Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | FRANKLIN FINANCIAL SERVICES CORP /PA/ | ||
Entity Central Index Key | 723,646 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,289,124 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 97,164,432 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | fraf |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 20,664 | $ 14,258 |
Interest-bearing deposits in other banks | 18,502 | 34,335 |
Total cash and cash equivalents | 39,166 | 48,593 |
Investment securities available for sale, at fair value | 159,473 | 171,751 |
Restricted stock | 782 | 438 |
Loans held for sale | 461 | 389 |
Loans | 782,016 | 726,531 |
Allowance for loan losses | (10,086) | (9,111) |
Net Loans | 771,930 | 717,420 |
Premises and equipment, net | 14,759 | 15,046 |
Bank owned life insurance | 22,364 | 22,098 |
Goodwill | 9,016 | 9,016 |
Other intangible assets | 181 | |
Other real estate owned | 6,451 | 3,666 |
Deferred tax assets, net | 4,758 | 4,328 |
Other assets | 6,135 | 8,522 |
Total assets | 1,035,295 | 1,001,448 |
Deposits | ||
Noninterest-bearing checking | 152,095 | 136,910 |
Money management, savings and interest checking | 680,686 | 645,672 |
Time | 85,731 | 98,599 |
Total Deposits | 918,512 | 881,181 |
Securities sold under agreements to repurchase | 9,079 | |
Other liabilities | 5,407 | 7,667 |
Total liabilities | 923,919 | 897,927 |
Shareholders' equity | ||
Common stock, $1 par value per share,15,000,000 shares authorized with 4,659,319 shares issued and 4,275,879 shares outstanding at December 31, 2015 and 4,606,564 shares issued and 4,218,330 shares outstanding at December 31, 2014 | $ 4,659 | $ 4,607 |
Capital stock without par value, 5,000,000 shares authorized with no shares issued and outstanding | ||
Additional paid-in capital | $ 38,778 | $ 37,504 |
Retained earnings | 78,517 | 71,452 |
Accumulated other comprehensive loss | (3,722) | (3,100) |
Treasury stock, 383,440 and 388,234 shares at cost at December 2015 and 2014, respectively | (6,856) | (6,942) |
Total shareholders' equity | 111,376 | 103,521 |
Total liabilities and shareholders' equity | $ 1,035,295 | $ 1,001,448 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Common Stock, Shares, Issued | 4,659,319 | 4,606,564 |
Common Stock, Shares, Outstanding | 4,275,879 | 4,218,330 |
Capital stock, no par value | ||
Capital Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Capital Stock, Shares, Issued | 0 | 0 |
Capital Stock, Shares, Outstanding | 0 | 0 |
Treasury Stock, Shares | 383,440 | 388,234 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income | |||
Loans, including fees | $ 30,279 | $ 30,382 | $ 32,457 |
Interest and dividends on investments: | |||
Taxable interest | 2,415 | 2,618 | 1,783 |
Tax exempt interest | 1,607 | 1,512 | 1,509 |
Dividend income | 67 | 100 | 80 |
Deposits and obligations of other banks | 247 | 182 | 213 |
Total interest income | 34,615 | 34,794 | 36,042 |
Interest expense | |||
Deposits | 2,367 | 2,743 | 3,839 |
Securities sold under agreements to repurchase | 13 | 48 | |
Short-term borrowings | 4 | ||
Long-term debt | 424 | 491 | |
Total interest expense | 2,371 | 3,180 | 4,378 |
Net interest income | 32,244 | 31,614 | 31,664 |
Provision for loan losses | 1,285 | 764 | 2,920 |
Net interest income after provision for loan losses | 30,959 | 30,850 | 28,744 |
Noninterest income | |||
Investment and trust services fees | 5,036 | 4,575 | 4,429 |
Loan service charges | 971 | 917 | 879 |
Mortgage banking activities | 31 | 37 | 47 |
Deposit service charges and fees | 2,318 | 2,094 | 1,831 |
Other service charges and fees | 1,239 | 1,201 | 907 |
Debit card income | 1,368 | 1,320 | 1,236 |
Increase in cash surrender value of life insurance | 551 | 568 | 605 |
Net gain (loss) on sale of other real estate owned | 32 | 50 | (99) |
OTTI losses on debt securities | (20) | (20) | (25) |
Gain on conversion of investment security | 728 | ||
OTTI loss on equity securities | (50) | ||
Securities gains, net | 8 | 280 | 33 |
Other | 390 | 109 | 240 |
Total noninterest income | 12,652 | 11,131 | 10,033 |
Noninterest expense | |||
Salaries and employee benefits | 17,186 | 17,179 | 16,590 |
Ocupancy, net | 2,240 | 2,359 | 2,259 |
Furniture and equipment | 924 | 976 | 975 |
Advertising | 1,105 | 1,225 | 1,384 |
Legal and professional | 1,093 | 1,221 | 1,172 |
Data processing | 2,051 | 1,824 | 1,713 |
Pennsylvania bank shares tax | 815 | 694 | 815 |
Intangible amortization | 181 | 517 | 425 |
FDIC insurance | 663 | 908 | 979 |
ATM/debit card processing | 830 | 730 | 706 |
Foreclosed real estate | 462 | 315 | 293 |
Telecommunications | 555 | 488 | 467 |
Other | 3,031 | 3,137 | 3,472 |
Total noninterest expense | 31,136 | 31,573 | 31,250 |
Income before federal income tax expense | 12,475 | 10,408 | 7,527 |
Federal income tax expense | 2,271 | 2,006 | 1,295 |
Net income | $ 10,204 | $ 8,402 | $ 6,232 |
Per share | |||
Basic earnings per share | $ 2.40 | $ 2.01 | $ 1.51 |
Diluted earnings per share | 2.40 | 2 | 1.51 |
Cash dividends declared | $ 0.74 | $ 0.68 | $ 0.68 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income | $ 10,204 | $ 8,402 | $ 6,232 | |
Securities: | ||||
Unrealized (losses) gains arising during the period | [1] | (498) | 3,353 | (3,326) |
Reclassification adjustment for net (gains) losses and OTTI included in net income | [1] | (716) | (260) | 42 |
Net unrealized (losses) gains | [1] | (1,214) | 3,093 | (3,284) |
Tax effect | [1] | 413 | (1,052) | 1,117 |
Net of tax amount | [1] | (801) | 2,041 | (2,167) |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | [2] | 31 | (12) | 17 |
Reclassification adjustment for losses included in net income | [2] | 160 | 382 | 525 |
Net unrealized gains | [2] | 191 | 370 | 542 |
Tax effect | [2] | (65) | (126) | (184) |
Net of tax amount | [2] | 126 | 244 | 358 |
Pension: | ||||
Change in plan assets and benefit obligations | [3] | 175 | (824) | 2,107 |
Reclassification adjustment for prior service costs arising during the period | [3] | (94) | (220) | (345) |
Net unrealized gains (losses) | [3] | 81 | (1,044) | 1,762 |
Tax effect | [3] | (28) | 355 | (599) |
Net of tax amount | [3] | 53 | (689) | 1,163 |
Total other comprehensive (loss) income | (622) | 1,596 | (646) | |
Total Comprehensive Income | 9,582 | 9,998 | 5,586 | |
Reclassification adjsutment / Statement line item | ||||
Securities / gain on conversion & securities (gains) losses, net | 243 | 88 | 14 | |
Derivatives / interest expense on deposits | (54) | (130) | (179) | |
Pension / Salary & Benefits | $ (32) | $ (75) | $ (117) | |
[1] | Securities / gain on conversion & securities (gains) losses, net $243, $88, and $14 for years ended December 31, 2015, 2014, and 2013, respectively. | |||
[2] | Derivatives / interest expense on deposits ($54), ($130), and ($179) for years ended December 31, 2015, 2014, and 2013, respectively. | |||
[3] | Pension / Salary & Benefits ($32), ($75), and ($117) for years ended December 31, 2015, 2014, and 2013, respectively. |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2012 | $ 4,503 | $ 35,788 | $ 62,475 | $ (4,050) | $ (7,082) | $ 91,634 |
Net income | 6,232 | 6,232 | ||||
Other comprehensive income (loss) | (646) | (646) | ||||
Cash dividends declared | (2,810) | (2,810) | ||||
Treasury shares issued under stock option plans | (20) | 72 | 52 | |||
Common stock issued under dividend reinvestment plan | 58 | 868 | 926 | |||
Balance at Dec. 31, 2013 | 4,561 | 36,636 | 65,897 | (4,696) | (7,010) | 95,388 |
Net income | 8,402 | 8,402 | ||||
Other comprehensive income (loss) | 1,596 | 1,596 | ||||
Cash dividends declared | (2,847) | (2,847) | ||||
Treasury shares issued under stock option plans | (9) | 68 | 59 | |||
Common stock issued under dividend reinvestment plan | 46 | 877 | 923 | |||
Balance at Dec. 31, 2014 | 4,607 | 37,504 | 71,452 | (3,100) | (6,942) | 103,521 |
Net income | 10,204 | 10,204 | ||||
Other comprehensive income (loss) | (622) | (622) | ||||
Cash dividends declared | (3,139) | (3,139) | ||||
Treasury shares issued under stock option plans | 6 | 86 | 92 | |||
Common stock issued under dividend reinvestment plan | 52 | 1,194 | 1,246 | |||
Stock option compensation expense | 74 | 74 | ||||
Balance at Dec. 31, 2015 | $ 4,659 | $ 38,778 | $ 78,517 | $ (3,722) | $ (6,856) | $ 111,376 |
Consolidated Statements Of Cha7
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.74 | $ 0.68 | $ 0.68 |
Treasury shares issued under stock option plan, shares | 4,794 | 3,793 | 4,007 |
Common stock issued under dividend reinvestment plan, shares | 52,755 | 45,864 | 57,320 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 10,204 | $ 8,402 | $ 6,232 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,328 | 1,422 | 1,488 |
Net amortization of loans and investment securities | 1,659 | 1,818 | 1,860 |
Amortization and net change in mortgage servicing rights valuation | 34 | 41 | 50 |
Amortization of intangibles | 181 | 517 | 425 |
Provision for loan losses | 1,285 | 764 | 2,920 |
Net realized gains on sales and calls of securities | (8) | (280) | (33) |
Impairment write-down on securities recognized in earnings | 20 | 20 | 75 |
Gain on conversion of investment security | (728) | ||
Loans originated for sale | (9,121) | (8,904) | (10,207) |
Proceeds from sale of loans | 9,049 | 8,864 | 9,925 |
Writedown of premise and equipment | 60 | ||
Writedown on other real estate owned | 365 | 273 | 255 |
Net gain on sale or disposal of other real estate/other repossessed assets | (32) | (50) | |
Increase in cash surrender value of life insurance | (551) | (568) | (605) |
Gain from surrender of life insurance policy | (103) | (22) | |
Stock option compensation | 74 | ||
Decrease in other assets | 2,443 | 1,036 | 1,806 |
(Decrease) increase in other liabilities | (2,369) | 707 | 880 |
Deferred tax expense | (111) | 294 | 348 |
Net cash provided by operating activities | 13,679 | 14,356 | 15,397 |
Cash flows from investing activities | |||
Proceeds from sales and calls of securities available for sale | 1,381 | 5,421 | 5,188 |
Proceeds from maturities and pay-downs of securities available for sale | 30,123 | 25,369 | 32,184 |
Net (increase) decrease in restricted stock | (344) | 1,468 | 1,665 |
Purchase of investment securities available for sale | (21,688) | (41,217) | (69,100) |
Net (increase) decrease in loans | (58,496) | (4,506) | 26,375 |
Proceeds from sale of other real estate/other repossessed assets | 508 | 868 | 554 |
Proceeds from surrender of life insurance policy | 105 | ||
Capital expenditures | (1,041) | (345) | (527) |
Net cash used in investing activities | (49,557) | (12,942) | (3,556) |
Cash flows from financing activities | |||
Net increase in demand deposits, interest-bearing checking and savings accounts | 50,199 | 50,772 | 35,489 |
Net decrease in time deposits | (12,868) | (15,315) | (64,205) |
Net decrease in repurchase agreements | (9,079) | (14,755) | (18,375) |
Long-term debt payments | (12,403) | (7) | |
Dividends paid | (3,139) | (2,847) | (2,810) |
Cash received from option exercises | 92 | 59 | 52 |
Common stock issued under dividend reinvestment plan | 1,246 | 923 | 926 |
Net cash provided by (used in) financing activities | 26,451 | 6,434 | (48,930) |
(Decrease) increase in cash and cash equivalents | (9,427) | 7,848 | (37,089) |
Cash and cash equivalents as of January 1 | 48,593 | 40,745 | 77,834 |
Cash and cash equivalents as of December 31 | 39,166 | 48,593 | 40,745 |
Supplemental Disclosures of Cash Flow Information | |||
Cash paid during the year for: Interest on deposits and other borrowed funds | 2,416 | 3,240 | 4,497 |
Cash paid during the year for: Income taxes | 3,016 | 907 | 725 |
Noncash Activities | |||
Loans transferred to Other Real Estate | $ 3,626 | $ 82 | $ 390 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies The accounting policies of Franklin Financial Services Corporation and its subsidiaries conform to generally accepted accounting principles and to general industry practices. A summary of the more significant accounting policies, which have been consistently applied in the preparation of the accompanying consolidated financial statements, follows: Principles of Consolidation – The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation) and its wholly-owned subsidiaries; Farmers and Merchants Trust Company of Chambersburg and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank (the Bank) that has one wholly-owned subsidiary, Franklin Financial Properties Corp., which holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company that makes venture capital investments within the Corporation’s primary market area. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions have been eliminated in consolidation. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. Nature of Operations – The Corporation conducts substantially all of its business through its subsidiary bank, Farmers and Merchants Trust Company of Chambersburg , which serves its customer base through twenty-two community-banking offices located in Franklin, Cumberland, Fulton and Huntingdon Counties, Pennsylvania. These counties are considered to be the Corporation’s primary market area. The Bank is a community-oriented commercial bank that emphasizes customer service and convenience. As part of its strategy, the Bank has sought to develop a variety of products and services that meet the needs of both its retail and commercial customers. The Corporation and the Bank are subject to the regulations of various federal and state agencies and undergo periodic examinations by these regulatory a uthorities. Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with generally accepted accounting principles requires M anagement to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the assessment of other than temporary impairment of investment securities and impairment of restricted stock , the value of mortgage servicing rights and derivatives, and the valuation allowance on the deferred tax asset. Significant Group Concentrations of Credit Risk – Most of the Corporation’s activities are with customers located within its primary market area. Note 4 of the consolidated financial statements shows the types of securities in which the Corporation invests. Note 5 of the consolidated financial statements shows the types of lending in which the Corporation engages. The Corporation does not have any significant concentrations of any one industry or customer. Statement of Cash Flows – For purposes of reporting cash flows, cash and cash equivalents include Cash and due from banks, Interest-bearing deposits in other banks and Federal funds sold. Generally, Federal funds are purchased and sold for one-day periods . Investment Securities – Management classifies its securities at the time of purchase as available for sale or held to maturity. At December 31, 201 5 and 201 4 , all securities were classified as available for sale, meaning that the Corporation intends to hold them for an indefinite period of time, but not necessarily to maturity. Available for sale securities are stated at estimated fair value, adjusted for amortization of premiums and accretion of discounts which are recognized as adjustments of interest income through call date or maturity. The related unrealized holding gains and losses are reported as other comprehensive income or loss, net of tax, until realized. Declines in the fair value of held-to-maturity and available-for-sale securities to amounts below cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating the other-than-temporary impairment losses, M anagement considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) determines if the Corporation does not intend to sell the security or it if is not more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost. When a determination is made that an other-than-temporary impairment exists but the Corporation does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Realized securities gains and losses are computed using the specific identification method. Gains or losses on the disposition of investment securities are based on the net proceeds and the adjusted carrying amount of the specific security sold. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity or mix of the Bank’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Restricted Stock – Restricted stock, which is carried at cost, consists of stock of the Federal Home Loan Bank of Pittsburgh (FHLB) and Atlantic Central Bankers Bank (ACBB). The Bank held $ 782 thousand of restricted stock at the end of 201 5 . With the exception of $30 thousand, this investment represents stock in the FHLB that the Bank is required to hold in order to be a member of FHLB and is carried at a cost of $100 per share. Federal law requires a member institution of the FHLB to hold FHLB stock according to a predetermined formula. Management evaluates the restricted stock for impairment in accordance with ASC Topic 320. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the banks as compared to the capital stock amount for the banks and the length of time this situation has persisted, (2) commitments by the banks to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the banks. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support its operations. There is not a public market for FHLB or ACBB stock and the benefits of membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 201 5 . Financial Derivatives – The Corporation uses interest rate swaps, which it has designated as cash-flow hedges, to manage interest rate risk associated with variable-rate funding sources. All such derivatives are recognized on the balance sheet at estimated fair value in other assets or liabilities as appropriate. To the extent the derivatives are effective and meet the requirements for hedge accounting, changes in fair value are recognized in other comprehensive income with income statement reclassification occurring as the hedged item affects earnings. Conversely, changes in fair value attributable to ineffectiveness or to derivatives that do not qualify as hedges are recognized as they occur in the income statement’s interest expense account associated with the hedged item. Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Corporation to risk. Those derivative financial instruments that do not meet the hedging criteria discussed below would be classified as trading activities and would be recorded at fair value with changes in fair value recorded in income. Derivative hedge contracts must meet specific effectiveness tests (i.e., over time the change in their fair values due to the designated hedge risk must be within 80 to 125 percent of the opposite change in the fair values of the hedged assets or liabilities). Changes in fair value of the derivative financial instruments must be effective at offsetting changes in the fair value of the hedged items due to the designated hedge risk during the term of the hedge. Further, if the underlying financial instrument differs from the hedged asset or liability, there must be a clear economic relationship between the prices of the two financial instruments. If periodic assessments indicate derivatives no longer provide an effective hedge, the derivatives contracts would be closed out and settled or classified as a trading activity. Cash flows resulting from the derivative financial instruments that are accounted for as hedges of assets and liabilities are classified in the cash flow statement in the same category as the cash flows of the items being hedged. Loans – Loans, that M anagement has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at the outstanding unpaid principal balances, net of any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the interest method. The Corporation is am ortizing these amounts over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or M anagement has serious doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in a prior year is charged against the allowance for loan losses. Payments received on nonaccrual loans are applied initially against principal, then interest income, late charges and any other expenses. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loans. Loans Held for Sale – Mortgage loans originated and intended for sale in the secondary market at the time of origination are carried at the lower of cost or estimated fair value (determined on an aggregate basis). All sales are made without recourse. Loans held for sale at December 31, 201 5 represent loans originated through a third-party brokerage agreement for a fee and present no price risk to the Bank. Loan Servicing – Servicing assets are recognized as separate assets when rights are acquired through sale of financial assets. A portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the periods of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. For the purpose of computing impairment, mortgage servicing rights are stratified based on risk characteristics of the underlying loans that are expected to have the most impact on projected prepayments including loan type, interest rate and term. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If the Corporation later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Loans serviced by the Bank for the benefit of others totaled $21.6 million, $29.5 million and $34.6 million at December 31, 2015, 2014 and 2013, respectively. Allowance for Loan Losses – The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by M anagement in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial real estate loans by one of the following methods: the fair value of the collateral if the loan is collateral dependent , the present value of expected future cash flows discounted at the loan’s effective interest rate or the lo an’s obtainable market price. The Corporation’s allowance for possible loan losses consists of t hree elements: (1) specific valuation allowances established for probable losses on specific loans , (2) historical valuation allowances calculated based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted, as necessary to reflect the impact general economic conditions and other qualitative risk factors both internal and external to the Corporation and (3) an unallocated component . An unallocated component is maintained to cover uncertainties that could affect Management’s estimate of probable loss. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment using historical charge-offs as the starting point in estimating loss. Accordingly, the Corporation may not separately identify individual consumer and residential loans for impairment disclosures. Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or the lease term for lease hold improvements, whichever is shorter. When assets are retired or sold, the asset cost and related accumulated depreciation are eliminated from the respective accounts, and any resultant gain or loss is included in net income. The cost of maintenance and repairs is charged to operating expense as incurred, and the cost of major additions and improvements is capitalized. Intangible Assets – The Bank has $9.0 million of goodwill recorded on its balance sheet as the result of corporate acquisitions. Goodwill is not amortized, nor deductible for tax purposes. However, goodwill is tested for impairment at least annually in accordance with ASC Topic 350. Goodwill was tested for impairment as of August 31, 2015. The impairment test was conducted following the step-one test under ASC Topic 350. The Corporation chose not to use the qualitative assessment method for the August 31, 201 5 test primarily due to the fact that the Corporation’s stock price wa s trading below its book value. The Corporation uses several different weighted methods to determine the fair value of the reporting unit under the step-one test, including a dividend analysis, comparable sale transactions, and change of control premium estimates. If the step-one test fails, a more comprehensive step-two test is performed before a final determination of impairment is made. If goodwill is determined to be impaired, an impairment write-down is charged to results of operations in the period in which the impairment is determined. As a result of the step-one test, the estimated fair value of the Corporation exceeded its carrying value by approximately 38 % (compared to 37% in 201 4 ) and Management determined goodwill was not impaired. The increase in the valuation excess compared to 2014 is primarily the result of an increase in the Corporation’s stock price during 2015 and improved financial performance. At December 31, 2015, Management subsequently considered certain qualitative factors affecting the Corporation and determined that it was not likely that the results of the prior test had changed and it determined that goodwill was not impaired at year-end. Bank Owned Life Insurance – The Bank invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. The Bank purchases life insurance coverage on the lives of a select group of employees. The Bank is the owner and beneficiary of the policies and records the investment at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in noninterest income. Other Real Estate Owned (OREO) – Foreclosed real estate (OREO) is comprised of property acquired through a foreclosure proceeding or an acceptance of a deed in lieu of foreclosure. Balances are initially reflected at the estimated fair value less any estimated disposition costs, with subsequent adjustments made to reflect further declines in value. Any losses realized upon disposition of the property, and holding costs prior thereto, are charged against income. All properties are actively marketed to potential buyers. Transfers of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Federal Income Taxes – Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance, when in the opinion of M anagement, it is more likely than not that some portion or all deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted through the provision for income taxes for the effects of changes in tax laws and rates on the date of enactment. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC Topic 740, “Income Taxes” also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. Advertising Expenses – Advertising costs are expensed as incurred. Treasury Stock – The acquisition of treasury stock is recorded under the cost method. The subsequent disposition or sale of the treasury stock is recorded using the average cost method. Investment and Trust Services – Assets held in a fiduciary capacity are not assets of the Corporation and therefore are not included in the consolidated financial statements. The fair value of t rust assets under management at December 31, 201 5 were $ 586.7 million and $ 605.8 million at the prior year-end. Revenue from investment and trust services is recognized on the accrual basis. Off-Balance Sheet Financial Instruments – In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded on the balance sheet when they are funded. The amount of any liability for the credit risk associated with off-balance sheet financial instruments is recorded in other liabilities and was not material to the financial position of the Corporation at December 31, 201 5 or 201 4 . Stock-Based Compensation – The Corporation accounts for stock based compensation in accordance with the ASC Topic 718, “ Stock Compensation.” ASC Topic 718 requires compensation costs related to share-based payment transactions to be recognized in the financial statements (with limited exceptions). The amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued. Compensation cost is recognized over the period that an employee provides services in exchange for the award. Compensation expense was $74 thousand in 2015 and $ 0 in 201 4 and 201 3 . Pension – The provision for pension expense was actuarially determined using the projected unit credit actuarial cost method. The funding policy is to contribute an amount sufficient to meet the requirements of ERISA, subject to Internal Revenue Code contribution limitations. In accordance with ASC Topic 715, ”Compensation – Retirement Benefits”, the Corporation recognizes the plan’s over-funded or under-funded status as an asset or liability with an offsetting adjustment to Accumulated Other Comprehensive Income (AOCI). ASC Topic 715 requires the determination of the fair value of a plan’s assets at the company’s year-end and the recognition of actuarial gains and losses, prior service costs or credits, transition assets or obligations as a component of AOCI. These amounts were previously netted against the plan’s funded status in the Corporation’s consolidated Balance Sheet. These amounts will be subsequently recognized as components of net periodic benefit costs. Further, actuarial gains and losses that arise in subsequent periods that are not initially recognized as a component of net periodic benefit costs will be recognized as a component of AOCI. Those amounts will subsequently be recorded as component of net periodic benefit costs as they are amortized during future periods. Earnings per share – Earnings per share are computed based on the weighted average number of shares outstanding during each year. The Corporation’s basic earnings per share are calculated as net income divided by the weighted average number of shares outstanding. For diluted earnings per share, net income is divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivale nts consist of stock options. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: (Dollars in thousands, except per share data) 2015 2014 2013 Weighted average shares outstanding (basic) 4,244 4,190 4,135 Impact of common stock equivalents 6 6 4 Weighted average shares outstanding (diluted) 4,250 4,196 4,139 Anti-dilutive options excluded from calculation 27 35 56 Net income $ 10,204 $ 8,402 $ 6,232 Basic earnings per share $ 2.40 $ 2.01 $ 1.51 Diluted earnings per share $ 2.40 $ 2.00 $ 1.51 Reclassifications – Certain prior period amounts may have been reclassified to conform to the current year presentation. Such reclassifications di d not affect reported net income or financial position of the Company . Segment Reporting – The Bank acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business and government customers. Through its community office and automated teller machine network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Bank also performs personal, corporate, pension and fiduciary services through its Investment and Trust Services Department and Personal Investment Center. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Bank. As such, discrete information is not available and segment reporting would not be meaningful. Comprehensive Income – Comprehensive income is reflected in the Consolidated Statements of Comprehensive Income and includes net income and unrealized gains or losses, net of tax, on investment securities and derivatives and the change in plan assets and benefit obligations on the Bank’s pension plan, net of tax. Recent Accounting Pronouncements : Revenue from Contracts with Customers (Topic 606). The amendments in this Update (ASU 2014-09) establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for public entities for annual periods beginning after December 15, 201 7 (as deferred by ASU 2015-14) , including interim periods therein. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 201 8 ) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. The Corporation does not believe ASU 2014-09 will have a material effect on its financial statements. Financial Instruments – Overall (Topic 825-10). In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to presen |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 2. Regulatory Matters The Bank is limited as to the amount it may lend to the Corporation, unless such loans are collateralized by specific obligations. State regulations also limit the amount of dividends the Bank can pay to the Corporation and are generally limited to the Bank’s accumulated net earnings, which were $86.8 million at December 31, 201 5 . In addition, dividends paid by the Bank to the Corporation would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. The Corporation and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Although not adopted in regulation form, the Pennsylvania Department of Banking utilizes capital standards requiring a minimum leverage capital ratio of 6% and a risk-based capital ratio of 10% , defined substantially the same as those by the FDIC. Management believes, as of December 31, 201 5 , that the Corporation and the Bank met all capital adequacy requirements to which it is subject. In July 2013, Federal banking regulators approved the final rules from the Basel Committee on Banking Supervision for the regulation of capital requirements for bank holding companies and U.S banks, generally referred to as “Basel III.” The Basel III standards were effective for the Corporation and the Bank, effective January 1, 2015 (subject to a phase-in period for certain provisions). Basel III imposes significantly higher capital requirements and more restrictive leverage and liquidity ratios than those previously in place. The capital ratios to be considered “well capitalized” under Basel III are: (1) Common Equity Tier 1(CET1) of 6.5%, (2) Tier 1 Leverage of 5%, (3)Tier 1 Risk-Based Capital of 8%, and (4) Total Risk-Based Capital of 10%. The CET1 ratio is a new capital ratio under Basel III and the Tier 1 risk-based capital ratio of 8% has been increased from 6%. The rules also include changes in the risk weights of certain assets to better reflect credit and other risk exposures. In addition, a capital conservation buffer will be phased-in beginning January 1, 2016 at 0.125% , increasing each year until fully implemented in 2019 at 2.5% above the minimum capital ratios required to avoid any capital distribution restrictions. The capital conservation buffer will be applicable to all of the capital ratios except for the Tier1 Leverage ratio. When fully implemented, the capital conservation buffer will have the effect of increasing the minimum capital ratios by 2.5% . As of December 31, 2015, the Bank was “well capitalized’ under the Basel III requirements and believes it would be “well capitalized” on a fully-phased in basis had such a requirement been in effect. The following table presents the regulatory capital ratio requirements for the Corporation and the Bank . As of December 31, 2015 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Risk-based Capital Ratio (1) Corporation $ 108,279 15.08% $ 32,310 4.50% N/A N/A Bank 106,180 14.76% 32,364 4.50% $ 46,747 6.50% Tier 1 Risk-based Capital Ratio (2) Corporation $ 108,279 15.08% $ 43,080 6.00% N/A N/A Bank 106,180 14.76% 43,151 6.00% $ 57,535 8.00% Total Risk-based Capital Ratio (3) Corporation $ 117,298 16.34% $ 57,440 8.00% N/A N/A Bank 115,214 16.02% 57,535 8.00% $ 71,919 10.00% Tier 1 Leverage Ratio (4) Corporation $ 108,279 10.59% $ 40,897 4.00% N/A N/A Bank 106,180 10.37% 40,948 4.00% $ 51,185 5.00% As of December 31, 2014 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Tier 1 Risk-based Capital Ratio (2) Corporation $ 97,594 14.19% $ 27,504 4.00% N/A N/A Bank 95,777 13.96% 27,448 4.00% $ 41,171 6.00% Total Risk-based Capital Ratio (3) Corporation $ 106,529 15.49% $ 55,007 8.00% N/A N/A Bank 104,712 15.26% 54,895 8.00% $ 68,619 10.00% Tier 1 Leverage Ratio (4) Corporation $ 97,594 9.69% $ 40,279 4.00% N/A N/A Bank 95,777 9.55% 40,109 4.00% $ 50,136 5.00% (1) Common equity Tier 1 capital / total risk-weighted assets , (2) Tier 1 capital / total risk-weighted assets , (3) Total risk-based capital / total risk-weighted assets , (4) Tier 1 capital / average quarterly assets |
Restricted Cash Balances
Restricted Cash Balances | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash Balances [Abstract] | |
Restricted Cash Balances | Note 3. Restricted Cash Balances The Bank is required to maintain reserves against its deposit liabilities in the form of vault cash and/or balances with the Federal Reserve Bank. Deposit reserves that the Bank was required to hold were approximately $ 4. 4 million and $ 4.3 million at December 31, 201 5 and 201 4 , respectively and were satisfied by the Bank’s vault cash. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | Note 4. Investments The investment portfolio serves as a mechanism to invest funds if funding sources out pace lending activity, to provide liquidity for lending and operations, and provide collateral for deposits and borrowings. The mix of securities is determined by the Bank’s Investment Committee and investing decisions are made as a component of balance sheet management. Debt securities include U.S. Government Agencies, U.S. Government Agency mortgage-backed securities, non-agency mortgage-backed securities, state and municipal government bonds, corporate debt and trust preferred securities. The equity portfolio consists of one community bank stock. The Bank has no investments in a single issuer that exceeds 10% of shareholders equity. All securities are classified as available for sale and all investment balances refer to fair value, unless noted otherwise. The Bank’s private - label mortgage - backed securities (PLMBS) portfolio is comprised primarily of Alt-A loans. Alt-A loans are first-lien residential mortgages that generally conform to traditional “prime” credit guidelines; however, loan factors such as the loan-to-value ratio, loan documentation, occupancy status or property type cause these loans not to qualify for standard underwriting programs. The Alt-A product in the Bank’s portfolio is comprised of fixed-rate mortgages that were originated between 2004 and 2006 and all were originally rated AAA. The bonds issued in 2006 are experiencing the highest delinquency and loss rates. All of these bonds originally had some type of credit support tranche to absorb any loss prior to losses at the senior tranche held by the Bank, but this has eroded completely on some bonds as they have started to experience losses. The Bank recorded other-than-temporary impairment charges of $20 thousand on one PLMBS in 2015. Based on the performance of some of the PLMBS, it appears as if the underwriting standards that were represented in the offering, and resulted in the AAA rating, were not followed. As a result, the Bank purchased some securities based on these misrepresentations, and it is most likely that these securities would not have been purchased had all the information been reported correctly. The following table provides additional detail about the Bank’s PLMBS at December 31, 2015. The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2015 and 2014 is as follows: (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair 2015 cost gains losses value Equity securities $ 164 $ 69 $ - $ 233 U.S. Government and Agency securities 13,705 164 (33) 13,836 Municipal securities 67,851 1,555 (218) 69,188 Trust preferred securities 5,958 - (669) 5,289 Agency mortgage-backed securities 69,284 621 (386) 69,519 Private-label mortgage-backed securities 1,335 39 (2) 1,372 Asset-backed securities 38 - (2) 36 $ 158,335 $ 2,448 $ (1,310) $ 159,473 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair 2014 cost gains losses value Equity securities $ 274 $ 779 $ - $ 1,053 U.S. Government and Agency securities 15,854 173 (64) 15,963 Municipal securities 66,832 1,826 (292) 68,366 Trust preferred securities 5,940 - (803) 5,137 Agency mortgage-backed securities 78,779 932 (217) 79,494 Private-label mortgage-backed securities 1,675 35 (15) 1,695 Asset-backed securities 45 - (2) 43 $ 169,399 $ 3,745 $ (1,393) $ 171,751 At December 31, 201 5 and 201 4 , the fair value of investment securities pledged to secure public funds, trust balances, repurchase agreements, deposit and other obligations totaled $ 79.6 million and $ 91.6 million, respectively. The amortized cost and estimated fair value of debt securities at December 31, 201 5 , by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Amortized Fair (Dollars in thousands) cost value Due in one year or less $ 2,138 $ 2,155 Due after one year through five years 12,001 12,192 Due after five years through ten years 29,946 30,643 Due after ten years 43,467 43,359 87,552 88,349 Mortgage-backed securities 70,619 70,891 $ 158,171 $ 159,240 The composition of the net realized securities gains for the years ended December 31, 201 5 , 201 4 and 201 3 is as follows: (Dollars in thousands) 2015 2014 2013 Gross gains realized (including gain on conversion) $ 736 $ 284 $ 185 Gross losses realized - (4) (152) Net gains realized $ 736 $ 280 $ 33 A gain on conversion of an investment security of $728 thousand was recorded when one bank equity stock owned by the Bank was acquired by another bank. The remaining security gains were generated by the sale of equity securities. In 2015, an other-than-temporary-impairment charge was recorded on one private - label mortgage - backed security. Impairment : T he following table reflects the temporary impairment in the investment portfolio , aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of December 31, 2015 and 2014. The condition of the portfolio at year-end 2015, as measured by the dollar amount of temporarily impaired securities is essentially unchanged since year-end 2014. The trust-preferred sector recorded the largest unrealized loss, while the Agency MBS and municipal portfolios contain the greatest number of securities with an unrealized loss. For securities with an unrealized loss, Management applies a systematic methodology in order to perform an assessment of the potential for other-than-temporary impairment. In the case of debt securities, investments considered for other-than-temporary impairment: (1) had a specified maturity or repricing date; (2) were generally expected to be redeemed at par, and (3) were expected to achieve a recovery in market value within a reasonable period of time. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. Equity securities are assessed for other-than-temporary impairment based on the length of time of impairment, dollar amount of the impairment and general market and financial conditions relating to specific issues. The impairment identified on debt and equity securities and subject to assessment at December 31, 2015, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. December 31, 2015 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 479 $ (1) 3 $ 4,364 $ (32) 10 $ 4,843 $ (33) 13 Municipal securities 5,806 (35) 8 4,785 (183) 7 10,591 (218) 15 Trust preferred securities - - - 5,289 (669) 7 5,289 (669) 7 Agency mortgage-backed securities 18,977 (215) 29 7,394 (171) 13 26,371 (386) 42 Private-label mortgage-backed securities - - - 246 (2) 1 246 (2) 1 Asset-backed securities - - - 5 (2) 1 5 (2) 1 Total temporarily impaired securities $ 25,262 $ (251) 40 $ 22,083 $ (1,059) 39 $ 47,345 $ (1,310) 79 December 31, 2014 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 4 $ - 1 $ 7,207 $ (64) 14 $ 7,211 $ (64) 15 Municipal securities 5,651 (33) 9 9,441 (259) 14 15,092 (292) 23 Trust preferred securities - - - 5,137 (803) 7 5,137 (803) 7 Agency mortgage-backed securities 9,304 (60) 13 8,199 (157) 10 17,503 (217) 23 Private-label mortgage-backed securities - - - 540 (15) 1 540 (15) 1 Asset-backed securities - - - 5 (2) 1 5 (2) 1 Total temporarily impaired securities $ 14,959 $ (93) 23 $ 30,529 $ (1,300) 47 $ 45,488 $ (1,393) 70 The unrealized loss in the trust preferred sector declined by $134 thousand compared to the prior year-end and market prices continued to show some improvement during the year. All of the Bank’s trust preferred securities are variable rate notes with long maturities (2027-2028) from companies that received money (and in some cases paid back) from the Troubled Asset Relief Program (TARP), continue to pay dividends and have raised capital. The credit ratings on this portfolio are similar to the prior year and no bonds have missed or suspended any payments. At December 31, 2015, the Bank believes it will be able to collect all interest and principal due on these bonds and that it will not be forced to sell these bonds prior to maturity. Therefore, no other-than-temporary-impairment charges were recorded. Trust Preferred Securities (Dollars in thousands) Deal Name Maturity Single Issuer or Pooled Class Amortized Cost Fair Value Unrealized Gain (Loss) Lowest Credit Rating Assigned BankAmerica Cap III 1/15/2027 Single Preferred Stock $ 964 $ 847 $ (117) BB+ Wachovia Cap Trust II 1/15/2027 Single Preferred Stock 278 258 (20) BBB Huntington Cap Trust 2/1/2027 Single Preferred Stock 943 820 (123) BB Corestates Captl Tr II 2/15/2027 Single Preferred Stock 939 859 (80) BBB+ Huntington Cap Trust II 6/15/2028 Single Preferred Stock 895 785 (110) BB Chase Cap VI JPM 8/1/2028 Single Preferred Stock 964 849 (115) BBB- Fleet Cap Tr V 12/18/2028 Single Preferred Stock 975 871 (104) BB+ $ 5,958 $ 5,289 $ (669) The PLMBS sector continues to show a gross unrealized loss of $2 thousand on one security. The majority of this sector is comprised of “Alt-A” PLMBS. These bonds were all rated AAA at time of purchase but have since experienced rating declines. Some have experienced increased delinquencies and defaults, while others have seen the credit support increase as the bonds paid-down. The Bank monitors the performance of the Alt-A investments on a regular basis and reviews delinquencies, default rates, credit support levels and various cash flow stress test scenarios. In determining the credit related loss, Management considers all principal past due 60 days or more as a loss. If additional principal moves beyond 60 days past due, it will also be considered a loss. As a result of the analysis on PLMBS it was determined that one bond contained losses that were considered other-than-temporary. Management determined $20 thousand was credit related and therefore, recorded an impairment charge of $20 thousand against earnings in 2015. Management continues to monitor these securities and it is possible that additional write-downs may occur if current loss trends continue. Private Label Mortgage Backed Securities (Dollars in thousands) Cumulative Origination Amortized Fair Unrealized Collateral Lowest Credit Credit OTTI Description Date Cost Value Gain (Loss) Type Rating Assigned Support % Charges RALI 2004-QS4 A7 3/1/2004 $ 1 $ 1 $ - ALT A BBB+ 11.74 $ - MALT 2004-6 7A1 6/1/2004 355 363 8 ALT A CCC 15.05 - RALI 2005-QS2 A1 2/1/2005 204 217 13 ALT A CC 5.23 10 RALI 2006-QS4 A2 4/1/2006 469 480 11 ALT A D - 313 GSR 2006-5F 2A1 5/1/2006 58 65 7 Prime D - 15 RALI 2006-QS8 A1 7/28/2006 248 246 (2) ALT A D - 217 $ 1,335 $ 1,372 $ 37 $ 555 The following table represents the cumulative credit losses on debt securities recognized in earnings as of December 31, 201 5 . (Dollars in thousands) Twelve Months Ended 2015 2014 Balance of cumulative credit-related OTTI at January 1 $ 535 $ 515 Additions for credit-related OTTI not previously recognized 20 20 Additional increases for credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis - - Decreases for previously recognized credit-related OTTI because there was an intent to sell - - Reduction for increases in cash flows expected to be collected - - Balance of credit-related OTTI at December 31 $ 555 $ 535 The Bank held $782 thousand of restricted stock at the end of 201 5 of which $752 thousand is stock in the Federal Home Loan Bank of Pittsburgh (FHLB). FHLB stock is carried at a cost of $100 per share. FHLB stock is evaluated for impairment primarily based on an assessment of the ultimate recoverability of its cost. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support it operations. There is not a public market for FHLB stock and the benefits of FHLB membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. If FHLB stock were deemed to be impaired, the write-down for the Bank could be significant. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Loans [Abstract] | |
Loans | Note 5. Loans The Bank reports its loan portfolio based on the primary collateral of the loan. It further classifies these loans by the primary purpose, either consumer or commercial. The Bank’s mortgage loans include long-term loans to individuals and businesses secured by mortgages on the borrower’s real property. Construction loans are made to finance the purchase of land and the construction of residential and commercial buildings thereon, and are secured by mortgages on real estate. Commercial loans are made to businesses of various sizes for a variety of purposes including construction, property, plant and equipment, and working capital. Commercial loans also include loans to government municipalities. Commercial lending is concentrated in the Bank’s primary market, but also includes purchased loan participations. Consumer loans are comprised of installment, home equity and unsecured personal lines of credit. A summary of loans outstanding, by primary collateral, at the end of the reporting periods is as follows: (Dollars in thousands) December 31, 2015 December 31, 2014 Residential Real Estate 1-4 Family Consumer first liens $ 103,698 $ 105,014 Commercial first lien 57,780 56,300 Total first liens 161,478 161,314 Consumer junior liens and lines of credit 44,996 38,132 Commercial junior liens and lines of credit 5,917 5,663 Total junior liens and lines of credit 50,913 43,795 Total residential real estate 1-4 family 212,391 205,109 Residential real estate - construction Consumer 545 1,627 Commercial 7,343 8,088 Total residential real estate construction 7,888 9,715 Commercial real estate 340,695 326,482 Commercial 215,942 179,071 Total commercial 556,637 505,553 Consumer 5,100 6,154 782,016 726,531 Less: Allowance for loan losses (10,086) (9,111) Net Loans $ 771,930 $ 717,420 Included in the loan balances are the following: Net unamortized deferred loan costs (fees) $ 436 $ (76) Loans pledged as collateral for borrowings and commitments from: FHLB $ 643,449 $ 602,633 Federal Reserve Bank 45,111 56,367 $ 688,560 $ 659,000 Loans to directors and executive officers and related interests and affiliated enterprises were as follows: (Dollars in thousands) 2015 2014 Balance at beginning of year $ 18,904 $ 18,353 New loans made 4,327 1,973 Repayments (4,277) (1,422) Balance at end of year $ 18,954 $ 18,904 |
Loan Quality
Loan Quality | 12 Months Ended |
Dec. 31, 2015 | |
Loan Quality [Abstract] | |
Loan Quality | Note 6. Loan Quality Management utilizes a risk rating scale ranging from 1 (Prime) to 9 (Loss) to evaluate loan quality. This risk rating scale is used primarily for commercial purpose loans. Consumer purpose loans are identified as either a pass or substandard rating. Substandard consumer loans are loans that are 90 days or more past due and still accruing. Loans rated 1 – 4 are considered pass credits. Loans that are rated 5 are pass credits, but have been identified as credits that are likely to warrant additional attention and monitoring. Loans rated 6 (Special Mention) or worse begin to receive enhanced monitoring and reporting by the Bank. Loans rated 7 (Substandard) or 8 (Doubtful) exhibit the greatest financial weakness and present the greatest possible risk of loss to the Bank. Nonaccrual loans are rated no better than 7. The following represents some of the factors used in determining the risk rating of a borrower: cash flow, debt coverage, liquidity, management, and collateral. Risk ratings, for pass credits, are generally reviewed annually for term debt and at renewal for revolving or renewing debt. The Bank monitors loan quality by reviewing four measurements: (1) loans rated 6 or worse (collectively “watch list”), (2) delinquent loans, (3) other real estate owned (OREO), and (4) net-charge-offs. Management compares trends in these measurements with the Bank’s internally established targets, as well as its national peer group. The following table reports on the credit rating for those loans in the portfolio that are assigned an individual credit rating as of December 31, 2015 and 2014 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2015 Residential Real Estate 1-4 Family First liens $ 157,514 $ 2,122 $ 1,842 $ - $ 161,478 Junior liens and lines of credit 50,685 28 200 - 50,913 Total 208,199 2,150 2,042 - 212,391 Residential real estate - construction 7,386 - 502 - 7,888 Commercial real estate 319,985 6,175 14,535 - 340,695 Commercial 213,492 1,978 472 - 215,942 Consumer 5,100 - - - 5,100 Total $ 754,162 $ 10,303 $ 17,551 $ - $ 782,016 December 31, 2014 Residential Real Estate 1-4 Family First liens $ 155,676 $ 1,919 $ 3,719 $ - $ 161,314 Junior liens and lines of credit 43,559 29 207 - 43,795 Total 199,235 1,948 3,926 - 205,109 Residential real estate - construction 8,784 - 931 - 9,715 Commercial real estate 301,149 10,578 14,755 - 326,482 Commercial 170,774 5,413 2,884 - 179,071 Consumer 6,137 - 17 - 6,154 Total $ 686,079 $ 17,939 $ 22,513 $ - $ 726,531 Delinquent loans are a result of borrowers’ cash flow and/or alternative sources of cash being insufficient to repay loans. The Bank’s likelihood of collateral liquidation to repay the loans becomes more probable the further behind a borrower falls, particularly when loans reach 90 days or more past due. Management monitors the performance status of loans by the use of an aging report. The aging report can provide an early indicator of loans that may become severely delinquent and possibly result in a loss to the Bank. The following table presents the aging of payments in the loan portfolio as of December 31, 2015 and 2014. (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans December 31, 2015 Residential Real Estate 1-4 Family First liens $ 159,998 $ 44 $ 416 $ 214 $ 674 $ 806 $ 161,478 Junior liens and lines of credit 50,541 217 50 - 267 105 50,913 Total 210,539 261 466 214 941 911 212,391 Residential real estate - construction 7,209 177 - - 177 502 7,888 Commercial real estate 330,953 5,713 196 152 6,061 3,681 340,695 Commercial 215,449 210 5 2 217 276 215,942 Consumer 5,041 55 4 - 59 - 5,100 Total $ 769,191 $ 6,416 $ 671 $ 368 $ 7,455 $ 5,370 $ 782,016 December 31, 2014 Residential Real Estate 1-4 Family First liens $ 158,197 $ 1,531 $ 297 $ 165 $ 1,993 $ 1,124 $ 161,314 Junior liens and lines of credit 43,424 174 28 - 202 169 43,795 Total 201,621 1,705 325 165 2,195 1,293 205,109 Residential real estate - construction 8,784 - - - - 931 9,715 Commercial real estate 317,576 336 - 140 476 8,430 326,482 Commercial 177,407 12 15 - 27 1,637 179,071 Consumer 6,056 59 22 17 98 - 6,154 Total $ 711,444 $ 2,112 $ 362 $ 322 $ 2,796 $ 12,291 $ 726,531 Impaired loans generally represent Management’s determination that the borrower will be unable to repay the loan in accordance with its contractual terms and that collateral liquidation may or may not fully repay both interest and principal. It is the Bank’s policy to evaluate the probable collectability of principal and interest due under terms of loan contracts for all loans 90-days or more, nonaccrual loans, or impaired loans. Further, it is the Bank’s policy to discontinue accruing interest on loans that are not adequately secured and in the process of collection. Upon determination of nonaccrual status, the Bank subtracts any current year accrued and unpaid interest from its income, and any prior year accrued and unpaid interest from the allowance for loan losses. Management continually monitors the status of nonperforming loans, the value of any collateral and potential of risk of loss. Nonaccrual loans are rated no better than 7 (Substandard). Interest not recognized on nonaccrual loans was $335 thousand, $752 thousand and $96 thousand for the years ended December 31, 2015, 2014 and 2013, respectively. In addition to monitoring nonaccrual loans, the Bank also closely monitors impaired loans and troubled debt restructurings. A loan is considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect all interest and principal payments due according to the originally contracted terms of the loan agreement. Nonaccrual loans, excluding consumer purpose loans, and troubled-debt restricting (TDR) loans are considered impaired. For impaired loans with balances less than $250 thousand and consumer purpose loans, a specific reserve analysis is not performed and these loans are added to the general allocation pool. Impaired loans totaled $16.8 million at year -end 2015 compared to $26.6 million at December 31, 2014 . The following table presents information on impaired loans. Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related December 31, 2015 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 1,523 $ 1,725 $ - $ - $ - Junior liens and lines of credit 105 133 - - - Total 1,628 1,858 - - - Residential real estate - construction 502 546 - - - Commercial real estate 14,431 15,007 - - - Commercial 267 330 9 10 9 Consumer - - - - - Total $ 16,828 $ 17,741 $ 9 $ 10 $ 9 December 31, 2014 Residential Real Estate 1-4 Family First liens $ 1,804 $ 2,002 $ - $ - $ - Junior liens and lines of credit 169 195 - - - Total 1,973 2,197 - - - Residential real estate - construction 931 977 - - - Commercial real estate 21,487 25,744 862 1,001 60 Commercial 78 80 1,274 1,990 171 Consumer - - - - - Total $ 24,469 $ 28,998 $ 2,136 $ 2,991 $ 231 Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 1,531 $ 13 $ 2,619 $ 4 $ 3,365 $ 4 Junior liens and lines of credit 105 - 136 - 417 - Total 1,636 13 2,755 4 3,782 4 Residential real estate - construction 505 - 686 - 544 - Commercial real estate 14,509 122 23,801 118 31,730 118 Commercial 278 - 1,890 - 2,112 - Consumer - - - - - - Total $ 16,928 $ 135 $ 29,132 $ 122 $ 38,168 $ 122 A loan is considered a troubled debt restructuring (TDR) if the creditor (the Bank), for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. These concessions may include lowering the interest rate, extending the maturity, reamortization of payment, or a combination of multiple concessions. The Bank reviews all loans rated 6 or worse when it is providing a loan restructure, modification or new credit facility to determine if the action is a TDR. If a TDR loan is placed on nonaccrual status, it remains on nonaccrual status for at least six months to ensure performance. However, TDR loans are always considered impaired until paid-off. All TDR loans are in compliance with their modified terms except one, as reported below. The following table identifies TDR loans as of December 31, 2015 and 2014: Trouble Debt Restructurings That Have Defaulted on Modified Terms in the (Dollars in thousands) Troubled Debt Restructurings Last Twelve Months Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment December 31, 2015 Residential real estate - construction 1 $ 502 $ 502 $ - - $ - Residential real estate 4 654 503 151 - - Commercial real estate 10 12,125 12,125 - - - Total 15 $ 13,281 $ 13,130 $ 151 - $ - December 31, 2014 Residential real estate - construction 1 $ 521 $ - $ 521 - $ - Residential real estate 5 699 673 26 - - Commercial 12 15,748 14,283 1,465 - - Total 18 $ 16,968 $ 14,956 $ 2,012 - $ - * The performing status is determined by the loan ’ s compliance with the modified terms. The re were no new TDR loans made during the year ended December 31, 201 5. The following table reports new TDR loans made during 201 4 , concession granted and the recorded investment as of December 31, 201 4 . (Dollars in thousands) New During Period Number of Pre-TDR After-TDR Recorded Twelve Months Ended December 31, 2014 Contracts Modification Modification Investment Concession Residential real estate 1 $ 168 $ 168 $ 168 multiple Allowance for Loan Losses: Management monitors loan performance on a monthly basis and performs a quarterly evaluation of the adequacy of the allowance for loan losses (ALL). The ALL is determined by segmenting the loan portfolio based on the loan’s collateral. When calculating the ALL, consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews, historical charge-offs, the adequacy of the underlying collateral (if collateral dependent) and other relevant factors. The Bank begins enhanced monitoring of all loans rated 6 (OAEM) or worse, and obtains a new appraisal or asset valuation for any placed on nonaccrual and rated 7 (substandard) or worse. Management, at its discretion, may determine that additional adjustments to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited to: the economy, deferred maintenance, industry, type of property/equipment, age of the appraisal, etc. and the knowledge Management has about a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in order to determine the net realizable value to the Bank. When determining the allowance for loan losses, certain factors involved in the evaluation are inherently subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. Management monitors the adequacy of the allowance for loan losses on an ongoing basis and reports its adequacy quarterly to the Credit Risk Oversight Committee of the Board of Directors. Management believes that the allowance for loan losses at December 31, 2015 is adequate. The following table shows, by loan class, the activity in the ALL, for the years ended December 31, 201 5 , 201 4 and 201 3 . Residential Real Estate 1-4 Family Junior Liens First & Lines Commercial (Dollars in thousands) Liens of Credit Construction Real Estate Commercial Consumer Unallocated Total Allowance at December 31, 2012 $ 744 $ 260 $ 882 $ 6,078 $ 1,437 $ 181 $ 797 $ 10,379 Charge-offs (547) (45) - (2,855) (363) (162) - (3,972) Recoveries 13 - - 203 100 59 - 375 Provision 703 13 (606) 1,770 925 60 55 2,920 Allowance at December 31, 2013 $ 913 $ 228 $ 276 $ 5,196 $ 2,099 $ 138 $ 852 $ 9,702 Allowance at December 31, 2013 $ 913 $ 228 $ 276 $ 5,196 $ 2,099 $ 138 $ 852 $ 9,702 Charge-offs (291) - (41) (408) (644) (189) - (1,573) Recoveries 21 - - 50 65 82 - 218 Provision 351 43 (21) 140 (5) 96 160 764 Allowance at December 31, 2014 $ 994 $ 271 $ 214 $ 4,978 $ 1,515 $ 127 $ 1,012 $ 9,111 Allowance at December 31, 2014 $ 994 $ 271 $ 214 $ 4,978 $ 1,515 $ 127 $ 1,012 $ 9,111 Charge-offs (43) (39) (21) - (270) (198) - (571) Recoveries 7 - 18 14 148 74 - 261 Provision 31 76 (17) 657 126 99 313 1,285 Allowance at December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 The following table shows, by loan class, the loans that were evaluated for the ALL under a specific reserve (individually) and those that were evaluated under a general reserve (collectively), and the amount of the allowance established in each category as of December 31, 201 5 and 201 4 . Residential Real Estate 1-4 Family Junior Liens First & Lines Commercial (Dollars in thousands) Liens of Credit Construction Real Estate Commercial Consumer Unallocated Total December 31, 2015 Loans evaluated for allowance: Individually $ 930 $ 51 $ 502 $ 14,309 $ 230 $ - $ - $ 16,022 Collectively 160,548 50,862 7,386 326,386 215,712 5,100 - 765,994 Total $ 161,478 $ 50,913 $ 7,888 $ 340,695 $ 215,942 $ 5,100 $ - $ 782,016 Allowance established for loans evaluated: Individually $ - $ - $ - $ - $ 9 $ - $ - $ 9 Collectively 989 308 194 5,649 1,510 102 1,325 10,077 Allowance at December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 December 31, 2014 Loans evaluated for allowance: Individually $ 1,171 $ 51 $ 931 $ 22,307 $ 1,298 $ - $ - $ 25,758 Collectively 160,143 43,744 8,784 304,175 177,773 6,154 - 700,773 Total $ 161,314 $ 43,795 $ 9,715 $ 326,482 $ 179,071 $ 6,154 $ - $ 726,531 Allowance established for loans evaluated: Individually $ - $ - $ - $ 60 $ 171 $ - $ - $ 231 Collectively 994 271 214 4,918 1,344 127 1,012 8,880 Allowance at December 31, 2014 $ 994 $ 271 $ 214 $ 4,978 $ 1,515 $ 127 $ 1,012 $ 9,111 |
Premises And Equipment
Premises And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | Note 7. Premises and Equipment Premises and equipment consist of: December 31 (Dollars in thousands) Estimated Life 2015 2014 Land $ 3,000 $ 3,000 Buildings and leasehold improvements 15 - 30 years, or lease term 23,985 23,342 Furniture, fixtures and equipment 3 - 10 years 11,669 11,341 Total cost 38,654 37,683 Less: Accumulated depreciation (23,895) (22,637) Net premises and equipment $ 14,759 $ 15,046 The following table shows the amount of depreciation and rental expense for the years ended December 31: 2015 2014 2013 Depreciation expense $ 1,269 $ 1,360 $ 1,419 Rent expense on leases $ 735 $ 671 $ 673 The Corporation leases various premises and equipment for use in banking operations through 2032 . Some of these leases provide renewal options of varying terms. The rental cost of these optional renewals is not included below. At December 31, 201 5 , future minimum payments on these leases are as follows: (Dollars in thousands) 2016 $ 734 2017 678 2018 599 2019 499 2020 484 2021 and beyond 4,514 $ 7,508 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 8. O ther R eal E state O wned The following table summarizes the changes in other real estate owned. December 31 (Dollars in thousands) 2015 2014 Balance at beginning of the period $ 3,666 $ 4,708 Additions 3,626 82 Proceeds from dispositions (508) (868) Gain (loss) on sales, net 32 17 Valuation adjustment (365) (273) Balance at the end of the period $ 6,451 $ 3,666 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 9 . Intangible Assets The following table summarizes the other intangible assets at December 31: Core Deposit Customer List 2015 2014 2015 2014 Gross carrying amount $ 3,252 $ 3,252 $ - $ 589 Accumulated amortization (3,252) (3,071) - (589) Net carrying amount $ - $ 181 $ - $ - The following table shows the amortization expense for the years ended December 31: (Dollars in thousands) 2015 2014 2013 Amortization expense $ 181 $ 517 $ 425 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Note 10 . Deposits Deposits are summarized as follows: December 31 (Dollars in thousands) 2015 2014 Noninterest-bearing checking $ 152,095 $ 136,910 Interest-bearing checking 232,181 194,992 Money management 379,331 388,043 Savings 69,174 62,637 Total interest-bearing checking and savings 680,686 645,672 Retail time deposits 82,468 92,973 Brokered time deposits 3,263 5,626 Total time deposits 85,731 98,599 Total deposits $ 918,512 $ 881,181 Overdrawn deposit accounts reclassified as loans $ 128 $ 138 The following table shows the maturity of outstanding time deposits of $ 25 0,000 or more at December 31, 201 5 : (Dollars in thousands) Maturity distribution: Within three months $ 3,584 Over three through six months 1,124 Over six through twelve months 800 Over twelve months 655 Total $ 6,163 Time deposits in excess of $250,000 at December 31, 2014 were $6.8 million. A t December 31, 201 5 the scheduled maturities of time deposits are as follows: Retail Brokered Total Time Deposits Time Deposits Time Deposits (Dollars in thousands) 2016 $ 51,816 $ 2,650 $ 54,466 2017 16,142 361 16,503 2018 7,541 252 7,793 2019 2,343 - 2,343 2020 4,626 - 4,626 $ 82,468 $ 3,263 $ 85,731 |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Other Borrowings [Abstract] | |
Other Borrowings | Note 11. Other Borrowings The Bank's short-term borrowings are comprised of securities sold under agreements to repurchase (Repo) and a line-of-credit with the Federal Home Loan Bank of Pittsburgh (Open Repo Plus). Securities sold under agreements to repurchase are overnight borrowings between the Bank and its commercial and municipal depositors. These accounts reprice weekly. Open Repo Plus is a revolving term commitment used on an overnight basis. The term of this commitment may not exceed 364 days and it reprices daily at market rates . These borrowings are described below: December 31 2015 2014 Repurchase FHLB Repurchase FHLB (Dollars in thousands) Agreements Open Repo Agreements Open Repo Ending balance $ - $ - $ 9,079 $ - Weighted average rate at year end - - 0.15% - Range of interest rates paid at year end - - 0.15% - Maximum month-end balance during the year $ - $ 3,500 $ 17,755 $ - Average balance during the year $ 25 $ 923 $ 8,539 $ - Weighted average interest rate during the year 0.15% 0.38% 0.15% - The Corporation’s maximum borrowing capacity with the FHLB at December 31, 201 5 was $ 252 million , which includes $35 million available on the Open Repo line of credit . The total amount available to borrow at year-end was approximately $ 252 million. In addition, the Bank has $6 million in an unsecured line of credit at a correspondent bank and approximately $24 million available through the Federal Reserve Discount Window. The Bank closed its Repo product on January 2 , 2015 and the remaining balances were transferred to interest-bearing checking accounts. |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | Note 1 2 . Federal Income Taxes The temporary differences which give rise to significant portions of deferred tax assets and liabilities are as follows: (Dollars in thousands) December 31 Deferred Tax Assets 2015 2014 Allowance for loan losses $ 3,429 $ 3,098 Deferred compensation 1,017 1,041 Purchase accounting 22 21 Deferred loan fees and costs, net 160 160 Capital loss carryover 813 1,013 Other than temporary impairment of investments 376 369 Accumulated other comprehensive loss 1,917 1,597 AMT Credit 192 192 Other 423 750 8,349 8,241 Valuation allowance (1,000) (1,200) Total gross deferred tax assets 7,349 7,041 Deferred Tax Liabilities Core deposit intangibles - 61 Depreciation 334 233 Joint ventures and partnerships 37 39 Pension 2,199 2,331 Mortgage servicing rights 21 49 Total gross deferred tax liabilities 2,591 2,713 Net deferred tax asset $ 4,758 $ 4,328 In assessing the realizability of deferred tax assets, M anagement considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, M anagement believes it is more likely than not that the Bank will realize the benefits of these deferred tax assets other than those for which a valuation allowance has been recorded . The components of the provision for Federal income taxes attributable to income from operations were as follows: For the Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Current tax expense $ 2,382 $ 1,712 $ 947 Deferred tax expense (benefit) (111) 294 348 Income tax provision $ 2,271 $ 2,006 $ 1,295 For the years ended December 31, 201 5 , 201 4 , and 201 3 , the income tax provisions are different from the tax expense which would be computed by applying the Federal statutory rate to pretax operating earnings. A reconciliation between the tax provision at the statutory rate and the tax provision at the effective tax rate is as follows: For the Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Tax provision at statutory rate ( 34% ) $ 4,241 $ 3,539 $ 2,559 Income on tax-exempt loans and securities (1,566) (1,466) (1,212) Nondeductible interest expense relating to carrying tax-exempt obligations 22 28 30 Dividends received exclusion (2) (7) (15) Income from bank owned life insurance (182) (163) (185) Life insurance proceeds (35) - 111 Change in valuation allowance (200) - - Stock option compensation 25 - - Other, net (32) 75 7 Income tax provision $ 2,271 $ 2,006 $ 1,295 Effective income tax rate 18.2% 19.3% 17.2% At December 31, 2015, the Corporation had a capital loss carryover of $2.4 million. This loss carryover can only be offset with capital gains for federal income tax purposes. The tax benefit of this carryover is $ 1 million, expiring between 2016 and 2019, and the Corporation has recorded a valuation allowance of $ 1 million against the capital loss carryover. The Corporation recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense for all periods presented . No penalties or interest were recognized in 2015, 2014 or 2013. The Corporation has no uncertain tax positions at December 31, 2015 . The Corporation is no longer subject to U.S. Federal examinations by tax authorities for the years before 201 2 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 1 3 . Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss included in shareholders' equity are as follows: December 31 2015 2014 (Dollars in thousands) Net unrealized gains on securities $ 1,138 $ 2,352 Tax effect (387) (800) Net of tax amount 751 1,552 Net unrealized losses on derivatives - (191) Tax effect - 65 Net of tax amount - (126) Accumulated pension adjustment (6,777) (6,858) Tax effect 2,304 2,332 Net of tax amount (4,473) (4,526) Total accumulated other comprehensive loss $ (3,722) $ (3,100) |
Financial Derivatives
Financial Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Financial Derivatives [Abstract] | |
Financial Derivatives | Note 1 4 . Financial Derivatives As part of managing interest rate risk, the Bank entered into interest rate swap agreements as vehicles to partially hedge cash flows associated with interest expense on variable rate deposit accounts. Under the swap agreements, the Bank receive d a variable rate and pa id a fixed rate. Such agreements are generally entered into with counterparties that meet established credit standards and most contain collateral provisions protecting the at-risk party. The Bank consider ed the credit risk inherent in these contracts to be negligible. Interest rate swap agreements derive their value from underlying interest rates. These transactions involve d both credit and market risk. The notional amounts we re amounts on which calculations, payments, and the value of the derivative we re based. The notional amounts d id not represent direct credit exposures. Direct credit exposure wa s limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represent ed the fair value of the swap, wa s reflected on the Corporation’s balance sheet. The Corporation wa s exposed to credit-related losses in the event of nonperformance by the counterparty to these agreements. The Corporation control led the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and d id not expect the counterparty to fail its obligations. The primary focus of the Corporation’s asset/liability management program is to monitor the sensitivity of the Corporation’s net portfolio value and net income under varying interest rate scenarios to take steps to control its risks. On a quarterly basis, the Corporation simulates the net portfolio value and net interest income expected to be earned over a twelve-month period following the date of simulation. The simulation is based upon projection of market interest rates at varying levels and estimates the impact of such market rates on the levels of interest-earning assets and interest-bearing liabilities during the measurement period. Based upon the outcome of the simulation analysis, the Corporation consider ed the use of derivatives as a means of reducing the volatility of net portfolio value and projected net income within certain ranges of projected changes in interest rates. The Corporation evaluate d the effectiveness of entering into any derivative instrument agreement by measuring the cost of such an agreement in relation to the reduction in net portfolio value and net income volatility within an assumed range of interest rates. The final swap transaction matured in 2015. During 2008, the Bank entered into two swap transactions with each swap having a notional amount of $10 million. One swap matured in 2013 and the second swap matured in 2015. According to the terms of each transaction, the Bank paid fixed-rate interest payments and received floating-rate payments. The variable rate was indexed to the 91-day Treasury Bill auction (discount) rate and reset weekly. The swaps were entered into in order to hedge the Corporation’s exposure to changes in cash flows attributable to the effect of interest rate changes on variable-rate liabilities. Information regarding the interest rate swaps as of December 31, 2014 follows: Fair Value of Derivative Instruments in the Consolidated Balance Sheets w as as follows: Fair Value of Derivative Instruments (Dollars in thousands) Balance Sheet Date Type Location Fair Value December 31, 2015 Interest rate contracts Other liabilities $ - December 31, 2014 Interest rate contracts Other liabilities $ 191 The Effect of Derivative Instruments on the Statement of Income for the years ended December 31, 201 5 , 201 4 and 201 3 follows: Derivatives in ASC Topic 815 Cash Flow Hedging Relationships (Dollars in thousands) Amount of Gain Location of or (Loss) Gain or (Loss) Recognized in Recognized in Income on Location of Amount of Gain Income on Derivatives Amount of Gain Gain or (Loss) or (Loss) Derivative (Ineffective (Ineffective Portion or (Loss) Reclassified from Reclassified from Portion and Amount and Amount Recognized in OCI Accumulated OCI Accumulated OCI Excluded from Excluded from net of tax on Derivative into Income into Income Effectiveness Effectiveness Date Type (Effective Portion) (Effective Portion) (Effective Portion) Testing) Testing) December 31, 2015 Interest rate contracts $ - Interest Expense $ (160) Other income (expense) $ - December 31, 2014 Interest rate contracts $ 244 Interest Expense $ (382) Other income (expense) $ - December 31, 2013 Interest rate contracts $ 358 Interest Expense $ (525) Other income (expense) $ - Interest Rate Swap Agreements (“Swap Agreements”) The Bank entered into interest rate swap agreements as part of its asset/liability management program. The swap agreements we re free-standing derivatives and we re recorded at fair value in the Corporation’s consolidated statements of condition. The Bank wa s party to master netting arrangements with its financial institution counterparties; however, the Bank d id not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide d for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, in the form of marketable securities, wa s posted by the counterparty with net liability positions in accord ance with contract thresholds. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Bank previously enter ed into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Bank may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Bank to repurchase the agreements. As a result, these repurchase agreements we re accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Corporation’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Bank does not enter into reverse repurchase agreements, there is no such offsetting to be done with repurchase agreements. The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 201 5, 2014 and 201 3 . In prior periods , all of the Bank’s swap agreement with an institutional counterparty w ere in a liability position. Therefore, there were no assets to be recognized in the consolidated statements of condition. The Bank has no swap agreements with our commercial banking customers. Gross Net Amounts Gross Amounts Not Offset in the Gross Amounts of Liabilities Statements of Condition Amounts of Offset in the Presented in the Recognized Statements of Statements of Financial Cash Collateral Net (Dollars in thousands) Liabilities Condition Condition Instruments Pledged Amount Interest Rate Swap Agreements December 31, 2015 $ - $ - $ - $ - $ - $ - December 31, 2014 $ 191 $ - $ 191 $ 191 $ - $ - December 31, 2013 $ 561 $ - $ 561 $ 561 $ - $ - |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 1 5 . Benefit Plans The Bank has a 401(k) plan covering substantially all employees of F&M Trust who have completed one year and 1,000 hours of service. In 2014, employee contributions to the plan were matched at 100% up to 4% of each participant’s deferrals plus 50% of the next 2% of deferrals from participants’ eligible compensation. Under this plan, the maximum amount of employee contributions in any given year is defined by Internal Revenue Service regulations. In addition, a 100% discretionary profit sharing contribution of up to 2% of each employee’s eligible compensation is possible provided net income targets are achieved. The Personnel Committee of the Corporation’s Board of Directors approves the established net income targets annually. The related expense for the 401(k) plan, and the profit sharing plan as approved by the Board of Directors, was approximately $606 thousand in 201 5 , $556 thousand in 201 4 and $442 thousand in 201 3 . The Bank has a noncontributory pension plan covering substantially all employees of F&M Trust who meet certain age and service requirements. Benefits are based on years of service and the employee’s compensation using a career average formula for all employees. The pension plan was closed to new participants on April 1, 2007 The Bank’s funding policy is to contribute the annual amount required to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Contributions are intended to provide not only for the benefits attributed to service to date but also for those expected to be earned in the future. In 2014, the Bank added a plan option that allows for terminating employees to receive a lump-sum payout of their pension benefits. This option was added in another attempt to control the Bank’s pension liability and expense. The return on pension assets and the discount rate are the two largest variables in determining pension expense. A low rate environment generally results in higher pension expense. The Bank uses the Citigroup Above Median Pension Discount Curve from the Citigroup Pension Discount Curve and Liability Index for its discount rate . The Bank’s pension expense for each of the last three years is shown in the section of the following table titled “Components of Net Periodic Pension Cost ” . The Bank expects the 201 6 pension expense to be lower than in 201 5 . Pension plan asset classes include cash, fixed income securities and equities. The fixed income portion is comprised of Government Bonds, Corporate Bonds and Taxable Municipal Bonds; the equity portion is comprised of financial institution equities and individual corporate equities across a broad range of sectors. Investments are made on the basis of sound economic principles and in accordance with established guidelines. Target allocations of fund assets measured at fair value are as follows: fixed income, a range of 60% -90% , equities, a range of 10% to 30% and cash as needed. The allocation as of December 31, 201 5 is shown in a table within this note. The Bank manages its pension portfolio in order to closely align the duration of the assets with the duration of the pension liability. On a regular basis, the Pension and Benefits Committee (the “Committee”) monitors the allocation to each asset class. Due to changes in market conditions, the asset allocation may vary from time to time. The Committee is responsible to direct the rebalancing of Plan assets when allocations are not within the established guidelines and to ensure that such action is implemented. The Bank attempts to allocate the pension assets in a manner that the cash flow from the assets is similar to the cash flow of the liabilities. This has and will continue to result in a smaller allocation of equity investments and a higher allocation of longer duration bonds. By closely matching the asset and liability cash flow, large fluctuations in projected benefit obligations should be reduced. Specific guidelines for fixed income investments are that no individual bond shall have a rating of less than an A as rated by Standard and Poor’s and Moody’s at the time of purchase. If the rating subsequently falls below an A rating, the Committee, at its next quarterly meeting, will discuss the merits of retaining that particular security. Allowable securities include obligations of the U.S. Government and its agencies, CDs, commercial paper, corporate obligations and insured municipal bonds. General guidelines for equities are that a diversified common stock program is used and that diversification patterns can be changed with the ongoing analysis of the outlook for economic and financial conditions. Specific guidelines for equities include a sector cap and an individual stock cap. The guidelines for the sector cap direct that because the Plan sponsor is a bank, a significantly large exposure to the financial sector is permissible; therefore, there is no sector cap for financial equities. All other sectors are limited to 25% of the equity component. The individual stock cap guidelines direct that no one stock may represent more than 5% of the total equity portfolio. The Committee revisits and determines the expected long-term rate of return on Plan assets annually. The policy of the Committee has been to take a conservative approach to all Plan assumptions. This rate is reviewed annually and historical investment returns play a significant role in determining what this rate should be. The following table sets forth the plan’s funded status, based on the December 31, 201 5 , 201 4 and 201 3 actuarial valuations. For the Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Change in projected benefit obligation Benefit obligation at beginning of measurement year $ 19,679 $ 17,281 $ 18,648 Service cost 377 337 456 Interest cost 695 778 715 Actuarial loss (906) 2,529 (1,798) Benefits paid (1,236) (1,246) (740) Benefit obligation at end of measurement year 18,609 19,679 17,281 Change in plan assets Fair value of plan assets at beginning of measurement year 19,677 18,600 18,764 Actual return on plan assets net of expenses (140) 2,323 576 Employer contribution - - - Benefits paid (1,236) (1,246) (740) Fair value of plan assets at end of measurement year 18,301 19,677 18,600 Funded status of projected benefit obligation $ (308) $ (2) $ 1,319 Amounts recognized in accumulated other comprehensive For the Years Ended December 31 income (loss), net of tax 2015 2014 2013 Net actuarial loss $ (6,871) $ (7,078) $ (6,159) Prior service cost obligation 94 220 345 (6,777) (6,858) (5,814) Tax effect 2,304 2,332 1,977 Net amount recognized in accumulated other comprehensive loss $ (4,473) $ (4,526) $ (3,837) For the Years Ended December 31 Components of net periodic pension cost 2015 2014 2013 Service cost $ 377 $ 337 $ 456 Interest cost 695 778 715 Expected return on plan assets (1,182) (1,163) (1,247) Amortization of prior service cost (126) (126) (125) Recognized net actuarial loss 623 450 761 Net periodic pension cost $ 387 $ 276 $ 560 For the Years Ended December 31 2015 2014 2013 Assumptions used to determine benefit obligations: Discount rate 4.06% 3.72% 4.76% Rate of compensation increase 4.00% 4.00% 4.00% Assumptions used to determine net periodic benefit cost: Discount rate 3.72% 4.76% 3.89% Expected long-term return on plan assets 6.50% 6.50% 7.00% Rate of compensation increase 4.00% 4.00% 4.00% Asset allocations: Cash and cash equivalents 9% 4% 10% Common stocks 31% 33% 33% Corporate bonds 7% 8% 6% Municipal bonds 43% 45% 43% Investment fund - debt 8% 8% 7% Insurance contracts 2% 2% 1% Total 100% 100% 100% Shares of the Corporation's common stock held in the plan Value of shares (in thousands) $ 68 $ 63 $ 49 Percent of total plan assets 0.4% 0.3% 0.3% The following table sets forth by level, within the fair value hierarchy, the Plan's investments at fair value as of December 31, 201 5 and 201 4 . For more information on the levels within the fair value hierarchy, please refer to Note 20 . (Dollars in Thousands) December 31, 2015 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,579 $ 1,579 $ - $ - Common stocks 5,691 5,691 - - Corporate bonds 1,336 - 1,336 - Municipal bonds 7,898 - 7,898 - Investment fund - debt 1,413 1,413 - - Cash value of life insurance 62 - - 62 Deposit in immediate participation guarantee contract 322 - - 322 Total assets $ 18,301 $ 8,683 $ 9,234 $ 384 (Dollars in Thousands) December 31, 2014 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 718 $ 718 $ - $ - Common stocks 6,437 6,437 - - Corporate bonds 1,656 - 1,656 - Municipal bonds 8,946 - 8,946 - Investment fund - equity 40 40 - - Investment fund - debt 1,503 1,503 - - Cash value of life insurance 62 - - 62 Deposit in immediate participation guarantee contract 315 - - 315 Total assets $ 19,677 $ 8,698 $ 10,602 $ 377 The following table sets forth a summary of the changes in the fair value of the Plan's level 3 investments for the years ended December 31, 201 5 and 201 4 : Deposits in Immediate Cash Value Participation of Life Guarantee Insurance Contract Balance - January 1, 2015 $ 62 $ 315 Unrealized gain (loss) relating to investments held at the reporting date - (33) Purchases, sales, issuances and settlement, net - 40 Balance - December 31, 2015 $ 62 $ 322 Balance - January 1, 2014 $ 91 $ 31 Unrealized gain (loss) relating to investments held at the reporting date 3 16 Purchases, sales, issuances and settlement, net (32) 268 Balance - December 31, 2014 $ 62 $ 315 Contributions The Bank does not expect to make a pension contribution in 201 6 . Estimated future benefit payments at December 31, 201 5 (in thousands) 2016 $ 1,616 2017 1,161 2018 1,036 2019 1,150 2020 1,521 2021-2022 5,398 $ 11,882 |
Stock Purchase Plans
Stock Purchase Plans | 12 Months Ended |
Dec. 31, 2015 | |
Stock Purchase Plans [Abstract] | |
Stock Purchase Plans | Note 1 6 . Stock Purchase Plans In 2004, the Corporation adopted the Employee Stock Purchase Plan of 2004 (ESPP). Under the ESPP of 2004, options for 250,000 shares of stock can be issued to eligible employees. The number of shares that can be purchased by each participant is defined by the plan and the Board of Directors sets the option price. However, the option price cannot be less than 90% of the fair market value of a share of the Corporation’s common stock on the date the option is granted. The Board of Directors also determines the expiration date of the options; however, no option may have a term that exceeds one year from the grant date . ESPP options are exercisable immediately upon grant. Any shares related to unexercised options are available for future grant. As of December 31, 2015, there are 203,3 62 shares available for future grants. The Board of Directors may amend, suspend or terminate the ESPP at any time. The grant price of the 2014 ESPP options was set at 95% of the stock’s fair value at the time of the award. There was no compensation expense recognized in 2015, 2014 or 2013 for the ESPP. In 2002, the Corporation adopted the Incentive Stock Option Plan of 2002 (ISOP). The plan had a 10 year life with regard to awarding options and expired in 2012. However, awards granted prior to expiration of the plan will continue to be exercisable in accordance with the plan. In 2013, the Corporation approved the Incentive Stock Option Plan of 2013. Under the 2013 ISOP, options for 354,877 shares of stock were authorized to be issued to selected Officers, as defined in the plan. The number of options available to be awarded to each eligible Officer is determined by the Board of Directors, but is limited with respect to the aggregate fair value of the options as defined in the plan. The exercise price of the option may be no less than 100% of the fair value of a share of the Corporation’s common stock on the date the option is granted. The options have a life of 10 years and may be exercised only after the optionee has completed 6 months of continuous employment with the Corporation or its Subsidiary immediately following the grant date, or upon a change of control as defined in the plan. If awards are granted, the Corporation uses the “simplified” method for estimating the expected term of the ISO award. The risk-free interest rate is the U.S. Treasury rate commensurate with the expected average life of the option at the date of grant. There were 17,500 shares issued in 2015 and none in 2014 under the 2013 ISOP. At December 31, 2015 there were 337,377 shares available for issue under the 2013 ISOP. The ESPP and ISOP options outstanding at December 31, 2015 are all exercisable. The ESPP options expire on July 2, 2016 and the ISOP options expire 10 years from the grant date. The following table summarizes the stock option activity: (Dollars in thousands except share and per share data) ESPP Weighted Average Aggregate Options Price Per Share Intrinsic Value Balance Outstanding at December 31, 2012 37,627 $ 12.64 Granted 34,417 15.24 Exercised (4,007) 12.84 Expired (35,758) 12.77 Balance Outstanding at December 31, 2013 32,279 $ 15.24 Granted 27,596 18.91 Exercised (3,793) 15.55 Expired (30,112) 15.40 Balance Outstanding at December 31, 2014 25,970 $ 18.91 Granted 23,379 23.42 Exercised (4,794) 19.17 Expired (22,269) 19.08 Balance Outstanding at December 31, 2015 22,286 $ 23.42 $ 2 ISOP Weighted Average Options Price Per Share Balance Outstanding at December 31, 2012 62,324 $ 23.93 Granted - - Exercised - - Forfeited (6,499) 21.51 Balance Outstanding at December 31, 2013 55,825 $ $24.21 Granted - - Exercised - - Forfeited (11,750) 27.67 Balance Outstanding at December 31, 2014 44,075 $ $23.29 Granted 17,500 22.05 Exercised - - Forfeited (8,500) 25.29 Balance Outstanding at December 31, 2015 53,075 $ $22.56 $ 50 The following table provides information about the options outstanding at December 31, 201 5 : Options Weighted Outstanding Exercise Price or Weighted Average Average Remaining Stock Option Plan and Exercisable Price Range Exercise Price Life (years) Employee Stock Purchase Plan 22,286 $23.42 $ 23.42 0.5 Incentive Stock Option Plan 9,200 $16.11 $ 16.11 3.2 Incentive Stock Option Plan 17,500 $22.05 22.05 9.2 Incentive Stock Option Plan 13,425 $23.77 23.77 2.1 Incentive Stock Option Plan 12,950 $24.67 - $27.68 26.57 0.8 ISOP Total/Average 53,075 $ 22.56 4.3 The fair value of the ISOP options granted has been estimated using the Black-Scholes method and the following assumptions for the years shown: 2015 2014 2013 Incentive Stock Option Plan Options granted 17,500 - - Risk-free interest rate 1.47% - - Expected volatility of the Corporation's stock 28.64% - - Expected dividend yield 3.09% - - Expected life (in years) 5.25 - - Weighted average fair value of options granted $ 4.22 $ - $ - (Dollars in thousands) Compensation expense included in net income ESPP $ - $ - $ - ISOP 74 - - Total compensation expense included in net income $ 74 $ - $ - |
Deferred Compensation Agreement
Deferred Compensation Agreement | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Compensation Agreement [Abstract] | |
Deferred Compensation Agreement | Note 1 7 . Deferred Compensation Agreement The Corporation has entered into deferred compensation agreements with three former and one current director that provides for the payment of benefits over a ten -year period, beginning at age 65 . At inception, the present value of the obligations under these deferred compensation agreements amounted to approximately $600 thousand, which is being accrued over the estimated rem aining service period of these directors. Expense associated with the agreements was $76 thousand for 2015 and $18 thousand for 2014 and 2013. With the 2015 expense, the plan was fully funded and no future expense will be recognized for this plans. Payments for the directors deferred compensation plan are scheduled through 2022. The Bank also has a Director’s Deferred Compensation Plan, whereby each director may voluntarily participate and elect each year to defer all or a portion of their Bank director’s fees. Each participant directs the investment of their own account among various publicly available mutual funds designated by the Bank’s Investment and Trust Services department. Changes in the account balance beyond the amount deferred to the account are solely the result of the performance of the selected mutual fund. The Bank maintains an offsetting asset and liability for the deferred account balances and the annual expense is recorded as a component of director’s fees as if it were a direct payment to the director. The Bank will not incur any expense when the account goes into payout. The Corporation has two deferred compensation agreements it recorded as part of its acquisition of Fulton Bancshares Corporation in 2006. In the fourth quarter of 2013, the Bank recorded a nonrecurring expense of $667 thousand for one of the deferred compensation plans assumed by the Bank. At the time of the acquisition, information provided by the FDIC to the Bank indicated that this payout was a non-permissible payment and therefore not accrued in prior years. The FDIC decision was challenged by the beneficiary of the payment, and more than 7 years later, the FDIC reversed its decision thereby permitting the payment and resulted in an expense to the Bank. No future expense will be recognized for these plans. Payments for the deferred compensation agreements are scheduled through 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders’ Equity | Note 1 8 . Shareholders’ Equity The Board of Directors, from time to time, authorizes the repurchase of the Corporation’s $1.00 par value common stock. The repurchased shares will be held as Treasury shares available for issuance in connection with future stock dividends and stock splits, employee benefit plans, executive compensation plans, the Dividend Reinvestment Plan and other appropriate corporate purposes. The term of the repurchase plans is normally one year. A corporate stock repurchase plan was not authorized in 2015. The Corporation held 383,440 and 388,234 shares at cost at December 31, 201 5 and 201 4 , respectively. The Corporation’s dividend reinvestment plan (DRIP) allows for shareholders to purchase additional shares of the Corporation’s common stock by reinvesting cash dividends paid on their shares or through optional cash payments. The Corporation has authorized one million (1,000,000) shares of its currently authorized common stock to be issued under the amended plan. During 201 5 , 52,755 shares of common stock were purchased through the dividend reinvestment plan at a value of $1.2 million and 639,585 shares remain to be issued. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 1 9 . Commitments and Contingencies In the normal course of business, the Bank is a party to financial instruments that are not reflected in the accompanying financial statements and are commonly referred to as off-balance-sheet instruments. These financial instruments are entered into primarily to meet the financing needs of the Bank’s customers and include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the consolidated balance sheet. The Corporation’s exposure to credit loss in the event of nonperformance by other parties to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contract or notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance-sheet instruments. The Bank had the following outstanding commitments as of December 31: (Dollars in thousands) 2015 2014 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 218,192 $ 204,069 Consumer commitments to extend credit (secured) 41,604 38,654 Consumer commitments to extend credit (unsecured) 5,653 5,569 $ 265,449 $ 248,292 Standby letters of credit $ 25,944 $ 22,717 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 with the exception of home equity lines and personal lines of credit 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. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank, is based on M anagement’s credit evaluation of the counterparty. Collateral for most commercial commitments varies but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. Collateral for secured consumer commitments consists of liens on residential real estate. Standby letters of credit are instruments issued by the Bank, which guarantee the beneficiary payment by the Bank in the event of default by the Bank’s customer in the nonperformance of an obligation or service. Most standby letters of credit are extended for one -year periods. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral supporting those commitments for which collateral is deemed necessary primarily in the form of certificates of deposit and liens on real estate. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of December 31, 201 5 and 201 4 for guarantees under standby letters of credit issued is not material. Most of the Bank’s business activity is with customers located within its primary market and does not involve any significant concentrations of credit to any one entity or industry. In the normal course of business, the Corporation has commitments, lawsuits, contingent liabilities and claims. However, the Corporation does not expect that the outcome of these matters will have a material adverse effect on its consolidated financial position or results of operations. |
Fair Value Measurements And Fai
Fair Value Measurements And Fair Values Of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value Measurements And Fair Values Of Financial Instruments | Note 20 . Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates maybe different than the amounts reported at each year-end. FASB ASC Topic 820, “Financial Instruments”, requires disclosure of the fair value of financial assets and liabilities, including those financial assets and liabilities that are not measured and reported at fair value on a recurring and nonrecurring basis. The Corporation does not report any nonfinancial assets at fair value. FASB ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1 : Valuation is based on unadjusted, quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 : Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. There may be substantial differences in the assumptions used for securities within the same level. For example, prices for U.S. Agency securities have fewer assumptions and are closer to level 1 valuations than the private label mortgage backed securities that require more assumptions and are closer to level 3 valuations. Level 3 : Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Corporation’s assumptions regarding what market participants would assume when pricing a financial instrument. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used to estimate the fair values of the Corporation’s financial instruments at December 31, 201 5 and 201 4 . Cash and Cash Equivalents: For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Investment securities: The fair value of investment securities is determined in accordance with the methods described under FASB ASC Topic 820. Restricted stock: The carrying value of restricted stock approximates its fair value based on redemption provisions for the restricted stock. Loans held for sale: The fair value of loans held for sale is determined by the price set between the Bank and the purchaser prior to origination. These loans are usually sold at par. Net loans: The fair value of fixed-rate loans is estimated for each major type of loan (e.g. real estate, commercial, industrial and agricultural and consumer) by discounting the future cash flows associated with such loans using rates currently offered for loans with similar terms to borrowers of comparable credit quality. The model considers scheduled principal maturities, repricing characteristics, prepayment assumptions and interest cash flows. The discount rates used are estimated based upon consideration of a number of factors including the treasury yield curve, expense and service charge factors. For variable rate loans that reprice frequently and have no significant change in credit quality, carrying values approximate the fair value. Accrued Interest Receivable: T he carrying amount is a reasonable estimate of fair value. Mortgage servicing rights: The fair value of mortgage servicing rights is based on observable market prices when available or the present value of expected future cash flows when not available. Assumptions such as loan default rates, costs to service, and prepayment speeds significantly affect the estimate of future cash flows. Mortgage servicing rights are carried at the lower of cost or fair value. Deposits and Securities sold under agreements to repurchase: The fair value of demand deposits, savings accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-rate certificates of deposit and long-term debt is estimated by discounting the future cash flows using rates approximating those currently offered for certificates of deposit and borrowings with similar remaining maturities. Other borrowings consist of a line of credit with the FHLB at a variable interest rate and securities sold under agreements to repurchase, for which the carrying value approximates a reasonable estimate of the fair value. Accrued interest payable: The carrying amount is a reasonable estimate of fair value. Derivatives: The fair value of the interest rate swaps is based on other similar financial instruments and is classified as Level 2. The following information regarding the fair value of the Corporation’s financial instruments should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The fair value of the Corporation's financial instruments are as follows: December 31, 2015 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,166 $ 39,166 $ 39,166 $ - $ - Investment securities available for sale 159,473 159,473 233 159,240 - Restricted stock 782 782 - 782 - Loans held for sale 461 461 - 461 - Net loans 771,930 779,742 - - 779,742 Accrued interest receivable 3,164 3,164 - 3,164 - Financial liabilities: Deposits $ 918,512 $ 918,401 $ - $ 918,401 $ - Accrued interest payable 124 124 - 124 - December 31, 2014 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 48,593 $ 48,593 $ 48,593 $ - $ - Investment securities available for sale 171,751 171,751 1,053 170,698 - Restricted stock 438 438 - 438 - Loans held for sale 389 389 - 389 - Net loans 717,420 721,680 - - 721,680 Accrued interest receivable 3,038 3,038 - 3,038 - Mortgage servicing rights 143 143 - - 143 Financial liabilities: Deposits $ 881,181 $ 881,289 $ - $ 881,289 $ - Securities sold under agreements to repurchase 9,079 9,079 - 9,079 - Accrued interest payable 169 169 - 169 - Interest rate swaps 191 191 - 191 - Recurring Fair Value Measurements For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 201 5 and 201 4 are as follows: (Dollars in Thousands) Fair Value at December 31, 2015 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 233 $ - $ - $ 233 U.S. Government and Agency securities - 13,836 - 13,836 Municipal securities - 69,188 - 69,188 Trust Preferred Securities - 5,289 - 5,289 Agency mortgage-backed securities - 69,519 - 69,519 Private-label mortgage-backed securities - 1,372 - 1,372 Asset-backed securities - 36 - 36 Total assets $ 233 $ 159,240 $ - $ 159,473 (Dollars in Thousands) Fair Value at December 31, 2014 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 1,053 $ - $ - $ 1,053 U.S. Government and Agency securities - 15,963 - 15,963 Municipal securities - 68,366 - 68,366 Trust Preferred Securities - 5,137 - 5,137 Agency mortgage-backed securities - 79,494 - 79,494 Private-label mortgage-backed securities - 1,695 - 1,695 Asset-backed securities - 43 - 43 Total assets $ 1,053 $ 170,698 $ - $ 171,751 Liability Description Interest rate swaps $ - $ 191 $ - $ 191 Total liabilities $ - $ 191 $ - $ 191 Investment securities : Level 1 securities represent equity securities that are valued using quoted market prices from nationally recognized markets. Level 2 securities represent debt securities that are valued using a mathematical model based upon the specific characteristics of a security in relationship to quoted pri ces for similar securities. Interest rate swaps : The interest rate swaps are valued using a discounted cash flow model that uses verifiable market environment inputs to calculate the fair value. This method is not dependent on the input of any significant judgments or assumptions by Management. Nonrecurring Fair Value Measurements For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 201 5 and 201 4 are as follows: (Dollars in Thousands) Fair Value at December 31, 2015 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ - $ - $ - $ - Premises held-for-sale (1) - - 225 225 Other real estate owned (1) - - 6,128 6,128 Total assets $ - $ - $ 6,353 $ 6,353 (Dollars in Thousands) Fair Value at December 31, 2014 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ - $ - $ 3,469 $ 3,469 Other real estate owned (1) - - 760 760 Mortgage servicing rights - - 143 143 Total assets $ - $ - $ 4,372 $ 4,372 (1) Includes assets directly charged-down to fair value during the year-to-date period. The Corporation used the following methods and significant assumptions to estimate the fair values for financial assets measured at fair value on a nonrecurring basis. Impaired loans : Impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated by obtaining third-party appraisals that generally use a comparable sales valuation methodology with adjustments made for unique characteristics of the property. Management review of the valuation may result in other qualitative adjustments as deemed necessary. Because these inputs may not be observable they are classified as Level 3. The cost-to-sell reflects Management’s estimate based on historical rates. Other real estate : The fair value of other real estate, upon initial recognition, is obtained through a process similar to the valuation process for impaired loans. In connection with the measurement and initial recognition of the foregoing assets, the Corporation recognizes charge-offs through the allowance for loan losses. Mortgage servicing rights : The fair value of mortgage servicing rights, upon initial recognition, is estimated using a valuation model that calculates the present value of estimated future net servicing income. The model incorporates Level 3 assumptions such as cost to service, discount rate, prepayment speeds, default rates and losses from a third party provider without adjustments. Premises held-for-sale : The fair value of premises held-for-sale is obtained through a process similar to the valuation process for other real estate. The Corporation did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis at December 31, 2015 . For financial assets and liabilities measured at fair value on a recurring basis, there were no transfers of financial assets or liabilities between Level 1 and Level 2 during the period ending December 31, 201 5 . The following table presents additional quantitative information about Level 3 assets measured at fair value on a nonrecurring basis: (Dollars in Thousands) Quantitative Information about Level 3 Fair Value Measurements Range December 31, 2015 Fair Value Valuation Technique Unobservable Input (Weighted Average) Premises held-for-sale 225 Appraisal - - Other real estate owned 6,128 Appraisal - - Cost to sell 8% ( 8% ) Range December 31, 2014 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans $ 3,469 Appraisal Appraisal Adjustments 0% - 100% ( 26% ) Cost to sell 0% - 10% ( 5% ) Other real estate owned 760 Appraisal - - Cost to sell 8% ( 8% ) Mortgage servicing rights 143 Discounted Cash Flow |
Parent Company (Franklin Financ
Parent Company (Franklin Financial Services Corporation) Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company (Franklin Financial Services Corporation) Financial Information [Abstract] | |
Parent Company (Franklin Financial Services Corporation) Financial Information | Note 2 1 . Parent Company (Franklin Financial Services Corporation) Financial Information Balance Sheets December 31 (Dollars in thousands) 2015 2014 Assets: Cash and cash equivalents $ 300 $ 414 Equity investment in subsidiaries 111,535 101,784 Other assets 33 1,323 Total assets $ 111,868 $ 103,521 Liabilities: Other liabilities $ 492 $ - Total liabilities 492 - Shareholders' equity 111,376 103,521 Total liabilities and shareholders' equity $ 111,868 $ 103,521 Statements of Income Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Income: Dividends from Bank subsidiary $ 300 $ 1,151 $ 2,529 Interest and dividend income - 15 31 Other income 171 - - OTTI loss on equity securities - - (50) Securities gains (losses), net - 82 30 471 1,248 2,540 Expenses: Operating expenses 986 795 752 Income before income taxes and equity in undistributed income of subsidiaries (515) 453 1,788 Income tax benefit 328 241 259 Equity in undistributed income of subsidiaries 10,391 7,708 4,185 Net income $ 10,204 $ 8,402 $ 6,232 Statements of Comprehensive Income Years ended December 31 (Dollars in thousands) 2015 2014 2013 Net Income $ 10,204 $ 8,402 $ 6,232 Securities: Unrealized (losses) gains arising during the period - (236) 425 Reclassification adjustment for net (gains) losses included in net income - (82) 20 Net unrealized (losses) gains - (318) 445 Tax effect - 108 (151) Net of tax amount - (210) 294 Total other comprehensive (loss) income of Parent - (210) 294 Other comprehensive (loss) income of subsidiaries (622) 1,806 (940) Total Comprehensive Income $ 9,582 $ 9,998 $ 5,586 Statements of Cash Flows Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Cash flows from operating activities Net income $ 10,204 $ 8,402 $ 6,232 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiary (10,391) (7,708) (4,185) Stock option compensation 74 - - Securities (gains) losses - (82) (30) OTTI loss on equity securities - - 50 Decrease (increase) in other assets 1,800 498 (321) Net cash provided by operating activities 1,687 1,110 1,746 Cash flows from investing activities Proceeds from sales of investment securities - 568 312 Net cash provided by investing activities - 568 312 Cash flows from financing activities Dividends paid (3,139) (2,847) (2,810) Cash received from option exercises 92 59 52 Common stock issued under dividend reinvestment plan 1,246 923 926 Net cash used in financing activities (1,801) (1,865) (1,832) (Decrease) increase in cash and cash equivalents (114) (187) 226 Cash and cash equivalents as of January 1 414 601 375 Cash and cash equivalents as of December 31 $ 300 $ 414 $ 601 |
Quarterly Results Of Operations
Quarterly Results Of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results Of Operations [Abstract] | |
Quarterly Results Of Operations | N ote 2 2 . Quarterly Results of Operations (unaudited) The following is a condensed summary of the quarterly results of consolidated operations of Franklin Financial for the years ended December 31, 201 5 and 201 4 : (Dollars in thousands, except per share) Three months ended 2015 March 31 June 30 September 30 December 31 Interest income $ 8,526 $ 8,578 $ 8,720 $ 8,790 Interest expense 641 619 555 556 Net interest income 7,885 7,959 8,165 8,234 Provision for loan losses 325 310 400 250 Other noninterest income 2,934 3,108 2,733 3,150 Securities gains (including gain on conversion) 718 8 - - Noninterest expense 7,489 7,659 7,613 8,374 Income before income taxes 3,723 3,106 2,885 2,760 Federal income tax expense 839 632 306 493 Net Income $ 2,884 $ 2,474 $ 2,579 $ 2,267 Basic earnings per share $ 0.68 $ 0.58 $ 0.61 $ 0.53 Diluted earnings per share $ 0.68 $ 0.58 $ 0.61 $ 0.53 Dividends declared per share $ 0.17 $ 0.19 $ 0.19 $ 0.19 (Dollars in thousands, except per share) Three months ended 2014 March 31 June 30 September 30 December 31 Interest income $ 8,574 $ 8,761 $ 8,830 $ 8,629 Interest expense 830 817 799 734 Net interest income 7,744 7,944 8,031 7,895 Provision for loan losses 198 266 - 300 Other noninterest income 2,380 2,641 2,788 2,791 Securities gains (losses) - 221 (20) 59 Noninterest expense 7,688 7,615 7,748 8,251 Income before income taxes 2,238 2,925 3,051 2,194 Federal income tax expense 412 606 641 347 Net Income $ 1,826 $ 2,319 $ 2,410 $ 1,847 Basic earnings per share $ 0.44 $ 0.55 $ 0.57 $ 0.44 Diluted earnings per share $ 0.44 $ 0.55 $ 0.57 $ 0.44 Dividends declared per share $ 0.17 $ 0.17 $ 0.17 $ 0.17 Due to rounding, the sum of the quarters may not equal the amount reported for the year. |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation) and its wholly-owned subsidiaries; Farmers and Merchants Trust Company of Chambersburg and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank (the Bank) that has one wholly-owned subsidiary, Franklin Financial Properties Corp., which holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company that makes venture capital investments within the Corporation’s primary market area. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions have been eliminated in consolidation. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Nature Of Operations | Nature of Operations – The Corporation conducts substantially all of its business through its subsidiary bank, Farmers and Merchants Trust Company of Chambersburg , which serves its customer base through twenty-two community-banking offices located in Franklin, Cumberland, Fulton and Huntingdon Counties, Pennsylvania. These counties are considered to be the Corporation’s primary market area. The Bank is a community-oriented commercial bank that emphasizes customer service and convenience. As part of its strategy, the Bank has sought to develop a variety of products and services that meet the needs of both its retail and commercial customers. The Corporation and the Bank are subject to the regulations of various federal and state agencies and undergo periodic examinations by these regulatory a uthorities. |
Use Of Estimates In The Preparation Of Financial Statements | Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with generally accepted accounting principles requires M anagement to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the assessment of other than temporary impairment of investment securities and impairment of restricted stock , the value of mortgage servicing rights and derivatives, and the valuation allowance on the deferred tax asset. |
Significant Group Concentrations Of Credit Risk | Significant Group Concentrations of Credit Risk – Most of the Corporation’s activities are with customers located within its primary market area. Note 4 of the consolidated financial statements shows the types of securities in which the Corporation invests. Note 5 of the consolidated financial statements shows the types of lending in which the Corporation engages. The Corporation does not have any significant concentrations of any one industry or customer. |
Statement Of Cash Flows | Statement of Cash Flows – For purposes of reporting cash flows, cash and cash equivalents include Cash and due from banks, Interest-bearing deposits in other banks and Federal funds sold. Generally, Federal funds are purchased and sold for one-day periods |
Investment Securities | Investment Securities – Management classifies its securities at the time of purchase as available for sale or held to maturity. At December 31, 201 5 and 201 4 , all securities were classified as available for sale, meaning that the Corporation intends to hold them for an indefinite period of time, but not necessarily to maturity. Available for sale securities are stated at estimated fair value, adjusted for amortization of premiums and accretion of discounts which are recognized as adjustments of interest income through call date or maturity. The related unrealized holding gains and losses are reported as other comprehensive income or loss, net of tax, until realized. Declines in the fair value of held-to-maturity and available-for-sale securities to amounts below cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating the other-than-temporary impairment losses, M anagement considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) determines if the Corporation does not intend to sell the security or it if is not more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost. When a determination is made that an other-than-temporary impairment exists but the Corporation does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Realized securities gains and losses are computed using the specific identification method. Gains or losses on the disposition of investment securities are based on the net proceeds and the adjusted carrying amount of the specific security sold. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity or mix of the Bank’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. |
Restricted Stock | Restricted Stock – Restricted stock, which is carried at cost, consists of stock of the Federal Home Loan Bank of Pittsburgh (FHLB) and Atlantic Central Bankers Bank (ACBB). The Bank held $ 782 thousand of restricted stock at the end of 201 5 . With the exception of $30 thousand, this investment represents stock in the FHLB that the Bank is required to hold in order to be a member of FHLB and is carried at a cost of $100 per share. Federal law requires a member institution of the FHLB to hold FHLB stock according to a predetermined formula. Management evaluates the restricted stock for impairment in accordance with ASC Topic 320. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the banks as compared to the capital stock amount for the banks and the length of time this situation has persisted, (2) commitments by the banks to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the banks. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support its operations. There is not a public market for FHLB or ACBB stock and the benefits of membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 201 5 . |
Financial Derivatives | Financial Derivatives – The Corporation uses interest rate swaps, which it has designated as cash-flow hedges, to manage interest rate risk associated with variable-rate funding sources. All such derivatives are recognized on the balance sheet at estimated fair value in other assets or liabilities as appropriate. To the extent the derivatives are effective and meet the requirements for hedge accounting, changes in fair value are recognized in other comprehensive income with income statement reclassification occurring as the hedged item affects earnings. Conversely, changes in fair value attributable to ineffectiveness or to derivatives that do not qualify as hedges are recognized as they occur in the income statement’s interest expense account associated with the hedged item. Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Corporation to risk. Those derivative financial instruments that do not meet the hedging criteria discussed below would be classified as trading activities and would be recorded at fair value with changes in fair value recorded in income. Derivative hedge contracts must meet specific effectiveness tests (i.e., over time the change in their fair values due to the designated hedge risk must be within 80 to 125 percent of the opposite change in the fair values of the hedged assets or liabilities). Changes in fair value of the derivative financial instruments must be effective at offsetting changes in the fair value of the hedged items due to the designated hedge risk during the term of the hedge. Further, if the underlying financial instrument differs from the hedged asset or liability, there must be a clear economic relationship between the prices of the two financial instruments. If periodic assessments indicate derivatives no longer provide an effective hedge, the derivatives contracts would be closed out and settled or classified as a trading activity. Cash flows resulting from the derivative financial instruments that are accounted for as hedges of assets and liabilities are classified in the cash flow statement in the same category as the cash flows of the items being hedged. |
Loans | Loans – Loans, that M anagement has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at the outstanding unpaid principal balances, net of any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the interest method. The Corporation is am ortizing these amounts over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or M anagement has serious doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in a prior year is charged against the allowance for loan losses. Payments received on nonaccrual loans are applied initially against principal, then interest income, late charges and any other expenses. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loans. |
Loans Held For Sale | Loans Held for Sale – Mortgage loans originated and intended for sale in the secondary market at the time of origination are carried at the lower of cost or estimated fair value (determined on an aggregate basis). All sales are made without recourse. Loans held for sale at December 31, 201 5 represent loans originated through a third-party brokerage agreement for a fee and present no price risk to the Bank. |
Loan Servicing | Loan Servicing – Servicing assets are recognized as separate assets when rights are acquired through sale of financial assets. A portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the periods of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. For the purpose of computing impairment, mortgage servicing rights are stratified based on risk characteristics of the underlying loans that are expected to have the most impact on projected prepayments including loan type, interest rate and term. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If the Corporation later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Allowance For Loan Losses | Allowance for Loan Losses – The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by M anagement in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial real estate loans by one of the following methods: the fair value of the collateral if the loan is collateral dependent , the present value of expected future cash flows discounted at the loan’s effective interest rate or the lo an’s obtainable market price. The Corporation’s allowance for possible loan losses consists of t hree elements: (1) specific valuation allowances established for probable losses on specific loans , (2) historical valuation allowances calculated based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted, as necessary to reflect the impact general economic conditions and other qualitative risk factors both internal and external to the Corporation and (3) an unallocated component . An unallocated component is maintained to cover uncertainties that could affect Management’s estimate of probable loss. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment using historical charge-offs as the starting point in estimating loss. Accordingly, the Corporation may not separately identify individual consumer and residential loans for impairment disclosures. |
Premises And Equipment | Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or the lease term for lease hold improvements, whichever is shorter. When assets are retired or sold, the asset cost and related accumulated depreciation are eliminated from the respective accounts, and any resultant gain or loss is included in net income. The cost of maintenance and repairs is charged to operating expense as incurred, and the cost of major additions and improvements is capitalized. |
Intangible Assets | Intangible Assets – The Bank has $9.0 million of goodwill recorded on its balance sheet as the result of corporate acquisitions. Goodwill is not amortized, nor deductible for tax purposes. However, goodwill is tested for impairment at least annually in accordance with ASC Topic 350. Goodwill was tested for impairment as of August 31, 2015. The impairment test was conducted following the step-one test under ASC Topic 350. The Corporation chose not to use the qualitative assessment method for the August 31, 201 5 test primarily due to the fact that the Corporation’s stock price wa s trading below its book value. The Corporation uses several different weighted methods to determine the fair value of the reporting unit under the step-one test, including a dividend analysis, comparable sale transactions, and change of control premium estimates. If the step-one test fails, a more comprehensive step-two test is performed before a final determination of impairment is made. If goodwill is determined to be impaired, an impairment write-down is charged to results of operations in the period in which the impairment is determined. As a result of the step-one test, the estimated fair value of the Corporation exceeded its carrying value by approximately 38 % (compared to 37% in 201 4 ) and Management determined goodwill was not impaired. The increase in the valuation excess compared to 2014 is primarily the result of an increase in the Corporation’s stock price during 2015 and improved financial performance. At December 31, 2015, Management subsequently considered certain qualitative factors affecting the Corporation and determined that it was not likely that the results of the prior test had changed and it determined that goodwill was not impaired at year-end. |
Bank Owned Life Insurance | Bank Owned Life Insurance – The Bank invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. The Bank purchases life insurance coverage on the lives of a select group of employees. The Bank is the owner and beneficiary of the policies and records the investment at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in noninterest income. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO) – Foreclosed real estate (OREO) is comprised of property acquired through a foreclosure proceeding or an acceptance of a deed in lieu of foreclosure. Balances are initially reflected at the estimated fair value less any estimated disposition costs, with subsequent adjustments made to reflect further declines in value. Any losses realized upon disposition of the property, and holding costs prior thereto, are charged against income. All properties are actively marketed to potential buyers. |
Transfers Of Financial Assets | Transfers of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Federal Income Taxes | Federal Income Taxes – Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance, when in the opinion of M anagement, it is more likely than not that some portion or all deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted through the provision for income taxes for the effects of changes in tax laws and rates on the date of enactment. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC Topic 740, “Income Taxes” also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. |
Advertising Expenses | Advertising Expenses – Advertising costs are expensed as incurred. |
Treasury Stock | Treasury Stock – The acquisition of treasury stock is recorded under the cost method. The subsequent disposition or sale of the treasury stock is recorded using the average cost method. |
Investment And Trust Services | Investment and Trust Services – Assets held in a fiduciary capacity are not assets of the Corporation and therefore are not included in the consolidated financial statements. The fair value of t rust assets under management at December 31, 201 5 were $ 586.7 million and $ 605.8 million at the prior year-end. Revenue from investment and trust services is recognized on the accrual basis. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments – In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded on the balance sheet when they are funded. The amount of any liability for the credit risk associated with off-balance sheet financial instruments is recorded in other liabilities and was not material to the financial position of the Corporation at December 31, 201 5 or 201 4 . |
Stock-Based Compensation | Stock-Based Compensation – The Corporation accounts for stock based compensation in accordance with the ASC Topic 718, “ Stock Compensation.” ASC Topic 718 requires compensation costs related to share-based payment transactions to be recognized in the financial statements (with limited exceptions). The amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued. Compensation cost is recognized over the period that an employee provides services in exchange for the award. Compensation expense was $74 thousand in 2015 and $ 0 in 201 4 and 201 3 . |
Pension | Pension – The provision for pension expense was actuarially determined using the projected unit credit actuarial cost method. The funding policy is to contribute an amount sufficient to meet the requirements of ERISA, subject to Internal Revenue Code contribution limitations. In accordance with ASC Topic 715, ”Compensation – Retirement Benefits”, the Corporation recognizes the plan’s over-funded or under-funded status as an asset or liability with an offsetting adjustment to Accumulated Other Comprehensive Income (AOCI). ASC Topic 715 requires the determination of the fair value of a plan’s assets at the company’s year-end and the recognition of actuarial gains and losses, prior service costs or credits, transition assets or obligations as a component of AOCI. These amounts were previously netted against the plan’s funded status in the Corporation’s consolidated Balance Sheet. These amounts will be subsequently recognized as components of net periodic benefit costs. Further, actuarial gains and losses that arise in subsequent periods that are not initially recognized as a component of net periodic benefit costs will be recognized as a component of AOCI. Those amounts will subsequently be recorded as component of net periodic benefit costs as they are amortized during future periods. |
Earnings Per Share | Earnings per share – Earnings per share are computed based on the weighted average number of shares outstanding during each year. The Corporation’s basic earnings per share are calculated as net income divided by the weighted average number of shares outstanding. For diluted earnings per share, net income is divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivale nts consist of stock options. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: (Dollars in thousands, except per share data) 2015 2014 2013 Weighted average shares outstanding (basic) 4,244 4,190 4,135 Impact of common stock equivalents 6 6 4 Weighted average shares outstanding (diluted) 4,250 4,196 4,139 Anti-dilutive options excluded from calculation 27 35 56 Net income $ 10,204 $ 8,402 $ 6,232 Basic earnings per share $ 2.40 $ 2.01 $ 1.51 Diluted earnings per share $ 2.40 $ 2.00 $ 1.51 |
Reclassifications | Reclassifications – Certain prior period amounts may have been reclassified to conform to the current year presentation. Such reclassifications di d not affect reported net income or financial position of the Company . |
Segment Reporting | Segment Reporting – The Bank acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business and government customers. Through its community office and automated teller machine network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Bank also performs personal, corporate, pension and fiduciary services through its Investment and Trust Services Department and Personal Investment Center. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Bank. As such, discrete information is not available and segment reporting would not be meaningful. |
Comprehensive Income | Comprehensive Income – Comprehensive income is reflected in the Consolidated Statements of Comprehensive Income and includes net income and unrealized gains or losses, net of tax, on investment securities and derivatives and the change in plan assets and benefit obligations on the Bank’s pension plan, net of tax. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements : Revenue from Contracts with Customers (Topic 606). The amendments in this Update (ASU 2014-09) establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for public entities for annual periods beginning after December 15, 201 7 (as deferred by ASU 2015-14) , including interim periods therein. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 201 8 ) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. The Corporation does not believe ASU 2014-09 will have a material effect on its financial statements. Financial Instruments – Overall (Topic 825-10). In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Topic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Corporation does not believe ASU 2016-01 will have a material effect on its financial statements. Leases (Topic 842) . In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases. Form the lessee’s perspective, the new standard established a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessees. From the lessor’s perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Corporation is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. |
Summary Of Significant Accoun32
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | (Dollars in thousands, except per share data) 2015 2014 2013 Weighted average shares outstanding (basic) 4,244 4,190 4,135 Impact of common stock equivalents 6 6 4 Weighted average shares outstanding (diluted) 4,250 4,196 4,139 Anti-dilutive options excluded from calculation 27 35 56 Net income $ 10,204 $ 8,402 $ 6,232 Basic earnings per share $ 2.40 $ 2.01 $ 1.51 Diluted earnings per share $ 2.40 $ 2.00 $ 1.51 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters [Abstract] | |
Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements | As of December 31, 2015 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Risk-based Capital Ratio (1) Corporation $ 108,279 15.08% $ 32,310 4.50% N/A N/A Bank 106,180 14.76% 32,364 4.50% $ 46,747 6.50% Tier 1 Risk-based Capital Ratio (2) Corporation $ 108,279 15.08% $ 43,080 6.00% N/A N/A Bank 106,180 14.76% 43,151 6.00% $ 57,535 8.00% Total Risk-based Capital Ratio (3) Corporation $ 117,298 16.34% $ 57,440 8.00% N/A N/A Bank 115,214 16.02% 57,535 8.00% $ 71,919 10.00% Tier 1 Leverage Ratio (4) Corporation $ 108,279 10.59% $ 40,897 4.00% N/A N/A Bank 106,180 10.37% 40,948 4.00% $ 51,185 5.00% As of December 31, 2014 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Tier 1 Risk-based Capital Ratio (2) Corporation $ 97,594 14.19% $ 27,504 4.00% N/A N/A Bank 95,777 13.96% 27,448 4.00% $ 41,171 6.00% Total Risk-based Capital Ratio (3) Corporation $ 106,529 15.49% $ 55,007 8.00% N/A N/A Bank 104,712 15.26% 54,895 8.00% $ 68,619 10.00% Tier 1 Leverage Ratio (4) Corporation $ 97,594 9.69% $ 40,279 4.00% N/A N/A Bank 95,777 9.55% 40,109 4.00% $ 50,136 5.00% (1) Common equity Tier 1 capital / total risk-weighted assets , (2) Tier 1 capital / total risk-weighted assets , (3) Total risk-based capital / total risk-weighted assets , (4) Tier 1 capital / average quarterly assets |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Unrealized Gain (Loss) On Investments | (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair 2015 cost gains losses value Equity securities $ 164 $ 69 $ - $ 233 U.S. Government and Agency securities 13,705 164 (33) 13,836 Municipal securities 67,851 1,555 (218) 69,188 Trust preferred securities 5,958 - (669) 5,289 Agency mortgage-backed securities 69,284 621 (386) 69,519 Private-label mortgage-backed securities 1,335 39 (2) 1,372 Asset-backed securities 38 - (2) 36 $ 158,335 $ 2,448 $ (1,310) $ 159,473 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair 2014 cost gains losses value Equity securities $ 274 $ 779 $ - $ 1,053 U.S. Government and Agency securities 15,854 173 (64) 15,963 Municipal securities 66,832 1,826 (292) 68,366 Trust preferred securities 5,940 - (803) 5,137 Agency mortgage-backed securities 78,779 932 (217) 79,494 Private-label mortgage-backed securities 1,675 35 (15) 1,695 Asset-backed securities 45 - (2) 43 $ 169,399 $ 3,745 $ (1,393) $ 171,751 |
Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity | Amortized Fair (Dollars in thousands) cost value Due in one year or less $ 2,138 $ 2,155 Due after one year through five years 12,001 12,192 Due after five years through ten years 29,946 30,643 Due after ten years 43,467 43,359 87,552 88,349 Mortgage-backed securities 70,619 70,891 $ 158,171 $ 159,240 |
Composition Of Net Realized Securities Gains | (Dollars in thousands) 2015 2014 2013 Gross gains realized (including gain on conversion) $ 736 $ 284 $ 185 Gross losses realized - (4) (152) Net gains realized $ 736 $ 280 $ 33 |
Schedule Of Unrealized Loss On Investments | December 31, 2015 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 479 $ (1) 3 $ 4,364 $ (32) 10 $ 4,843 $ (33) 13 Municipal securities 5,806 (35) 8 4,785 (183) 7 10,591 (218) 15 Trust preferred securities - - - 5,289 (669) 7 5,289 (669) 7 Agency mortgage-backed securities 18,977 (215) 29 7,394 (171) 13 26,371 (386) 42 Private-label mortgage-backed securities - - - 246 (2) 1 246 (2) 1 Asset-backed securities - - - 5 (2) 1 5 (2) 1 Total temporarily impaired securities $ 25,262 $ (251) 40 $ 22,083 $ (1,059) 39 $ 47,345 $ (1,310) 79 December 31, 2014 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Count Value Losses Count Value Losses Count U.S. Government and Agency securities $ 4 $ - 1 $ 7,207 $ (64) 14 $ 7,211 $ (64) 15 Municipal securities 5,651 (33) 9 9,441 (259) 14 15,092 (292) 23 Trust preferred securities - - - 5,137 (803) 7 5,137 (803) 7 Agency mortgage-backed securities 9,304 (60) 13 8,199 (157) 10 17,503 (217) 23 Private-label mortgage-backed securities - - - 540 (15) 1 540 (15) 1 Asset-backed securities - - - 5 (2) 1 5 (2) 1 Total temporarily impaired securities $ 14,959 $ (93) 23 $ 30,529 $ (1,300) 47 $ 45,488 $ (1,393) 70 |
Schedule Of Trust Preferred Securities | (Dollars in thousands) Deal Name Maturity Single Issuer or Pooled Class Amortized Cost Fair Value Unrealized Gain (Loss) Lowest Credit Rating Assigned BankAmerica Cap III 1/15/2027 Single Preferred Stock $ 964 $ 847 $ (117) BB+ Wachovia Cap Trust II 1/15/2027 Single Preferred Stock 278 258 (20) BBB Huntington Cap Trust 2/1/2027 Single Preferred Stock 943 820 (123) BB Corestates Captl Tr II 2/15/2027 Single Preferred Stock 939 859 (80) BBB+ Huntington Cap Trust II 6/15/2028 Single Preferred Stock 895 785 (110) BB Chase Cap VI JPM 8/1/2028 Single Preferred Stock 964 849 (115) BBB- Fleet Cap Tr V 12/18/2028 Single Preferred Stock 975 871 (104) BB+ $ 5,958 $ 5,289 $ (669) |
Private Label Mortgage Backed Securities | (Dollars in thousands) Cumulative Origination Amortized Fair Unrealized Collateral Lowest Credit Credit OTTI Description Date Cost Value Gain (Loss) Type Rating Assigned Support % Charges RALI 2004-QS4 A7 3/1/2004 $ 1 $ 1 $ - ALT A BBB+ 11.74 $ - MALT 2004-6 7A1 6/1/2004 355 363 8 ALT A CCC 15.05 - RALI 2005-QS2 A1 2/1/2005 204 217 13 ALT A CC 5.23 10 RALI 2006-QS4 A2 4/1/2006 469 480 11 ALT A D - 313 GSR 2006-5F 2A1 5/1/2006 58 65 7 Prime D - 15 RALI 2006-QS8 A1 7/28/2006 248 246 (2) ALT A D - 217 $ 1,335 $ 1,372 $ 37 $ 555 |
Other Than Temporary Impairment, Credit Losses Recognized In Earnings | (Dollars in thousands) Twelve Months Ended 2015 2014 Balance of cumulative credit-related OTTI at January 1 $ 535 $ 515 Additions for credit-related OTTI not previously recognized 20 20 Additional increases for credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis - - Decreases for previously recognized credit-related OTTI because there was an intent to sell - - Reduction for increases in cash flows expected to be collected - - Balance of credit-related OTTI at December 31 $ 555 $ 535 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans [Abstract] | |
Schedule Of Loans Outstanding | (Dollars in thousands) December 31, 2015 December 31, 2014 Residential Real Estate 1-4 Family Consumer first liens $ 103,698 $ 105,014 Commercial first lien 57,780 56,300 Total first liens 161,478 161,314 Consumer junior liens and lines of credit 44,996 38,132 Commercial junior liens and lines of credit 5,917 5,663 Total junior liens and lines of credit 50,913 43,795 Total residential real estate 1-4 family 212,391 205,109 Residential real estate - construction Consumer 545 1,627 Commercial 7,343 8,088 Total residential real estate construction 7,888 9,715 Commercial real estate 340,695 326,482 Commercial 215,942 179,071 Total commercial 556,637 505,553 Consumer 5,100 6,154 782,016 726,531 Less: Allowance for loan losses (10,086) (9,111) Net Loans $ 771,930 $ 717,420 Included in the loan balances are the following: Net unamortized deferred loan costs (fees) $ 436 $ (76) Loans pledged as collateral for borrowings and commitments from: FHLB $ 643,449 $ 602,633 Federal Reserve Bank 45,111 56,367 $ 688,560 $ 659,000 |
Schedule Of Loans To Related Parties | (Dollars in thousands) 2015 2014 Balance at beginning of year $ 18,904 $ 18,353 New loans made 4,327 1,973 Repayments (4,277) (1,422) Balance at end of year $ 18,954 $ 18,904 |
Loan Quality (Tables)
Loan Quality (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loan Quality [Abstract] | |
Internal Credit Rating For The Loan Portfolio | (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2015 Residential Real Estate 1-4 Family First liens $ 157,514 $ 2,122 $ 1,842 $ - $ 161,478 Junior liens and lines of credit 50,685 28 200 - 50,913 Total 208,199 2,150 2,042 - 212,391 Residential real estate - construction 7,386 - 502 - 7,888 Commercial real estate 319,985 6,175 14,535 - 340,695 Commercial 213,492 1,978 472 - 215,942 Consumer 5,100 - - - 5,100 Total $ 754,162 $ 10,303 $ 17,551 $ - $ 782,016 December 31, 2014 Residential Real Estate 1-4 Family First liens $ 155,676 $ 1,919 $ 3,719 $ - $ 161,314 Junior liens and lines of credit 43,559 29 207 - 43,795 Total 199,235 1,948 3,926 - 205,109 Residential real estate - construction 8,784 - 931 - 9,715 Commercial real estate 301,149 10,578 14,755 - 326,482 Commercial 170,774 5,413 2,884 - 179,071 Consumer 6,137 - 17 - 6,154 Total $ 686,079 $ 17,939 $ 22,513 $ - $ 726,531 |
Aging Of Payments Of The Loan Portfolio | (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans December 31, 2015 Residential Real Estate 1-4 Family First liens $ 159,998 $ 44 $ 416 $ 214 $ 674 $ 806 $ 161,478 Junior liens and lines of credit 50,541 217 50 - 267 105 50,913 Total 210,539 261 466 214 941 911 212,391 Residential real estate - construction 7,209 177 - - 177 502 7,888 Commercial real estate 330,953 5,713 196 152 6,061 3,681 340,695 Commercial 215,449 210 5 2 217 276 215,942 Consumer 5,041 55 4 - 59 - 5,100 Total $ 769,191 $ 6,416 $ 671 $ 368 $ 7,455 $ 5,370 $ 782,016 December 31, 2014 Residential Real Estate 1-4 Family First liens $ 158,197 $ 1,531 $ 297 $ 165 $ 1,993 $ 1,124 $ 161,314 Junior liens and lines of credit 43,424 174 28 - 202 169 43,795 Total 201,621 1,705 325 165 2,195 1,293 205,109 Residential real estate - construction 8,784 - - - - 931 9,715 Commercial real estate 317,576 336 - 140 476 8,430 326,482 Commercial 177,407 12 15 - 27 1,637 179,071 Consumer 6,056 59 22 17 98 - 6,154 Total $ 711,444 $ 2,112 $ 362 $ 322 $ 2,796 $ 12,291 $ 726,531 |
Impaired Financing Receivables | Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related December 31, 2015 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 1,523 $ 1,725 $ - $ - $ - Junior liens and lines of credit 105 133 - - - Total 1,628 1,858 - - - Residential real estate - construction 502 546 - - - Commercial real estate 14,431 15,007 - - - Commercial 267 330 9 10 9 Consumer - - - - - Total $ 16,828 $ 17,741 $ 9 $ 10 $ 9 December 31, 2014 Residential Real Estate 1-4 Family First liens $ 1,804 $ 2,002 $ - $ - $ - Junior liens and lines of credit 169 195 - - - Total 1,973 2,197 - - - Residential real estate - construction 931 977 - - - Commercial real estate 21,487 25,744 862 1,001 60 Commercial 78 80 1,274 1,990 171 Consumer - - - - - Total $ 24,469 $ 28,998 $ 2,136 $ 2,991 $ 231 Twelve Months Ended Twelve Months Ended Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 1,531 $ 13 $ 2,619 $ 4 $ 3,365 $ 4 Junior liens and lines of credit 105 - 136 - 417 - Total 1,636 13 2,755 4 3,782 4 Residential real estate - construction 505 - 686 - 544 - Commercial real estate 14,509 122 23,801 118 31,730 118 Commercial 278 - 1,890 - 2,112 - Consumer - - - - - - Total $ 16,928 $ 135 $ 29,132 $ 122 $ 38,168 $ 122 |
Troubled Debt Restructuring Loans | Trouble Debt Restructurings That Have Defaulted on Modified Terms in the (Dollars in thousands) Troubled Debt Restructurings Last Twelve Months Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment December 31, 2015 Residential real estate - construction 1 $ 502 $ 502 $ - - $ - Residential real estate 4 654 503 151 - - Commercial real estate 10 12,125 12,125 - - - Total 15 $ 13,281 $ 13,130 $ 151 - $ - December 31, 2014 Residential real estate - construction 1 $ 521 $ - $ 521 - $ - Residential real estate 5 699 673 26 - - Commercial 12 15,748 14,283 1,465 - - Total 18 $ 16,968 $ 14,956 $ 2,012 - $ - * The performing status is determined by the loan ’ s compliance with the modified terms. The re were no new TDR loans made during the year ended December 31, 201 5. The following table reports new TDR loans made during 201 4 , concession granted and the recorded investment as of December 31, 201 4 . (Dollars in thousands) New During Period Number of Pre-TDR After-TDR Recorded Twelve Months Ended December 31, 2014 Contracts Modification Modification Investment Concession Residential real estate 1 $ 168 $ 168 $ 168 multiple |
Allowance For Loan Losses, By Loan Segment | The following table shows, by loan class, the activity in the ALL, for the years ended December 31, 201 5 , 201 4 and 201 3 . Residential Real Estate 1-4 Family Junior Liens First & Lines Commercial (Dollars in thousands) Liens of Credit Construction Real Estate Commercial Consumer Unallocated Total Allowance at December 31, 2012 $ 744 $ 260 $ 882 $ 6,078 $ 1,437 $ 181 $ 797 $ 10,379 Charge-offs (547) (45) - (2,855) (363) (162) - (3,972) Recoveries 13 - - 203 100 59 - 375 Provision 703 13 (606) 1,770 925 60 55 2,920 Allowance at December 31, 2013 $ 913 $ 228 $ 276 $ 5,196 $ 2,099 $ 138 $ 852 $ 9,702 Allowance at December 31, 2013 $ 913 $ 228 $ 276 $ 5,196 $ 2,099 $ 138 $ 852 $ 9,702 Charge-offs (291) - (41) (408) (644) (189) - (1,573) Recoveries 21 - - 50 65 82 - 218 Provision 351 43 (21) 140 (5) 96 160 764 Allowance at December 31, 2014 $ 994 $ 271 $ 214 $ 4,978 $ 1,515 $ 127 $ 1,012 $ 9,111 Allowance at December 31, 2014 $ 994 $ 271 $ 214 $ 4,978 $ 1,515 $ 127 $ 1,012 $ 9,111 Charge-offs (43) (39) (21) - (270) (198) - (571) Recoveries 7 - 18 14 148 74 - 261 Provision 31 76 (17) 657 126 99 313 1,285 Allowance at December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 The following table shows, by loan class, the loans that were evaluated for the ALL under a specific reserve (individually) and those that were evaluated under a general reserve (collectively), and the amount of the allowance established in each category as of December 31, 201 5 and 201 4 . Residential Real Estate 1-4 Family Junior Liens First & Lines Commercial (Dollars in thousands) Liens of Credit Construction Real Estate Commercial Consumer Unallocated Total December 31, 2015 Loans evaluated for allowance: Individually $ 930 $ 51 $ 502 $ 14,309 $ 230 $ - $ - $ 16,022 Collectively 160,548 50,862 7,386 326,386 215,712 5,100 - 765,994 Total $ 161,478 $ 50,913 $ 7,888 $ 340,695 $ 215,942 $ 5,100 $ - $ 782,016 Allowance established for loans evaluated: Individually $ - $ - $ - $ - $ 9 $ - $ - $ 9 Collectively 989 308 194 5,649 1,510 102 1,325 10,077 Allowance at December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 December 31, 2014 Loans evaluated for allowance: Individually $ 1,171 $ 51 $ 931 $ 22,307 $ 1,298 $ - $ - $ 25,758 Collectively 160,143 43,744 8,784 304,175 177,773 6,154 - 700,773 Total $ 161,314 $ 43,795 $ 9,715 $ 326,482 $ 179,071 $ 6,154 $ - $ 726,531 Allowance established for loans evaluated: Individually $ - $ - $ - $ 60 $ 171 $ - $ - $ 231 Collectively 994 271 214 4,918 1,344 127 1,012 8,880 Allowance at December 31, 2014 $ 994 $ 271 $ 214 $ 4,978 $ 1,515 $ 127 $ 1,012 $ 9,111 |
Premises And Equipment (Tables)
Premises And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | December 31 (Dollars in thousands) Estimated Life 2015 2014 Land $ 3,000 $ 3,000 Buildings and leasehold improvements 15 - 30 years, or lease term 23,985 23,342 Furniture, fixtures and equipment 3 - 10 years 11,669 11,341 Total cost 38,654 37,683 Less: Accumulated depreciation (23,895) (22,637) Net premises and equipment $ 14,759 $ 15,046 |
Schedule Of Depreciation And Rent Expense | 2015 2014 2013 Depreciation expense $ 1,269 $ 1,360 $ 1,419 Rent expense on leases $ 735 $ 671 $ 673 |
Operating Leases Of Lessee Disclosure | (Dollars in thousands) 2016 $ 734 2017 678 2018 599 2019 499 2020 484 2021 and beyond 4,514 $ 7,508 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned [Abstract] | |
Summary Of Changes In Other Real Estate Owned | December 31 (Dollars in thousands) 2015 2014 Balance at beginning of the period $ 3,666 $ 4,708 Additions 3,626 82 Proceeds from dispositions (508) (868) Gain (loss) on sales, net 32 17 Valuation adjustment (365) (273) Balance at the end of the period $ 6,451 $ 3,666 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Schedule Of Other Intangible Assets | Core Deposit Customer List 2015 2014 2015 2014 Gross carrying amount $ 3,252 $ 3,252 $ - $ 589 Accumulated amortization (3,252) (3,071) - (589) Net carrying amount $ - $ 181 $ - $ - |
Amortization Expense | (Dollars in thousands) 2015 2014 2013 Amortization expense $ 181 $ 517 $ 425 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule Of Deposits | December 31 (Dollars in thousands) 2015 2014 Noninterest-bearing checking $ 152,095 $ 136,910 Interest-bearing checking 232,181 194,992 Money management 379,331 388,043 Savings 69,174 62,637 Total interest-bearing checking and savings 680,686 645,672 Retail time deposits 82,468 92,973 Brokered time deposits 3,263 5,626 Total time deposits 85,731 98,599 Total deposits $ 918,512 $ 881,181 Overdrawn deposit accounts reclassified as loans $ 128 $ 138 |
Maturity of Time Deposits Of $250,000 Or More | (Dollars in thousands) Maturity distribution: Within three months $ 3,584 Over three through six months 1,124 Over six through twelve months 800 Over twelve months 655 Total $ 6,163 |
Maturities Of Time Deposits | Retail Brokered Total Time Deposits Time Deposits Time Deposits (Dollars in thousands) 2016 $ 51,816 $ 2,650 $ 54,466 2017 16,142 361 16,503 2018 7,541 252 7,793 2019 2,343 - 2,343 2020 4,626 - 4,626 $ 82,468 $ 3,263 $ 85,731 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Borrowings [Abstract] | |
Short Term Borrowings | December 31 2015 2014 Repurchase FHLB Repurchase FHLB (Dollars in thousands) Agreements Open Repo Agreements Open Repo Ending balance $ - $ - $ 9,079 $ - Weighted average rate at year end - - 0.15% - Range of interest rates paid at year end - - 0.15% - Maximum month-end balance during the year $ - $ 3,500 $ 17,755 $ - Average balance during the year $ 25 $ 923 $ 8,539 $ - Weighted average interest rate during the year 0.15% 0.38% 0.15% - |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Federal Income Taxes [Abstract] | |
Schedule Of Deferred Tax Assets And Liabilities | (Dollars in thousands) December 31 Deferred Tax Assets 2015 2014 Allowance for loan losses $ 3,429 $ 3,098 Deferred compensation 1,017 1,041 Purchase accounting 22 21 Deferred loan fees and costs, net 160 160 Capital loss carryover 813 1,013 Other than temporary impairment of investments 376 369 Accumulated other comprehensive loss 1,917 1,597 AMT Credit 192 192 Other 423 750 8,349 8,241 Valuation allowance (1,000) (1,200) Total gross deferred tax assets 7,349 7,041 Deferred Tax Liabilities Core deposit intangibles - 61 Depreciation 334 233 Joint ventures and partnerships 37 39 Pension 2,199 2,331 Mortgage servicing rights 21 49 Total gross deferred tax liabilities 2,591 2,713 Net deferred tax asset $ 4,758 $ 4,328 |
Schedule Of Components Of Income Tax Expense (Benefit) | For the Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Current tax expense $ 2,382 $ 1,712 $ 947 Deferred tax expense (benefit) (111) 294 348 Income tax provision $ 2,271 $ 2,006 $ 1,295 |
Schedule Of Effective Income Tax Rate Reconciliation | For the Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Tax provision at statutory rate ( 34% ) $ 4,241 $ 3,539 $ 2,559 Income on tax-exempt loans and securities (1,566) (1,466) (1,212) Nondeductible interest expense relating to carrying tax-exempt obligations 22 28 30 Dividends received exclusion (2) (7) (15) Income from bank owned life insurance (182) (163) (185) Life insurance proceeds (35) - 111 Change in valuation allowance (200) - - Stock option compensation 25 - - Other, net (32) 75 7 Income tax provision $ 2,271 $ 2,006 $ 1,295 Effective income tax rate 18.2% 19.3% 17.2% |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | December 31 2015 2014 (Dollars in thousands) Net unrealized gains on securities $ 1,138 $ 2,352 Tax effect (387) (800) Net of tax amount 751 1,552 Net unrealized losses on derivatives - (191) Tax effect - 65 Net of tax amount - (126) Accumulated pension adjustment (6,777) (6,858) Tax effect 2,304 2,332 Net of tax amount (4,473) (4,526) Total accumulated other comprehensive loss $ (3,722) $ (3,100) |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Derivatives [Abstract] | |
Schedule Of Fair Value Of Derivative Instruments | Fair Value of Derivative Instruments (Dollars in thousands) Balance Sheet Date Type Location Fair Value December 31, 2015 Interest rate contracts Other liabilities $ - December 31, 2014 Interest rate contracts Other liabilities $ 191 |
Schedule Of Effect Of Derivative Instruments On The Statement Of Income | Derivatives in ASC Topic 815 Cash Flow Hedging Relationships (Dollars in thousands) Amount of Gain Location of or (Loss) Gain or (Loss) Recognized in Recognized in Income on Location of Amount of Gain Income on Derivatives Amount of Gain Gain or (Loss) or (Loss) Derivative (Ineffective (Ineffective Portion or (Loss) Reclassified from Reclassified from Portion and Amount and Amount Recognized in OCI Accumulated OCI Accumulated OCI Excluded from Excluded from net of tax on Derivative into Income into Income Effectiveness Effectiveness Date Type (Effective Portion) (Effective Portion) (Effective Portion) Testing) Testing) December 31, 2015 Interest rate contracts $ - Interest Expense $ (160) Other income (expense) $ - December 31, 2014 Interest rate contracts $ 244 Interest Expense $ (382) Other income (expense) $ - December 31, 2013 Interest rate contracts $ 358 Interest Expense $ (525) Other income (expense) $ - |
Schedule Of Derivative Instruments Subject To Master Netting Arrangement Or Repurchase Agreement | Gross Net Amounts Gross Amounts Not Offset in the Gross Amounts of Liabilities Statements of Condition Amounts of Offset in the Presented in the Recognized Statements of Statements of Financial Cash Collateral Net (Dollars in thousands) Liabilities Condition Condition Instruments Pledged Amount Interest Rate Swap Agreements December 31, 2015 $ - $ - $ - $ - $ - $ - December 31, 2014 $ 191 $ - $ 191 $ 191 $ - $ - December 31, 2013 $ 561 $ - $ 561 $ 561 $ - $ - |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans [Abstract] | |
Schedule Of Accumulated And Projected Benefit Obligations | For the Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Change in projected benefit obligation Benefit obligation at beginning of measurement year $ 19,679 $ 17,281 $ 18,648 Service cost 377 337 456 Interest cost 695 778 715 Actuarial loss (906) 2,529 (1,798) Benefits paid (1,236) (1,246) (740) Benefit obligation at end of measurement year 18,609 19,679 17,281 Change in plan assets Fair value of plan assets at beginning of measurement year 19,677 18,600 18,764 Actual return on plan assets net of expenses (140) 2,323 576 Employer contribution - - - Benefits paid (1,236) (1,246) (740) Fair value of plan assets at end of measurement year 18,301 19,677 18,600 Funded status of projected benefit obligation $ (308) $ (2) $ 1,319 |
Schedule Of Amounts Recognized In Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive For the Years Ended December 31 income (loss), net of tax 2015 2014 2013 Net actuarial loss $ (6,871) $ (7,078) $ (6,159) Prior service cost obligation 94 220 345 (6,777) (6,858) (5,814) Tax effect 2,304 2,332 1,977 Net amount recognized in accumulated other comprehensive loss $ (4,473) $ (4,526) $ (3,837) |
Schedule Of Net Benefit Costs | For the Years Ended December 31 Components of net periodic pension cost 2015 2014 2013 Service cost $ 377 $ 337 $ 456 Interest cost 695 778 715 Expected return on plan assets (1,182) (1,163) (1,247) Amortization of prior service cost (126) (126) (125) Recognized net actuarial loss 623 450 761 Net periodic pension cost $ 387 $ 276 $ 560 |
Schedule Of Assumptions Used | For the Years Ended December 31 2015 2014 2013 Assumptions used to determine benefit obligations: Discount rate 4.06% 3.72% 4.76% Rate of compensation increase 4.00% 4.00% 4.00% Assumptions used to determine net periodic benefit cost: Discount rate 3.72% 4.76% 3.89% Expected long-term return on plan assets 6.50% 6.50% 7.00% Rate of compensation increase 4.00% 4.00% 4.00% Asset allocations: Cash and cash equivalents 9% 4% 10% Common stocks 31% 33% 33% Corporate bonds 7% 8% 6% Municipal bonds 43% 45% 43% Investment fund - debt 8% 8% 7% Insurance contracts 2% 2% 1% Total 100% 100% 100% Shares of the Corporation's common stock held in the plan Value of shares (in thousands) $ 68 $ 63 $ 49 Percent of total plan assets 0.4% 0.3% 0.3% |
Schedule Of Amounts Recognized In Balance Sheet | The following table sets forth by level, within the fair value hierarchy, the Plan's investments at fair value as of December 31, 201 5 and 201 4 . For more information on the levels within the fair value hierarchy, please refer to Note 20 . (Dollars in Thousands) December 31, 2015 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,579 $ 1,579 $ - $ - Common stocks 5,691 5,691 - - Corporate bonds 1,336 - 1,336 - Municipal bonds 7,898 - 7,898 - Investment fund - debt 1,413 1,413 - - Cash value of life insurance 62 - - 62 Deposit in immediate participation guarantee contract 322 - - 322 Total assets $ 18,301 $ 8,683 $ 9,234 $ 384 (Dollars in Thousands) December 31, 2014 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 718 $ 718 $ - $ - Common stocks 6,437 6,437 - - Corporate bonds 1,656 - 1,656 - Municipal bonds 8,946 - 8,946 - Investment fund - equity 40 40 - - Investment fund - debt 1,503 1,503 - - Cash value of life insurance 62 - - 62 Deposit in immediate participation guarantee contract 315 - - 315 Total assets $ 19,677 $ 8,698 $ 10,602 $ 377 |
Schedule Of Changes In Fair Value Of Plan Assets | Deposits in Immediate Cash Value Participation of Life Guarantee Insurance Contract Balance - January 1, 2015 $ 62 $ 315 Unrealized gain (loss) relating to investments held at the reporting date - (33) Purchases, sales, issuances and settlement, net - 40 Balance - December 31, 2015 $ 62 $ 322 Balance - January 1, 2014 $ 91 $ 31 Unrealized gain (loss) relating to investments held at the reporting date 3 16 Purchases, sales, issuances and settlement, net (32) 268 Balance - December 31, 2014 $ 62 $ 315 |
Schedule Of Expected Benefit Payments | 2016 $ 1,616 2017 1,161 2018 1,036 2019 1,150 2020 1,521 2021-2022 5,398 $ 11,882 |
Stock Purchase Plans (Tables)
Stock Purchase Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Purchase Plans [Abstract] | |
Schedule Of Share-based Compensation, Stock Options, Activity | (Dollars in thousands except share and per share data) ESPP Weighted Average Aggregate Options Price Per Share Intrinsic Value Balance Outstanding at December 31, 2012 37,627 $ 12.64 Granted 34,417 15.24 Exercised (4,007) 12.84 Expired (35,758) 12.77 Balance Outstanding at December 31, 2013 32,279 $ 15.24 Granted 27,596 18.91 Exercised (3,793) 15.55 Expired (30,112) 15.40 Balance Outstanding at December 31, 2014 25,970 $ 18.91 Granted 23,379 23.42 Exercised (4,794) 19.17 Expired (22,269) 19.08 Balance Outstanding at December 31, 2015 22,286 $ 23.42 $ 2 ISOP Weighted Average Options Price Per Share Balance Outstanding at December 31, 2012 62,324 $ 23.93 Granted - - Exercised - - Forfeited (6,499) 21.51 Balance Outstanding at December 31, 2013 55,825 $ $24.21 Granted - - Exercised - - Forfeited (11,750) 27.67 Balance Outstanding at December 31, 2014 44,075 $ $23.29 Granted 17,500 22.05 Exercised - - Forfeited (8,500) 25.29 Balance Outstanding at December 31, 2015 53,075 $ $22.56 $ 50 |
Share-based Compensation Arrangement By Share-based Payment Award, Options, Vested And Expected To Vest, Outstanding And Exercisable | Options Weighted Outstanding Exercise Price or Weighted Average Average Remaining Stock Option Plan and Exercisable Price Range Exercise Price Life (years) Employee Stock Purchase Plan 22,286 $23.42 $ 23.42 0.5 Incentive Stock Option Plan 9,200 $16.11 $ 16.11 3.2 Incentive Stock Option Plan 17,500 $22.05 22.05 9.2 Incentive Stock Option Plan 13,425 $23.77 23.77 2.1 Incentive Stock Option Plan 12,950 $24.67 - $27.68 26.57 0.8 ISOP Total/Average 53,075 $ 22.56 4.3 |
Valuation Assumptions Using Black-Scholes Method | 2015 2014 2013 Incentive Stock Option Plan Options granted 17,500 - - Risk-free interest rate 1.47% - - Expected volatility of the Corporation's stock 28.64% - - Expected dividend yield 3.09% - - Expected life (in years) 5.25 - - Weighted average fair value of options granted $ 4.22 $ - $ - (Dollars in thousands) Compensation expense included in net income ESPP $ - $ - $ - ISOP 74 - - Total compensation expense included in net income $ 74 $ - $ - |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (Dollars in thousands) 2015 2014 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 218,192 $ 204,069 Consumer commitments to extend credit (secured) 41,604 38,654 Consumer commitments to extend credit (unsecured) 5,653 5,569 $ 265,449 $ 248,292 Standby letters of credit $ 25,944 $ 22,717 |
Fair Value Measurements And F48
Fair Value Measurements And Fair Values Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value, By Balance Sheet Grouping | December 31, 2015 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 39,166 $ 39,166 $ 39,166 $ - $ - Investment securities available for sale 159,473 159,473 233 159,240 - Restricted stock 782 782 - 782 - Loans held for sale 461 461 - 461 - Net loans 771,930 779,742 - - 779,742 Accrued interest receivable 3,164 3,164 - 3,164 - Financial liabilities: Deposits $ 918,512 $ 918,401 $ - $ 918,401 $ - Accrued interest payable 124 124 - 124 - December 31, 2014 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 48,593 $ 48,593 $ 48,593 $ - $ - Investment securities available for sale 171,751 171,751 1,053 170,698 - Restricted stock 438 438 - 438 - Loans held for sale 389 389 - 389 - Net loans 717,420 721,680 - - 721,680 Accrued interest receivable 3,038 3,038 - 3,038 - Mortgage servicing rights 143 143 - - 143 Financial liabilities: Deposits $ 881,181 $ 881,289 $ - $ 881,289 $ - Securities sold under agreements to repurchase 9,079 9,079 - 9,079 - Accrued interest payable 169 169 - 169 - Interest rate swaps 191 191 - 191 - |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | (Dollars in Thousands) Fair Value at December 31, 2015 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 233 $ - $ - $ 233 U.S. Government and Agency securities - 13,836 - 13,836 Municipal securities - 69,188 - 69,188 Trust Preferred Securities - 5,289 - 5,289 Agency mortgage-backed securities - 69,519 - 69,519 Private-label mortgage-backed securities - 1,372 - 1,372 Asset-backed securities - 36 - 36 Total assets $ 233 $ 159,240 $ - $ 159,473 (Dollars in Thousands) Fair Value at December 31, 2014 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 1,053 $ - $ - $ 1,053 U.S. Government and Agency securities - 15,963 - 15,963 Municipal securities - 68,366 - 68,366 Trust Preferred Securities - 5,137 - 5,137 Agency mortgage-backed securities - 79,494 - 79,494 Private-label mortgage-backed securities - 1,695 - 1,695 Asset-backed securities - 43 - 43 Total assets $ 1,053 $ 170,698 $ - $ 171,751 Liability Description Interest rate swaps $ - $ 191 $ - $ 191 Total liabilities $ - $ 191 $ - $ 191 |
Schedule Of Fair Value An A Nonrecurring Basis | (Dollars in Thousands) Fair Value at December 31, 2015 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ - $ - $ - $ - Premises held-for-sale (1) - - 225 225 Other real estate owned (1) - - 6,128 6,128 Total assets $ - $ - $ 6,353 $ 6,353 (Dollars in Thousands) Fair Value at December 31, 2014 Asset Description Level 1 Level 2 Level 3 Total Impaired loans (1) $ - $ - $ 3,469 $ 3,469 Other real estate owned (1) - - 760 760 Mortgage servicing rights - - 143 143 Total assets $ - $ - $ 4,372 $ 4,372 (1) Includes assets directly charged-down to fair value during the year-to-date period. |
Fair Value Inputs, Assets, Quantitative Information | (Dollars in Thousands) Quantitative Information about Level 3 Fair Value Measurements Range December 31, 2015 Fair Value Valuation Technique Unobservable Input (Weighted Average) Premises held-for-sale 225 Appraisal - - Other real estate owned 6,128 Appraisal - - Cost to sell 8% ( 8% ) Range December 31, 2014 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans $ 3,469 Appraisal Appraisal Adjustments 0% - 100% ( 26% ) Cost to sell 0% - 10% ( 5% ) Other real estate owned 760 Appraisal - - Cost to sell 8% ( 8% ) Mortgage servicing rights 143 Discounted Cash Flow |
Parent Company (Franklin Fina49
Parent Company (Franklin Financial Services Corporation) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company (Franklin Financial Services Corporation) Financial Information [Abstract] | |
Schedule Of Condensed Balance Sheet | Balance Sheets December 31 (Dollars in thousands) 2015 2014 Assets: Cash and cash equivalents $ 300 $ 414 Equity investment in subsidiaries 111,535 101,784 Other assets 33 1,323 Total assets $ 111,868 $ 103,521 Liabilities: Other liabilities $ 492 $ - Total liabilities 492 - Shareholders' equity 111,376 103,521 Total liabilities and shareholders' equity $ 111,868 $ 103,521 |
Schedule Of Condensed Income Statement | Statements of Income Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Income: Dividends from Bank subsidiary $ 300 $ 1,151 $ 2,529 Interest and dividend income - 15 31 Other income 171 - - OTTI loss on equity securities - - (50) Securities gains (losses), net - 82 30 471 1,248 2,540 Expenses: Operating expenses 986 795 752 Income before income taxes and equity in undistributed income of subsidiaries (515) 453 1,788 Income tax benefit 328 241 259 Equity in undistributed income of subsidiaries 10,391 7,708 4,185 Net income $ 10,204 $ 8,402 $ 6,232 |
Schedule Of Condensed Comprehensive Income Statement | Years ended December 31 (Dollars in thousands) 2015 2014 2013 Net Income $ 10,204 $ 8,402 $ 6,232 Securities: Unrealized (losses) gains arising during the period - (236) 425 Reclassification adjustment for net (gains) losses included in net income - (82) 20 Net unrealized (losses) gains - (318) 445 Tax effect - 108 (151) Net of tax amount - (210) 294 Total other comprehensive (loss) income of Parent - (210) 294 Other comprehensive (loss) income of subsidiaries (622) 1,806 (940) Total Comprehensive Income $ 9,582 $ 9,998 $ 5,586 |
Schedule Of Condensed Cash Flow Statement | Statements of Cash Flows Years Ended December 31 (Dollars in thousands) 2015 2014 2013 Cash flows from operating activities Net income $ 10,204 $ 8,402 $ 6,232 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiary (10,391) (7,708) (4,185) Stock option compensation 74 - - Securities (gains) losses - (82) (30) OTTI loss on equity securities - - 50 Decrease (increase) in other assets 1,800 498 (321) Net cash provided by operating activities 1,687 1,110 1,746 Cash flows from investing activities Proceeds from sales of investment securities - 568 312 Net cash provided by investing activities - 568 312 Cash flows from financing activities Dividends paid (3,139) (2,847) (2,810) Cash received from option exercises 92 59 52 Common stock issued under dividend reinvestment plan 1,246 923 926 Net cash used in financing activities (1,801) (1,865) (1,832) (Decrease) increase in cash and cash equivalents (114) (187) 226 Cash and cash equivalents as of January 1 414 601 375 Cash and cash equivalents as of December 31 $ 300 $ 414 $ 601 |
Quarterly Results Of Operatio50
Quarterly Results Of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results Of Operations [Abstract] | |
Schedule Of Quarterly Financial Information | (Dollars in thousands, except per share) Three months ended 2015 March 31 June 30 September 30 December 31 Interest income $ 8,526 $ 8,578 $ 8,720 $ 8,790 Interest expense 641 619 555 556 Net interest income 7,885 7,959 8,165 8,234 Provision for loan losses 325 310 400 250 Other noninterest income 2,934 3,108 2,733 3,150 Securities gains (including gain on conversion) 718 8 - - Noninterest expense 7,489 7,659 7,613 8,374 Income before income taxes 3,723 3,106 2,885 2,760 Federal income tax expense 839 632 306 493 Net Income $ 2,884 $ 2,474 $ 2,579 $ 2,267 Basic earnings per share $ 0.68 $ 0.58 $ 0.61 $ 0.53 Diluted earnings per share $ 0.68 $ 0.58 $ 0.61 $ 0.53 Dividends declared per share $ 0.17 $ 0.19 $ 0.19 $ 0.19 (Dollars in thousands, except per share) Three months ended 2014 March 31 June 30 September 30 December 31 Interest income $ 8,574 $ 8,761 $ 8,830 $ 8,629 Interest expense 830 817 799 734 Net interest income 7,744 7,944 8,031 7,895 Provision for loan losses 198 266 - 300 Other noninterest income 2,380 2,641 2,788 2,791 Securities gains (losses) - 221 (20) 59 Noninterest expense 7,688 7,615 7,748 8,251 Income before income taxes 2,238 2,925 3,051 2,194 Federal income tax expense 412 606 641 347 Net Income $ 1,826 $ 2,319 $ 2,410 $ 1,847 Basic earnings per share $ 0.44 $ 0.55 $ 0.57 $ 0.44 Diluted earnings per share $ 0.44 $ 0.55 $ 0.57 $ 0.44 Dividends declared per share $ 0.17 $ 0.17 $ 0.17 $ 0.17 |
Summary Of Significant Accoun51
Summary Of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)store$ / shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of community-banking offices | store | 22 | ||
Restricted stock | $ 782 | $ 438 | |
Days past due when accrual of interest is discontinued | 90 days | ||
Consumer loans typical charge-off period, in days | 180 days | ||
Servicing Asset | $ 21,600 | 29,500 | $ 34,600 |
Goodwill | $ 9,016 | $ 9,016 | |
Goodwill, Fair Value above carrying value | 38.00% | 37.00% | |
Intangibles | $ 181 | ||
Assets Held-in-trust | $ 586,700 | $ 605,800 | |
Share-based Compensation | 74 | ||
Federal Home Loan Bank of Pittsburgh [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted stock | $ 752 | ||
Restricted Stock Cost | $ / shares | $ 100 | ||
Federal Home Loan Bank of Pittsburgh [Member] | Non Required FHLB Stock [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted stock | $ 30 | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Designated Hedge Risk Percent Range | 125.00% | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Designated Hedge Risk Percent Range | 80.00% |
Summary Of Significant Accoun52
Summary Of Significant Accounting Policies (Schedule Of Earnings Per Share Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted average shares outstanding (basic) | 4,244 | 4,190 | 4,135 | ||||||||
Impact of common stock equivalents | 6 | 6 | 4 | ||||||||
Weighted average shares outstanding (diluted) | 4,250 | 4,196 | 4,139 | ||||||||
Anti-dilutive options excluded from calculation | 27 | 35 | 56 | ||||||||
Net income | $ 2,267 | $ 2,579 | $ 2,474 | $ 2,884 | $ 1,847 | $ 2,410 | $ 2,319 | $ 1,826 | $ 10,204 | $ 8,402 | $ 6,232 |
Basic earnings per share | $ 0.53 | $ 0.61 | $ 0.58 | $ 0.68 | $ 0.44 | $ 0.57 | $ 0.55 | $ 0.44 | $ 2.40 | $ 2.01 | $ 1.51 |
Diluted earnings per share | $ 0.53 | $ 0.61 | $ 0.58 | $ 0.68 | $ 0.44 | $ 0.57 | $ 0.55 | $ 0.44 | $ 2.40 | $ 2 | $ 1.51 |
Franklin Financial Service Corporation [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 10,204 | $ 8,402 | $ 6,232 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 86.8 | ||
Capital Ratios, Basel III, Capital Conservation Buffer | 0.125% | ||
Future Capital Ratios Basel III Capital Conservation Buffer | 2.50% | ||
Bank [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [1] | 6.50% | |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [2] | 8.00% | 6.00% |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | [3] | 5.00% | 5.00% |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [4] | 10.00% | 10.00% |
Pennsylvania Department Of Banking [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 6.00% | ||
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 10.00% | ||
[1] | As of December 31, 2014Regulatory RatiosAdequately CapitalizedWell CapitalizedActualMinimumMinimum(Dollars in thousands)AmountRatioAmountRatioAmountRatioTier 1 Risk-based Capital Ratio (2)Corporation$ 97,594 14.19%$ 27,504 4.00%N/AN/ABank 95,777 13.96% 27,448 4.00%$ 41,171 6.00% Total Risk-based Capital Ratio (3)Corporation$ 106,529 15.49%$ 55,007 8.00%N/AN/ABank 104,712 15.26% 54,895 8.00%$ 68,619 10.00%Tier 1 Leverage Ratio (4) Corporation$ 97,594 9.69%$ 40,279 4.00%N/AN/ABank 95,777 9.55% 40,109 4.00%$ 50,136 5.00%Common equity Tier 1 capital / total risk-weighted assets | ||
[2] | Tier 1 capital / total risk-weighted assets | ||
[3] | Tier 1 capital / average quarterly assets | ||
[4] | Total risk-based capital / total risk-weighted assets |
Regulatory Matters (Schedule Of
Regulatory Matters (Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | [1] | 15.08% | |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [1] | 4.50% | |
Tier 1 Risk-based Capital Ratio: Ratio | [2] | 15.08% | 14.19% |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [2] | 6.00% | 4.00% |
Total Risk-based Capital Ratio: Ratio | [3] | 16.34% | 15.49% |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [3] | 8.00% | 8.00% |
Tier 1 Leverage Ratio: Ratio | [4] | 10.59% | 9.69% |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | [4] | 4.00% | 4.00% |
Common Equity Tier 1 Risk-based Capital Ratio: Amount | [1] | $ 108,279 | |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum, Amount | [1] | 32,310 | |
Tier 1 Risk-based Capital Ratio: Amount | [2] | 108,279 | $ 97,594 |
Tier 1 Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | [2] | 43,080 | 27,504 |
Total Risk-based Capital Ratio: Amount | [3] | 117,298 | 106,529 |
Total Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | [3] | 57,440 | 55,007 |
Tier 1 Leverage Ratio: Amount | [4] | 108,279 | 97,594 |
Tier 1 Leverage Ratio: Minimum to be Adequately Capitalized Amount | [4] | $ 40,897 | $ 40,279 |
Bank [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | [1] | 14.76% | |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [1] | 4.50% | |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [1] | 6.50% | |
Tier 1 Risk-based Capital Ratio: Ratio | [2] | 14.76% | 13.96% |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [2] | 6.00% | 4.00% |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [2] | 8.00% | 6.00% |
Total Risk-based Capital Ratio: Ratio | [3] | 16.02% | 15.26% |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [3] | 8.00% | 8.00% |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [3] | 10.00% | 10.00% |
Tier 1 Leverage Ratio: Ratio | [4] | 10.37% | 9.55% |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | [4] | 4.00% | 4.00% |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | [4] | 5.00% | 5.00% |
Common Equity Tier 1 Risk-based Capital Ratio: Amount | [1] | $ 106,180 | |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum, Amount | [1] | 32,364 | |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum, Amount | [1] | 46,747 | |
Tier 1 Risk-based Capital Ratio: Amount | [2] | 106,180 | $ 95,777 |
Tier 1 Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | [2] | 43,151 | 27,448 |
Tier 1 Risk-based Capital Ratio: Minimum to be Well Capitalized Amount | [2] | 57,535 | 41,171 |
Total Risk-based Capital Ratio: Amount | [3] | 115,214 | 104,712 |
Total Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | [3] | 57,535 | 54,895 |
Total Risk-based Capital Ratio: Minimum to be Well Capitalized Amount | [3] | 71,919 | 68,619 |
Tier 1 Leverage Ratio: Amount | [4] | 106,180 | 95,777 |
Tier 1 Leverage Ratio: Minimum to be Adequately Capitalized Amount | [4] | 40,948 | 40,109 |
Tier 1 Leverage Ratio: Minimum to be Well Capitalized Amount | [4] | $ 51,185 | $ 50,136 |
[1] | As of December 31, 2014Regulatory RatiosAdequately CapitalizedWell CapitalizedActualMinimumMinimum(Dollars in thousands)AmountRatioAmountRatioAmountRatioTier 1 Risk-based Capital Ratio (2)Corporation$ 97,594 14.19%$ 27,504 4.00%N/AN/ABank 95,777 13.96% 27,448 4.00%$ 41,171 6.00% Total Risk-based Capital Ratio (3)Corporation$ 106,529 15.49%$ 55,007 8.00%N/AN/ABank 104,712 15.26% 54,895 8.00%$ 68,619 10.00%Tier 1 Leverage Ratio (4) Corporation$ 97,594 9.69%$ 40,279 4.00%N/AN/ABank 95,777 9.55% 40,109 4.00%$ 50,136 5.00%Common equity Tier 1 capital / total risk-weighted assets | ||
[2] | Tier 1 capital / total risk-weighted assets | ||
[3] | Total risk-based capital / total risk-weighted assets | ||
[4] | Tier 1 capital / average quarterly assets |
Restricted Cash Balances (Detai
Restricted Cash Balances (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash Balances [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 4.4 | $ 4.3 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)securityitem$ / shares | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Percent of shareholders equity benchmark for investments in a single issuer | 10.00% | ||
Restricted stock | $ 782 | $ 438 | |
Impairment write-down on securities recognized in earnings | $ 20 | $ 20 | $ 25 |
Number of temporarily impaired securities | security | 79 | 70 | |
Number of investments in a single issuer exceeding benchmark | item | 0 | ||
Securities pledged as collateral | $ 79,600 | $ 91,600 | |
Gain on conversion of investment security | 728 | ||
Gain on sale of securities | 736 | 280 | 33 |
Available-for-sale Securities | 159,473 | 171,751 | |
Proceeds from Sale and Maturity of Available-for-sale Securities | 1,381 | 5,421 | 5,188 |
Gross Unrealized Losses | 1,310 | 1,393 | |
Cumulative OTTI Charges | 555 | 535 | 515 |
Fair value of temporarily impaired securities | 47,345 | 45,488 | |
Franklin Financial Service Corporation [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale and Maturity of Available-for-sale Securities | $ 568 | $ 312 | |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Restricted stock | $ 752 | ||
Restricted stock per share | $ / shares | $ 100 | ||
Municipal Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of temporarily impaired securities | security | 15 | 23 | |
Available-for-sale Securities | $ 69,188 | $ 68,366 | |
Gross Unrealized Losses | 218 | 292 | |
Fair value of temporarily impaired securities | $ 10,591 | 15,092 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of investments | security | 1 | ||
Available-for-sale Securities | $ 233 | $ 1,053 | |
Trust Preferred Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Change in unrealized losses | $ 134 | ||
Number of temporarily impaired securities | security | 7 | 7 | |
Available-for-sale Securities | $ 5,289 | $ 5,137 | |
Gross Unrealized Gain (Loss) | (669) | ||
Gross Unrealized Losses | 669 | 803 | |
Fair value of temporarily impaired securities | 5,289 | $ 5,137 | |
Private-Label Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Impairment write-down on securities recognized in earnings | $ 20 | ||
Number of temporarily impaired securities | security | 1 | 1 | |
Available-for-sale Securities | $ 1,372 | $ 1,695 | |
Gross Unrealized Gain (Loss) | 37 | ||
Gross Unrealized Losses | 2 | 15 | |
Cumulative OTTI Charges | 555 | ||
Fair value of temporarily impaired securities | 246 | $ 540 | |
Private-Label Mortgage-Backed Securities [Member] | One Security [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Change in unrealized losses | $ 2 | ||
Number of temporarily impaired securities | security | 1 | ||
Agency Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of temporarily impaired securities | security | 42 | 23 | |
Available-for-sale Securities | $ 69,519 | $ 79,494 | |
Gross Unrealized Losses | 386 | 217 | |
Fair value of temporarily impaired securities | $ 26,371 | $ 17,503 |
Investments (Unrealized Gain (l
Investments (Unrealized Gain (loss) On Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 158,335 | $ 169,399 |
Gross Unrealized Gains | 2,448 | 3,745 |
Gross Unrealized Losses | (1,310) | (1,393) |
Available for sale | 159,473 | 171,751 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 164 | 274 |
Gross Unrealized Gains | 69 | 779 |
Available for sale | 233 | 1,053 |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,705 | 15,854 |
Gross Unrealized Gains | 164 | 173 |
Gross Unrealized Losses | (33) | (64) |
Available for sale | 13,836 | 15,963 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 67,851 | 66,832 |
Gross Unrealized Gains | 1,555 | 1,826 |
Gross Unrealized Losses | (218) | (292) |
Available for sale | 69,188 | 68,366 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,958 | 5,940 |
Gross Unrealized Losses | (669) | (803) |
Available for sale | 5,289 | 5,137 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 69,284 | 78,779 |
Gross Unrealized Gains | 621 | 932 |
Gross Unrealized Losses | (386) | (217) |
Available for sale | 69,519 | 79,494 |
Private-Label Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,335 | 1,675 |
Gross Unrealized Gains | 39 | 35 |
Gross Unrealized Losses | (2) | (15) |
Available for sale | 1,372 | 1,695 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 38 | 45 |
Gross Unrealized Losses | (2) | (2) |
Available for sale | $ 36 | $ 43 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Investments [Abstract] | |
Due in one year or less, Amortized cost | $ 2,138 |
Due after one year through five years, Amortized cost | 12,001 |
Due after five years through ten years, Amortized cost | 29,946 |
Due after ten years, Amortized cost | 43,467 |
Amortized Cost Contractual Maturities Subtotal | 87,552 |
Mortgage-backed securities, Amortized cost | 70,619 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 158,171 |
Due in one year or less, Fair value | 2,155 |
Due after one year through five years, Fair value | 12,192 |
Due after five years through ten years, Fair value | 30,643 |
Due after ten years, Fair value | 43,359 |
Fair Value Contractual Maturities Subtotal | 88,349 |
Mortgage-backed securities, Fair value | 70,891 |
Available-for-sale Securities, Debt Securities, Fair Value | $ 159,240 |
Investments (Composition Of Net
Investments (Composition Of Net Realized Securities Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Gross gains realized (including gain on conversion) | $ 736 | $ 284 | $ 185 |
Gross losses realized | (4) | (152) | |
Net gains realized | $ 736 | $ 280 | $ 33 |
Investments (Schedule Of Unreal
Investments (Schedule Of Unrealized Loss On Investments) (Details) $ in Thousands | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 25,262 | $ 14,959 |
Less than 12 months: Unrealized Losses | $ (251) | $ (93) |
Less than 12 months: Count | security | 40 | 23 |
12 months or more: Fair Value | $ 22,083 | $ 30,529 |
12 months or more: Unrealized Losses | $ (1,059) | $ (1,300) |
12 months or more: Count | security | 39 | 47 |
Fair Value | $ 47,345 | $ 45,488 |
Unrealized Losses | $ (1,310) | $ (1,393) |
Count | security | 79 | 70 |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 479 | $ 4 |
Less than 12 months: Unrealized Losses | $ (1) | |
Less than 12 months: Count | security | 3 | 1 |
12 months or more: Fair Value | $ 4,364 | $ 7,207 |
12 months or more: Unrealized Losses | $ (32) | $ (64) |
12 months or more: Count | security | 10 | 14 |
Fair Value | $ 4,843 | $ 7,211 |
Unrealized Losses | $ (33) | $ (64) |
Count | security | 13 | 15 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 5,806 | $ 5,651 |
Less than 12 months: Unrealized Losses | $ (35) | $ (33) |
Less than 12 months: Count | security | 8 | 9 |
12 months or more: Fair Value | $ 4,785 | $ 9,441 |
12 months or more: Unrealized Losses | $ (183) | $ (259) |
12 months or more: Count | security | 7 | 14 |
Fair Value | $ 10,591 | $ 15,092 |
Unrealized Losses | $ (218) | $ (292) |
Count | security | 15 | 23 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or more: Fair Value | $ 5,289 | $ 5,137 |
12 months or more: Unrealized Losses | $ (669) | $ (803) |
12 months or more: Count | security | 7 | 7 |
Fair Value | $ 5,289 | $ 5,137 |
Unrealized Losses | $ (669) | $ (803) |
Count | security | 7 | 7 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 18,977 | $ 9,304 |
Less than 12 months: Unrealized Losses | $ (215) | $ (60) |
Less than 12 months: Count | security | 29 | 13 |
12 months or more: Fair Value | $ 7,394 | $ 8,199 |
12 months or more: Unrealized Losses | $ (171) | $ (157) |
12 months or more: Count | security | 13 | 10 |
Fair Value | $ 26,371 | $ 17,503 |
Unrealized Losses | $ (386) | $ (217) |
Count | security | 42 | 23 |
Private-Label Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or more: Fair Value | $ 246 | $ 540 |
12 months or more: Unrealized Losses | $ (2) | $ (15) |
12 months or more: Count | security | 1 | 1 |
Fair Value | $ 246 | $ 540 |
Unrealized Losses | $ (2) | $ (15) |
Count | security | 1 | 1 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or more: Fair Value | $ 5 | $ 5 |
12 months or more: Unrealized Losses | $ (2) | $ (2) |
12 months or more: Count | security | 1 | 1 |
Fair Value | $ 5 | $ 5 |
Unrealized Losses | $ (2) | $ (2) |
Count | security | 1 | 1 |
Investments (Schedule Of Trust
Investments (Schedule Of Trust Preferred Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 158,335 | $ 169,399 |
Fair Value | 159,473 | 171,751 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 5,958 | 5,940 |
Fair Value | 5,289 | $ 5,137 |
Unrealized Gain (Loss) | $ (669) | |
Lowest Credit Rating Assigned: Standard & Poor's, BB Rating [Member] | Trust Preferred Securities: BankAmerica Cap III [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Jan. 15, 2027 | |
Amortized cost | $ 964 | |
Fair Value | 847 | |
Unrealized Gain (Loss) | $ (117) | |
Lowest Credit Rating Assigned: Standard & Poor's, BB Rating [Member] | Trust Preferred Securities: Huntington Cap Trust [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Feb. 1, 2027 | |
Amortized cost | $ 943 | |
Fair Value | 820 | |
Unrealized Gain (Loss) | $ (123) | |
Lowest Credit Rating Assigned: Standard & Poor's, BB Rating [Member] | Trust Preferred Securities: Huntington Cap Trust II [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Jun. 15, 2028 | |
Amortized cost | $ 895 | |
Fair Value | 785 | |
Unrealized Gain (Loss) | $ (110) | |
Lowest Credit Rating Assigned: Standard & Poor's, BB Rating [Member] | Trust Preferred Securities: Fleet Cap Tr V [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Dec. 18, 2028 | |
Amortized cost | $ 975 | |
Fair Value | 871 | |
Unrealized Gain (Loss) | $ (104) | |
Lowest Credit Rating Assigned: Standard & Poor's, BBB- Rating [Member] | Trust Preferred Securities: Chase Cap VI JPM [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Aug. 1, 2028 | |
Amortized cost | $ 964 | |
Fair Value | 849 | |
Unrealized Gain (Loss) | $ (115) | |
Lowest Credit Rating Assigned: Standard & Poor's, BBB+ Rating [Member] | Trust Preferred Securities: Corestates Captl Tr II [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Feb. 15, 2027 | |
Amortized cost | $ 939 | |
Fair Value | 859 | |
Unrealized Gain (Loss) | $ (80) | |
Lowest Credit Rating Assigned: Standard & Poor's, BBB Rating [Member] | Trust Preferred Securities: Wachovia Cap Trust II [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity | Jan. 15, 2027 | |
Amortized cost | $ 278 | |
Fair Value | 258 | |
Unrealized Gain (Loss) | $ (20) |
Investments (Private Label Mort
Investments (Private Label Mortgage Backed Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $ 158,335 | $ 169,399 | |
Available for sale | 159,473 | 171,751 | |
Cumulative OTTI Charges | 555 | 535 | $ 515 |
Private-Label Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | 1,335 | 1,675 | |
Available for sale | 1,372 | $ 1,695 | |
Unrealized Gain (Loss) | 37 | ||
Cumulative OTTI Charges | $ 555 | ||
Lowest Credit Rating Assigned: Standard & Poor's, BBB+ Rating [Member] | RALI2004-QS4 A7 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Origination Date | Mar. 1, 2004 | ||
Amortized cost | $ 1 | ||
Available for sale | $ 1 | ||
Credit Support % | 11.74% | ||
Lowest Credit Rating Assigned: Standard & Poor's, CCC Rating [Member] | MALT2004-6 7A1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Origination Date | Jun. 1, 2004 | ||
Amortized cost | $ 355 | ||
Available for sale | 363 | ||
Unrealized Gain (Loss) | $ 8 | ||
Credit Support % | 15.05% | ||
Lowest Credit Rating Assigned: Standard & Poor's, CC Rating [Member] | RALI2005-QS2 A1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Origination Date | Feb. 1, 2005 | ||
Amortized cost | $ 204 | ||
Available for sale | 217 | ||
Unrealized Gain (Loss) | $ 13 | ||
Credit Support % | 5.23% | ||
Cumulative OTTI Charges | $ 10 | ||
Lowest Credit Rating Assigned: Standard & Poor's, D Rating [Member] | RALI2006-QS4 A2 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Origination Date | Apr. 1, 2006 | ||
Amortized cost | $ 469 | ||
Available for sale | 480 | ||
Unrealized Gain (Loss) | 11 | ||
Cumulative OTTI Charges | $ 313 | ||
Lowest Credit Rating Assigned: Standard & Poor's, D Rating [Member] | GSR 2006-5F 2A1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Origination Date | May 1, 2006 | ||
Amortized cost | $ 58 | ||
Available for sale | 65 | ||
Unrealized Gain (Loss) | 7 | ||
Cumulative OTTI Charges | $ 15 | ||
Lowest Credit Rating Assigned: Standard & Poor's, D Rating [Member] | RALI2006-QS8 A1 [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Origination Date | Jul. 28, 2006 | ||
Amortized cost | $ 248 | ||
Available for sale | 246 | ||
Unrealized Gain (Loss) | (2) | ||
Cumulative OTTI Charges | $ 217 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairment, Credit Losses Recognized In Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | ||
Balance of cumulative credit-related OTTI at January 1 | $ 535 | $ 515 |
Additions for credit-related OTTI not previously recognized | $ 20 | $ 20 |
Additions increases for credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis | ||
Decrease for previously recognized credit-related OTTI because there was an intent to sell | ||
Reduction for increases in cash flows expected to be collected | ||
Balance of credit-related OTTI at December 31 | $ 555 | $ 535 |
Loans (Schedule Of Loans Outsta
Loans (Schedule Of Loans Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 782,016 | $ 726,531 | ||
Less: Allowance for loan losses | (10,086) | (9,111) | $ (9,702) | $ (10,379) |
Net Loans | 771,930 | 717,420 | ||
Net unamortized deferred loan costs (fees) | 436 | (76) | ||
Loans pledged as collateral for borrowings and commitments from: FHLB | 643,449 | 602,633 | ||
Loans pledged as collateral for borrowings and commitments from :Federal Reserve Bank | 45,111 | 56,367 | ||
Total loans pledged as collateral | 688,560 | 659,000 | ||
Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 212,391 | 205,109 | ||
Residential Real Estate - Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 7,888 | 9,715 | ||
Less: Allowance for loan losses | (194) | (214) | (276) | (882) |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 340,695 | 326,482 | ||
Less: Allowance for loan losses | (5,649) | (4,978) | (5,196) | (6,078) |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 215,942 | 179,071 | ||
Less: Allowance for loan losses | (1,519) | (1,515) | (2,099) | (1,437) |
Total Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 556,637 | 505,553 | ||
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,100 | 6,154 | ||
Less: Allowance for loan losses | (102) | (127) | (138) | (181) |
Consumer First Liens [Member] | Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 103,698 | 105,014 | ||
Consumer Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 44,996 | 38,132 | ||
Consumer [Member] | Residential Real Estate - Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 545 | 1,627 | ||
Commercial First Lien [Member] | Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 57,780 | 56,300 | ||
Commercial Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,917 | 5,663 | ||
Commercial [Member] | Residential Real Estate - Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 7,343 | 8,088 | ||
First Liens [Member] | Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 161,478 | 161,314 | ||
Less: Allowance for loan losses | (989) | (994) | $ (913) | $ (744) |
Junior Lines And Lines Of Credit [Member] | Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 50,913 | $ 43,795 |
Loans (Schedule Of Loans To Rel
Loans (Schedule Of Loans To Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans [Abstract] | ||
Balance at beginning of year | $ 18,904 | $ 18,353 |
New loans made | 4,327 | 1,973 |
Repayments | (4,277) | (1,422) |
Balance at end of year | $ 18,954 | $ 18,904 |
Loan Quality (Narrative) (Detai
Loan Quality (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Interest not recognized on nonaccrual loans | $ 335 | $ 752 | $ 96 |
Impaired loans | 16,800 | $ 26,600 | |
Maximum [Member] | Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans balances, added to general allocation pool | $ 250 |
Loan Quality (Internal Credit R
Loan Quality (Internal Credit Rating For The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 782,016 | $ 726,531 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 754,162 | 686,079 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 10,303 | 17,939 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 17,551 | 22,513 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 212,391 | 205,109 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 208,199 | 199,235 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 2,150 | 1,948 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 2,042 | 3,926 |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 161,478 | 161,314 |
Residential Real Estate [Member] | First Liens [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 157,514 | 155,676 |
Residential Real Estate [Member] | First Liens [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 2,122 | 1,919 |
Residential Real Estate [Member] | First Liens [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 1,842 | 3,719 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 50,913 | 43,795 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 50,685 | 43,559 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 28 | 29 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 200 | 207 |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 7,888 | 9,715 |
Residential Real Estate - Construction [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 7,386 | 8,784 |
Residential Real Estate - Construction [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 502 | 931 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 340,695 | 326,482 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 319,985 | 301,149 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 6,175 | 10,578 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 14,535 | 14,755 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 215,942 | 179,071 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 213,492 | 170,774 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 1,978 | 5,413 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 472 | 2,884 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 5,100 | 6,154 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 5,100 | 6,137 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 17 |
Loan Quality (Aging Of Payments
Loan Quality (Aging Of Payments Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 769,191 | $ 711,444 |
Loans Past Due and Still Accruing | 7,455 | 2,796 |
Non-accrual loans | 5,370 | 12,291 |
Total Loans | 782,016 | 726,531 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 6,416 | 2,112 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 671 | 362 |
Financing Receivables, 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 368 | 322 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 210,539 | 201,621 |
Loans Past Due and Still Accruing | 941 | 2,195 |
Non-accrual loans | 911 | 1,293 |
Total Loans | 212,391 | 205,109 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 261 | 1,705 |
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 466 | 325 |
Residential Real Estate [Member] | Financing Receivables, 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 214 | 165 |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 159,998 | 158,197 |
Loans Past Due and Still Accruing | 674 | 1,993 |
Non-accrual loans | 806 | 1,124 |
Total Loans | 161,478 | 161,314 |
Residential Real Estate [Member] | First Liens [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 44 | 1,531 |
Residential Real Estate [Member] | First Liens [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 416 | 297 |
Residential Real Estate [Member] | First Liens [Member] | Financing Receivables, 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 214 | 165 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 50,541 | 43,424 |
Loans Past Due and Still Accruing | 267 | 202 |
Non-accrual loans | 105 | 169 |
Total Loans | 50,913 | 43,795 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 217 | 174 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 50 | 28 |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,209 | 8,784 |
Loans Past Due and Still Accruing | 177 | |
Non-accrual loans | 502 | 931 |
Total Loans | 7,888 | 9,715 |
Residential Real Estate - Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 177 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 330,953 | 317,576 |
Loans Past Due and Still Accruing | 6,061 | 476 |
Non-accrual loans | 3,681 | 8,430 |
Total Loans | 340,695 | 326,482 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 5,713 | 336 |
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 196 | |
Commercial Real Estate [Member] | Financing Receivables, 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 152 | 140 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 215,449 | 177,407 |
Loans Past Due and Still Accruing | 217 | 27 |
Non-accrual loans | 276 | 1,637 |
Total Loans | 215,942 | 179,071 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 210 | 12 |
Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 5 | 15 |
Commercial [Member] | Financing Receivables, 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 2 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,041 | 6,056 |
Loans Past Due and Still Accruing | 59 | 98 |
Total Loans | 5,100 | 6,154 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 55 | 59 |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | $ 4 | 22 |
Consumer [Member] | Financing Receivables, 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | $ 17 |
Loan Quality (Impaired Financin
Loan Quality (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | $ 16,828 | $ 24,469 | |
Unpaid Principal Balance With No Allowance | 17,741 | 28,998 | |
Recorded Investment With Allowance | 9 | 2,136 | |
Unpaid Principal Balance With Allowance | 10 | 2,991 | |
Related Allowance | 9 | 231 | |
Average Recorded Investment | 16,928 | 29,132 | $ 38,168 |
Interest Income Recognized | 135 | 122 | 122 |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 1,628 | 1,973 | |
Unpaid Principal Balance With No Allowance | 1,858 | 2,197 | |
Average Recorded Investment | 1,636 | 2,755 | 3,782 |
Interest Income Recognized | 13 | 4 | 4 |
Residential Real Estate [Member] | First Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 1,523 | 1,804 | |
Unpaid Principal Balance With No Allowance | 1,725 | 2,002 | |
Average Recorded Investment | 1,531 | 2,619 | 3,365 |
Interest Income Recognized | 13 | 4 | 4 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 105 | 169 | |
Unpaid Principal Balance With No Allowance | 133 | 195 | |
Average Recorded Investment | 105 | 136 | 417 |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 502 | 931 | |
Unpaid Principal Balance With No Allowance | 546 | 977 | |
Average Recorded Investment | 505 | 686 | 544 |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 14,431 | 21,487 | |
Unpaid Principal Balance With No Allowance | 15,007 | 25,744 | |
Recorded Investment With Allowance | 862 | ||
Unpaid Principal Balance With Allowance | 1,001 | ||
Related Allowance | 60 | ||
Average Recorded Investment | 14,509 | 23,801 | 31,730 |
Interest Income Recognized | 122 | 118 | 118 |
Commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 267 | 78 | |
Unpaid Principal Balance With No Allowance | 330 | 80 | |
Recorded Investment With Allowance | 9 | 1,274 | |
Unpaid Principal Balance With Allowance | 10 | 1,990 | |
Related Allowance | 9 | 171 | |
Average Recorded Investment | $ 278 | $ 1,890 | $ 2,112 |
Consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | |||
Unpaid Principal Balance With No Allowance | |||
Recorded Investment With Allowance | |||
Unpaid Principal Balance With Allowance | |||
Related Allowance |
Loan Quality (Troubled Debt Res
Loan Quality (Troubled Debt Restructuring Loans) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)loancontract | Dec. 31, 2014USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | 15 | 18 | |
Troubled Debt Restructurings: Recorded Investment | $ 13,281 | $ 16,968 | |
Troubled Debt Restructurings, New During Period, Number of Contracts | contract | 0 | ||
Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 13,130 | 14,956 |
Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 151 | $ 2,012 |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | 1 | 1 | |
Troubled Debt Restructurings: Recorded Investment | $ 502 | $ 521 | |
Residential Real Estate - Construction [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 502 | |
Residential Real Estate - Construction [Member] | Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 521 | |
Residential Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | 4 | 5 | |
Troubled Debt Restructurings: Recorded Investment | $ 654 | $ 699 | |
Troubled Debt Restructurings, New During Period, Number of Contracts | contract | 1 | ||
Pre-TDR Modification | $ 168 | ||
After-TDR Modification | 168 | ||
Troubled Debt Restructurings, New During Period, Recorded Investment | 168 | ||
Residential Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | 503 | 673 |
Residential Real Estate [Member] | Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 151 | $ 26 |
Commercial Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | loan | 10 | ||
Troubled Debt Restructurings: Recorded Investment | $ 12,125 | ||
Commercial Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 12,125 | |
Commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 12 | ||
Troubled Debt Restructurings: Recorded Investment | $ 15,748 | ||
Commercial [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | 14,283 | |
Commercial [Member] | Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 1,465 | |
[1] | The performing status is determined by the loan's compliance with the modified terms. |
Loan Quality (Allowance For Loa
Loan Quality (Allowance For Loan Losses, By Loan Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | $ 9,111 | $ 9,702 | $ 9,111 | $ 9,702 | $ 10,379 | |||||||
Charge-offs | (571) | (1,573) | (3,972) | |||||||||
Recoveries | 261 | 218 | 375 | |||||||||
Provision | $ 250 | $ 400 | $ 310 | 325 | $ 300 | $ 266 | 198 | 1,285 | 764 | 2,920 | ||
Allowance, Ending Balance | 10,086 | 9,111 | 10,086 | 9,111 | 9,702 | |||||||
Loans evaluated for allowance individually | $ 16,022 | $ 25,758 | ||||||||||
Loans evaluated for allowance collectively | 765,994 | 700,773 | ||||||||||
Total Loans | 782,016 | 726,531 | ||||||||||
Allowance established for loans evaluated individually | 9 | 231 | ||||||||||
Allowance established for loan evaluated collectively | 10,077 | 8,880 | ||||||||||
Total Allowance | 10,086 | 9,111 | 9,111 | 9,702 | 9,111 | 9,702 | 10,379 | 10,086 | 9,111 | |||
Residential Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Total Loans | 212,391 | 205,109 | ||||||||||
Residential Real Estate - Construction [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 214 | 276 | 214 | 276 | 882 | |||||||
Charge-offs | (21) | (41) | ||||||||||
Recoveries | 18 | |||||||||||
Provision | (17) | (21) | (606) | |||||||||
Allowance, Ending Balance | 194 | 214 | 194 | 214 | 276 | |||||||
Loans evaluated for allowance individually | 502 | 931 | ||||||||||
Loans evaluated for allowance collectively | 7,386 | 8,784 | ||||||||||
Total Loans | 7,888 | 9,715 | ||||||||||
Allowance established for loan evaluated collectively | 194 | 214 | ||||||||||
Total Allowance | 194 | 214 | 214 | 276 | 214 | 276 | 882 | 194 | 214 | |||
Commercial Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 4,978 | 5,196 | 4,978 | 5,196 | 6,078 | |||||||
Charge-offs | (408) | (2,855) | ||||||||||
Recoveries | 14 | 50 | 203 | |||||||||
Provision | 657 | 140 | 1,770 | |||||||||
Allowance, Ending Balance | 5,649 | 4,978 | 5,649 | 4,978 | 5,196 | |||||||
Loans evaluated for allowance individually | 14,309 | 22,307 | ||||||||||
Loans evaluated for allowance collectively | 326,386 | 304,175 | ||||||||||
Total Loans | 340,695 | 326,482 | ||||||||||
Allowance established for loans evaluated individually | 60 | |||||||||||
Allowance established for loan evaluated collectively | 5,649 | 4,918 | ||||||||||
Total Allowance | 5,649 | 4,978 | 4,978 | 5,196 | 4,978 | 5,196 | 6,078 | 5,649 | 4,978 | |||
Commercial [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 1,515 | 2,099 | 1,515 | 2,099 | 1,437 | |||||||
Charge-offs | (270) | (644) | (363) | |||||||||
Recoveries | 148 | 65 | 100 | |||||||||
Provision | 126 | (5) | 925 | |||||||||
Allowance, Ending Balance | 1,519 | 1,515 | 1,519 | 1,515 | 2,099 | |||||||
Loans evaluated for allowance individually | 230 | 1,298 | ||||||||||
Loans evaluated for allowance collectively | 215,712 | 177,773 | ||||||||||
Total Loans | 215,942 | 179,071 | ||||||||||
Allowance established for loans evaluated individually | 9 | 171 | ||||||||||
Allowance established for loan evaluated collectively | 1,510 | 1,344 | ||||||||||
Total Allowance | 1,519 | 1,515 | 1,515 | 2,099 | 1,515 | 2,099 | 1,437 | 1,519 | 1,515 | |||
Consumer [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 127 | 138 | 127 | 138 | 181 | |||||||
Charge-offs | (198) | (189) | (162) | |||||||||
Recoveries | 74 | 82 | 59 | |||||||||
Provision | 99 | 96 | 60 | |||||||||
Allowance, Ending Balance | 102 | 127 | 102 | 127 | 138 | |||||||
Loans evaluated for allowance collectively | 5,100 | 6,154 | ||||||||||
Total Loans | 5,100 | 6,154 | ||||||||||
Allowance established for loan evaluated collectively | 102 | 127 | ||||||||||
Total Allowance | 102 | 127 | 127 | 138 | 127 | 138 | 181 | 102 | 127 | |||
Unallocated [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 1,012 | 852 | 1,012 | 852 | 797 | |||||||
Provision | 313 | 160 | 55 | |||||||||
Allowance, Ending Balance | 1,325 | 1,012 | 1,325 | 1,012 | 852 | |||||||
Allowance established for loan evaluated collectively | 1,325 | 1,012 | ||||||||||
Total Allowance | 1,325 | 1,012 | 1,012 | 852 | 1,012 | 852 | 797 | 1,325 | 1,012 | |||
First Liens [Member] | Residential Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 994 | 913 | 994 | 913 | 744 | |||||||
Charge-offs | (43) | (291) | (547) | |||||||||
Recoveries | 7 | 21 | 13 | |||||||||
Provision | 31 | 351 | 703 | |||||||||
Allowance, Ending Balance | 989 | 994 | 989 | 994 | 913 | |||||||
Loans evaluated for allowance individually | 930 | 1,171 | ||||||||||
Loans evaluated for allowance collectively | 160,548 | 160,143 | ||||||||||
Total Loans | 161,478 | 161,314 | ||||||||||
Allowance established for loan evaluated collectively | 989 | 994 | ||||||||||
Total Allowance | 989 | 994 | 994 | 913 | 994 | 913 | 744 | 989 | 994 | |||
Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 271 | 228 | 271 | 228 | 260 | |||||||
Charge-offs | (39) | (45) | ||||||||||
Provision | 76 | 43 | 13 | |||||||||
Allowance, Ending Balance | 308 | 271 | 308 | 271 | 228 | |||||||
Loans evaluated for allowance individually | 51 | 51 | ||||||||||
Loans evaluated for allowance collectively | 50,862 | 43,744 | ||||||||||
Total Loans | 50,913 | 43,795 | ||||||||||
Allowance established for loan evaluated collectively | 308 | 271 | ||||||||||
Total Allowance | $ 308 | $ 271 | $ 271 | $ 228 | $ 271 | $ 228 | $ 260 | $ 308 | $ 271 |
Premises And Equipment (Premise
Premises And Equipment (Premises And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 38,654 | $ 37,683 |
Less: Accumulated depreciation | (23,895) | (22,637) |
Net premises and equipment | 14,759 | 15,046 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 3,000 | 3,000 |
Building and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 23,985 | 23,342 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 11,669 | $ 11,341 |
Maximum [Member] | Building and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 30 years | |
Maximum [Member] | Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 10 years | |
Minimum [Member] | Building and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 15 years | |
Minimum [Member] | Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 3 years |
Premises And Equipment (Schedul
Premises And Equipment (Schedule Of Depreciation And Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises And Equipment [Abstract] | |||
Depreciation expense | $ 1,269 | $ 1,360 | $ 1,419 |
Rent expense on leases | $ 735 | $ 671 | $ 673 |
Premises And Equipment (Operati
Premises And Equipment (Operating Leases Of Lessee Disclosure) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Premises And Equipment [Abstract] | |
2,016 | $ 734 |
2,017 | 678 |
2,018 | 599 |
2,019 | 499 |
2,020 | 484 |
2021 and beyond | 4,514 |
Operating Leases, Future Minimum Payments Due, Total | $ 7,508 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate Owned [Abstract] | ||
Balance at beginning of the period | $ 3,666 | $ 4,708 |
Additions | 3,626 | 82 |
Proceeds from dispositions | (508) | (868) |
Gain (loss) on sales, net | 32 | 17 |
Valuation adjustment | (365) | (273) |
Balance at the end of the period | $ 6,451 | $ 3,666 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount | $ 181 | |
Core Deposit [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,252 | 3,252 |
Accumulated amortization | $ (3,252) | (3,071) |
Net carrying amount | 181 | |
Customer List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 589 | |
Accumulated amortization | $ (589) |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Abstract] | |||
Amortization of Intangible Assets | $ 181 | $ 517 | $ 425 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Noninterest-bearing checking | $ 152,095 | $ 136,910 |
Interest-bearing checking | 232,181 | 194,992 |
Money Management | 379,331 | 388,043 |
Savings | 69,174 | 62,637 |
Total interest-bearing checking and savings | 680,686 | 645,672 |
Retail time deposits | 82,468 | 92,973 |
Brokered time deposits | 3,263 | 5,626 |
Total time deposits | 85,731 | 98,599 |
Total Deposits | 918,512 | 881,181 |
Overdrawn deposit accounts reclassified as loans | $ 128 | $ 138 |
Deposits (Maturity Of Time Depo
Deposits (Maturity Of Time Deposits Of $250,000 Or More) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Within three months | $ 3,584 | |
Over three through six months | 1,124 | |
Over six through twelve months | 800 | |
Over twelve months | 655 | |
Total | $ 6,163 | $ 6,800 |
Deposits (Maturities Of Time De
Deposits (Maturities Of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Line Items] | ||
2,016 | $ 54,466 | |
2,017 | 16,503 | |
2,018 | 7,793 | |
2,019 | 2,343 | |
2,020 | 4,626 | |
Total time deposits | 85,731 | $ 98,599 |
Retail Time Deposits [Member] | ||
Deposits [Line Items] | ||
2,016 | 51,816 | |
2,017 | 16,142 | |
2,018 | 7,541 | |
2,019 | 2,343 | |
2,020 | 4,626 | |
Total time deposits | 82,468 | |
Brokered Time Deposits [Member] | ||
Deposits [Line Items] | ||
2,016 | 2,650 | |
2,017 | 361 | |
2,018 | 252 | |
Total time deposits | $ 3,263 |
Other Borrowings (Narrative) (D
Other Borrowings (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, General Description of Terms | The Bank's short-term borrowings are comprised of securities sold under agreements to repurchase (Repo) and a line-of-credit with the Federal Home Loan Bank of Pittsburgh (Open Repo Plus). Securities sold under agreements to repurchase are overnight borrowings between the Bank and its commercial and municipal depositors. These accounts reprice weekly. Open Repo Plus is a revolving term commitment used on an overnight basis. The term of this commitment may not exceed 364 days and it reprices daily at market rates |
Federal Home Loan Bank, Maximum Term Of Commitment | 364 days |
Maximum borrowing capacity with the FHLB | $ 252 |
Amount available to borrow at year-end | 252 |
Unsecured line of credit | 6 |
Available through federal reserve discount window | 24 |
Open Repo Line Of Credit [Member] | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount available to borrow at year-end | $ 35 |
Other Borrowings (Short Term Bo
Other Borrowings (Short Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Ending balance | $ 9,079 | |
Repurchase Agreements [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Ending balance | $ 9,079 | |
Weighted average rate at year end | 0.15% | |
Range of interest rates paid at year end | 0.15% | |
Maximum month-end balance during the year | $ 17,755 | |
Average balance during the year | $ 25 | $ 8,539 |
Weighted average interest rate during the year | 0.15% | 0.15% |
FHLB Open Repo [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maximum month-end balance during the year | $ 3,500 | |
Average balance during the year | $ 923 | |
Weighted average interest rate during the year | 0.38% |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Capital loss carryover | $ 813 | $ 1,013 | |
Penalties and interest expense | 0 | $ 0 | $ 0 |
Uncertain tax positions | 0 | ||
Capital Loss Carryforward [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax Credit Carryforward, Amount | 2,400 | ||
Tax Credit Carryforward, Valuation Allowance | $ 1,000 |
Federal Income Taxes (Schedule
Federal Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets | ||
Allowance for loan losses | $ 3,429 | $ 3,098 |
Deferred compensation | 1,017 | 1,041 |
Purchase accounting | 22 | 21 |
Deferred loan fees and costs, net | 160 | 160 |
Capital loss carryover | 813 | 1,013 |
Other than temporary impairment of investments | 376 | 369 |
Accumulated other comprehensive loss | 1,917 | 1,597 |
AMT Credit | 192 | 192 |
Other | 423 | 750 |
Deferred Tax Assets, Gross, Total | 8,349 | 8,241 |
Valuation allowance | (1,000) | (1,200) |
Total gross deferred tax assets | 7,349 | 7,041 |
Deferred Tax Liabilities | ||
Core deposit intangibles | 61 | |
Depreciation | 334 | 233 |
Joint ventures and partnerships | 37 | 39 |
Pension | 2,199 | 2,331 |
Mortgage servicing rights | 21 | 49 |
Total gross deferred tax liabilities | 2,591 | 2,713 |
Net deferred tax asset | $ 4,758 | $ 4,328 |
Federal Income Taxes (Schedul85
Federal Income Taxes (Schedule Of Components Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Income Taxes [Abstract] | |||||||||||
Current tax expense | $ 2,382 | $ 1,712 | $ 947 | ||||||||
Deferred tax expense (benefit) | (111) | 294 | 348 | ||||||||
Income tax provision | $ 493 | $ 306 | $ 632 | $ 839 | $ 347 | $ 641 | $ 606 | $ 412 | $ 2,271 | $ 2,006 | $ 1,295 |
Federal Income Taxes (Schedul86
Federal Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Income Taxes [Abstract] | |||||||||||
Tax provision at statutory rate | $ 4,241 | $ 3,539 | $ 2,559 | ||||||||
Income on tax-exempt loans and securities | (1,566) | (1,466) | (1,212) | ||||||||
Nondeductible interest expense relating to carrying tax-exempt obligations | 22 | 28 | 30 | ||||||||
Dividends received exclusion | (2) | (7) | (15) | ||||||||
Income from bank owned life insurance | (182) | (163) | (185) | ||||||||
Life insurance proceeds | (35) | 111 | |||||||||
Change in valuation allowance | (200) | ||||||||||
Stock option compensation | 25 | ||||||||||
Other, net | (32) | 75 | 7 | ||||||||
Income tax provision | $ 493 | $ 306 | $ 632 | $ 839 | $ 347 | $ 641 | $ 606 | $ 412 | $ 2,271 | $ 2,006 | $ 1,295 |
Effective income tax rate | 18.20% | 19.30% | 17.20% | ||||||||
Statutory rate | 34.00% | 34.00% | 34.00% |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Loss [Abstract] | |||
Net unrealized gains on securities | $ 1,138 | $ 2,352 | |
Tax effect | (387) | (800) | |
Net of tax amount | 751 | 1,552 | |
Net unrealized losses on derivatives | (191) | ||
Tax effect | 65 | ||
Net of tax amount | (126) | ||
Accumulated pension adjustment | (6,777) | (6,858) | $ (5,814) |
Tax effect | 2,304 | 2,332 | 1,977 |
Net of tax amount | (4,473) | (4,526) | $ (3,837) |
Total accumulated other comprehensive loss | $ (3,722) | $ (3,100) |
Financial Derivatives (Schedule
Financial Derivatives (Schedule Of Fair Value Of Derivative Instruments) (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Financial Derivatives [Abstract] | |
Fair Value | $ 191 |
Financial Derivatives (Schedu89
Financial Derivatives (Schedule Of Effect Of Derivative Instruments On The Statement Of Income) (Details) - Interest Rate Contract [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized in OCI net of tax on (Effective Portion) | $ 244 | $ 358 | |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (160) | $ (382) | $ (525) |
Financial Derivatives (Schedu90
Financial Derivatives (Schedule Of Derivative Instruments Subject To Master Netting Arrangement Or Repurchase Agreement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financial Derivatives [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 191 | $ 561 |
Net Amounts of Liabilities Presented in the Statements of Condition | 191 | 561 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | $ 191 | $ 561 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Related plan expense | $ 606 | $ 556 | $ 442 |
Term of service completed before eligible for coverage | 1 year 1000 hours | ||
Employer Matching Contribution, Percent of Match | 100.00% | ||
Maximum Annual Contributions Per Employee, Percent | 4.00% | ||
Additional Employer Matching Contribution Percent Of Deferral Match From Eligible Compensation | 50.00% | ||
Maximum Additional Annual Contributions Per Employee Deferral Percent | 2.00% | ||
Employer Discretionary Contribution Percent | 100.00% | ||
Maximum Discretionary Profit Sharing Percent Of Eligible Compensation | 2.00% | ||
Defined Benefit Plan General Guidelines Plan Asset Allocations | 5.00% | ||
Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 60.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 90.00% | ||
Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 10.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 30.00% | ||
Defined Benefit Plan General Guidelines Plan Asset Allocations | 25.00% |
Benefit Plans (Change In Projec
Benefit Plans (Change In Projected Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefit Plans [Abstract] | |||
Benefit obligation at beginning of measurement year | $ 19,679 | $ 17,281 | $ 18,648 |
Service cost | 377 | 337 | 456 |
Interest cost | 695 | 778 | 715 |
Actuarial loss | (906) | 2,529 | (1,798) |
Benefits paid | (1,236) | (1,246) | (740) |
Benefit obligation at end of measurement year | $ 18,609 | $ 19,679 | $ 17,281 |
Benefit Plans (Change In Plan A
Benefit Plans (Change In Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefit Plans [Abstract] | |||
Fair value of plan assets at beginning of measurement year | $ 19,677 | $ 18,600 | $ 18,764 |
Actual return on plan assets net of expenses | (140) | 2,323 | 576 |
Benefits paid | (1,236) | (1,246) | (740) |
Fair value of plan assets at end of measurement year | 18,301 | 19,677 | 18,600 |
Funded status of projected benefit obligation | $ (308) | $ (2) | $ 1,319 |
Benefit Plans (Schedule Of Amou
Benefit Plans (Schedule Of Amounts Recognized In Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Benefit Plans [Abstract] | |||
Net Actuarial loss | $ (6,871) | $ (7,078) | $ (6,159) |
Prior service cost obligation | 94 | 220 | 345 |
Accumulated pension adjustment | (6,777) | (6,858) | (5,814) |
Tax effect | 2,304 | 2,332 | 1,977 |
Net amount recognized in accumulated other comprehensive loss | $ (4,473) | $ (4,526) | $ (3,837) |
Benefit Plans (Schedule Of Net
Benefit Plans (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefit Plans [Abstract] | |||
Service cost | $ 377 | $ 337 | $ 456 |
Interest cost | 695 | 778 | 715 |
Expected return on plan assets | (1,182) | (1,163) | (1,247) |
Amortization of prior service cost | (126) | (126) | (125) |
Recognized net actuarial loss | 623 | 450 | 761 |
Net periodic pension cost | $ 387 | $ 276 | $ 560 |
Benefit Plans (Schedule Of Assu
Benefit Plans (Schedule Of Assumptions Used) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Assumptions used to determine benefit obligations: Discount rate | 4.06% | 3.72% | 4.76% |
Assumptions used to determine benefit obligations: Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Assumptions used to determine net periodic benefit cost: Discount rate | 3.72% | 4.76% | 3.89% |
Assumptions used to determine net periodic benefit cost: Expected long-term return on plan assets | 6.50% | 6.50% | 7.00% |
Assumptions used to determine net periodic benefit cost: Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Asset allocations as of measurement date: | 100.00% | 100.00% | 100.00% |
Value of shares (in thousands) | $ 68 | $ 63 | $ 49 |
Percent of total plan assets | 0.40% | 0.30% | 0.30% |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 9.00% | 4.00% | 10.00% |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 31.00% | 33.00% | 33.00% |
Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 7.00% | 8.00% | 6.00% |
Municipal Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 43.00% | 45.00% | 43.00% |
Investment Fund-Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 8.00% | 8.00% | 7.00% |
Insurance contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 2.00% | 2.00% | 1.00% |
Benefit Plans (Schedule Of Am97
Benefit Plans (Schedule Of Amount Recognized In Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 18,301 | $ 19,677 | $ 18,600 | $ 18,764 |
Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 18,301 | 19,677 | ||
Cash and Cash Equivalents [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,579 | 718 | ||
Equity Securities [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5,691 | 6,437 | ||
Corporate Debt Securities [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,336 | 1,656 | ||
Municipal Securities [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 7,898 | 8,946 | ||
Investment Fund-Equity [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 40 | |||
Investment Fund-Debt [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,413 | 1,503 | ||
Cash Value Of Life Insurance [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 62 | 62 | ||
Deposit In Immediate Participation Guarantee Contract [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 322 | 315 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 8,683 | 8,698 | ||
Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,579 | 718 | ||
Level 1 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5,691 | 6,437 | ||
Level 1 [Member] | Investment Fund-Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 40 | |||
Level 1 [Member] | Investment Fund-Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,413 | 1,503 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 9,234 | 10,602 | ||
Level 2 [Member] | Corporate Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,336 | 1,656 | ||
Level 2 [Member] | Municipal Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 7,898 | 8,946 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 384 | 377 | ||
Level 3 [Member] | Cash Value Of Life Insurance [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 62 | 62 | ||
Level 3 [Member] | Deposit In Immediate Participation Guarantee Contract [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 322 | $ 315 |
Benefit Plans (Schedule Of Chan
Benefit Plans (Schedule Of Changes In Fair Value Of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Value Of Life Insurance [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance | $ 62 | $ 91 |
Unrealized gain (loss) relating to investments held at the reporting date | 3 | |
Purchases, sales, issuances and settlement, net | (32) | |
Balance | $ 62 | 62 |
Deposit In Immediate Participation Guarantee Contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance | 315 | 31 |
Unrealized gain (loss) relating to investments held at the reporting date | (33) | 16 |
Purchases, sales, issuances and settlement, net | 40 | 268 |
Balance | $ 322 | $ 315 |
Benefit Plans (Schedule Of Expe
Benefit Plans (Schedule Of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Benefit Plans [Abstract] | |
2,016 | $ 1,616 |
2,017 | 1,161 |
2,018 | 1,036 |
2,019 | 1,150 |
2,020 | 1,521 |
2021-2022 | 5,398 |
Defined Benefit, Expected Future Benefit Payments | $ 11,882 |
Stock Purchase Plans (Narrative
Stock Purchase Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of service completed before eligible for coverage | 1 year 1000 hours | ||
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance | 250,000 | ||
Minimum percent of fair value market option price | 90.00% | ||
Expiration date, maximum term from grant date, in years | 1 year | ||
Number of shares available for fututre grants | 203,362 | ||
Grant price, percent of the stock's fair value at the time of award | 95.00% | ||
Compensation expense | $ 0 | $ 0 | $ 0 |
Option expiration date | Jul. 2, 2016 | ||
ISOP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance | 354,877 | ||
Minimum percent of fair value market option price | 100.00% | ||
Number of shares available for fututre grants | 337,377 | ||
Period of incentive stock option plan, in years | 10 years | ||
Option term, in years | 10 years | ||
Term of service completed before eligible for coverage | 6 months | ||
Shares issued | 17,500 | 0 | 0 |
Stock Purchase Plans (Schedule
Stock Purchase Plans (Schedule Of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Granted | 17,500 | ||
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance Outstanding | 25,970 | 32,279 | 37,627 |
Options Granted | 23,379 | 27,596 | 34,417 |
Options Exercised | (4,794) | (3,793) | (4,007) |
Options Expired | (22,269) | (30,112) | (35,758) |
Balance Outstanding | 22,286 | 25,970 | 32,279 |
Weighted Average Price Per Share: Balance Outstanding | $ 18.91 | $ 15.24 | $ 12.64 |
Weighted Average Price Per Share: Granted | 23.42 | 18.91 | 15.24 |
Weighted Average Price Per Share: Exercised | 19.17 | 15.55 | 12.84 |
Weighted Average Price Per Share: Expired | 19.08 | 15.40 | 12.77 |
Weighted Average Price Per Share: Balance Outstanding | $ 23.42 | $ 18.91 | $ 15.24 |
Aggregate Intrinsic Value | $ 2 | ||
ISOP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance Outstanding | 44,075 | 55,825 | 62,324 |
Options Granted | 17,500 | ||
Options Forfeited | (8,500) | (11,750) | (6,499) |
Balance Outstanding | 53,075 | 44,075 | 55,825 |
Weighted Average Price Per Share: Balance Outstanding | $ 23.29 | $ 24.21 | $ 23.93 |
Weighted Average Price Per Share: Granted | 22.05 | ||
Weighted Average Price Per Share: Forfeited | 25.29 | 27.67 | 21.51 |
Weighted Average Price Per Share: Balance Outstanding | $ 22.56 | $ 23.29 | $ 24.21 |
Aggregate Intrinsic Value | $ 50 |
Stock Purchase Plans (Share-bas
Stock Purchase Plans (Share-based Compensation Arrangement By Share-based Payment Award, Options, Vested And Expected To Vest, Outstanding And Exercisable) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 22,286 |
Price Range, Upper Range Limit | $ 23.42 |
Weighted Average Exercise Price | $ 23.42 |
Weighted Average Remaining Life (years) | 6 months |
ISOP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 53,075 |
Weighted Average Exercise Price | $ 22.56 |
Weighted Average Remaining Life (years) | 4 years 3 months 18 days |
ISOP [Member] | Exercise Price Or Price Range One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 9,200 |
Price Range, Upper Range Limit | $ 16.11 |
Weighted Average Exercise Price | $ 16.11 |
Weighted Average Remaining Life (years) | 3 years 2 months 12 days |
ISOP [Member] | Exercise Price Or Price Range Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 17,500 |
Price Range, Upper Range Limit | $ 22.05 |
Weighted Average Exercise Price | $ 22.05 |
Weighted Average Remaining Life (years) | 9 years 2 months 12 days |
ISOP [Member] | Exercise Price Or Price Range Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 13,425 |
Price Range, Upper Range Limit | $ 23.77 |
Weighted Average Exercise Price | $ 23.77 |
Weighted Average Remaining Life (years) | 2 years 1 month 6 days |
ISOP [Member] | Exercise Price Or Price Range Four [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 12,950 |
Price Range, Lower Range Limit | $ 24.67 |
Price Range, Upper Range Limit | 27.68 |
Weighted Average Exercise Price | $ 26.57 |
Weighted Average Remaining Life (years) | 9 months 18 days |
Stock Purchase Plans (Valuation
Stock Purchase Plans (Valuation Assumptions Using Black-Scholes Method) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 17,500 | ||
Risk-free interest rate | 1.47% | ||
Expected volatility of the Corporation's stock | 28.64% | ||
Expected dividend yield | 3.09% | ||
Expected life (in years) | 5 years 3 months | ||
Weighted average fair value of options granted | $ 4.22 | ||
Total compensation expense included in net income | $ 74 | ||
Franklin Financial Service Corporation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense included in net income | $ 74 | ||
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 23,379 | 27,596 | 34,417 |
ISOP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 17,500 | ||
Total compensation expense included in net income | $ 74 |
Deferred Compensation Agreem104
Deferred Compensation Agreement (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2006item | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Deferred compensation agreements with former directors | item | 3 | ||||
Deferred compensation agreements with current directors | item | 1 | ||||
Benefit payment period, in years | 10 years | ||||
Age at which benefit payments begin | 65 years | ||||
Obligation under deferred compensation agreements | $ 600 | ||||
Expense associated with agreements | 76 | $ 18 | $ 18 | ||
Expected future deferred compensation expenses | $ 0 | ||||
Fulton Bancshares Corporation [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Expense associated with agreements | $ 667 | ||||
Number of Agreements | item | 2 | ||||
Years after FDIC ruling, overturned decision, in years | 7 years | ||||
Expected future deferred compensation expenses | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | |
Repurchase plan period, in years | 1 year | ||
Shares held at cost | 383,440 | 388,234 | |
Common stock shares authorized | 15,000,000 | 15,000,000 | |
Common stock issued under dividend reinvestment plan, shares | 52,755 | 45,864 | 57,320 |
Common stock issued under dividend reinvestment plan | $ 1,246 | $ 923 | $ 926 |
Dividend Reinvestment Plan (DRIP) [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock shares authorized | 1,000,000 | ||
Common stock issued under dividend reinvestment plan, shares | 52,755 | ||
Common stock issued under dividend reinvestment plan | $ 1,200 | ||
Dividend Reinvestment plan shares remain to be issues | 639,585 | ||
Franklin Financial Service Corporation [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock issued under dividend reinvestment plan | $ 1,246 | $ 923 | $ 926 |
Commitments And Contingencie106
Commitments And Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 218,192 | $ 204,069 |
Consumer Commitments To Extend Credit (Secured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 41,604 | 38,654 |
Consumer Commitments To Extend Credit (Unsecured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 5,653 | 5,569 |
Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 265,449 | 248,292 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 25,944 | $ 22,717 |
Standby letters of credit extension period, in years | 1 year |
Fair Value Measurements And 107
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value, By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale, at fair value | $ 159,473 | $ 171,751 |
Interest rate swaps | 191 | |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 39,166 | 48,593 |
Investment securities available for sale, at fair value | 159,473 | 171,751 |
Restricted stock | 782 | 438 |
Loans held for sale | 461 | 389 |
Net loans | 771,930 | 717,420 |
Accrued interest receivable | 3,164 | 3,038 |
Mortgage servicing rights | 143 | |
Deposits | 918,512 | 881,181 |
Securities sold under agreements to repurchase | 9,079 | |
Accrued interest payable | 124 | 169 |
Interest rate swaps | 191 | |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 39,166 | 48,593 |
Investment securities available for sale, at fair value | 159,473 | 171,751 |
Restricted stock | 782 | 438 |
Loans held for sale | 461 | 389 |
Net loans | 779,742 | 721,680 |
Accrued interest receivable | 3,164 | 3,038 |
Mortgage servicing rights | 143 | |
Deposits | 918,401 | 881,289 |
Securities sold under agreements to repurchase | 9,079 | |
Accrued interest payable | 124 | 169 |
Interest rate swaps | 191 | |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 39,166 | 48,593 |
Investment securities available for sale, at fair value | 233 | 1,053 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale, at fair value | 159,240 | 170,698 |
Restricted stock | 782 | 438 |
Loans held for sale | 461 | 389 |
Accrued interest receivable | 3,164 | 3,038 |
Deposits | 918,401 | 881,289 |
Securities sold under agreements to repurchase | 9,079 | |
Accrued interest payable | 124 | 169 |
Interest rate swaps | 191 | |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loans | $ 779,742 | 721,680 |
Mortgage servicing rights | $ 143 |
Fair Value Measurements And 108
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | $ 159,473 | $ 171,751 |
Total assets | 159,473 | 171,751 |
Interest rate swaps | 191 | |
Total liabilities | 191 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 233 | 1,053 |
Total assets | 233 | 1,053 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 159,240 | 170,698 |
Total assets | 159,240 | 170,698 |
Interest rate swaps | 191 | |
Total liabilities | 191 | |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 233 | 1,053 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 233 | 1,053 |
U.S. Government And Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 13,836 | 15,963 |
U.S. Government And Agency Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 13,836 | 15,963 |
Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 69,188 | 68,366 |
Municipal Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 69,188 | 68,366 |
Trust Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 5,289 | 5,137 |
Trust Preferred Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 5,289 | 5,137 |
Agency Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 69,519 | 79,494 |
Agency Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 69,519 | 79,494 |
Private-Label Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 1,372 | 1,695 |
Private-Label Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 1,372 | 1,695 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 36 | 43 |
Asset-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | $ 36 | $ 43 |
Fair Value Measurements And 109
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value An A Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 6,353 | $ 4,372 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | |||
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | |||
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 6,353 | $ 4,372 | |
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 3,469 | |
Impaired Loans [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | ||
Impaired Loans [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | ||
Impaired Loans [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 3,469 | |
Premises Held-For-Sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 225 | |
Premises Held-For-Sale [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | ||
Premises Held-For-Sale [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | ||
Premises Held-For-Sale [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 225 | |
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 6,128 | $ 760 |
Other Real Estate Owned [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | ||
Other Real Estate Owned [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | ||
Other Real Estate Owned [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 6,128 | $ 760 |
Mortgage Servicing Rights [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 143 | ||
Mortgage Servicing Rights [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | |||
Mortgage Servicing Rights [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | |||
Mortgage Servicing Rights [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 143 | |
[1] | Includes assets directly charged-down to fair value during the year-to-date period. |
Fair Value Measurements And 110
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 6,353 | $ 4,372 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 6,353 | 4,372 | |
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | 3,469 | |
Impaired Loans [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 3,469 | |
Impaired Loans [Member] | Level 3 [Member] | Minimum [Member] | Appraisal Adjustments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 0.00% | ||
Impaired Loans [Member] | Level 3 [Member] | Minimum [Member] | Cost To Sell [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 0.00% | ||
Impaired Loans [Member] | Level 3 [Member] | Maximum [Member] | Appraisal Adjustments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 100.00% | ||
Impaired Loans [Member] | Level 3 [Member] | Maximum [Member] | Cost To Sell [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 10.00% | ||
Impaired Loans [Member] | Level 3 [Member] | Weighted Average [Member] | Appraisal Adjustments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 26.00% | ||
Impaired Loans [Member] | Level 3 [Member] | Weighted Average [Member] | Cost To Sell [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 5.00% | ||
Premises Held-For-Sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | 225 | |
Premises Held-For-Sale [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | 225 | |
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | 6,128 | $ 760 |
Other Real Estate Owned [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 6,128 | $ 760 |
Other Real Estate Owned [Member] | Level 3 [Member] | Cost To Sell [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 8.00% | 8.00% | |
Other Real Estate Owned [Member] | Level 3 [Member] | Weighted Average [Member] | Cost To Sell [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 8.00% | 8.00% | |
Mortgage Servicing Rights [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 143 | ||
Mortgage Servicing Rights [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 143 | |
[1] | Includes assets directly charged-down to fair value during the year-to-date period. |
Parent Company (Franklin Fin111
Parent Company (Franklin Financial Services Corporation) Financial Information (Schedule Of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 39,166 | $ 48,593 | $ 40,745 | $ 77,834 |
Available for sale | 159,473 | 171,751 | ||
Other Assets | 6,135 | 8,522 | ||
Total assets | 1,035,295 | 1,001,448 | ||
Other Liabilities | 5,407 | 7,667 | ||
Total liabilities | 923,919 | 897,927 | ||
Shareholders' equity | 111,376 | 103,521 | 95,388 | 91,634 |
Total liabilities and shareholders' equity | 1,035,295 | 1,001,448 | ||
Franklin Financial Service Corporation [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 300 | 414 | $ 601 | $ 375 |
Equity investment in subsidiaries | 111,535 | 101,784 | ||
Other Assets | 33 | 1,323 | ||
Total assets | 111,868 | 103,521 | ||
Other Liabilities | 492 | |||
Total liabilities | 492 | |||
Shareholders' equity | 111,376 | 103,521 | ||
Total liabilities and shareholders' equity | $ 111,868 | $ 103,521 |
Parent Company (Franklin Fin112
Parent Company (Franklin Financial Services Corporation) Financial Information (Schedule Of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other | $ 390 | $ 109 | $ 240 | ||||||||
OTTI loss on equity securities | (50) | ||||||||||
Securities gains, net | $ 8 | $ 718 | $ 59 | $ (20) | $ 221 | 8 | 280 | 33 | |||
Income before federal income tax expense | $ 2,760 | $ 2,885 | 3,106 | 3,723 | 2,194 | 3,051 | 2,925 | $ 2,238 | 12,475 | 10,408 | 7,527 |
Federal income tax expense | 493 | 306 | 632 | 839 | 347 | 641 | 606 | 412 | 2,271 | 2,006 | 1,295 |
Net income | $ 2,267 | $ 2,579 | $ 2,474 | $ 2,884 | $ 1,847 | $ 2,410 | $ 2,319 | $ 1,826 | 10,204 | 8,402 | 6,232 |
Franklin Financial Service Corporation [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from Bank subsidiary | 300 | 1,151 | 2,529 | ||||||||
Interest and dividend income | 15 | 31 | |||||||||
Other | 171 | ||||||||||
OTTI loss on equity securities | (50) | ||||||||||
Securities gains, net | 82 | 30 | |||||||||
Income | 471 | 1,248 | 2,540 | ||||||||
Operating Expenses | 986 | 795 | 752 | ||||||||
Income before federal income tax expense | (515) | 453 | 1,788 | ||||||||
Federal income tax expense | (328) | (241) | (259) | ||||||||
Equity in undistributed income of subsidiary | 10,391 | 7,708 | 4,185 | ||||||||
Net income | $ 10,204 | $ 8,402 | $ 6,232 |
Parent Company (Franklin Fin113
Parent Company (Franklin Financial Services Corporation) Financial Information (Schedule Of Condensed Comprehensive Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | $ 2,267 | $ 2,579 | $ 2,474 | $ 2,884 | $ 1,847 | $ 2,410 | $ 2,319 | $ 1,826 | $ 10,204 | $ 8,402 | $ 6,232 | |
Securities: | ||||||||||||
Unrealized (losses) gains arising during the period | [1] | (498) | 3,353 | (3,326) | ||||||||
Reclassification adjustment for (gains) losses included in net income | [1] | (716) | (260) | 42 | ||||||||
Net unrealized (losses) gains | [1] | (1,214) | 3,093 | (3,284) | ||||||||
Tax effect | [1] | 413 | (1,052) | 1,117 | ||||||||
Net of tax amount | [1] | (801) | 2,041 | (2,167) | ||||||||
Total other comprehensive (loss) income of Parent | (622) | 1,596 | (646) | |||||||||
Franklin Financial Service Corporation [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | 10,204 | 8,402 | 6,232 | |||||||||
Securities: | ||||||||||||
Unrealized (losses) gains arising during the period | (236) | 425 | ||||||||||
Reclassification adjustment for (gains) losses included in net income | (82) | 20 | ||||||||||
Net unrealized (losses) gains | (318) | 445 | ||||||||||
Tax effect | 108 | (151) | ||||||||||
Net of tax amount | (210) | 294 | ||||||||||
Total other comprehensive (loss) income of Parent | (210) | 294 | ||||||||||
Other comprehensive (loss) income of subsidiaries | (622) | 1,806 | (940) | |||||||||
Total Comprehensive Income | $ 9,582 | $ 9,998 | $ 5,586 | |||||||||
[1] | Securities / gain on conversion & securities (gains) losses, net $243, $88, and $14 for years ended December 31, 2015, 2014, and 2013, respectively. |
Parent Company (Franklin Fin114
Parent Company (Franklin Financial Services Corporation) Financial Information (Schedule Of Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 2,267 | $ 2,579 | $ 2,474 | $ 2,884 | $ 1,847 | $ 2,410 | $ 2,319 | $ 1,826 | $ 10,204 | $ 8,402 | $ 6,232 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock option compensation | 74 | ||||||||||
Securities gains, net | $ 8 | 718 | 59 | $ (20) | $ 221 | 8 | 280 | 33 | |||
OTTI loss on equity securities | 50 | ||||||||||
Net cash provided by operating activities | 13,679 | 14,356 | 15,397 | ||||||||
Proceeds from sales of investment securities | 1,381 | 5,421 | 5,188 | ||||||||
Net cash used in investing activities | (49,557) | (12,942) | (3,556) | ||||||||
Dividends paid | (3,139) | (2,847) | (2,810) | ||||||||
Cash received from option exercises | 92 | 59 | 52 | ||||||||
Common stock issued under dividend reinvestment plan | 1,246 | 923 | 926 | ||||||||
Net cash provided by (used in) financing activities | 26,451 | 6,434 | (48,930) | ||||||||
(Decrease) increase in cash and cash equivalents | (9,427) | 7,848 | (37,089) | ||||||||
Cash and cash equivalents as of January 1 | 48,593 | 40,745 | 48,593 | 40,745 | 77,834 | ||||||
Cash and cash equivalents as of December 31 | 39,166 | 48,593 | 39,166 | 48,593 | 40,745 | ||||||
Franklin Financial Service Corporation [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 10,204 | 8,402 | 6,232 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiary | (10,391) | (7,708) | (4,185) | ||||||||
Stock option compensation | 74 | ||||||||||
Securities gains, net | 82 | 30 | |||||||||
OTTI loss on equity securities | 50 | ||||||||||
Decrease (increase) in other assets | (1,800) | (498) | 321 | ||||||||
Net cash provided by operating activities | 1,687 | 1,110 | 1,746 | ||||||||
Proceeds from sales of investment securities | 568 | 312 | |||||||||
Net cash used in investing activities | 568 | 312 | |||||||||
Dividends paid | (3,139) | (2,847) | (2,810) | ||||||||
Cash received from option exercises | 92 | 59 | 52 | ||||||||
Common stock issued under dividend reinvestment plan | 1,246 | 923 | 926 | ||||||||
Net cash provided by (used in) financing activities | (1,801) | (1,865) | (1,832) | ||||||||
(Decrease) increase in cash and cash equivalents | (114) | (187) | 226 | ||||||||
Cash and cash equivalents as of January 1 | $ 414 | $ 601 | 414 | 601 | 375 | ||||||
Cash and cash equivalents as of December 31 | $ 300 | $ 414 | $ 300 | $ 414 | $ 601 |
Quarterly Results Of Operati115
Quarterly Results Of Operations (Schedule Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Results Of Operations [Abstract] | |||||||||||
Interest Income | $ 8,790 | $ 8,720 | $ 8,578 | $ 8,526 | $ 8,629 | $ 8,830 | $ 8,761 | $ 8,574 | $ 34,615 | $ 34,794 | $ 36,042 |
Interest Expense | 556 | 555 | 619 | 641 | 734 | 799 | 817 | 830 | 2,371 | 3,180 | 4,378 |
Net interest income | 8,234 | 8,165 | 7,959 | 7,885 | 7,895 | 8,031 | 7,944 | 7,744 | 32,244 | 31,614 | 31,664 |
Provision for loan losses | 250 | 400 | 310 | 325 | 300 | 266 | 198 | 1,285 | 764 | 2,920 | |
Other noninterest income | 3,150 | 2,733 | 3,108 | 2,934 | 2,791 | 2,788 | 2,641 | 2,380 | 12,652 | 11,131 | 10,033 |
Securities gains (including gain on conversion) | 8 | 718 | 59 | (20) | 221 | 8 | 280 | 33 | |||
Noninterest Expense | 8,374 | 7,613 | 7,659 | 7,489 | 8,251 | 7,748 | 7,615 | 7,688 | 31,136 | 31,573 | 31,250 |
Income before income taxes | 2,760 | 2,885 | 3,106 | 3,723 | 2,194 | 3,051 | 2,925 | 2,238 | 12,475 | 10,408 | 7,527 |
Federal income tax expense | 493 | 306 | 632 | 839 | 347 | 641 | 606 | 412 | 2,271 | 2,006 | 1,295 |
Net income | $ 2,267 | $ 2,579 | $ 2,474 | $ 2,884 | $ 1,847 | $ 2,410 | $ 2,319 | $ 1,826 | $ 10,204 | $ 8,402 | $ 6,232 |
Basic earnings per share | $ 0.53 | $ 0.61 | $ 0.58 | $ 0.68 | $ 0.44 | $ 0.57 | $ 0.55 | $ 0.44 | $ 2.40 | $ 2.01 | $ 1.51 |
Diluted earnings per share | 0.53 | 0.61 | 0.58 | 0.68 | 0.44 | 0.57 | 0.55 | 0.44 | 2.40 | 2 | 1.51 |
Dividend declared per share | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.74 | $ 0.68 | $ 0.68 |