in the table below, involved payment deferrals. Loans Modified in Trouble Debt Restructurings During the Period Commercial Commercial Real Estate Consumer Residential Total For the Quarter Ended: September 30, 2017 Number of Loans 1 — 2 — 3 Pre-Modification Outstanding Recorded Investment $ 725 $ — $ 25 $ — $ 750 Post-Modification Outstanding Recorded Investment 725 — 25 — 750 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2016 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 15 $ — $ 15 Post-Modification Outstanding Recorded Investment — — 15 — 15 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: September 30, 2017 Number of Loans 2 — 6 — 8 Pre-Modification Outstanding Recorded Investment $ 1,228 $ — $ 51 $ — $ 1,279 Post-Modification Outstanding Recorded Investment 1,228 — 51 — 1,279 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2016 Number of Loans — — 2 — 2 Pre-Modification Outstanding Recorded Investment $ — $ — $ 23 $ — $ 23 Post-Modification Outstanding Recorded Investment — — 23 — 23 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — In general, loans requiring modification are restructured to accommodate the projected cashflows of the borrower. No loans modified during the preceding twelve months subsequently defaulted as of September 30, 2017 . In addition, no commitments have been made to extend credit to borrowers whose loans have been modified in a troubled debt restructuring. |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES (In Thousands) The following table presents the balance for commitments to extend credit and standby letters of credit for the periods ended September 30, 2017 , December 31, 2016 and September 30, 2016 : Commitments to Extend Credit and Letters of Credit September 30, 2017 December 31, 2016 September 30, 2016 Notional Amount: Commitments to Extend Credit $ 316,449 $ 296,442 $ 300,439 Standby Letters of Credit 3,672 3,445 3,483 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 18 30 31 Arrow is 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 include commitments to extend credit and standby letters of credit. Commitments to extend credit include home equity lines of credit, commitments for residential and commercial construction loans and other personal and commercial lines of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of the involvement Arrow has in particular classes of financial instruments. Arrow's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. Arrow uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Arrow evaluates each customer's creditworthiness on a case-by-case basis. Home equity lines of credit are secured by residential real estate. Construction commitments are secured by underlying real estate. For other lines of credit, the amount of collateral obtained, if deemed necessary by Arrow upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Most of the commitments are variable rate instruments. Arrow has issued conditional commitments in the form of standby letters of credit to guarantee payment on behalf of a customer and guarantee the performance of a customer to a third party. Standby letters of credit generally arise in connection with lending relationships. The credit risk involved in issuing these instruments is essentially the same as that involved in extending loans to customers. Contingent obligations under standby letters of credit at September 30, 2017 , December 31, 2016 and September 30, 2016 represent the maximum potential future payments Arrow could be required to make. Typically, these instruments have terms of 12 months or less and expire unused; therefore, the total amounts do not necessarily represent future cash requirements. Each customer is evaluated individually for creditworthiness under the same underwriting standards used for commitments to extend credit and on-balance sheet instruments. Company policies governing loan collateral apply to standby letters of credit at the time of credit extension. Loan-to-value ratios generally range from 50% for movable assets, such as inventory, to 100% for liquid assets, such as bank CD's. Fees for standby letters of credit typically range from 1% to 3% of the notional amount. Fees are collected upfront and are amortized over the life of the commitment. The fair values of Arrow's standby letters of credit at September 30, 2017 , December 31, 2016 and September 30, 2016 , in the table above, were the same as the carrying amounts. The fair value of standby letters of credit is based on the fees currently charged for similar agreements or the cost to terminate the arrangement with the counterparties. The fair value of commitments to extend credit is determined by estimating the fees to enter into similar agreements, taking into account the remaining terms and present creditworthiness of the counterparties, and for fixed rate loan commitments, the difference between the current and committed interest rates. Arrow provides several types of commercial lines of credit and standby letters of credit to its commercial customers. The pricing of these services is not isolated, as Arrow considers the customer's complete deposit and borrowing relationship in pricing individual products and services. The commitments to extend credit also include commitments under home equity lines of credit, for which Arrow charges no fee. The carrying value and fair value of commitments to extend credit are not material and Arrow does not expect to incur any material loss as a result of these commitments. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME (In Thousands) The following table presents the components of other comprehensive income for the three-month period ended September 30, 2017 and 2016 : Schedule of Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2017 Net Unrealized Securities Holding (Losses) Gains Arising During the Period 6 $ 3 9 749 $ (284 ) 465 Reclassification Adjustment for Securities Gains Included in Net Income (10 ) 4 (6 ) (10 ) 4 (6 ) Amortization of Net Retirement Plan Actuarial Loss 179 (115 ) 64 537 (292 ) 245 Accretion of Net Retirement Plan Prior Service Credit (3 ) 1 (2 ) (8 ) 3 (5 ) Other Comprehensive Income (Loss) $ 172 $ (107 ) $ 65 $ 1,268 $ (569 ) $ 699 2016 Net Unrealized Securities Holding Gains (Losses) Arising During the Period (1,264 ) $ 454 (810 ) 3,868 $ (1,559 ) 2,309 Reclassification Adjustment for Securities Gains Included in Net Income — — — (144 ) 56 (88 ) Amortization of Net Retirement Plan Actuarial Loss 181 (70 ) 111 503 (189 ) 314 Accretion of Net Retirement Plan Prior Service Credit (3 ) 2 (1 ) (7 ) 2 (5 ) Other Comprehensive Income (Loss) $ (1,086 ) $ 386 $ (700 ) $ 4,220 $ (1,690 ) $ 2,530 The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Defined Benefit Plan Items Gains and Losses on Net Prior Available-for- Net Gain Service Sale Securities (Loss) (Cost ) Credit Total For the Quarter-To-Date periods ended: June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) Other comprehensive income or loss before reclassifications 9 — — 9 Amounts reclassified from accumulated other comprehensive income (6 ) 64 (2 ) 56 Net current-period other comprehensive income 3 64 (2 ) 65 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) June 30, 2016 $ 3,660 $ (7,690 ) $ (712 ) $ (4,742 ) Other comprehensive income or loss before reclassifications (810 ) — — (810 ) Amounts reclassified from accumulated other comprehensive income — 111 (1 ) 110 Net current-period other comprehensive income (810 ) 111 (1 ) (700 ) September 30, 2016 $ 2,850 $ (7,579 ) $ (713 ) $ (5,442 ) For the Year-To-Date periods ended: December 31, 2016 $ (382 ) $ (5,737 ) $ (715 ) $ (6,834 ) Other comprehensive income or loss before reclassifications 465 — — 465 Amounts reclassified from accumulated other comprehensive income (6 ) 245 (5 ) 234 Net current-period other comprehensive income 459 245 (5 ) 699 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) December 31, 2015 $ 629 $ (7,893 ) $ (708 ) $ (7,972 ) Other comprehensive income or loss before reclassifications 2,309 — — 2,309 Amounts reclassified from accumulated other comprehensive income (88 ) 314 (5 ) 221 Net current-period other comprehensive income 2,221 314 (5 ) 2,530 September 30, 2016 $ 2,850 $ (7,579 ) $ (713 ) $ (5,442 ) (1) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents the reclassifications out of accumulated other comprehensive income: Reclassifications Out of Accumulated Other Comprehensive Income (1) Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented For the Quarter-to-date periods ended: September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (2) Salaries and Employee Benefits Actuarial gains/(losses) (179 ) (2) Salaries and Employee Benefits (176 ) Total before Tax 114 Provision for Income Taxes $ (62 ) Net of Tax Total reclassifications for the period $ (56 ) Net of Tax September 30, 2016 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (2) Salaries and Employee Benefits Actuarial gains/(losses) (181 ) (2) Salaries and Employee Benefits (178 ) Total before Tax 68 Provision for Income Taxes $ (110 ) Net of Tax Total reclassifications for the period $ (110 ) Net of Tax For the Year-to-date periods ended: September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 8 (2) Salaries and Employee Benefits Actuarial gains/(losses) (537 ) (2) Salaries and Employee Benefits (529 ) Total before Tax 289 Provision for Income Taxes $ (240 ) Net of Tax Total reclassifications for the period $ (234 ) Net of Tax Reclassifications Out of Accumulated Other Comprehensive Income (1) Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented September 30, 2016 Unrealized gains and losses on available-for-sale securities $ 144 Gain on Securities Transactions 144 Total before Tax (56 ) Provision for Income Taxes $ 88 Net of Tax Amortization of defined benefit pension items: Prior-service costs 7 (2) Salaries and Employee Benefits Actuarial gains/(losses) $ (503 ) (2) Salaries and Employee Benefits (496 ) Total before Tax 187 Provision for Income Taxes $ (309 ) Net of Tax Total reclassifications for the period $ (221 ) Net of Tax (1) Amounts in parentheses indicate debits to profit/loss. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation Plans | STOCK BASED COMPENSATION PLANS Under the 2013 Long-Term Incentive Plan, Arrow granted options in the first quarter of 2017 to purchase shares of common stock. The fair values of the options were estimated on the date of grant using the Black-Scholes option-pricing model. The fair value of grants is expensed over the four year vesting period. The following table presents a roll-forward of stock option plans and grants issued during 2017 : Schedule of Share-based Compensation Arrangements Stock Option Plans Roll-Forward of Shares Outstanding: Outstanding at January 1, 2017 366,329 Granted 55,621 Exercised (35,937 ) Forfeited — Outstanding at September 30, 2017 386,013 Exercisable at Period-End 242,706 Vested and Expected to Vest 143,307 Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: Outstanding at January 1, 2017 $ 21.86 Granted 36.12 Exercised 20.46 Forfeited — Outstanding at September 30, 2017 24.05 Exercisable at Period-End 21.34 Vested and Expected to Vest 28.62 Grants Issued During 2017 - Weighted Average Information: Fair Value $ 6.25 Fair Value Assumptions: Dividend Yield 2.72 % Expected Volatility 21.40 % Risk Free Interest Rate 2.25 % Expected Lives (in years) 6.88 The following table presents information on the amounts expensed for the periods ended September 30, 2017 and 2016 : Share-Based Compensation Expense For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Share-Based Compensation Expense $ 90 $ 71 $ 262 $ 215 Arrow also sponsors an Employee Stock Purchase Plan under which employees purchase Arrow's common stock at a 5% discount below market price. Under current accounting guidance, a stock purchase plan with a discount of 5% or less is not considered a compensatory plan. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Retirement Plans | RETIREMENT PLANS (Dollars in Thousands) The following tables provide the components of net periodic benefit costs for the three and nine- month periods ended September 30, 2017 and 2016 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended September 30, 2017: Service Cost $ 350 $ 10 $ 37 Interest Cost 362 55 75 Expected Return on Plan Assets (800 ) — — Amortization of Prior Service (Credit) Cost (14 ) 14 (3 ) Amortization of Net Loss 148 31 — Net Periodic Benefit Cost $ 46 $ 110 $ 109 Plan Contributions During the Period $ — $ 116 $ 65 For the Three Months Ended September 30, 2016: Service Cost $ 376 $ 8 $ 63 Interest Cost 420 56 83 Expected Return on Plan Assets (828 ) — — Amortization of Prior Service (Credit) Cost (14 ) 14 (3 ) Amortization of Net Loss 140 28 — Net Periodic Benefit Cost $ 94 $ 106 $ 143 Plan Contributions During the Period $ — $ 131 $ 47 Net Periodic Benefit Cost For the Nine Months Ended September 30, 2017: Service Cost $ 1,050 $ 30 $ 110 Interest Cost 1,085 164 224 Expected Return on Plan Assets (2,399 ) — — Amortization of Prior Service Cost (Credit) (43 ) 43 (8 ) Amortization of Net Loss 443 94 — Net Periodic Benefit Cost $ 136 $ 331 $ 326 Plan Contributions During the Period $ — $ 345 $ 295 Estimated Future Contributions in the Current Fiscal Year $ — $ 115 $ 98 For the Nine Months Ended September 30, 2016: Service Cost $ 1,127 $ 24 $ 188 Interest Cost 1,262 163 178 Expected Return on Plan Assets (2,483 ) — — Amortization of Prior Service (Credit) Cost (42 ) 43 (8 ) Amortization of Net Loss 419 84 — Net Periodic Benefit Cost $ 283 $ 314 $ 358 Plan Contributions During the Period $ — $ 350 $ 197 We were not required to make a contribution to the qualified pension plan in 2017 , and currently, we do not expect to make additional contributions in 2017 . Arrow makes contributions to its other post-retirement benefit plans in an amount equal to benefit payments for the year. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE (In Thousands, Except Per Share Amounts) The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per common share ( “ EPS ” ) for periods ended September 30, 2017 and 2016 . All share and per share amounts have been adjusted for the September 28, 2017 3% stock dividend. Earnings Per Share Quarterly Period Ended: Year-to-Date Period Ended: September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Earnings Per Share - Basic: Net Income $ 7,416 $ 6,738 $ 21,255 $ 19,934 Weighted Average Shares - Basic 13,889 13,810 13,889 13,775 Earnings Per Share - Basic $ 0.53 $ 0.49 $ 1.53 $ 1.45 Earnings Per Share - Diluted: Net Income $ 7,416 $ 6,738 $ 21,255 $ 19,934 Weighted Average Shares - Basic 13,889 13,810 13,889 13,775 Dilutive Average Shares Attributable to Stock Options 77 91 92 67 Weighted Average Shares - Diluted 13,966 13,901 13,981 13,842 Earnings Per Share - Diluted $ 0.53 $ 0.48 $ 1.52 $ 1.44 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS (In Thousands) FASB ASC Subtopic 820-10 defines fair value, establishes a framework for measuring fair value in Generally Accepted Accounting Principles (GAAP) and requires certain disclosures about fair value measurements. We do not have any nonfinancial assets or liabilities measured at fair value on a recurring basis. The only assets or liabilities that Arrow measured at fair value on a recurring basis at September 30, 2017 , December 31, 2016 and September 30, 2016 were securities available-for-sale. Arrow held no securities or liabilities for trading on such dates. The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Gains (Losses) Fair Value of Assets and Liabilities Measured on a Recurring Basis: September 30, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 146,978 $ 64,730 $ 82,248 $ — State and Municipal Obligations 11,902 — 11,902 — Mortgage-Backed Securities - Residential 152,806 — 152,806 — Corporate and Other Debt Securities 2,299 — 2,299 — Mutual Funds and Equity Securities 1,474 — 1,474 — Total Securities Available-for-Sale $ 315,459 $ 64,730 $ 250,729 $ — December 31, 2016 Securities Available-for Sale: U.S. Government & Agency Obligations $ 147,377 $ 54,706 $ 92,671 $ — State and Municipal Obligations 27,690 — 27,690 — Mortgage-Backed Securities - Residential 167,239 — 167,239 — Corporate and Other Debt Securities 3,308 — 3,308 — Mutual Funds and Equity Securities 1,382 — 1,382 — Total Securities Available-for Sale $ 346,996 $ 54,706 $ 292,290 $ — September 30, 2016 Securities Available-for Sale: U.S. Government & Agency Obligations $ 153,926 $ — $ 153,926 $ — State and Municipal Obligations 31,628 — 31,628 — Mortgage-Backed Securities - Residential 148,087 — 148,087 — Corporate and Other Debt Securities 4,299 — 4,299 — Mutual Funds and Equity Securities 1,250 — 1,250 — Total Securities Available-for Sale $ 339,190 $ — $ 339,190 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: September 30, 2017 Collateral Dependent Impaired Loans $ 1,502 $ — $ — $ 1,502 $ (138 ) Other Real Estate Owned and Repossessed Assets, Net 1,713 — — 1,713 (655 ) December 31, 2016 Collateral Dependent Impaired Loans $ — $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net $ 1,686 $ — — 1,686 $ (587 ) September 30, 2016 Collateral Dependent Impaired Loans $ 2,640 $ — $ — $ 2,640 $ (240 ) Other Real Estate Owned and Repossessed Assets, Net 1,016 — — 1,016 (319 ) We determine the fair value of financial instruments under the following hierarchy: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). There were no transfers between Levels 1, 2 and 3 for the three months ended September 30, 2017 , December 31, 2016 and September 30, 2016 . Fair Value Methodology for Assets and Liabilities Measured on a Recurring Basis The fair value of Level 1 securities available-for-sale are based on unadjusted, quoted market prices from exchanges in active markets. The fair value of Level 2 securities available-for-sale are based on an independent bond and equity pricing service for identical assets or significantly similar securities and an independent equity pricing service for equity securities not actively traded. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Fair Value Methodology for Assets and Liabilities Measured on a Nonrecurring Basis The Company uses the fair value of underlying collateral to estimate the specific reserves for collateral dependent impaired loans. The fair value of underlying collateral is generally determined through independent appraisals, which generally include various Level 3 inputs which are not identifiable. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 15% to 25%. Based on the valuation techniques used, the fair value measurements for collateral dependent impaired loans are classified as Level 3. Other assets which might have been included in this table include mortgage servicing rights, goodwill and other intangible assets. Arrow evaluates each of these assets for impairment on a quarterly basis, with no impairment recognized for these assets at September 30, 2017 , December 31, 2016 and September 30, 2016 . Fair Value by Balance Sheet Grouping The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Amount Fair Value Level 1 Level 2 Level 3 September 30, 2017 Cash and Cash Equivalents $ 80,666 $ 80,666 $ 80,666 $ — $ — Securities Available-for-Sale 315,459 315,459 64,730 250,729 — Securities Held-to-Maturity 341,526 343,899 — 343,899 — Federal Home Loan Bank and Federal Reserve Bank Stock 6,704 6,704 — 6,704 — Net Loans 1,891,104 1,870,379 — — 1,870,379 Accrued Interest Receivable 7,692 7,692 — 7,692 — Deposits 2,307,116 2,299,011 — 2,299,011 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 61,419 61,419 — 61,419 — Federal Home Loan Bank Overnight Advances 33,000 33,000 — 33,000 — Federal Home Loan Bank Term Advances 55,000 55,110 — 55,110 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 260 260 — 260 — December 31, 2016 Cash and Cash Equivalents $ 57,355 $ 57,355 $ 57,355 $ — $ — Securities Available-for-Sale 346,996 346,996 54,706 292,290 — Securities Held-to-Maturity 345,427 343,751 — 343,751 — Federal Home Loan Bank and Federal Reserve Bank Stock 10,912 10,912 — 10,912 — Net Loans 1,736,256 1,720,078 — — 1,720,078 Accrued Interest Receivable 6,684 6,684 — 6,684 — Deposits 2,116,546 2,109,557 — 2,109,557 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 35,836 35,836 — 35,836 — Federal Home Loan Bank Overnight Advances 123,000 123,000 — 123,000 — Federal Home Loan Bank Term Advances 55,000 55,118 — 55,118 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 247 247 — 247 — September 30, 2016 Cash and Cash Equivalents $ 102,059 $ 102,059 $ 102,059 $ — $ — Securities Available-for-Sale 339,190 339,190 — 339,190 — Securities Held-to-Maturity 338,238 347,441 — 347,441 — Federal Home Loan Bank and Federal Reserve Bank Stock 5,371 5,371 — 5,371 — Net Loans 1,690,241 1,696,929 — — 1,696,929 Accrued Interest Receivable 7,046 7,046 — 7,046 — Deposits 2,213,187 2,207,985 — 2,207,985 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 38,589 38,589 — 38,589 — Federal Home Loan Bank Overnight Advances — — — — — Federal Home Loan Bank Term Advances 55,000 55,955 — 55,955 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 247 247 — 247 — Fair Value Methodology for Financial Instruments Not Measured on a Recurring or Nonrecurring Basis Securities held-to-maturity are fair valued utilizing an independent bond pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Fair values for loans are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial real estate, residential mortgage, indirect and other consumer loans. Each loan category is further segmented into fixed and adjustable interest rate 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 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 nonperforming loans is generally 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 discount rates are judgmentally determined using available market information and specific borrower information. The fair value of time deposits is based on the discounted value of contractual cash flows, except that the fair value is limited to the extent that the customer could redeem the certificate after imposition of a premature withdrawal penalty. The discount rates are estimated using the Federal Home Loan Bank of New York (FHLBNY) yield curve, which is considered representative of Arrow ’ s time deposit rates. The fair value of all other deposits is equal to the carrying value. The fair value of FHLBNY advances is estimated based on the discounted value of contractual cash flows. The discount rate is estimated using current rates on FHLBNY advances with similar maturities and call features. Based on Arrow ’ s capital adequacy, the book value of the outstanding trust preferred securities (Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts) are considered to approximate fair value since the interest rates are variable (indexed to LIBOR) and Arrow is well-capitalized. |
Accounting Policies Significant
Accounting Policies Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Standards Updates | New Accounting Standards Updates (ASU): Effective January 1, 2017, Arrow adopted FASB accounting standard ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting," which makes several revisions to equity compensation accounting. Under the new guidance all excess tax benefits and deficiencies that occur when an award is exercised or expires are recognized in income tax expense as discrete period items. Previously, these transactions were typically recorded directly within equity. Excess tax benefits are also recognized at the time an award is exercised compared to the previous requirement to delay recognition until the deduction reduces taxes payable. All tax related cash flows recognized on stock-based compensation expense are classified as an operating activity in our consolidated statements of cash flows on a prospective basis. Accordingly, prior periods have not been adjusted. ASU 2016-09 also provides an accounting policy election to recognize forfeitures of awards as they occur when estimating stock-based compensation expense rather than the previous requirement to estimate forfeitures from inception. Further, ASU 2016-09 permits employers to use a net-settlement feature to withhold taxes on equity compensation awards up to the maximum statutory tax rate without affecting the equity classification of the award. Under previous guidance, withholding of equity awards in excess of the minimum statutory requirement resulted in liability classification for the entire award. The related cash remittance by the employer for employee taxes is treated as a financing activity in the statement of cash flows. The annual effect of the 2017 tax provision will primarily depend upon the share price of Arrow common stock which affects the probability of exercise of certain stock options and the magnitude of windfalls upon exercise. Income tax benefits from stock options exercised in the period reduced our effective tax rate for the nine months ended September 30, 2017 , which resulted in an increase in earnings of approximately $112 thousand , representing earnings per share of less than $0.01 . In addition, during 2017, through the date of this report, the FASB issued 13 accounting standards updates. Some of the standards listed below did not have an immediate impact on Arrow, but could in the future. ASU 2014-09 - Revenue from Contracts with Customers will change revenue recognition guidance under GAAP and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. Initially, ASU 2014-09 was effective for Arrow on January 1, 2017; however, in August 2015, the FASB issued ASU No. 2015-14 - Revenue from Contracts with Customers - Deferral of the Effective Date, which deferred the effective date to January 1, 2018. Early adoption is not permitted. In addition, the FASB has begun to issue targeted updates to clarify specific implementation issues of ASU 2014-09. These updates include ASU No. 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU No. 2016-10 - Identifying Performance Obligations and Licensing, ASU No. 2016-12 - Narrow-Scope Improvements and Practical Expedients, and ASU No. 2016-20 - Technical Corrections and Improvements to Top 606 - Revenue from Contract with Customers. We are currently in the process of identifying any required changes to our revenue recognition policies. We do not expect that the adoption of this change in accounting for revenue will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" will significantly change the income statement impact of equity investments. For Arrow, the standard is effective for the first quarter of 2018, and will require that equity investments be measured at fair value, with changes in fair value measured in net income. As of September 30, 2017 , we hold $1.5 million of fair value in equity investments and we do not expect that the adoption of this change in accounting for equity investments will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2016-02 "Leases" will require the recognition of operating leases. For Arrow, the standard becomes effective in the first quarter of 2019. We do not expect that the adoption of this change in accounting for operating leases will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. As of September 30, 2017 , we have less than $ 2.6 million in minimum lease payments for existing operating leases of branch and insurance locations with varying expiration dates from 2017 to 2031. ASU 2016-13 "Financial Instruments - Credit Losses" will change the way we and other financial entities recognize losses on assets measured at amortized costs and change the method for recognizing credit losses on securities available-for-sale. Currently, loan losses are recognized using an "incurred loss" methodology. Under ASU 2016-13, the methodology will change to a current expected loss over the life of the loan. Currently, credit losses on available-for-sale securities reduce the carrying value of the instrument and cannot be reversed. Under ASU 2016-13, the amount of the credit loss is carried as a valuation allowance and can be reversed. For Arrow, the standard is effective for the first quarter of 2020 and early adoption is allowed in 2019. The Company is currently evaluating the impact of the pending adoption of the ASU on its consolidated financial statements. The initial adjustment will not be reported in earnings, but as the cumulative effect of a change in accounting principle. At this time we have not calculated the estimated impact that this Update will have on our Allowance for Loan Losses, however, we anticipate it will have a significant impact on the methodology process we utilize to calculate the allowance. ASU 2017-01 "Business Combinations" defines when a set of assets and activities constitutes a business for the purposes of determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Currently, the three elements required to be present in a business are inputs, processes, and outputs. The amendments in this Update allow for a business to consist of inputs, processes, and the ability to create output. For Arrow, the standard becomes effective in the first quarter of 2018. This Update will likely have no effect on our accounting for acquisitions and dispositions of businesses. ASU 2017-04 "Intangibles-Goodwill and Other" changes the procedures for evaluating impairment of goodwill. Prior to this Update, entities were required to perform procedures to determine the fair value of the underlying assets and liabilities following the guidance for determining the fair value of assets and liabilities in a business combination. This additional step to impairment testing has been eliminated. Under the amendments in this Update, entities should perform goodwill impairment testing by comparing the fair value of a reporting unit to its carrying value. This amendment should reduce the cost and complexity of evaluating goodwill for impairment. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted. This amendment will not affect our assessment of goodwill impairment since we currently perform the analysis of comparing carrying value to fair value of our reporting units that have goodwill and we have not had to perform a Step 2 Impairment Test to date. ASU 2017-07 "Compensation-Retirement Benefits" improves the presentation of net periodic pension cost and net periodic post-retirement benefit cost by requiring that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. For Arrow, the standard becomes effective in the first quarter of 2018, however, early adoption is permitted. We do not expect that the adoption of this change in accounting for pension costs will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2017-08 "Receivables-Nonrefundable Fees and Other Costs" amends the amortization period for certain purchased callable debt securities held at a premium. This shortens the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For Arrow, the standard becomes effective in the first quarter of 2019, however, early adoption is permitted as early as the first quarter of 2017. We do not expect that the adoption of this change in accounting for certain callable debt securities will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. ASU 2017-09 "Compensation-Stock Compensation" provides guidance about which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance highlights the requirements for applying modification accounting and the exception criteria relating to changes in share-based payment terms. For Arrow, the standard becomes effective in the first quarter of 2018, however, early adoption is permitted as early as the third quarter of 2017. We do not expect that the adoption of this change in accounting for share-based payment awards will have a material impact on our financial position or the results of operations in periods subsequent to its adoption. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-For-Sale Securities | The following table is the schedule of Available-For-Sale Securities at September 30, 2017 , December 31, 2016 and September 30, 2016 : Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2017 Available-For-Sale Securities, at Amortized Cost $ 146,976 $ 11,875 $ 152,858 $ 2,500 $ 1,120 $ 315,329 Available-For-Sale Securities, at Fair Value 146,978 11,902 152,806 2,299 1,474 315,459 Gross Unrealized Gains 152 27 964 — 354 1,497 Gross Unrealized Losses 150 — 1,016 201 — 1,367 Available-For-Sale Securities, Pledged as Collateral 206,637 Maturities of Debt Securities, at Amortized Cost: Within One Year $ — $ 9,068 $ 3,649 $ 1,500 $ 14,217 From 1 - 5 Years 146,976 1,890 114,127 — 262,993 From 5 - 10 Years — 397 35,082 — 35,479 Over 10 Years — 520 — 1,000 1,520 Maturities of Debt Securities, at Fair Value: Within One Year $ — $ 9,076 $ 3,691 $ 1,499 $ 14,266 From 1 - 5 Years 146,978 1,910 114,202 — 263,090 From 5 - 10 Years — 396 34,913 — 35,309 Over 10 Years — 520 — 800 1,320 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 89,563 $ — $ 85,091 $ 500 $ — $ 175,154 12 Months or Longer — — — 1,800 — 1,800 Total $ 89,563 $ — $ 85,091 $ 2,300 $ — $ 176,954 Number of Securities in a Continuous Loss Position 23 — 31 3 — 57 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 150 $ — $ 1,016 $ — $ — $ 1,166 12 Months or Longer — — — 201 — 201 Total $ 150 $ — $ 1,016 $ 201 $ — $ 1,367 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ 64,711 US Treasury Obligations, 64,730 US Agency Obligations, 82,265 US Agency Obligations, 82,248 US Government Agency Securities, at Amortized Cost $ 503 US Government Agency Securities, at Fair Value 505 Government Sponsored Entity Securities, at Amortized Cost 152,355 Government Sponsored Entity 152,301 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities December 31, 2016 Available-For-Sale Securities, at Amortized Cost $ 147,110 $ 27,684 $ 168,189 $ 3,512 $ 1,120 $ 347,615 Available-For-Sale Securities, at Fair Value 147,377 27,690 167,239 3,308 1,382 346,996 Gross Unrealized Gains 304 24 986 — 262 1,576 Gross Unrealized Losses 37 18 1,936 204 — 2,195 Available-For-Sale Securities, Pledged as Collateral, at Fair Value 262,852 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 70,605 $ 12,165 $ 126,825 $ 500 $ — $ 210,095 12 Months or Longer — 7,377 — 2,809 — 10,186 Total $ 70,605 $ 19,542 $ 126,825 $ 3,309 $ — $ 220,281 Number of Securities in a Continuous Loss Position 19 84 40 4 — 147 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 37 $ 13 $ 1,936 $ 1 $ — $ 1,987 12 Months or Longer — 5 — 203 — 208 Total $ 37 $ 18 $ 1,936 $ 204 $ — $ 2,195 Disaggregated Details: US Treasury Obligations, at Amortized Cost $ 54,701 US Treasury Obligations, 54,706 US Agency Obligations, 92,409 US Agency Obligations, 92,671 US Government Agency Securities, at Amortized Cost $ 3,694 US Government Agency Securities, at Fair Value 3,724 Government Sponsored Entity Securities, at Amortized Cost 164,495 Government Sponsored Entity 163,515 Available-For-Sale Securities U.S. Government & Agency Obligations State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Mutual Funds and Equity Securities Total Available- For-Sale Securities September 30, 2016 Available-For-Sale Securities, at Amortized Cost $ 152,511 $ 31,562 $ 144,598 $ 4,500 $ 1,120 $ 334,291 Available-For-Sale Securities, at Fair Value 153,926 31,628 148,087 4,299 1,250 339,190 Gross Unrealized Gains 1,415 69 3,489 — 130 5,103 Gross Unrealized Losses — 3 — 201 — 204 Available-For-Sale Securities, Pledged as Collateral 277,832 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ — $ 9,237 $ — $ 1,022 $ — $ 10,259 12 Months or Longer — — — 1,800 — 1,800 Total $ — $ 9,237 $ — $ 2,822 $ — $ 12,059 Number of Securities in a Continuous Loss Position — 1 2 3 — 6 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ — $ 3 $ — $ 1 $ — $ 4 12 Months or Longer — — — 200 — 200 Total $ — $ 3 $ — $ 201 $ — $ 204 Disaggregated Details: US Agency Obligations, $ 152,511 US Agency Obligations, 153,926 US Government Agency Securities, at Amortized Cost $ 10,849 US Government Agency Securities, at Fair Value 11,003 Government Sponsored Entity Securities, at Amortized Cost 133,749 Government Sponsored Entity 137,084 |
Held-To-Maturity Securities | The following table is the schedule of Held-To-Maturity Securities at September 30, 2017 , December 31, 2016 and September 30, 2016 : Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2017 Held-To-Maturity Securities, at Amortized Cost $ 277,738 $ 63,788 $ — $ 341,526 Held-To-Maturity Securities, at Fair Value 279,384 64,515 — 343,899 Gross Unrealized Gains 2,977 738 — 3,715 Gross Unrealized Losses 1,331 11 — 1,342 Held-To-Maturity Securities, Pledged as Collateral 325,096 Maturities of Debt Securities, at Amortized Cost: Within One Year $ 39,609 $ — $ — $ 39,609 From 1 - 5 Years 79,412 54,504 — 133,916 From 5 - 10 Years 154,981 9,284 — 164,265 Over 10 Years 3,736 — — 3,736 Maturities of Debt Securities, at Fair Value: Within One Year $ 39,782 $ — $ — $ 39,782 From 1 - 5 Years 80,944 55,120 — 136,064 From 5 - 10 Years 154,892 9,395 — 164,287 Over 10 Years 3,766 — — 3,766 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 78,238 $ 3,544 $ — $ 81,782 12 Months or Longer 13,331 — — 13,331 Total $ 91,569 $ 3,544 $ — $ 95,113 Number of Securities in a Continuous Loss Position 252 7 — 259 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 1,034 $ 11 $ — $ 1,045 12 Months or Longer 297 — — 297 Total $ 1,331 $ 11 $ — $ 1,342 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 2,792 US Government Agency Securities, at Fair Value 2,799 Government Sponsored Entity Securities, at Amortized Cost 60,996 Government Sponsored Entity 61,716 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Total Held-To Maturity Securities December 31, 2016 Held-To-Maturity Securities, at Amortized Cost $ 268,892 $ 75,535 $ 1,000 $ 345,427 Held-To-Maturity Securities, at Fair Value 267,127 75,624 1,000 343,751 Gross Unrealized Gains 2,058 258 — 2,316 Gross Unrealized Losses 3,823 169 — 3,992 Held-To-Maturity Securities, Pledged as Collateral 321,202 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 107,255 $ 13,306 $ — $ 120,561 12 Months or Longer 12,363 — — 12,363 Total $ 119,618 $ 13,306 $ — $ 132,924 Number of Securities in a Continuous Loss Position 347 13 — 360 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 3,129 $ 169 $ — $ 3,298 12 Months or Longer 694 — — 694 Total $ 3,823 $ 169 $ — $ 3,992 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,206 US Government Agency Securities, at Fair Value 3,222 Government Sponsored Entity Securities, at Amortized Cost 72,329 Government Sponsored Entity 72,402 September 30, 2016 Held-To-Maturity Securities, at Amortized Cost $ 257,255 $ 79,983 $ 1,000 $ 338,238 Held-To-Maturity Securities, at Fair Value 263,897 82,544 1,000 347,441 Gross Unrealized Gains 6,712 2,561 — 9,273 Gross Unrealized Losses 70 — — 70 Held-To-Maturity Securities, Pledged as Collateral 320.774 Securities in a Continuous Loss Position, at Fair Value: Less than 12 Months $ 11,891 $ — $ — $ 11,891 12 Months or Longer 1,172 — — 1,172 Total $ 13,063 $ — $ — $ 13,063 Number of Securities in a Continuous Loss Position 3 — — 3 Unrealized Losses on Securities in a Continuous Loss Position: Less than 12 Months $ 68 $ — $ — $ 68 12 Months or Longer 2 — — 2 Total $ 70 $ — $ — $ 70 Held-To-Maturity Securities State and Municipal Obligations Mortgage- Backed Securities - Residential Corporate and Other Debt Securities Total Held-To Maturity Securities September 30, 2016 Disaggregated Details: US Government Agency Securities, at Amortized Cost $ 3,497 US Government Agency Securities, at Fair Value 3,622 Government Sponsored Entity Securities, at Amortized Cost 76,486 Government Sponsored Entity 78,922 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Past Due Financing Receivables | The following table presents loan balances outstanding as of September 30, 2017 , December 31, 2016 and September 30, 2016 and an analysis of the recorded investment in loans that are past due at these dates. Generally, Arrow considers an amortizing loan past due 30 or more days when the borrower is two payments past due. Loans held-for-sale of $1,323 , $483 and $1,414 as of September 30, 2017 , December 31, 2016 and September 30, 2016 , respectively, are included in the residential real estate balances for current loans. Commercial Commercial Real Estate Consumer Residential Total September 30, 2017 Loans Past Due 30-59 Days $ 122 $ 442 $ 4,781 $ 1,675 $ 7,020 Loans Past Due 60-89 Days — — 914 77 991 Loans Past Due 90 or more Days 102 807 291 1,742 2,942 Total Loans Past Due 224 1,249 5,986 3,494 10,953 Current Loans 125,136 439,467 586,043 747,200 1,897,846 Total Loans $ 125,360 $ 440,716 $ 592,029 $ 750,694 $ 1,908,799 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 41 $ 926 $ 967 Nonaccrual Loans 609 1,249 507 3,117 5,482 December 31, 2016 Loans Past Due 30-59 Days $ 112 $ 121 $ 5,593 $ 2,368 $ 8,194 Loans Past Due 60-89 Days 29 — 898 142 1,069 Loans Past Due 90 or more Days 148 — 513 1,975 2,636 Total Loans Past Due 289 121 7,004 4,485 11,899 Current Loans 104,866 431,525 530,357 674,621 1,741,369 Total Loans $ 105,155 $ 431,646 $ 537,361 $ 679,106 $ 1,753,268 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ 158 $ 1,043 $ 1,201 Nonaccrual Loans $ 155 $ 875 $ 589 $ 2,574 4,193 September 30, 2016 Loans Past Due 30-59 Days $ 38 $ — $ 3,793 $ 271 $ 4,102 Loans Past Due 60-89 Days 67 — 1,412 1,450 2,929 Loans Past Due 90 or more Days 160 1,106 343 1,467 3,076 Total Loans Past Due 265 1,106 5,548 3,188 10,107 Current Loans 102,789 427,905 518,155 648,260 1,697,109 Total Loans $ 103,054 $ 429,011 $ 523,703 $ 651,448 $ 1,707,216 Loans 90 or More Days Past Due and Still Accruing Interest $ — $ — $ — $ 548 $ 548 Nonaccrual Loans $ 160 $ 3,689 $ 532 $ 1,726 6,107 |
Allowance for Credit Losses on Financing Receivables | The following table presents a roll-forward of the allowance for loan losses and other information pertaining to the allowance for loan losses: Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Unallocated Total Roll-forward of the Allowance for Loan Losses for the Quarterly Periods: June 30, 2017 $ 925 $ 4,983 $ 7,305 $ 4,229 $ — $ 17,442 Charge-offs — (342 ) (280 ) — — (622 ) Recoveries 1 — 74 — — 75 Provision (46 ) 446 509 (109 ) — 800 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ — $ 17,695 June 30, 2016 $ 1,128 $ 5,816 $ 5,742 $ 4,026 $ 86 $ 16,798 Charge-offs (34 ) — (243 ) (90 ) — (367 ) Recoveries 5 — 59 — — 64 Provision (76 ) (75 ) 513 166 (48 ) 480 September 30, 2016 $ 1,023 $ 5,741 $ 6,071 $ 4,102 $ 38 $ 16,975 Allowance for Loan Losses Commercial Commercial Real Estate Consumer Residential Unallocated Total Roll-forward of the Allowance for Loan Losses for the Year-to-Date Periods: December 31, 2016 $ 1,017 $ 5,677 $ 6,120 $ 4,198 $ — $ 17,012 Charge-offs (2 ) (342 ) (847 ) (6 ) — (1,197 ) Recoveries 8 — 292 — — 300 Provision (143 ) (248 ) 2,043 (72 ) — 1,580 September 30, 2017 $ 880 $ 5,087 $ 7,608 $ 4,120 $ — $ 17,695 December 31, 2015 $ 1,827 $ 4,520 $ 5,554 $ 3,790 $ 347 $ 16,038 Charge-offs (86 ) — (591 ) (107 ) — (784 ) Recoveries 20 — 150 1 — 171 Provision (738 ) 1,221 958 418 (309 ) 1,550 September 30, 2016 $ 1,023 $ 5,741 $ 6,071 $ 4,102 $ 38 $ 16,975 September 30, 2017 Allowance for loan losses - Loans Individually Evaluated for Impairment $ 104 $ — $ — $ 34 $ — $ 138 Allowance for loan losses - Loans Collectively Evaluated for Impairment 776 5,087 7,608 4,086 — 17,557 Ending Loan Balance - Individually Evaluated for Impairment 489 1,543 104 1,139 — 3,275 Ending Loan Balance - Collectively Evaluated for Impairment $ 124,871 $ 439,172 $ 591,925 $ 749,556 $ — $ 1,905,524 December 31, 2016 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ — $ — $ — $ — $ — Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,017 5,677 6,120 4,198 — 17,012 Ending Loan Balance - Individually Evaluated for Impairment — 890 91 1,098 — 2,079 Ending Loan Balance - Collectively Evaluated for Impairment $ 105,155 $ 430,756 $ 537,270 $ 678,008 $ — $ 1,751,189 September 30, 2016 Allowance for loan losses - Loans Individually Evaluated for Impairment $ — $ 240 $ — $ — $ — $ 240 Allowance for loan losses - Loans Collectively Evaluated for Impairment 1,023 5,501 6,071 4,102 38 16,735 Ending Loan Balance - Individually Evaluated for Impairment — 3,538 90 317 — 3,945 Ending Loan Balance - Collectively Evaluated for Impairment $ 103,054 $ 425,473 $ 523,613 $ 651,131 $ — $ 1,703,271 |
Financing Receivable Credit Quality Indicators | The following table presents the credit quality indicators by loan category at September 30, 2017 , December 31, 2016 and September 30, 2016 : Loan Credit Quality Indicators Commercial Commercial Real Estate Consumer Residential Total September 30, 2017 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 120,622 $ 411,685 $ — $ — $ 532,307 Special Mention 1,394 1,401 — — 2,795 Substandard 3,344 26,822 — — 30,166 Doubtful — 807 — — 807 Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 591,499 $ 746,652 $ 1,338,151 Nonperforming — — 530 4,043 4,573 December 31, 2016 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 95,722 $ 396,907 $ — $ — $ 492,629 Special Mention 1,359 7,008 — — 8,367 Substandard 8,074 27,731 — — 35,805 Doubtful — — — — — Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 536,614 $ 675,489 $ 1,212,103 Nonperforming — — 747 3,617 4,364 September 30, 2016 Credit Risk Profile by Creditworthiness Category: Satisfactory $ 93,903 $ 392,697 $ — $ — $ 486,600 Special Mention 1,274 10,472 — — 11,746 Substandard 7,877 25,842 — — 33,719 Doubtful — — — — — Credit Risk Profile Based on Payment Activity: Performing $ — $ — $ 523,171 $ 649,093 $ 1,172,264 Nonperforming — — 532 2,355 2,887 |
Impaired Financing Receivables | The following table presents information on impaired loans based on whether the impaired loan has a recorded related allowance or has no recorded related allowance: Impaired Loans Commercial Commercial Real Estate Consumer Residential Total September 30, 2017 Recorded Investment: With No Related Allowance $ — $ 818 $ 104 $ 851 $ 1,773 With a Related Allowance 489 725 — 288 1,502 Unpaid Principal Balance: With No Related Allowance — 818 90 850 1,758 With a Related Allowance 489 723 — 288 1,500 December 31, 2016 Recorded Investment: With No Related Allowance $ — $ 890 $ 91 $ 1,098 $ 2,079 With a Related Allowance — — — — — Unpaid Principal Balance: With No Related Allowance — 890 91 1,098 2,079 With a Related Allowance — — — — — September 30, 2016 Recorded Investment: With No Related Allowance $ — $ 898 $ 90 $ 317 $ 1,305 With a Related Allowance — 2,640 — — 2,640 Unpaid Principal Balance: With No Related Allowance — 898 90 317 $ 1,305 With a Related Allowance — 2,640 — — 2,640 For the Quarter Ended: September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 998 $ 96 $ 827 $ 1,921 With a Related Allowance 496 363 — 288 1,147 Interest Income Recognized: With No Related Allowance — — 1 — 1 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2016 Average Recorded Balance: With No Related Allowance $ — $ 1,374 $ 92 $ 479 $ 1,945 With a Related Allowance — 2,166 — — 2,166 Interest Income Recognized: With No Related Allowance — 3 2 — 5 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — Impaired Loans Commercial Commercial Real Estate Consumer Residential Total For the Year-To-Date Period Ended: September 30, 2017 Average Recorded Balance: With No Related Allowance $ — $ 854 $ 98 $ 975 $ 1,927 With a Related Allowance 245 363 — 144 752 Interest Income Recognized: With No Related Allowance — — 3 — 3 With a Related Allowance — — — 4 4 Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — September 30, 2016 Average Recorded Balance: With No Related Allowance $ 78 $ 1,635 $ 102 $ 481 $ 2,296 With a Related Allowance — 1,320 — — 1,320 Interest Income Recognized: With No Related Allowance — 14 4 — 18 With a Related Allowance — — — — — Cash Basis Income: With No Related Allowance — — — — — With a Related Allowance — — — — — |
Troubled Debt Restructurings on Financing Receivables | The following table presents information on loans modified in trouble debt restructurings during the periods indicated. All loans were modified under Arrow's own programs. The principal modification, for all the modifications in the table below, involved payment deferrals. Loans Modified in Trouble Debt Restructurings During the Period Commercial Commercial Real Estate Consumer Residential Total For the Quarter Ended: September 30, 2017 Number of Loans 1 — 2 — 3 Pre-Modification Outstanding Recorded Investment $ 725 $ — $ 25 $ — $ 750 Post-Modification Outstanding Recorded Investment 725 — 25 — 750 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2016 Number of Loans — — 1 — 1 Pre-Modification Outstanding Recorded Investment $ — $ — $ 15 $ — $ 15 Post-Modification Outstanding Recorded Investment — — 15 — 15 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — For the Year-To-Date Period Ended: September 30, 2017 Number of Loans 2 — 6 — 8 Pre-Modification Outstanding Recorded Investment $ 1,228 $ — $ 51 $ — $ 1,279 Post-Modification Outstanding Recorded Investment 1,228 — 51 — 1,279 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — September 30, 2016 Number of Loans — — 2 — 2 Pre-Modification Outstanding Recorded Investment $ — $ — $ 23 $ — $ 23 Post-Modification Outstanding Recorded Investment — — 23 — 23 Subsequent Default, Number of Contracts — — — — — Subsequent Default, Recorded Investment — — — — — |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the balance for commitments to extend credit and standby letters of credit for the periods ended September 30, 2017 , December 31, 2016 and September 30, 2016 : Commitments to Extend Credit and Letters of Credit September 30, 2017 December 31, 2016 September 30, 2016 Notional Amount: Commitments to Extend Credit $ 316,449 $ 296,442 $ 300,439 Standby Letters of Credit 3,672 3,445 3,483 Fair Value: Commitments to Extend Credit $ — $ — $ — Standby Letters of Credit 18 30 31 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following table presents the components of other comprehensive income for the three-month period ended September 30, 2017 and 2016 : Schedule of Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, Tax Tax Before-Tax (Expense) Net-of-Tax Before-Tax (Expense) Net-of-Tax Amount Benefit Amount Amount Benefit Amount 2017 Net Unrealized Securities Holding (Losses) Gains Arising During the Period 6 $ 3 9 749 $ (284 ) 465 Reclassification Adjustment for Securities Gains Included in Net Income (10 ) 4 (6 ) (10 ) 4 (6 ) Amortization of Net Retirement Plan Actuarial Loss 179 (115 ) 64 537 (292 ) 245 Accretion of Net Retirement Plan Prior Service Credit (3 ) 1 (2 ) (8 ) 3 (5 ) Other Comprehensive Income (Loss) $ 172 $ (107 ) $ 65 $ 1,268 $ (569 ) $ 699 2016 Net Unrealized Securities Holding Gains (Losses) Arising During the Period (1,264 ) $ 454 (810 ) 3,868 $ (1,559 ) 2,309 Reclassification Adjustment for Securities Gains Included in Net Income — — — (144 ) 56 (88 ) Amortization of Net Retirement Plan Actuarial Loss 181 (70 ) 111 503 (189 ) 314 Accretion of Net Retirement Plan Prior Service Credit (3 ) 2 (1 ) (7 ) 2 (5 ) Other Comprehensive Income (Loss) $ (1,086 ) $ 386 $ (700 ) $ 4,220 $ (1,690 ) $ 2,530 |
Changes in Accumulated Other Comprehensive Income By Component | The following table presents the changes in accumulated other comprehensive income by component: Changes in Accumulated Other Comprehensive Income (Loss) by Component (1) Unrealized Defined Benefit Plan Items Gains and Losses on Net Prior Available-for- Net Gain Service Sale Securities (Loss) (Cost ) Credit Total For the Quarter-To-Date periods ended: June 30, 2017 $ 74 $ (5,556 ) $ (718 ) $ (6,200 ) Other comprehensive income or loss before reclassifications 9 — — 9 Amounts reclassified from accumulated other comprehensive income (6 ) 64 (2 ) 56 Net current-period other comprehensive income 3 64 (2 ) 65 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) June 30, 2016 $ 3,660 $ (7,690 ) $ (712 ) $ (4,742 ) Other comprehensive income or loss before reclassifications (810 ) — — (810 ) Amounts reclassified from accumulated other comprehensive income — 111 (1 ) 110 Net current-period other comprehensive income (810 ) 111 (1 ) (700 ) September 30, 2016 $ 2,850 $ (7,579 ) $ (713 ) $ (5,442 ) For the Year-To-Date periods ended: December 31, 2016 $ (382 ) $ (5,737 ) $ (715 ) $ (6,834 ) Other comprehensive income or loss before reclassifications 465 — — 465 Amounts reclassified from accumulated other comprehensive income (6 ) 245 (5 ) 234 Net current-period other comprehensive income 459 245 (5 ) 699 September 30, 2017 $ 77 $ (5,492 ) $ (720 ) $ (6,135 ) December 31, 2015 $ 629 $ (7,893 ) $ (708 ) $ (7,972 ) Other comprehensive income or loss before reclassifications 2,309 — — 2,309 Amounts reclassified from accumulated other comprehensive income (88 ) 314 (5 ) 221 Net current-period other comprehensive income 2,221 314 (5 ) 2,530 September 30, 2016 $ 2,850 $ (7,579 ) $ (713 ) $ (5,442 ) (1) All amounts are net of tax. Amounts in parentheses indicate debits. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income: Reclassifications Out of Accumulated Other Comprehensive Income (1) Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented For the Quarter-to-date periods ended: September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (2) Salaries and Employee Benefits Actuarial gains/(losses) (179 ) (2) Salaries and Employee Benefits (176 ) Total before Tax 114 Provision for Income Taxes $ (62 ) Net of Tax Total reclassifications for the period $ (56 ) Net of Tax September 30, 2016 Unrealized gains and losses on available-for-sale securities $ — Gain on Securities Transactions — Total before Tax — Provision for Income Taxes $ — Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 3 (2) Salaries and Employee Benefits Actuarial gains/(losses) (181 ) (2) Salaries and Employee Benefits (178 ) Total before Tax 68 Provision for Income Taxes $ (110 ) Net of Tax Total reclassifications for the period $ (110 ) Net of Tax For the Year-to-date periods ended: September 30, 2017 Unrealized gains and losses on available-for-sale securities $ 10 Gain on Securities Transactions 10 Total before Tax (4 ) Provision for Income Taxes $ 6 Net of Tax Amortization of defined benefit pension items: Prior-service costs $ 8 (2) Salaries and Employee Benefits Actuarial gains/(losses) (537 ) (2) Salaries and Employee Benefits (529 ) Total before Tax 289 Provision for Income Taxes $ (240 ) Net of Tax Total reclassifications for the period $ (234 ) Net of Tax Reclassifications Out of Accumulated Other Comprehensive Income (1) Amounts Reclassified Details about Accumulated Other from Accumulated Other Affected Line Item in the Statement Comprehensive Income (Loss) Components Comprehensive Income Where Net Income Is Presented September 30, 2016 Unrealized gains and losses on available-for-sale securities $ 144 Gain on Securities Transactions 144 Total before Tax (56 ) Provision for Income Taxes $ 88 Net of Tax Amortization of defined benefit pension items: Prior-service costs 7 (2) Salaries and Employee Benefits Actuarial gains/(losses) $ (503 ) (2) Salaries and Employee Benefits (496 ) Total before Tax 187 Provision for Income Taxes $ (309 ) Net of Tax Total reclassifications for the period $ (221 ) Net of Tax (1) Amounts in parentheses indicate debits to profit/loss. (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table presents a roll-forward of stock option plans and grants issued during 2017 : Schedule of Share-based Compensation Arrangements Stock Option Plans Roll-Forward of Shares Outstanding: Outstanding at January 1, 2017 366,329 Granted 55,621 Exercised (35,937 ) Forfeited — Outstanding at September 30, 2017 386,013 Exercisable at Period-End 242,706 Vested and Expected to Vest 143,307 Roll-Forward of Shares Outstanding - Weighted Average Exercise Price: Outstanding at January 1, 2017 $ 21.86 Granted 36.12 Exercised 20.46 Forfeited — Outstanding at September 30, 2017 24.05 Exercisable at Period-End 21.34 Vested and Expected to Vest 28.62 Grants Issued During 2017 - Weighted Average Information: Fair Value $ 6.25 Fair Value Assumptions: Dividend Yield 2.72 % Expected Volatility 21.40 % Risk Free Interest Rate 2.25 % Expected Lives (in years) 6.88 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents information on the amounts expensed for the periods ended September 30, 2017 and 2016 : Share-Based Compensation Expense For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Share-Based Compensation Expense $ 90 $ 71 $ 262 $ 215 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables provide the components of net periodic benefit costs for the three and nine- month periods ended September 30, 2017 and 2016 . Select Employees' Executive Postretirement Pension Retirement Benefit Plan Plan Plans Net Periodic Benefit Cost For the Three Months Ended September 30, 2017: Service Cost $ 350 $ 10 $ 37 Interest Cost 362 55 75 Expected Return on Plan Assets (800 ) — — Amortization of Prior Service (Credit) Cost (14 ) 14 (3 ) Amortization of Net Loss 148 31 — Net Periodic Benefit Cost $ 46 $ 110 $ 109 Plan Contributions During the Period $ — $ 116 $ 65 For the Three Months Ended September 30, 2016: Service Cost $ 376 $ 8 $ 63 Interest Cost 420 56 83 Expected Return on Plan Assets (828 ) — — Amortization of Prior Service (Credit) Cost (14 ) 14 (3 ) Amortization of Net Loss 140 28 — Net Periodic Benefit Cost $ 94 $ 106 $ 143 Plan Contributions During the Period $ — $ 131 $ 47 Net Periodic Benefit Cost For the Nine Months Ended September 30, 2017: Service Cost $ 1,050 $ 30 $ 110 Interest Cost 1,085 164 224 Expected Return on Plan Assets (2,399 ) — — Amortization of Prior Service Cost (Credit) (43 ) 43 (8 ) Amortization of Net Loss 443 94 — Net Periodic Benefit Cost $ 136 $ 331 $ 326 Plan Contributions During the Period $ — $ 345 $ 295 Estimated Future Contributions in the Current Fiscal Year $ — $ 115 $ 98 For the Nine Months Ended September 30, 2016: Service Cost $ 1,127 $ 24 $ 188 Interest Cost 1,262 163 178 Expected Return on Plan Assets (2,483 ) — — Amortization of Prior Service (Credit) Cost (42 ) 43 (8 ) Amortization of Net Loss 419 84 — Net Periodic Benefit Cost $ 283 $ 314 $ 358 Plan Contributions During the Period $ — $ 350 $ 197 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per common share ( “ EPS ” ) for periods ended September 30, 2017 and 2016 . All share and per share amounts have been adjusted for the September 28, 2017 3% stock dividend. Earnings Per Share Quarterly Period Ended: Year-to-Date Period Ended: September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Earnings Per Share - Basic: Net Income $ 7,416 $ 6,738 $ 21,255 $ 19,934 Weighted Average Shares - Basic 13,889 13,810 13,889 13,775 Earnings Per Share - Basic $ 0.53 $ 0.49 $ 1.53 $ 1.45 Earnings Per Share - Diluted: Net Income $ 7,416 $ 6,738 $ 21,255 $ 19,934 Weighted Average Shares - Basic 13,889 13,810 13,889 13,775 Dilutive Average Shares Attributable to Stock Options 77 91 92 67 Weighted Average Shares - Diluted 13,966 13,901 13,981 13,842 Earnings Per Share - Diluted $ 0.53 $ 0.48 $ 1.52 $ 1.44 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The table below presents the financial instrument's fair value and the amounts within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement: Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis Fair Value Measurements at Reporting Date Using: Fair Value Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Gains (Losses) Fair Value of Assets and Liabilities Measured on a Recurring Basis: September 30, 2017 Securities Available-for Sale: U.S. Government & Agency Obligations $ 146,978 $ 64,730 $ 82,248 $ — State and Municipal Obligations 11,902 — 11,902 — Mortgage-Backed Securities - Residential 152,806 — 152,806 — Corporate and Other Debt Securities 2,299 — 2,299 — Mutual Funds and Equity Securities 1,474 — 1,474 — Total Securities Available-for-Sale $ 315,459 $ 64,730 $ 250,729 $ — December 31, 2016 Securities Available-for Sale: U.S. Government & Agency Obligations $ 147,377 $ 54,706 $ 92,671 $ — State and Municipal Obligations 27,690 — 27,690 — Mortgage-Backed Securities - Residential 167,239 — 167,239 — Corporate and Other Debt Securities 3,308 — 3,308 — Mutual Funds and Equity Securities 1,382 — 1,382 — Total Securities Available-for Sale $ 346,996 $ 54,706 $ 292,290 $ — September 30, 2016 Securities Available-for Sale: U.S. Government & Agency Obligations $ 153,926 $ — $ 153,926 $ — State and Municipal Obligations 31,628 — 31,628 — Mortgage-Backed Securities - Residential 148,087 — 148,087 — Corporate and Other Debt Securities 4,299 — 4,299 — Mutual Funds and Equity Securities 1,250 — 1,250 — Total Securities Available-for Sale $ 339,190 $ — $ 339,190 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis: September 30, 2017 Collateral Dependent Impaired Loans $ 1,502 $ — $ — $ 1,502 $ (138 ) Other Real Estate Owned and Repossessed Assets, Net 1,713 — — 1,713 (655 ) December 31, 2016 Collateral Dependent Impaired Loans $ — $ — $ — $ — $ — Other Real Estate Owned and Repossessed Assets, Net $ 1,686 $ — — 1,686 $ (587 ) September 30, 2016 Collateral Dependent Impaired Loans $ 2,640 $ — $ — $ 2,640 $ (240 ) Other Real Estate Owned and Repossessed Assets, Net 1,016 — — 1,016 (319 ) |
Fair Value, by Balance Sheet Grouping | The following table presents a summary of the carrying amount, the fair value or an amount approximating fair value and the fair value hierarchy of Arrow’s financial instruments: Schedule of Fair Values by Balance Sheet Grouping Fair Value Hierarchy Carrying Amount Fair Value Level 1 Level 2 Level 3 September 30, 2017 Cash and Cash Equivalents $ 80,666 $ 80,666 $ 80,666 $ — $ — Securities Available-for-Sale 315,459 315,459 64,730 250,729 — Securities Held-to-Maturity 341,526 343,899 — 343,899 — Federal Home Loan Bank and Federal Reserve Bank Stock 6,704 6,704 — 6,704 — Net Loans 1,891,104 1,870,379 — — 1,870,379 Accrued Interest Receivable 7,692 7,692 — 7,692 — Deposits 2,307,116 2,299,011 — 2,299,011 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 61,419 61,419 — 61,419 — Federal Home Loan Bank Overnight Advances 33,000 33,000 — 33,000 — Federal Home Loan Bank Term Advances 55,000 55,110 — 55,110 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 260 260 — 260 — December 31, 2016 Cash and Cash Equivalents $ 57,355 $ 57,355 $ 57,355 $ — $ — Securities Available-for-Sale 346,996 346,996 54,706 292,290 — Securities Held-to-Maturity 345,427 343,751 — 343,751 — Federal Home Loan Bank and Federal Reserve Bank Stock 10,912 10,912 — 10,912 — Net Loans 1,736,256 1,720,078 — — 1,720,078 Accrued Interest Receivable 6,684 6,684 — 6,684 — Deposits 2,116,546 2,109,557 — 2,109,557 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 35,836 35,836 — 35,836 — Federal Home Loan Bank Overnight Advances 123,000 123,000 — 123,000 — Federal Home Loan Bank Term Advances 55,000 55,118 — 55,118 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 247 247 — 247 — September 30, 2016 Cash and Cash Equivalents $ 102,059 $ 102,059 $ 102,059 $ — $ — Securities Available-for-Sale 339,190 339,190 — 339,190 — Securities Held-to-Maturity 338,238 347,441 — 347,441 — Federal Home Loan Bank and Federal Reserve Bank Stock 5,371 5,371 — 5,371 — Net Loans 1,690,241 1,696,929 — — 1,696,929 Accrued Interest Receivable 7,046 7,046 — 7,046 — Deposits 2,213,187 2,207,985 — 2,207,985 — Federal Funds Purchased and Securities Sold Under Agreements to Repurchase 38,589 38,589 — 38,589 — Federal Home Loan Bank Overnight Advances — — — — — Federal Home Loan Bank Term Advances 55,000 55,955 — 55,955 — Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts 20,000 20,000 — 20,000 — Accrued Interest Payable 247 247 — 247 — |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, at amortized cost | $ 315,329 | $ 347,615 | $ 334,291 |
Operating leases (less than) | 2,600 | ||
Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, at amortized cost | 1,120 | $ 1,120 | $ 1,120 |
Accounting Standards Update 2016-09 | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Effect of change on net income | $ 112 | ||
Effect of change on earnings per share (less than) (in usd per share) | $ 0.01 | ||
Fair Value, Measurements, Recurring | Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, at amortized cost | $ 1,500 |
Investment Securities Available
Investment Securities Available for Sale (Details) $ in Thousands | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | $ 315,329 | $ 347,615 | $ 334,291 |
Available-for-Sale | 315,459 | 346,996 | 339,190 |
Gross Unrealized Gains | 1,497 | 1,576 | 5,103 |
Gross Unrealized Losses | 1,367 | 2,195 | 204 |
Available-For-Sale Securities, Pledged as Collateral | 206,637 | 262,852 | 277,832 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 14,217 | ||
From 1 - 5 Years | 262,993 | ||
From 5 - 10 Years | 35,479 | ||
Over 10 Years | 1,520 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 14,266 | ||
From 1 - 5 Years | 263,090 | ||
From 5 - 10 Years | 35,309 | ||
Over 10 Years | 1,320 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 175,154 | 210,095 | 10,259 |
12 Months or Longer | 1,800 | 10,186 | 1,800 |
Total | $ 176,954 | $ 220,281 | $ 12,059 |
Number of Securities in a Continuous Loss Position | 57 | 147 | 6 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,166 | $ 1,987 | $ 4 |
12 Months or Longer | 201 | 208 | 200 |
Total | 1,367 | 2,195 | 204 |
U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 146,976 | 147,110 | 152,511 |
Available-for-Sale | 146,978 | 147,377 | 153,926 |
Gross Unrealized Gains | 152 | 304 | 1,415 |
Gross Unrealized Losses | 150 | 37 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 146,976 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 146,978 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 89,563 | 70,605 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 89,563 | $ 70,605 | $ 0 |
Number of Securities in a Continuous Loss Position | 23 | 19 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 150 | $ 37 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 150 | 37 | 0 |
State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 11,875 | 27,684 | 31,562 |
Available-for-Sale | 11,902 | 27,690 | 31,628 |
Gross Unrealized Gains | 27 | 24 | 69 |
Gross Unrealized Losses | 0 | 18 | 3 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 9,068 | ||
From 1 - 5 Years | 1,890 | ||
From 5 - 10 Years | 397 | ||
Over 10 Years | 520 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 9,076 | ||
From 1 - 5 Years | 1,910 | ||
From 5 - 10 Years | 396 | ||
Over 10 Years | 520 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 12,165 | 9,237 |
12 Months or Longer | 0 | 7,377 | 0 |
Total | $ 0 | $ 19,542 | $ 9,237 |
Number of Securities in a Continuous Loss Position | 0 | 84 | 1 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 13 | $ 3 |
12 Months or Longer | 0 | 5 | 0 |
Total | 0 | 18 | 3 |
Mortgage-Backed Securities - Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 152,858 | 168,189 | 144,598 |
Available-for-Sale | 152,806 | 167,239 | 148,087 |
Gross Unrealized Gains | 964 | 986 | 3,489 |
Gross Unrealized Losses | 1,016 | 1,936 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 3,649 | ||
From 1 - 5 Years | 114,127 | ||
From 5 - 10 Years | 35,082 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 3,691 | ||
From 1 - 5 Years | 114,202 | ||
From 5 - 10 Years | 34,913 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 85,091 | 126,825 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 85,091 | $ 126,825 | $ 0 |
Number of Securities in a Continuous Loss Position | 31 | 40 | 2 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,016 | $ 1,936 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 1,016 | 1,936 | 0 |
Corporate and Other Debt Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 2,500 | 3,512 | 4,500 |
Available-for-Sale | 2,299 | 3,308 | 4,299 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 201 | 204 | 201 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 1,500 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 1,000 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 1,499 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 800 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 500 | 500 | 1,022 |
12 Months or Longer | 1,800 | 2,809 | 1,800 |
Total | $ 2,300 | $ 3,309 | $ 2,822 |
Number of Securities in a Continuous Loss Position | 3 | 4 | 3 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 1 | $ 1 |
12 Months or Longer | 201 | 203 | 200 |
Total | 201 | 204 | 201 |
Mutual Funds and Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 1,120 | 1,120 | 1,120 |
Available-for-Sale | 1,474 | 1,382 | 1,250 |
Gross Unrealized Gains | 354 | 262 | 130 |
Gross Unrealized Losses | 0 | 0 | 0 |
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | 0 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale | 315,459 | 346,996 | 339,190 |
Fair Value, Measurements, Recurring | U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale | 146,978 | 147,377 | 153,926 |
Fair Value, Measurements, Recurring | State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale | 11,902 | 27,690 | 31,628 |
Fair Value, Measurements, Recurring | Corporate and Other Debt Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale | 2,299 | 3,308 | 4,299 |
Fair Value, Measurements, Recurring | Mutual Funds and Equity Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 1,500 | ||
Available-for-Sale | 1,474 | 1,382 | 1,250 |
US Treasury Securities | U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 64,711 | 54,701 | |
Available-for-Sale | 64,730 | 54,706 | |
Agency Securities | U.S. Agency Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 82,265 | 92,409 | 152,511 |
Available-for-Sale | 82,248 | 92,671 | 153,926 |
Agency Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | 503 | 3,694 | 10,849 |
Available-for-Sale | 505 | 3,724 | 11,003 |
US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale | 152,301 | 163,515 | 137,084 |
US Government-sponsored Enterprises Debt Securities | Mortgage-Backed Securities - Residential | US Government-sponsored Enterprises Debt Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-For-Sale Securities, at Amortized Cost | $ 152,355 | $ 164,495 | $ 133,749 |
Investment Securities Held to M
Investment Securities Held to Maturity (Details) $ in Thousands | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | $ 341,526 | $ 345,427 | $ 338,238 |
Held-To-Maturity Securities, at Fair Value | 343,899 | 343,751 | 347,441 |
Gross Unrealized Gains | 3,715 | 2,316 | 9,273 |
Gross Unrealized Losses | 1,342 | 3,992 | 70 |
Held-To-Maturity Securities, Pledged as Collateral | 325,096 | 321,202 | 321 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 39,609 | ||
From 1 - 5 Years | 133,916 | ||
From 5 - 10 Years | 164,265 | ||
Over 10 Years | 3,736 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 39,782 | ||
From 1 - 5 Years | 136,064 | ||
From 5 - 10 Years | 164,287 | ||
Over 10 Years | 3,766 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 81,782 | 120,561 | 11,891 |
12 Months or Longer | 13,331 | 12,363 | 1,172 |
Total | $ 95,113 | $ 132,924 | $ 13,063 |
Number of Securities in a Continuous Loss Position | 259 | 360 | 3 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,045 | $ 3,298 | $ 68 |
12 Months or Longer | 297 | 694 | 2 |
Total | 1,342 | 3,992 | 70 |
State and Municipal Obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 277,738 | 268,892 | 257,255 |
Held-To-Maturity Securities, at Fair Value | 279,384 | 267,127 | 263,897 |
Gross Unrealized Gains | 2,977 | 2,058 | 6,712 |
Gross Unrealized Losses | 1,331 | 3,823 | 70 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 39,609 | ||
From 1 - 5 Years | 79,412 | ||
From 5 - 10 Years | 154,981 | ||
Over 10 Years | 3,736 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 39,782 | ||
From 1 - 5 Years | 80,944 | ||
From 5 - 10 Years | 154,892 | ||
Over 10 Years | 3,766 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 78,238 | 107,255 | 11,891 |
12 Months or Longer | 13,331 | 12,363 | 1,172 |
Total | $ 91,569 | $ 119,618 | $ 13,063 |
Number of Securities in a Continuous Loss Position | 252 | 347 | 3 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 1,034 | $ 3,129 | $ 68 |
12 Months or Longer | 297 | 694 | 2 |
Total | 1,331 | 3,823 | 70 |
Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 63,788 | 75,535 | 79,983 |
Held-To-Maturity Securities, at Fair Value | 64,515 | 75,624 | 82,544 |
Gross Unrealized Gains | 738 | 258 | 2,561 |
Gross Unrealized Losses | 11 | 169 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 54,504 | ||
From 5 - 10 Years | 9,284 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 55,120 | ||
From 5 - 10 Years | 9,395 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 3,544 | 13,306 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 3,544 | $ 13,306 | $ 0 |
Number of Securities in a Continuous Loss Position | 7 | 13 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 11 | $ 169 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 11 | 169 | 0 |
Mortgage-Backed Securities - Residential | Agency Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 2,792 | 3,206 | 3,497 |
Mortgage-Backed Securities - Residential | US Government-sponsored Enterprises Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 60,996 | 72,329 | 76,486 |
Corporate and Other Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-Maturity at Amortized Cost | 0 | 1,000 | 1,000 |
Held-To-Maturity Securities, at Fair Value | 0 | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 | 0 |
Gross Unrealized Losses | 0 | 0 | 0 |
Maturities of Debt Securities, at Amortized Cost: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Maturities of Debt Securities, at Fair Value: | |||
Within One Year | 0 | ||
From 1 - 5 Years | 0 | ||
From 5 - 10 Years | 0 | ||
Over 10 Years | 0 | ||
Securities in a Continuous Loss Position, at Fair Value: | |||
Less than 12 Months | 0 | 0 | 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Number of Securities in a Continuous Loss Position | 0 | 0 | 0 |
Unrealized Losses on Securities in a Continuous Loss Position: | |||
Less than 12 Months | $ 0 | $ 0 | $ 0 |
12 Months or Longer | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage-Backed Securities - Residential | US Government-sponsored Enterprises Debt Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | 61,716 | 72,402 | 78,922 |
Fair Value, Measurements, Recurring | Agency Securities | Mortgage-Backed Securities - Residential | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-To-Maturity Securities, at Fair Value | $ 2,799 | $ 3,222 | $ 3,622 |
Loans Supplemental Loan Informa
Loans Supplemental Loan Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Loans and Leases Receivable, Other Information [Abstract] | |||
Loans Held-for-sale | $ 1,323 | $ 483 | $ 1,414 |
Credit Card Receivable | Consumer Portfolio Segment | Minimum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 1 year | ||
Credit Card Receivable | Consumer Portfolio Segment | Maximum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 5 years | ||
Automobile Loan | Consumer Portfolio Segment | Minimum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 3 years | ||
Automobile Loan | Consumer Portfolio Segment | Maximum | |||
Schedule of Financing Receivable Terms [Line Items] | |||
Principal Repayment Terms, Period | 7 years |
Loans Loan Categories and Past
Loans Loan Categories and Past Due Loans(Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | $ 10,953 | $ 11,899 | $ 10,107 |
Current Loans | 1,897,846 | 1,741,369 | 1,697,109 |
Total Loans | 1,908,799 | 1,753,268 | 1,707,216 |
Loans 90 or More Days Past Due and Still Accruing Interest | 967 | 1,201 | 548 |
Nonaccrual Loans | 5,482 | 4,193 | 6,107 |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 7,020 | 8,194 | 4,102 |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 991 | 1,069 | 2,929 |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 2,942 | 2,636 | 3,076 |
Commercial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 224 | 289 | 265 |
Current Loans | 125,136 | 104,866 | 102,789 |
Total Loans | 125,360 | 105,155 | 103,054 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 609 | 155 | 160 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 122 | 112 | 38 |
Commercial | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 29 | 67 |
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 102 | 148 | 160 |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 1,249 | 121 | 1,106 |
Current Loans | 439,467 | 431,525 | 427,905 |
Total Loans | 440,716 | 431,646 | 429,011 |
Loans 90 or More Days Past Due and Still Accruing Interest | 0 | 0 | 0 |
Nonaccrual Loans | 1,249 | 875 | 3,689 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 442 | 121 | 0 |
Commercial Real Estate Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 807 | 0 | 1,106 |
Consumer Loans Financing | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 5,986 | 7,004 | 5,548 |
Current Loans | 586,043 | 530,357 | 518,155 |
Total Loans | 592,029 | 537,361 | 523,703 |
Loans 90 or More Days Past Due and Still Accruing Interest | 41 | 158 | 0 |
Nonaccrual Loans | 507 | 589 | 532 |
Consumer Loans Financing | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 4,781 | 5,593 | 3,793 |
Consumer Loans Financing | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 914 | 898 | 1,412 |
Consumer Loans Financing | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 291 | 513 | 343 |
Residential | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 3,494 | 4,485 | 3,188 |
Current Loans | 747,200 | 674,621 | 648,260 |
Total Loans | 750,694 | 679,106 | 651,448 |
Loans 90 or More Days Past Due and Still Accruing Interest | 926 | 1,043 | 548 |
Nonaccrual Loans | 3,117 | 2,574 | 1,726 |
Residential | Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 1,675 | 2,368 | 271 |
Residential | Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | 77 | 142 | 1,450 |
Residential | Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Financing Receivable, Recorded Investment, Past Due | $ 1,742 | $ 1,975 | $ 1,467 |
Loans Allowance for Loan Losses
Loans Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | $ 17,442 | $ 16,798 | $ 17,012 | $ 16,038 | |
Charge-offs | (622) | (367) | (1,197) | (784) | |
Recoveries | 75 | 64 | 300 | 171 | |
Provision | 800 | 480 | 1,580 | 1,550 | |
Allowance for Loan Losses, Ending Balance | 17,695 | 16,975 | 17,695 | 16,975 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 138 | 240 | 138 | 240 | $ 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 17,557 | 16,735 | 17,557 | 16,735 | 17,012 |
Ending Loan Balance - Individually Evaluated for Impairment | 3,275 | 3,945 | 3,275 | 3,945 | 2,079 |
Ending Loan Balance - Collectively Evaluated for Impairment | 1,905,524 | 1,703,271 | 1,905,524 | 1,703,271 | 1,751,189 |
Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 925 | 1,128 | 1,017 | 1,827 | |
Charge-offs | 0 | (34) | (2) | (86) | |
Recoveries | 1 | 5 | 8 | 20 | |
Provision | (46) | (76) | (143) | (738) | |
Allowance for Loan Losses, Ending Balance | 880 | 1,023 | 880 | 1,023 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 104 | 0 | 104 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 776 | 1,023 | 776 | 1,023 | 1,017 |
Ending Loan Balance - Individually Evaluated for Impairment | 489 | 0 | 489 | 0 | 0 |
Ending Loan Balance - Collectively Evaluated for Impairment | 124,871 | 103,054 | 124,871 | 103,054 | 105,155 |
Commercial Real Estate Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 4,983 | 5,816 | 5,677 | 4,520 | |
Charge-offs | (342) | 0 | (342) | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 446 | (75) | (248) | 1,221 | |
Allowance for Loan Losses, Ending Balance | 5,087 | 5,741 | 5,087 | 5,741 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 240 | 0 | 240 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 5,087 | 5,501 | 5,087 | 5,501 | 5,677 |
Ending Loan Balance - Individually Evaluated for Impairment | 1,543 | 3,538 | 1,543 | 3,538 | 890 |
Ending Loan Balance - Collectively Evaluated for Impairment | 439,172 | 425,473 | 439,172 | 425,473 | 430,756 |
Consumer Loans Financing | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 7,305 | 5,742 | 6,120 | 5,554 | |
Charge-offs | (280) | (243) | (847) | (591) | |
Recoveries | 74 | 59 | 292 | 150 | |
Provision | 509 | 513 | 2,043 | 958 | |
Allowance for Loan Losses, Ending Balance | 7,608 | 6,071 | 7,608 | 6,071 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 7,608 | 6,071 | 7,608 | 6,071 | 6,120 |
Ending Loan Balance - Individually Evaluated for Impairment | 104 | 90 | 104 | 90 | 91 |
Ending Loan Balance - Collectively Evaluated for Impairment | 591,925 | 523,613 | 591,925 | 523,613 | 537,270 |
Residential | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 4,229 | 4,026 | 4,198 | 3,790 | |
Charge-offs | 0 | (90) | (6) | (107) | |
Recoveries | 0 | 0 | 0 | 1 | |
Provision | (109) | 166 | (72) | 418 | |
Allowance for Loan Losses, Ending Balance | 4,120 | 4,102 | 4,120 | 4,102 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 34 | 0 | 34 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 4,086 | 4,102 | 4,086 | 4,102 | 4,198 |
Ending Loan Balance - Individually Evaluated for Impairment | 1,139 | 317 | 1,139 | 317 | 1,098 |
Ending Loan Balance - Collectively Evaluated for Impairment | 749,556 | 651,131 | 749,556 | 651,131 | 678,008 |
Unallocated | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Allowance for Loan Losses, Beginning Balance | 0 | 86 | 0 | 347 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 0 | (48) | 0 | (309) | |
Allowance for Loan Losses, Ending Balance | 0 | 38 | 0 | 38 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Allowance for loan losses - Loans Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses - Loans Collectively Evaluated for Impairment | 0 | 38 | 0 | 38 | 0 |
Ending Loan Balance - Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 |
Ending Loan Balance - Collectively Evaluated for Impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Credit Quality Indicators
Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | $ 532,307 | $ 492,629 | $ 486,600 |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 2,795 | 8,367 | 11,746 |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 30,166 | 35,805 | 33,719 |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 807 | 0 | 0 |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 1,338,151 | 1,212,103 | 1,172,264 |
Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 4,573 | 4,364 | 2,887 |
Commercial | Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 120,622 | 95,722 | 93,903 |
Commercial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 1,394 | 1,359 | 1,274 |
Commercial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 3,344 | 8,074 | 7,877 |
Commercial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Satisfactory | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 411,685 | 396,907 | 392,697 |
Commercial Real Estate Portfolio Segment | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 1,401 | 7,008 | 10,472 |
Commercial Real Estate Portfolio Segment | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 26,822 | 27,731 | 25,842 |
Commercial Real Estate Portfolio Segment | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 807 | 0 | 0 |
Consumer Loans Financing | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 591,499 | 536,614 | 523,171 |
Consumer Loans Financing | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 530 | 747 | 532 |
Residential | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | 746,652 | 675,489 | 649,093 |
Residential | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Net | $ 4,043 | $ 3,617 | $ 2,355 |
Loans Impaired Loans (Details)
Loans Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Recorded Investment: | |||||
With No Related Allowance | $ 1,773 | $ 1,305 | $ 1,773 | $ 1,305 | $ 2,079 |
With a Related Allowance | 2,640 | 2,640 | 0 | ||
Unpaid Principal Balance: | |||||
With No Related Allowance | 1,758 | 1,305 | 1,758 | 1,305 | 2,079 |
With a Related Allowance | 1,500 | 2,640 | 1,500 | 2,640 | 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 1,921 | 1,945 | 1,927 | 2,296 | |
With a Related Allowance | 1,147 | 2,166 | 752 | 1,320 | |
Interest Income Recognized: | |||||
With No Related Allowance | 1 | 5 | 3 | 18 | |
With a Related Allowance | 0 | 0 | 4 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Commercial | |||||
Recorded Investment: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | 0 |
With a Related Allowance | 489 | 0 | 489 | 0 | 0 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | 0 |
With a Related Allowance | 489 | 0 | 489 | 0 | 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 0 | 0 | 0 | 78 | |
With a Related Allowance | 496 | 0 | 245 | 0 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Commercial Real Estate Portfolio Segment | |||||
Recorded Investment: | |||||
With No Related Allowance | 818 | 898 | 818 | 898 | 890 |
With a Related Allowance | 725 | 2,640 | 725 | 2,640 | 0 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 818 | 898 | 818 | 898 | 890 |
With a Related Allowance | 723 | 2,640 | 723 | 2,640 | 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 998 | 1,374 | 854 | 1,635 | |
With a Related Allowance | 363 | 2,166 | 363 | 1,320 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 3 | 0 | 14 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment | |||||
Recorded Investment: | |||||
With No Related Allowance | 104 | 90 | 104 | 90 | 91 |
With a Related Allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 90 | 90 | 90 | 90 | 91 |
With a Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 96 | 92 | 98 | 102 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Interest Income Recognized: | |||||
With No Related Allowance | 1 | 2 | 3 | 4 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 0 | 0 | |
Residential | |||||
Recorded Investment: | |||||
With No Related Allowance | 851 | 317 | 851 | 317 | 1,098 |
With a Related Allowance | 288 | 0 | 288 | 0 | 0 |
Unpaid Principal Balance: | |||||
With No Related Allowance | 850 | 317 | 850 | 317 | 1,098 |
With a Related Allowance | 288 | 0 | 288 | 0 | $ 0 |
Average Recorded Balance: | |||||
With No Related Allowance | 827 | 479 | 975 | 481 | |
With a Related Allowance | 288 | 0 | 144 | 0 | |
Interest Income Recognized: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | 0 | 0 | 4 | 0 | |
Cash Basis Income: | |||||
With No Related Allowance | 0 | 0 | 0 | 0 | |
With a Related Allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Loans Modified in Trouble
Loans Loans Modified in Trouble Debt Restructurings (Details) - Entity Loan Modification Program - Payment Deferral $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 3 | 1 | 8 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 750 | $ 15 | $ 1,279 | $ 23 |
Post-Modification Outstanding Recorded Investment | $ 750 | $ 15 | $ 1,279 | $ 23 |
Financing Receivable, Modification, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Financing Receivable, Modification, Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 1 | 0 | 2 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 725 | $ 0 | $ 1,228 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 725 | $ 0 | $ 1,228 | $ 0 |
Financing Receivable, Modification, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Financing Receivable, Modification, Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Financing Receivable, Modification, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Financing Receivable, Modification, Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer Loans Financing | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 2 | 1 | 6 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 25 | $ 15 | $ 51 | $ 23 |
Post-Modification Outstanding Recorded Investment | $ 25 | $ 15 | $ 51 | $ 23 |
Financing Receivable, Modification, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Financing Receivable, Modification, Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Financing Receivable, Modification, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 |
Financing Receivable, Modification, Subsequent Default, Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Commitments to Extend Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | $ 316,449 | $ 296,442 | $ 300,439 |
Fair Value | 0 | 0 | 0 |
Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Notional Amount | 3,672 | 3,445 | 3,483 |
Fair Value | $ 18 | $ 30 | $ 31 |
Minimum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loans And Leases Receivable, Loan Commitments, Fixed Fees, Percent | 1.00% | ||
Maximum | Standby Letters of Credit | |||
Loan Commitments and Letters of Credit [Line Items] | |||
Loans And Leases Receivable, Loan Commitments, Fixed Fees, Percent | 3.00% |
Comprehensive Income Other Comp
Comprehensive Income Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||||||
Schedule of Comprehensive Income [Line Items] | |||||||||
Net Unrealized Securities Holding Gains Arising During the Period | $ 9 | [1] | $ (810) | [1] | $ 465 | $ 2,309 | [1] | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 6 | [1] | 0 | [1] | 6 | [2] | 88 | [1] | |
Amortization of Net Retirement Plan Actuarial Loss | (64) | [1] | (111) | [1] | (245) | (314) | [1] | ||
Accretion of Net Retirement Plan Prior Service Credit | 2 | [1] | 1 | [1] | 5 | 5 | [1] | ||
Other Comprehensive Income, before Tax | 172 | (1,086) | 1,268 | 4,220 | |||||
Other Comprehensive Income, Tax | (107) | 386 | (569) | (1,690) | |||||
Other Comprehensive Income | [2] | 65 | (700) | 699 | 2,530 | ||||
Unrealized Gains and Losses on Available for Sale Securities | |||||||||
Schedule of Comprehensive Income [Line Items] | |||||||||
Other Comprehensive Income Gain (Loss) Before Reclassifications Before Tax | 6 | (1,264) | 749 | 3,868 | |||||
Other Comprehensive Income Gain (Loss) Before Reclassifications Tax (Expense) Benefit | 3 | 454 | (284) | (1,559) | |||||
Net Unrealized Securities Holding Gains Arising During the Period | 9 | (810) | 465 | 2,309 | |||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | (10) | 0 | (10) | (144) | |||||
Reclassification From Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | 4 | 0 | 4 | 56 | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (6) | 0 | (6) | (88) | |||||
Other Comprehensive Income | 3 | (810) | 459 | 2,221 | |||||
Amortization of Net Retirement Plan Actuarial Loss | |||||||||
Schedule of Comprehensive Income [Line Items] | |||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 179 | 181 | 537 | 503 | |||||
Reclassification From Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | (115) | (70) | (292) | (189) | |||||
Amortization of Net Retirement Plan Actuarial Loss | 64 | 111 | 245 | 314 | |||||
Other Comprehensive Income | 64 | 111 | 245 | 314 | |||||
Accretion of Net Retirement Plan Prior Service Credit | |||||||||
Schedule of Comprehensive Income [Line Items] | |||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | (3) | (3) | (8) | (7) | |||||
Reclassification From Accumulated Other Comprehensive Income Current Period Tax (Expense) Benefit | 1 | 2 | 3 | 2 | |||||
Accretion of Net Retirement Plan Prior Service Credit | (2) | (1) | (5) | (5) | |||||
Other Comprehensive Income | $ (2) | $ (1) | $ (5) | $ (5) | |||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Comprehensive Income Changes in
Comprehensive Income Changes in Accumulated Other Comprehensive Income By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Net current-period other comprehensive income | [1] | $ 65 | $ (700) | $ 699 | $ 2,530 |
Unrealized Gains and Losses on Available for Sale Securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Stockholders' Equity, Period Start | 74 | 3,660 | (382) | 629 | |
Other comprehensive income or loss before reclassifications | 9 | (810) | 465 | 2,309 | |
Amounts reclassified from accumulated other comprehensive income | (6) | 0 | (6) | (88) | |
Net current-period other comprehensive income | 3 | (810) | 459 | 2,221 | |
Stockholders' Equity, Period End | 77 | 2,850 | 77 | 2,850 | |
Amortization of Net Retirement Plan Actuarial Loss | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Stockholders' Equity, Period Start | (5,556) | (7,690) | (5,737) | (7,893) | |
Other comprehensive income or loss before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | 64 | 111 | 245 | 314 | |
Net current-period other comprehensive income | 64 | 111 | 245 | 314 | |
Stockholders' Equity, Period End | (5,492) | (7,579) | (5,492) | (7,579) | |
Accretion of Net Retirement Plan Prior Service Credit | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Stockholders' Equity, Period Start | (718) | (712) | (715) | (708) | |
Other comprehensive income or loss before reclassifications | 0 | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | (2) | (1) | (5) | (5) | |
Net current-period other comprehensive income | (2) | (1) | (5) | (5) | |
Stockholders' Equity, Period End | (720) | (713) | (720) | (713) | |
AOCI Including Portion Attributable to Noncontrolling Interest | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Stockholders' Equity, Period Start | (6,200) | (4,742) | (6,834) | (7,972) | |
Other comprehensive income or loss before reclassifications | 9 | (810) | 465 | 2,309 | |
Amounts reclassified from accumulated other comprehensive income | 56 | 110 | 234 | 221 | |
Net current-period other comprehensive income | 65 | (700) | 699 | 2,530 | |
Stockholders' Equity, Period End | $ (6,135) | $ (5,442) | $ (6,135) | $ (5,442) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amortization of Net Retirement Plan Actuarial Loss | $ 64 | [1] | $ 111 | [1] | $ 245 | $ 314 | [1] | |
Income before provision for income taxes | 10,443 | 9,429 | 29,990 | 28,490 | ||||
Provision for Income Taxes | 3,027 | 2,691 | 8,735 | 8,556 | ||||
Net Income | (56) | (110) | (234) | (221) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available for Sale Securities | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Gain on Securities Transactions | 10 | 0 | 10 | 144 | ||||
Income before provision for income taxes | 10 | 0 | 10 | 144 | ||||
Provision for Income Taxes | (4) | 0 | (4) | (56) | ||||
Net Income | 6 | 0 | 6 | 88 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Amortization of Net Retirement Plan Actuarial Loss | 3 | [2],[3] | 3 | [2],[3] | 8 | [2],[3] | 7 | |
Amortization of Net Retirement Plan Actuarial Loss, Before-Tax Amount | (179) | [2],[3] | (181) | [2],[3] | (537) | [2],[3] | (503) | |
Income before provision for income taxes | (176) | (178) | (529) | (496) | ||||
Provision for Income Taxes | 114 | 68 | 289 | 187 | ||||
Net Income | $ (62) | $ (110) | $ (240) | $ (309) | ||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. | |||||||
[2] | Amounts in parentheses indicate debits to profit/loss. | |||||||
[3] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Stock Based Compensation Plan (
Stock Based Compensation Plan (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Award vesting period (in years) | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, Beginning of Period, in shares | shares | 366,329 |
Granted, in shares | shares | 55,621 |
Exercised, in shares | shares | (35,937) |
Forfeited, in shares | shares | 0 |
Outstanding, End of Period, in shares | shares | 386,013 |
Exercisable at Period End, in shares | shares | 242,706 |
Vested and Expected to Vest, in shares | shares | 143,307 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding at Beginning of Period, in dollars per share | $ 21.86 |
Granted, in dollars per share | 36.12 |
Exercised, in dollars per share | 20.46 |
Forfeited, in dollars per share | 0 |
Outstanding, End of Period, in dollars per share | 24.05 |
Exercisable at Period End, in dollars per share | 21.34 |
Vested and Expected to Vest, in dollars per share | 28.62 |
Fair Value, in dollars per share | $ 6.25 |
Dividend Yield | 2.72% |
Expected Volatility | 21.40% |
Risk Free Interest Rate | 2.25% |
Expected Lives, in years | 6 years 10 months 18 days |
Stock Based Compensation Expens
Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-Based Compensation Expense | $ 90 | $ 71 | $ 262 | $ 215 |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount from market price, percent | 5.00% |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employees' Pension Plan | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | $ 350 | $ 376 | $ 1,050 | $ 1,127 |
Interest Cost | 362 | 420 | 1,085 | 1,262 |
Expected Return on Plan Assets | (800) | (828) | (2,399) | (2,483) |
Amortization of Prior Service (Credit) Cost | (14) | (14) | (43) | (42) |
Amortization of Net Loss | 148 | 140 | 443 | 419 |
Net Periodic Benefit Cost | 46 | 94 | 136 | 283 |
Plan Contributions During the Period | 0 | 0 | 0 | 0 |
Estimated Future Contributions in the Current Fiscal Year | 0 | |||
Select Executive Retirement Plan | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | 10 | 8 | 30 | 24 |
Interest Cost | 55 | 56 | 164 | 163 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service (Credit) Cost | 14 | 14 | 43 | 43 |
Amortization of Net Loss | 31 | 28 | 94 | 84 |
Net Periodic Benefit Cost | 110 | 106 | 331 | 314 |
Plan Contributions During the Period | 116 | 131 | 345 | 350 |
Estimated Future Contributions in the Current Fiscal Year | 115 | |||
Post-Retirement Benefit Plans | ||||
Net Periodic Benefit Cost [Line Items] | ||||
Service Cost | 37 | 63 | 110 | 188 |
Interest Cost | 75 | 83 | 224 | 178 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service (Credit) Cost | (3) | (3) | (8) | (8) |
Amortization of Net Loss | 0 | 0 | 0 | 0 |
Net Periodic Benefit Cost | 109 | 143 | 326 | 358 |
Plan Contributions During the Period | $ 65 | $ 47 | 295 | $ 197 |
Estimated Future Contributions in the Current Fiscal Year | $ 98 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 28, 2017 | ||||||
Earnings Per Share [Abstract] | ||||||||||
Stock dividend, percent | 3.00% | |||||||||
Net Income | $ 7,416 | $ 6,738 | $ 21,255 | $ 19,934 | ||||||
Basic, in shares | 13,889 | [1] | 13,810 | [2] | 13,889 | [1] | 13,775 | [2] | ||
Basic Earnings, in dollars per share | $ 0.53 | [1] | $ 0.49 | [2] | $ 1.53 | [1] | $ 1.45 | [2] | ||
Dilutive Average Shares Attributable to Stock Options | [1] | 77 | 91 | 92 | 67 | |||||
Diluted, in shares | [2] | 13,966 | [1] | 13,901 | 13,981 | [1] | 13,842 | |||
Diluted Earnings, in dollars per share | $ 0.53 | [1] | $ 0.48 | [2] | $ 1.52 | [1] | $ 1.44 | [2] | ||
[1] | Cash dividends paid per share have been adjusted for the September 28, 2017 3% stock dividend. | |||||||||
[2] | Share and Per Share Amounts have been restated for the September 28, 2017 3% stock dividend. |
Fair Value of Financial Instr44
Fair Value of Financial Instruments Fair Value - Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | $ 315,459 | $ 346,996 | $ 339,190 |
Available-for-sale Securities, Amortized Cost Basis | 315,329 | 347,615 | 334,291 |
With a Related Allowance | 0 | 2,640 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 315,459 | 346,996 | 339,190 |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 64,730 | 54,706 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 250,729 | 292,290 | 339,190 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 1,502 | 0 | 2,640 |
Gain (Loss) on Collateral Dependent Impaired Loans | (138) | 0 | (240) |
Other Real Estate and Repossessed Assets, Net | 1,713 | 1,686 | 1,016 |
Gain (Loss) Other Real Estate and Repossessed Assets, Net | (655) | (587) | (319) |
Fair Value, Measurements, Nonrecurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 0 | 0 | 0 |
Other Real Estate and Repossessed Assets, Net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans | 1,502 | 0 | 2,640 |
Other Real Estate and Repossessed Assets, Net | 1,713 | 1,686 | 1,016 |
U.S. Agency Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 146,978 | 147,377 | 153,926 |
Available-for-sale Securities, Amortized Cost Basis | 146,976 | 147,110 | 152,511 |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 146,978 | 147,377 | 153,926 |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 64,730 | 54,706 | 0 |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 82,248 | 92,671 | 153,926 |
U.S. Agency Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
State and Municipal Obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 11,902 | 27,690 | 31,628 |
Available-for-sale Securities, Amortized Cost Basis | 11,875 | 27,684 | 31,562 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 11,902 | 27,690 | 31,628 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 11,902 | 27,690 | 31,628 |
State and Municipal Obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 152,806 | 167,239 | 148,087 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 152,806 | 167,239 | 148,087 |
Mortgage-Backed Securities - Residential | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Corporate and Other Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 2,299 | 3,308 | 4,299 |
Available-for-sale Securities, Amortized Cost Basis | 2,500 | 3,512 | 4,500 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 2,299 | 3,308 | 4,299 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 2,299 | 3,308 | 4,299 |
Corporate and Other Debt Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Mutual Funds and Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 1,474 | 1,382 | 1,250 |
Available-for-sale Securities, Amortized Cost Basis | 1,120 | 1,120 | 1,120 |
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 1,474 | 1,382 | 1,250 |
Available-for-sale Securities, Amortized Cost Basis | 1,500 | ||
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | Quoted Prices In Active Markets for Indentical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 0 | 0 | 0 |
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | 1,474 | 1,382 | 1,250 |
Mutual Funds and Equity Securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | $ 80,666 | $ 57,355 | $ 102,059 | $ 51,068 |
Available-for-Sale | 315,459 | 346,996 | 339,190 | |
Held-to-Maturity at Amortized Cost | 341,526 | 345,427 | 338,238 | |
Held-To-Maturity Securities, at Fair Value | 343,899 | 343,751 | 347,441 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 6,704 | 10,912 | 5,371 | |
Net Loans | 1,891,104 | 1,736,256 | 1,690,241 | |
Deposits | 2,307,116 | 2,116,546 | 2,213,187 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 61,419 | 35,836 | 38,589 | |
Federal Home Loan Bank Overnight Advances | 33,000 | 123,000 | 0 | |
Federal Home Loan Bank Term Advances | 55,000 | 55,000 | 55,000 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts | 20,000 | 20,000 | 20,000 | |
Carrying Amount | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 80,666 | 102,059 | ||
Net Loans | 1,891,104 | 1,736,256 | 1,690,241 | |
Accrued Interest Receivable | 7,692 | 6,684 | 7,046 | |
Deposits | 2,307,116 | 2,116,546 | 2,213,187 | |
Accrued Interest Payable | 260 | 247 | 247 | |
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 80,666 | 57,355 | 102,059 | |
Available-for-Sale | 315,459 | 346,996 | 339,190 | |
Held-To-Maturity Securities, at Fair Value | 343,899 | 343,751 | 347,441 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value Disclosure | 6,704 | 10,912 | 5,371 | |
Net Loans, Fair Value Disclosure | 1,870,379 | 1,720,078 | 1,696,929 | |
Accrued Interest Receivable, Fair Value Disclosure | 7,692 | 6,684 | 7,046 | |
Deposits, Fair Value Disclosure | 2,299,011 | 2,109,557 | 2,207,985 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Fair Value Disclosure | 61,419 | 35,836 | 38,589 | |
Federal Funds Purchased, Fair Value Disclosure | 33,000 | 123,000 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 55,110 | 55,118 | 55,955 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 260 | 247 | 247 | |
Quoted Prices In Active Markets for Indentical Assets (Level 1) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 80,666 | 57,355 | 102,059 | |
Available-for-Sale | 64,730 | 54,706 | 0 | |
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value Disclosure | 0 | 0 | 0 | |
Net Loans, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 0 | 0 | 0 | |
Deposits, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Funds Purchased, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Payable, Fair Value Disclosure | 0 | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | |
Available-for-Sale | 250,729 | 292,290 | 339,190 | |
Held-To-Maturity Securities, at Fair Value | 343,899 | 343,751 | 347,441 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value Disclosure | 6,704 | 10,912 | 5,371 | |
Net Loans, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Receivable, Fair Value Disclosure | 7,692 | 6,684 | 7,046 | |
Deposits, Fair Value Disclosure | 2,299,011 | 2,109,557 | 2,207,985 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Fair Value Disclosure | 61,419 | 35,836 | 38,589 | |
Federal Funds Purchased, Fair Value Disclosure | 33,000 | 123,000 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 55,110 | 55,118 | 55,955 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 20,000 | 20,000 | 20,000 | |
Accrued Interest Payable, Fair Value Disclosure | 260 | 247 | 247 | |
Significant Unobservable Inputs (Level 3) | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | |
Available-for-Sale | 0 | 0 | 0 | |
Held-To-Maturity Securities, at Fair Value | 0 | 0 | 0 | |
Federal Home Loan Bank and Federal Reserve Bank Stock, Fair Value Disclosure | 0 | 0 | 0 | |
Net Loans, Fair Value Disclosure | 1,870,379 | 1,720,078 | 1,696,929 | |
Accrued Interest Receivable, Fair Value Disclosure | 0 | 0 | 0 | |
Deposits, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Funds Purchased, Fair Value Disclosure | 0 | 0 | 0 | |
Federal Home Loan Bank Term Advances, Fair Value Disclosure | 0 | 0 | 0 | |
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts, Fair Value Disclosure | 0 | 0 | 0 | |
Accrued Interest Payable, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |