Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
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 | 4,386,223 | |
Trading Symbol | fraf |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 14,626 | $ 21,433 |
Interest-bearing deposits in other banks | 14,844 | 37,170 |
Total cash and cash equivalents | 29,470 | 58,603 |
Debt securities available for sale, at fair value | 127,899 | 126,971 |
Equity securities | 403 | 365 |
Restricted stock | 624 | 456 |
Loans held for sale | 456 | 442 |
Loans | 967,296 | 943,700 |
Allowance for loan losses | (12,482) | (11,792) |
Net Loans | 954,814 | 931,908 |
Premises and equipment, net | 13,452 | 13,741 |
Bank owned life insurance | 23,237 | 22,980 |
Goodwill | 9,016 | 9,016 |
Other real estate owned | 2,665 | 2,598 |
Deferred tax asset, net | 4,035 | 5,803 |
Other assets | 11,470 | 6,930 |
Total assets | 1,177,541 | 1,179,813 |
Deposits | ||
Non-interest bearing checking | 203,553 | 196,853 |
Money management, savings and interest checking | 784,802 | 774,857 |
Time | 69,325 | 75,471 |
Total deposits | 1,057,680 | 1,047,181 |
Other liabilities | 8,689 | 17,488 |
Total liabilities | 1,066,369 | 1,064,669 |
Shareholders' equity | ||
Common stock, $1 par value per share, 15,000,000 shares authorized with 4,699,767 shares issued and 4,383,423 shares outstanding at June 30, 2018 and 4,689,099 shares issued and 4,354,788 shares outstanding at December 31, 2017 | 4,700 | 4,689 |
Capital stock without par value, 5,000,000 shares authorized with no shares issued and outstanding | ||
Additional paid-in capital | 41,079 | 40,396 |
Retained earnings | 78,514 | 82,218 |
Accumulated other comprehensive loss | (7,282) | (6,028) |
Treasury stock, 316,344 shares at June 30, 2018 and 334,311 shares at December 31, 2017, at cost | (5,839) | (6,131) |
Total shareholders' equity | 111,172 | 115,144 |
Total liabilities and shareholders' equity | $ 1,177,541 | $ 1,179,813 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 4,699,767 | 4,689,099 |
Common Stock, Shares, Outstanding | 4,383,423 | 4,354,788 |
Capital stock, no par value | $ 0 | $ 0 |
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 | 316,344 | 334,311 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Loans, including fees | $ 10,126 | $ 9,039 | $ 19,703 | $ 17,678 |
Interest and dividends on investments: | ||||
Taxable interest | 528 | 518 | 1,041 | 1,049 |
Tax exempt interest | 295 | 286 | 569 | 587 |
Dividend income | 4 | 7 | 10 | 20 |
Deposits and obligations of other banks | 100 | 88 | 218 | 149 |
Total interest income | 11,053 | 9,938 | 21,541 | 19,483 |
Interest expense | ||||
Deposits | 952 | 590 | 1,747 | 1,156 |
Short-term borrowings | 2 | 2 | 15 | |
Total interest expense | 954 | 590 | 1,749 | 1,171 |
Net interest income | 10,099 | 9,348 | 19,792 | 18,312 |
Provision for loan losses | 9,129 | 50 | 9,329 | 170 |
Net interest income after provision for loan losses | 970 | 9,298 | 10,463 | 18,142 |
Noninterest income | ||||
Investment and trust services fees | 1,464 | 1,342 | 2,861 | 2,637 |
Loan service charges | 217 | 309 | 449 | 455 |
Deposit service charges and fees | 574 | 585 | 1,148 | 1,178 |
Other service charges and fees | 353 | 332 | 686 | 656 |
Debit card income | 417 | 362 | 802 | 738 |
Increase in cash surrender value of life insurance | 129 | 131 | 257 | 262 |
Debt securities gains, net | 52 | 52 | 2 | |
Change in fair value of equity securities | (7) | 38 | ||
Other | 22 | 94 | 76 | 153 |
Total noninterest income | 3,221 | 3,155 | 6,369 | 6,081 |
Noninterest Expense | ||||
Salaries and employee benefits | 5,096 | 4,835 | 10,082 | 9,426 |
Occupancy, furniture and equipment, net | 787 | 761 | 1,602 | 1,576 |
Advertising | 341 | 294 | 768 | 541 |
Legal and professional | 442 | 381 | 771 | 671 |
Data processing | 604 | 535 | 1,200 | 1,076 |
Pennsylvania bank shares tax | 234 | 243 | 473 | 486 |
FDIC Insurance | 164 | 93 | 293 | 199 |
ATM/debit card processing | 237 | 222 | 476 | 440 |
Foreclosed real estate | 41 | 13 | 55 | 71 |
Telecommunications | 124 | 102 | 232 | 202 |
Provision for credit losses on off-balance sheet exposures | 2,361 | 2,361 | ||
Other | 757 | 682 | 1,524 | 1,430 |
Total noninterest expense | 11,188 | 8,161 | 19,837 | 16,118 |
(Loss) income before federal income taxes | (6,997) | 4,292 | (3,005) | 8,105 |
Federal income tax (benefit) expense | (1,816) | 950 | (1,326) | 1,743 |
Net (loss) income | $ (5,181) | $ 3,342 | $ (1,679) | $ 6,362 |
Per share | ||||
Basic earnings per share | $ (1.18) | $ 0.77 | $ (0.38) | $ 1.47 |
Diluted earnings per share | (1.18) | 0.77 | (0.38) | 1.46 |
Cash dividends declared | $ 0.27 | $ 0.24 | $ 0.51 | $ 0.45 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | |||||
Net (Loss) Income | $ (5,181) | $ 3,342 | $ (1,679) | $ 6,362 | |
Debt Securities: | |||||
Unrealized (losses) gains arising during the period | (292) | 567 | (1,335) | 1,021 | |
Reclassification adjustment included in net income | [1] | (52) | (52) | (2) | |
Net unrealized (losses) gains | (344) | 567 | (1,387) | 1,019 | |
Tax effect | 72 | (193) | 334 | (346) | |
Net of tax amount | (272) | 374 | (1,053) | 673 | |
Total other comprehensive (loss) income | (272) | 374 | (1,053) | 673 | |
Total Comprehensive (Loss) Income | (5,453) | $ 3,716 | (2,732) | 7,035 | |
Reclassification adjustment / Statement line item: Tax expense (benefit) | |||||
Debt securities gains, net | $ 11 | $ 11 | $ 1 | ||
[1] | Debt securities gains, net |
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, 2016 | $ 4,688 | $ 39,752 | $ 83,081 | $ (4,215) | $ (6,813) | $ 116,493 |
Net (Loss) Income | 6,362 | 6,362 | ||||
Other comprehensive income (loss) | 673 | 673 | ||||
Cash dividends declared | (1,945) | (1,945) | ||||
Treasury shares issued under employee stock purchase plan | 26 | 116 | 142 | |||
Treasury shares issued under dividend reinvestment plan | 211 | 317 | 528 | |||
Stock option compensation expense | 107 | 107 | ||||
Balance at Jun. 30, 2017 | 4,688 | 40,096 | 87,498 | (3,542) | (6,380) | 122,360 |
Balance at Dec. 31, 2017 | 4,689 | 40,396 | 82,218 | (6,028) | (6,131) | 115,144 |
Cumulative adjustment for fair value of equity securities | 201 | (201) | ||||
Net (Loss) Income | (1,679) | (1,679) | ||||
Other comprehensive income (loss) | (1,053) | (1,053) | ||||
Cash dividends declared | (2,226) | (2,226) | ||||
Acquisition of 2,605 shares of treasury stock | (88) | (88) | ||||
Treasury shares issued under employee stock purchase plan | 29 | 47 | 76 | |||
Treasury shares issued under dividend reinvestment plan | 303 | 333 | 636 | |||
Common stock issued under incentive stock option plan, 10,668 | 11 | 228 | 239 | |||
Stock option compensation expense | 123 | 123 | ||||
Balance at Jun. 30, 2018 | $ 4,700 | $ 41,079 | $ 78,514 | $ (7,282) | $ (5,839) | $ 111,172 |
Consolidated Statements Of Cha7
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.51 | $ 0.45 |
Acquisition of treasury stock, shares | 2,605 | |
Treasury shares issued under employee stock purchase plan, shares | 2,563 | 6,327 |
Treasury shares issued under dividend reinvestment plan, shares | 18,009 | 17,267 |
Common stock issued under stock option plans, shares | 10,668 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net (Loss) Income | $ (1,679) | $ 6,362 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 668 | 651 |
Net amortization of loans and investment securities | 877 | 802 |
Amortization and net change in mortgage servicing rights valuation | 27 | |
Provision for loan losses | 9,329 | 170 |
Change in fair value of equity securities | (38) | |
Debt securities gains, net | (52) | (2) |
Pay-out of legal settlement | (10,000) | |
Provision for credit losses on off-balance sheet exposures | 2,361 | |
Loans originated for sale | (9,813) | (3,571) |
Proceeds from sale of loans | 9,799 | 3,277 |
Write-down of other real estate owned | 6 | 49 |
Write-down on premises and equipment available for sale | 45 | |
Loss on sale of premises | 17 | |
Increase in cash surrender value of life insurance | (257) | (262) |
Stock option compensation | 123 | 107 |
Contribution to pension plan | (1,000) | |
Increase in other assets | (3,916) | (1,431) |
Increase in other liabilities | 1,331 | 2 |
Net cash (used in) provided by operating activities | (2,244) | 6,226 |
Cash flows from investing activities | ||
Proceeds from sales and calls of investment securities available for sale | 3,811 | 475 |
Proceeds from maturities and pay-downs of securities available for sale | 10,173 | 11,452 |
Purchase of investment securities available for sale | (17,328) | (3,900) |
Net (increase) decrease in restricted stock | (168) | 1,311 |
Net increase in loans | (32,271) | (7,448) |
Capital expenditures | (479) | (650) |
Proceeds from sale of other assets | 117 | 154 |
Net proceeds from the sale of other real estate | 32 | 1,751 |
Net cash (used in) provided by investing activities | (36,113) | 3,145 |
Cash flows from financing activities | ||
Net increase in demand deposits, interest-bearing checking, and savings accounts | 16,645 | 27,799 |
Net decrease in time deposits | (6,146) | (2,541) |
Net decrease in short-term borrowings | (24,270) | |
Dividends paid | (2,226) | (1,945) |
Treasury shares issued under employee stock purchase plan | 76 | 142 |
Treasury shares issued under dividend reinvestment plan | 636 | 528 |
Common stock issued under stock option plans | 239 | |
Net cash provided by (used in) financing activities | 9,224 | (287) |
(Decrease) increase in cash and cash equivalents | (29,133) | 9,084 |
Cash and cash equivalents as of January 1 | 58,603 | 36,665 |
Cash and cash equivalents as of June 30 | 29,470 | 45,749 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the year for: Interest on deposits and other borrowed funds | 1,750 | 1,177 |
Cash paid during the year for: Income taxes | $ 250 | $ 3,405 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | Note 1 - Basis of Presentation 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 (the Bank) and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank that has one wholly-owned subsidiary, Franklin Financial Properties Corp. Franklin Financial Properties Corp. holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions and account balances have been eliminated. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows as of June 30, 2018 , and for all other periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2017 Annual Report on Form 10-K. The consolidated results of operations for the six month period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. 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. Earnings per share are computed based on the weighted average number of shares outstanding during each period end. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Weighted average shares outstanding (basic) 4,373 4,331 4,366 4,326 Impact of common stock equivalents — 21 — 21 Weighted average shares outstanding (diluted) 4,373 4,352 4,366 4,347 Anti-dilutive options excluded from calculation — — — — Net (loss) income $ (5,181) $ 3,342 $ (1,679) $ 6,362 Basic (loss) earnings per share $ (1.18) $ 0.77 $ (0.38) $ 1.47 Diluted (loss) earnings per share $ (1.18) $ 0.77 $ (0.38) $ 1.46 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2018-02, Income Statement (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Under ASU 2018-02, entities are allowed, but not required, to reclassify from Accumulated Other Comprehensive Income (AOCI) to retained earnings stranded tax effects resulting from the new federal corporate income tax rate of the Tax Cuts and Jobs Act (the Act). The reclassification could include other stranded tax effects that related to the Act but do not directly related to the change in the federal rate. Tax effects that are stranded in AOCI for other reasons may not be reclassified. Entities also will have an option to adopt the standard retrospectively or in the period of adoption. January 1, 2018 The Corporation adopted the provisions of the ASU in the fourth quarter of 2017. The Company reclassified the disproportionate tax effect resulting from the Act by increasing retained earnings by $992 thousand and reducing AOCI by $992 thousand. ASU 2016-15, Statements of Cash Flow (Topic 320): Classification of Certain Cash Receipts and Cash Payments The standard clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are intended to reduce diversity in practice. The standard contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classifies them into more than one class of cash flows (including when reasonable judgement is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. January 1, 2018 The Corporation adopted the provisions of the ASU on January 1, 2018 and it had no material effect on the consolidated financial statements. ASU 2017-07, Employee Benefits Plan (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. January 1, 2018 The Corporation adopted the provisions of the ASU on January 1, 2018 and it had no material effect on the consolidated financial statements. The service cost is reported in Salaries and Benefits expense and the nonservice cost is included in Other Expense on the Consolidated Statement of Income, which totaled $70 thousand reclassified for the first six months of 2017. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The amendments in this Update (ASU 2014-09) establish a comprehensive revenue recognition standard. 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. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. January 1, 2018 The Corporation adopted this ASU on January 1, 2018, on a modified retrospective approach, and it did not have a material effect on the Corporation's consolidated financial statements. See Note 11. Revenue Recognition for more information. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard amends the guidance on the classification and measurement of financial instruments. Some of the amendments include the following: 1) requires equity investments 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. January 1, 2018 The Corporation adopted the provisions of the ASU on January 1, 2018 and it had no material effect on the consolidated financial statements. The Corporation reclassified the fair value of equity securities by increasing retained earnings by $201 thousand and decreasing AOCI by $201 thousand. In addition, according to the standard, the Corporation measured the fair value of the loan portfolio beginning March 31, 2018 using an exit price notion. See Note 9. Fair Value Measurements and Fair Values of Financial Instruments for more information. ASU 2016-02, Leases (Topic 842) From 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. January 1, 2019 The Corporation currently has real estate and equipment leases that it classifies as operating leases that are not recognized on the balance sheet. Under the new standard, these leases will move onto the balance sheet in the form of a lease liability (the present value of a lessee's obligation to make lease payments) and a right-of-use asset (an asset that represents the lessee's right to use a specified asset for the lease term). The offsetting transactions will gross-up the Consolidated Balance Sheet, but the Corporation has not yet determined this amount. The Corporation has acquired a lease accounting model to implement the standard. The model has been installed and will be used in a test mode during 2018, but the Corporation does not plan to early adopt the standard. The Corporation currently expects that the new standard will not have a material effect on its consolidated results of operations. ASU 2017-04, Goodwill (Topic 350) This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this standard, goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under the current guidance. January 1, 2020 We do not currently expect this guidance to have a material effect on the Corporation's consolidated financial statements based upon the most recent goodwill impairment analysis. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. January 1, 2020 We have formed an implementation team led by the Corporation's Risk Management function. The team is reviewing the requirements of the ASU and evaluating methods and models for implementation. The new standard will result in earlier recognition of additions to the allowance for loan losses and possibly a larger allowance for loan loss balance with a corresponding increase in the provision for loan losses in results of operations; however, the Corporation is continuing to evaluate the impact of the pending adoption of the new standard on its consolidated financial statements. The Corporation expects to have its methodology and process complete by the end of 2018 so that it can run the new CECL model during 2019 in test mode, prior to the 2020 implementation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 3. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss es included in shareholders' equity are as follows: June 30, December 31, 2018 2017 (Dollars in thousands) Net unrealized (losses) gains on debt securities $ (1,434) $ 154 Tax effect 301 (33) Net of tax amount (1,133) 121 Accumulated pension adjustment (7,784) (7,784) Tax effect 1,635 1,635 Net of tax amount (6,149) (6,149) Total accumulated other comprehensive loss $ (7,282) $ (6,028) |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | Note 4 . Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities available for sale as of June 30, 2018 and December 31, 2017 are as follows : (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair June 30, 2018 cost gains losses value U.S. Government and Agency securities $ 10,202 $ 16 $ (132) $ 10,086 Municipal securities 62,430 304 (709) 62,025 Trust preferred securities 4,064 — (97) 3,967 Agency mortgage-backed securities 49,874 63 (942) 48,995 Private-label mortgage-backed securities 796 65 — 861 Asset-backed securities 1,967 — (2) 1,965 $ 129,333 $ 448 $ (1,882) $ 127,899 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2017 cost gains losses value Equity securities $ 164 $ 201 $ — $ 365 U.S. Government and Agency securities 11,451 64 (43) 11,472 Municipal securities 57,374 650 (252) 57,772 Trust preferred securities 6,000 — (183) 5,817 Agency mortgage-backed securities 51,307 197 (567) 50,937 Private-label mortgage-backed securities 858 88 — 946 Asset-backed securities 28 — (1) 27 $ 127,182 $ 1,200 $ (1,046) $ 127,336 At June 30, 2018 and December 31, 2017 , the fair value of AFS securities pledged to secure public funds and trust deposits totaled $ 7 2 . 4 million and $ 84.1 million, respectively. The amortized cost and estimated fair value of debt securities at June 30, 2018 , by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. (Dollars in thousands) Amortized cost Fair value Due in one year or less $ 8,917 $ 8,968 Due after one year through five years 39,810 39,779 Due after five years through ten years 28,024 27,450 Due after ten years 1,912 1,846 78,663 78,043 Mortgage-backed securities 50,670 49,856 $ 129,333 $ 127,899 The composition of the net realized gains on AFS securities for the three and six months ended are as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Gross gains realized $ 63 $ — $ 63 $ 2 Gross losses realized (11) — (11) — Net gains realized $ 52 $ — $ 52 $ 2 Impairment : The AFS investment portfolio contained 177 securities with $96 million of temporarily impaired fair value and $1.9 million in unrealized losses at June 30, 2018. The total unrealized loss position has increased from a $1.0 million unrealized loss at year-end 2017. 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. The impairment identified on debt securities and subject to assessment at June 30, 2018, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following table reflects temporary impairment in the AFS 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 June 30, 2018 and December 31, 2017 : June 30, 2018 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 $ 6,061 $ (92) 8 $ 3,066 $ (40) 9 $ 9,127 $ (132) 17 Municipal securities 29,373 (421) 44 7,839 (288) 15 37,212 (709) 59 Trust preferred securities 2,765 (64) 3 920 (33) 1 3,685 (97) 4 Agency mortgage-backed securities 24,530 (375) 50 19,501 (567) 43 44,031 (942) 93 Asset-backed securities 1,959 (1) 3 4 (1) 1 1,963 (2) 4 Total temporarily impaired securities $ 64,688 $ (953) 108 $ 31,330 $ (929) 69 $ 96,018 $ (1,882) 177 December 31, 2017 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 $ 2,315 $ (11) 5 $ 3,528 $ (32) 10 $ 5,843 $ (43) 15 Municipal securities 13,767 (89) 22 7,507 (163) 14 21,274 (252) 36 Trust preferred securities 1,216 (12) 2 4,601 (171) 5 5,817 (183) 7 Agency mortgage-backed securities 16,287 (129) 29 20,563 (438) 39 36,850 (567) 68 Asset-backed securities — — — 4 (1) 1 4 (1) 1 Total temporarily impaired securities $ 33,585 $ (241) 58 $ 36,203 $ (805) 69 $ 69,788 $ (1,046) 127 The following table represents the cumulative credit losses on AFS securities recognized in earnings for: Six Months Ended (Dollars in thousands) June 30, 2018 2017 Balance of cumulative credit-related OTTI at January 1 $ 595 $ 595 Additions for credit-related OTTI not previously recognized — — 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 June 30 $ 595 $ 595 Equity Securities at fair value The Corporation owns one equity investment. At June 30, 2018, this investment was reported at fair value ( $403 thousand) with changes in value reported through income. At December 31, 2017, this investment was reported at fair value with changes in value recorded through other comprehensive income and was included in the Available for Sale Securities table of this note. Restricted Stock at Cost The Bank held $624 thousand of restricted stock at June 30, 2018. Except for $30 thousand, this investment represents stock in FHLB Pittsburgh. The Bank is required to hold this stock to be a member of FHLB and it is carried at cost of $100 per share. The level of FHLB stock held is determined by FHLB and is comprised of a minimum membership amount plus a variable activity amount. 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 its 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. 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 residential real estate loans include long-term loans to individuals and businesses secured by mortgages on the borrower’s real property and include home equity loans . 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 real estate loans include construction, owner and non-owner occupied properties and farm real estate. Commercial loans are made to businesses of various sizes for a variety of purposes including property, plant and equipment, working capital and 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 loans and unsecured personal lines of credit. A summary of loans outstanding, by class , at the end of the reporting periods is as follows: June 30, December 31, (Dollars in thousands) 2018 2017 Residential Real Estate 1-4 Family Consumer first liens $ 90,479 $ 97,159 Commercial first lien 61,867 61,275 Total first liens 152,346 158,434 Consumer junior liens and lines of credit 43,038 45,043 Commercial junior liens and lines of credit 5,491 5,328 Total junior liens and lines of credit 48,529 50,371 Total residential real estate 1-4 family 200,875 208,805 Residential real estate - construction Consumer 3,269 1,813 Commercial 9,208 8,088 Total residential real estate construction 12,477 9,901 Commercial real estate 464,900 428,428 Commercial 284,060 291,519 Total commercial 748,960 719,947 Consumer 4,984 5,047 967,296 943,700 Less: Allowance for loan losses (12,482) (11,792) Net Loans $ 954,814 $ 931,908 Included in the loan balances are the following: Net unamortized deferred loan costs $ 53 $ 98 Loans pledged as collateral for borrowings and commitments from: FHLB $ 761,407 $ 737,313 Federal Reserve Bank 35,235 35,740 $ 796,642 $ 773,053 |
Loan Quality and Allowance for
Loan Quality and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Loan Quality and Allowance for Loan Losses [Abstract] | |
Loan Quality and Allowance for Loan Losses | Note 6 . Loan Quality and Allowance for Loan Losses The following table presents, by c l ass , the activity in the Allowance for Loan Losses (ALL) for the periods ended: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at March 31, 2018 $ 1,043 $ 320 $ 260 $ 6,698 $ 2,073 $ 104 $ 1,491 $ 11,989 Charge-offs — — — — (8,736) (29) — (8,765) Recoveries — — — 16 108 5 — 129 Provision (21) (2) 22 314 8,788 27 1 9,129 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 Charge-offs — — — — (8,736) (55) — (8,791) Recoveries 1 — — 16 116 19 — 152 Provision (39) (12) 58 486 8,743 38 55 9,329 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 ALL at March 31, 2017 $ 1,100 $ 321 $ 274 $ 6,126 $ 1,984 $ 99 $ 1,374 $ 11,278 Charge-offs (5) — — (5) (2) (24) — (36) Recoveries — 1 — — 4 10 — 15 Provision (20) — 7 (69) 37 15 80 50 ALL at June 30, 2017 $ 1,075 $ 322 $ 281 $ 6,052 $ 2,023 $ 100 $ 1,454 $ 11,307 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 Charge-offs (13) — — (5) (2) (52) — (72) Recoveries 1 1 — — 106 26 — 134 Provision (18) (2) 57 (52) 26 26 133 170 ALL at June 30, 2017 $ 1,075 $ 322 $ 281 $ 6,052 $ 2,023 $ 100 $ 1,454 $ 11,307 T he following table presents, by c la ss , loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of June 30, 2018 and December 31, 2017 : Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total June 30, 2018 Loans evaluated for ALL: Individually $ 450 $ — $ 462 $ 10,754 $ 3,133 $ — $ — $ 14,799 Collectively 151,896 48,529 12,015 454,146 280,927 4,984 — 952,497 Total $ 152,346 $ 48,529 $ 12,477 $ 464,900 $ 284,060 $ 4,984 $ — $ 967,296 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ 225 $ — $ — $ 225 Collectively 1,022 318 282 7,028 2,008 107 1,492 12,257 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 December 31, 2017 Loans evaluated for ALL: Individually $ 459 $ — $ 466 $ 10,981 $ — $ — $ — $ 11,906 Collectively 157,975 50,371 9,435 417,447 291,519 5,047 — 931,794 Total $ 158,434 $ 50,371 $ 9,901 $ 428,428 $ 291,519 $ 5,047 $ — $ 943,700 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,060 330 224 6,526 2,110 105 1,437 11,792 ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 The following table shows additional information about those loans considered to be impaired at June 30, 2018 and December 31, 2017 : Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related June 30, 2018 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 828 $ 907 $ — $ — $ — Junior liens and lines of credit 23 23 — — — Total 851 930 — — — Residential real estate - construction 462 531 — — — Commercial real estate 10,904 11,416 — — — Commercial 2,406 9,843 825 825 225 Total $ 14,623 $ 22,720 $ 825 $ 825 $ 225 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 869 $ 950 $ — $ — $ — Junior liens and lines of credit — — — — — Total 869 950 — — — Residential real estate - construction 466 531 — — — Commercial real estate 11,061 11,541 — — — Commercial 187 201 — — — Total $ 12,583 $ 13,223 $ — $ — $ — The following table shows the average of impaired loans and related interest income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 831 $ 11 $ 818 $ 22 Junior liens and lines of credit 1,045 4 995 10 Total 1,876 15 1,813 32 Residential real estate - construction 463 — 465 — Commercial real estate 10,008 100 10,072 199 Commercial 11,835 — 5,927 — Total $ 24,182 $ 115 $ 18,277 $ 231 Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 1,168 $ 10 $ 1,039 $ 20 Junior liens and lines of credit 115 — 100 — Total 1,283 10 1,139 20 Residential real estate - construction 476 — 478 — Commercial real estate 12,043 102 12,104 218 Commercial 122 — 73 — Total $ 13,924 $ 112 $ 13,794 $ 238 The following table presents the 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 June 30, 2018 Residential Real Estate 1-4 Family First liens $ 151,803 $ 264 $ 141 $ 31 $ 436 $ 107 $ 152,346 Junior liens and lines of credit 48,351 148 7 23 178 — 48,529 Total 200,154 412 148 54 614 107 200,875 Residential real estate - construction 11,173 842 — — 842 462 12,477 Commercial real estate 460,742 2,264 — — 2,264 1,894 464,900 Commercial 280,600 79 150 — 229 3,231 284,060 Consumer 4,915 62 2 5 69 — 4,984 Total $ 957,584 $ 3,659 $ 300 $ 59 $ 4,018 $ 5,694 $ 967,296 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 157,247 $ 485 $ 534 $ — $ 1,019 $ 168 $ 158,434 Junior liens and lines of credit 50,202 139 30 — 169 — 50,371 Total 207,449 624 564 — 1,188 168 208,805 Residential real estate - construction 9,435 — — — — 466 9,901 Commercial real estate 425,806 421 347 — 768 1,854 428,428 Commercial 291,221 111 — — 111 187 291,519 Consumer 5,017 23 7 — 30 — 5,047 Total $ 938,928 $ 1,179 $ 918 $ — $ 2,097 $ 2,675 $ 943,700 The following table reports the internal credit rating for the loan portfolio. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing , and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system. Pass Special Mention Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total June 30, 2018 Residential Real Estate 1-4 Family First liens $ 151,677 $ — $ 669 $ — $ 152,346 Junior liens and lines of credit 48,506 — 23 — 48,529 Total 200,183 — 692 — 200,875 Residential real estate - construction 11,742 — 735 — 12,477 Commercial real estate 454,286 2,104 8,510 — 464,900 Commercial 280,059 — 4,001 — 284,060 Consumer 4,979 — 5 — 4,984 Total $ 951,249 $ 2,104 $ 13,943 $ — $ 967,296 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 157,395 $ — $ 1,039 $ — $ 158,434 Junior liens and lines of credit 50,371 — — — 50,371 Total 207,766 — 1,039 — 208,805 Residential real estate - construction 8,893 — 1,008 — 9,901 Commercial real estate 419,277 680 8,471 — 428,428 Commercial 289,916 — 1,603 — 291,519 Consumer 5,047 — — — 5,047 Total $ 930,899 $ 680 $ 12,121 $ — $ 943,700 The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans: Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment June 30, 2018 Residential real estate - construction 1 $ 462 $ — $ 462 — $ — Residential real estate 5 726 690 36 — — Commercial real estate 11 10,754 9,010 1,744 — — Total 17 $ 11,942 $ 9,700 $ 2,242 — $ — December 31, 2017 Residential real estate - construction 1 $ 466 $ 466 $ — — $ — Residential real estate 5 737 701 36 — — Commercial real estate 11 10,983 10,388 595 — — Total 17 $ 12,186 $ 11,555 $ 631 — $ — * The performing status is determined by the loan’s compliance with the modified terms . There were no new TDR loans during 201 8 and 2017 . |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2018 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 7. Other Real Estate Owned Changes in other real estate owned during the six months ended June 30, 2018 and 2017 were as follows: June 30, (Dollars in thousands) 2018 2017 Balance at beginning of the period $ 2,598 $ 4,915 Additions 105 — Proceeds from dispositions (32) (1,751) Loss on sales, net — — Valuation adjustment (6) (49) Balance at the end of the period $ 2,665 $ 3,115 |
Pension
Pension | 6 Months Ended |
Jun. 30, 2018 | |
Pension [Abstract] | |
Pension | Note 8 . Pension The components of pension expense for the periods presented are as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Components of net periodic cost: Service cost $ 90 $ 79 $ 180 $ 157 Interest cost 138 167 276 333 Expected return on plan assets (279) (268) (558) (536) Recognized net actuarial loss 176 137 352 274 Net period cost $ 125 $ 115 $ 250 $ 228 The Bank expects its pension expense to increase to approximately $500 thousand in 2018 compared to $459 thousand in 2017, due primarily to increases in interest costs and recognized net actuarial losses . A pension contribution of $1.0 million was made in first quarter of 2018. The service cost component of pension expense is in the salaries and employee benefits line on the income statement. All other cost components are in the other expense line on the income statement. |
Fair Value Measurements And Fai
Fair Value Measurements And Fair Values Of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value Measurements And Fair Values Of Financial Instruments | Note 9. 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 period-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. On January 1, 2018, the Corporation adopted ASU 2016-01, which requires the use of the exit price notion to measure the fair value of financial instruments. 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: June 30, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 29,470 $ 29,470 $ 29,470 $ — $ — Restricted stock 624 624 — 624 — Loans held for sale 456 456 456 Net loans 954,814 923,118 — — 923,118 Accrued interest receivable 4,068 4,068 — 4,068 — Financial assets, available for sale Debt securities 127,899 127,899 — 127,899 — Financial assets, fair value Equity securities 403 403 403 — — Financial liabilities: Deposits $ 1,057,680 $ 1,057,642 $ — $ 1,057,642 $ — Accrued interest payable 148 148 — 148 — Off balance sheet financial instruments — — — — — December 31, 2017 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 58,603 $ 58,603 $ 58,603 $ — $ — Investment securities available for sale 127,336 127,336 365 126,971 — Restricted stock 456 456 — 45 — Loans held for sale 442 442 — 442 — Net loans 931,908 929,891 — — 929,891 Accrued interest receivable 3,847 3,847 — 3,847 — Financial liabilities: Deposits $ 1,047,181 $ 1,046,476 $ — $ 1,046,476 $ — Accrued interest payable 149 149 — 149 — 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 June 30, 2018 and December 31, 2017 are as follows: (Dollars in Thousands Fair Value at June 30, 2018 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 403 $ — $ — $ 403 Available for sale: U.S. Government and Agency securities — 10,086 — 10,086 Municipal securities — 62,025 — 62,025 Trust Preferred Securities — 3,967 — 3,967 Agency mortgage-backed securities — 48,995 — 48,995 Private-label mortgage-backed securities — 861 — 861 Asset-backed securities — 1,965 — 1,965 Total assets $ 403 $ 127,899 $ — $ 128,302 (Dollars in Thousands) Fair Value at December 31, 2017 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 365 $ — $ — $ 365 U.S. Government and Agency securities — 11,472 — 11,472 Municipal securities — 57,772 — 57,772 Trust Preferred Securities — 5,817 — 5,817 Agency mortgage-backed securities — 50,937 — 50,937 Private-label mortgage-backed securities — 946 — 946 Asset-backed securities — 27 — 27 Total assets $ 365 $ 126,971 $ — $ 127,336 Investment securities: Level 1 securities represent equity securities that are valued using quoted market prices form 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 prices for similar securities. 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 June 30, 2018 and December 31, 2017 are as follows: (Dollars in Thousands) Fair Value at June 30, 2018 Asset Description Level 1 Level 2 Level 3 Total Impaired Loans (1) $ — $ — $ 2,219 $ 2,219 Total assets $ — $ — $ 2,219 $ 2,219 (Dollars in Thousands) Fair Value at December 31, 2017 Asset Description Level 1 Level 2 Level 3 Total Other real estate owned (1) $ — $ — $ 90 $ 90 Total assets $ — $ — $ 90 $ 90 (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. Other real estate : The fair value of other real estate, upon initial recognition, is estimated using Level 2 inputs within the fair value hierarchy based on observable market data and Level 3 inputs based on customized discounting criteria. In connection with the measurement and initial recognition of the foregoing assets, the Corporation recognizes charge-offs through the allowance for loan losses. Subsequent charge-offs are recognized as an expense. The Corporation did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis at June 30, 2018 . 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 June 30, 2018 . 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 June 30, 2018 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans (1) $ 2,219 Appraisal Appraisal Adjustments (2) 25% -50% ( 46% ) Cost to sell 0% -10% ( 8% ) December 31, 2017 Fair Value Valuation Technique Unobservable Input Weighted Average Other real estate owned (1) $ 90 Appraisal Cost to sell 8% (1) Includes assets directly charged-down to fair value during the year-to-date period. (2) Qualitative adjustments are discounts specific to each asset and are made as needed. |
Capital Ratios
Capital Ratios | 6 Months Ended |
Jun. 30, 2018 | |
Capital Ratios [Abstract] | |
Capital Ratios | Note 10. Capital Ratios Capital adequacy is currently defined by regulatory agencies through the use of several minimum required ratios. 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 0.625% , 1.25% for 2017, 1.875% for 2018 and 2.50% for 2019 and thereafter. The capital conservation buffer will be applicable to all of the capital ratios except for the Tier1 Leverage ratio. The capital conservation buffer is equal to the lowest value of the three applicable capital ratios less the regulatory minimum for each respective capital measurement. The Bank’s capital conservation buffer at June 30, 2018 was 6.51% (total risk-based capital 14.51% le ss 8.00%) compared to the 2018 regulatory buffer of 1.875%. Compliance with the capital conservation buffer is required in order to avoid limitations to certain capital distributions. As of June 30, 2018 , 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 summarizes regulatory capital information as of June 30, 2018 and December 31, 2017 for the Corporation and the Bank : Regulatory Ratios Adequately Well June 30, December 31, Capitalized Capitalized (Dollars in thousands) 2018 2017 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 13.25% 14.06% 4.500% N/A Farmers & Merchants Trust Company 13.13% 13.93% 4.500% 6.50% Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 13.25% 14.06% 6.000% N/A Farmers & Merchants Trust Company 13.13% 13.93% 6.000% 8.00% Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 14.51% 15.31% 8.000% N/A Farmers & Merchants Trust Company 14.39% 15.19% 8.000% 10.00% Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 9.32% 9.73% 4.000% N/A Farmers & Merchants Trust Company 9.24% 9.64% 4.000% 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 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 11. Revenue Recognition The Corporation adopted ASC 606 on January 1, 2018 using the modified retrospective approach applied to all contracts initiated on or after the effective date, and for contracts which have remaining obligations as of the effective date. Results for the reporting period beginning January 1, 2018 are presented under ASC 606 while the prior period results continue to be reported under legacy GAAP. Adoption of the standard did not have a material effect on any of the reported periods. The Corporation did not record a cumulative effect adjustment to the beginning retained earnings balance as of January 1, 2018 from the adoption of ASC 606 as it was determined the transition adjustment was immaterial to Corporation’s consolidated financial statements. All of the Corporation’s revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income as presented in our consolidated statements of income. Revenue generating activities that fall within the scope of ASC 606 are described as follows: Investment and Trust Service Fees - these represent fees from wealth management (assets under management), fees from the management and settlement of estates and commissions from the sale of investment and insurance products. · Asset management fees are generally assessed based on a tiered fee schedule, based on the value of assets under management, and are recognized monthly when the service obligation is completed. Fees recognized were $2.6 million for the first half of 2018 and $1.3 million for the second quarter of 2018. · Fees for estate management services are based on the estimated fair value of the estate. These fees are generally recognized monthly over an 18 month period that Management has determined to represent the average time to fulfill the performance obligations of the contract. Management has the discretion to adjust this time period as needed based upon the nature and complexity of an individual estate. Fees recognized were $142 thousand for the first six months of 2018 and $81 thousand for the second quarter of 2018. · Commissions from the sale of investment and insurance products are recognized upon the completion of the transaction. Fees recognized were $144 thousand for the first six months of 2018 and $76 thousand for the second quarter of 2018. Loan Service Charges – these represent fees on loans for services or charges that occur after the loan has been booked, for example, late payment fees. These also include fees for mortgages settled for a third party mortgage company. All of these fees are transactional in nature and are recognized upon completion of the transaction which represents the performance obligation. Deposit Service Charges and Fee s – these represent fees from deposit customers for transaction based, account maintenance, and overdraft services. Transaction based fees include, but are not limited to stop payment fees and overdraft fees. These fees are recognized at the time of the transaction when the performance obligation has been fulfilled. Account maintenance fees and account analysis fee are earned over the course of a month, representing the period of the performance obligation, and are recognized monthly. Debit Card Income – this represents interchange fees from cardholder transactions conducted through the card payment network. Cardholders use the debit card to conduct point-of-sale transactions that produce interchange fees. The fees are transaction based and the fee is recognized with the processing of the transaction. These fees are reported net of cardholder rewards. Other Service Charges and Fees – these are comprised primarily of merchant card fees, credit card fees, ATM surcharges and interchange fees and wire transfer fees. Merchant card fees represent fees the Bank earns from a third party for enrolling a customer in the processor’s program. Credit card fees represent a fee earned by the Bank for a successful referral to a card-issuing company. ATM surcharges and interchange fees are the result of Bank customers conducting ATM transactions that generate fee income and are processed through multiple card networks. All of these fees are transaction based and are recognized at the time of the transaction. Gains/Losses on the Sale of Other Real Estate – these are recognized when control of the property transfers to the buyer. Increases in the cash surrender value of life insurance and security transactions are not within the scope of ASC 606. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into longer-term revenue contracts with customers, and therefore, does not experience significant contract balances. Contract Acquisition Costs The Corporation expenses all contract acquisition costs as costs are incurred. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 1 Note 12. 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 for the periods presented: June 30, December 31, (Dollars in thousands) 2018 2017 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 246,279 $ 249,526 Consumer commitments to extend credit (secured) 45,632 44,866 Consumer commitments to extend credit (unsecured) 5,626 5,668 $ 297,537 $ 300,060 Standby letters of credit $ 29,146 $ 28,630 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 Management’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. As of June 30, 2018, the Bank established a $2.4 million allowance against letters of credit issued to a commercial borrower that declared bankruptcy in the second quarter as a result of apparent fraudulent activities within the business. For additional information see the Loan Quality section of Management’s Discussion and Analysis. Except for the liability recorded for standby letters of credit, liabilities for credit loss associated with off-balance sheet commitments were not material at June 30, 2018 and December 31, 2017. 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. Legal Proceedings The nature of the Corporation’s business generates a certain amount of litigation . We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probably and the amount of the loss can be reasonably estimated. When we are able to do so, we also determine estimates of possible losses, whether in excess of any accrued liability or where there is no accrued liability . These assessments are based on our analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties. As new information is obtained, we may change our assessments and, as a result, take or adjust the amounts of our accruals and change our estimates of possible losses or ranges of possible losses. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts that may be accrued or included in estimates of possible losses or ranges of possible losses may not represent the actual loss to the Corporation from any legal proceeding. Our exposure and ultimate losses may be higher, possibly significantly higher, than amounts we may accrue or amounts we may estimate . In management’s opinion, we do not anticipate, at the present time, that the ultimate aggregate liability, if any, arising out of all litigation to which the Corporation is a party will have a material adverse effect on our financial position. We cannot now determine, however, whether or not any claim asserted against us, other than the Kalan case described below, will have a material adverse effect on our results of operations in any future reporting period, which will depend on, amount other things, the amount of loss resulting from the claim and the amount of income otherwise reported for the reporting period. Thus, at June 30, 2018, we are unable to provide an evaluation of the likelihood of an unfavorable outcome or an estimate of the amount or range of potential loss with respect to such other matters and, accordingly, have not yet established any specific accrual for such other matters, except in connection with the Kalan case described below. No material proceedings are pending or are known to be threatened or contemplated against us by governmental authorities. On July 31, 2018, the court entered an order granting final approval of the settlement agreements in the Kalan et al. v. Farmers and Merchants Trust Company of Chambersburg et al. (Case No. 2:15-CV-01435-WB) case filed against F&M Trust in the United States District Court for the Eastern District of Pennsylvania in March, 2015. Among other things, the order also dismissed the case against F&M Trust with prejudice; certified the settlement class; and, permanently enjoined the named plaintiffs and the members of the settlement class from asserting any further claims arising out of or related to the claims alleged or that could have been alleged in the case against F&M Trust. The settlement agreements provide for the Bank to make a settlement payment of $10 million in full and final settlement of all such claims. The settlement agreements further provide for general releases by all parties. F&M Trust made the settlement payment in May, 2018, in accordance with the court’s earlier order preliminarily approving the settlement agreements. The settlement payment was funded out of available assets. The Corporation previously accrued the $10 million settlement payment in the Kalan case as an expense for the year ended December 31, 2017. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
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 (the Bank) and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank that has one wholly-owned subsidiary, Franklin Financial Properties Corp. Franklin Financial Properties Corp. holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions and account balances have been eliminated. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations, and cash flows as of June 30, 2018 , and for all other periods presented have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2017 Annual Report on Form 10-K. The consolidated results of operations for the six month period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete consolidated financial statements. 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. |
Earnings Per Share | Earnings per share are computed based on the weighted average number of shares outstanding during each period end. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Weighted average shares outstanding (basic) 4,373 4,331 4,366 4,326 Impact of common stock equivalents — 21 — 21 Weighted average shares outstanding (diluted) 4,373 4,352 4,366 4,347 Anti-dilutive options excluded from calculation — — — — Net (loss) income $ (5,181) $ 3,342 $ (1,679) $ 6,362 Basic (loss) earnings per share $ (1.18) $ 0.77 $ (0.38) $ 1.47 Diluted (loss) earnings per share $ (1.18) $ 0.77 $ (0.38) $ 1.46 |
Recent Accounting Pronounceme22
Recent Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements, Policy | Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2018-02, Income Statement (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Under ASU 2018-02, entities are allowed, but not required, to reclassify from Accumulated Other Comprehensive Income (AOCI) to retained earnings stranded tax effects resulting from the new federal corporate income tax rate of the Tax Cuts and Jobs Act (the Act). The reclassification could include other stranded tax effects that related to the Act but do not directly related to the change in the federal rate. Tax effects that are stranded in AOCI for other reasons may not be reclassified. Entities also will have an option to adopt the standard retrospectively or in the period of adoption. January 1, 2018 The Corporation adopted the provisions of the ASU in the fourth quarter of 2017. The Company reclassified the disproportionate tax effect resulting from the Act by increasing retained earnings by $992 thousand and reducing AOCI by $992 thousand. ASU 2016-15, Statements of Cash Flow (Topic 320): Classification of Certain Cash Receipts and Cash Payments The standard clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are intended to reduce diversity in practice. The standard contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classifies them into more than one class of cash flows (including when reasonable judgement is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. January 1, 2018 The Corporation adopted the provisions of the ASU on January 1, 2018 and it had no material effect on the consolidated financial statements. ASU 2017-07, Employee Benefits Plan (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. January 1, 2018 The Corporation adopted the provisions of the ASU on January 1, 2018 and it had no material effect on the consolidated financial statements. The service cost is reported in Salaries and Benefits expense and the nonservice cost is included in Other Expense on the Consolidated Statement of Income, which totaled $70 thousand reclassified for the first six months of 2017. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The amendments in this Update (ASU 2014-09) establish a comprehensive revenue recognition standard. 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. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. January 1, 2018 The Corporation adopted this ASU on January 1, 2018, on a modified retrospective approach, and it did not have a material effect on the Corporation's consolidated financial statements. See Note 11. Revenue Recognition for more information. ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard amends the guidance on the classification and measurement of financial instruments. Some of the amendments include the following: 1) requires equity investments 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. January 1, 2018 The Corporation adopted the provisions of the ASU on January 1, 2018 and it had no material effect on the consolidated financial statements. The Corporation reclassified the fair value of equity securities by increasing retained earnings by $201 thousand and decreasing AOCI by $201 thousand. In addition, according to the standard, the Corporation measured the fair value of the loan portfolio beginning March 31, 2018 using an exit price notion. See Note 9. Fair Value Measurements and Fair Values of Financial Instruments for more information. ASU 2016-02, Leases (Topic 842) From 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. January 1, 2019 The Corporation currently has real estate and equipment leases that it classifies as operating leases that are not recognized on the balance sheet. Under the new standard, these leases will move onto the balance sheet in the form of a lease liability (the present value of a lessee's obligation to make lease payments) and a right-of-use asset (an asset that represents the lessee's right to use a specified asset for the lease term). The offsetting transactions will gross-up the Consolidated Balance Sheet, but the Corporation has not yet determined this amount. The Corporation has acquired a lease accounting model to implement the standard. The model has been installed and will be used in a test mode during 2018, but the Corporation does not plan to early adopt the standard. The Corporation currently expects that the new standard will not have a material effect on its consolidated results of operations. ASU 2017-04, Goodwill (Topic 350) This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this standard, goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under the current guidance. January 1, 2020 We do not currently expect this guidance to have a material effect on the Corporation's consolidated financial statements based upon the most recent goodwill impairment analysis. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. January 1, 2020 We have formed an implementation team led by the Corporation's Risk Management function. The team is reviewing the requirements of the ASU and evaluating methods and models for implementation. The new standard will result in earlier recognition of additions to the allowance for loan losses and possibly a larger allowance for loan loss balance with a corresponding increase in the provision for loan losses in results of operations; however, the Corporation is continuing to evaluate the impact of the pending adoption of the new standard on its consolidated financial statements. The Corporation expects to have its methodology and process complete by the end of 2018 so that it can run the new CECL model during 2019 in test mode, prior to the 2020 implementation. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Basis Of Presentation [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Weighted average shares outstanding (basic) 4,373 4,331 4,366 4,326 Impact of common stock equivalents — 21 — 21 Weighted average shares outstanding (diluted) 4,373 4,352 4,366 4,347 Anti-dilutive options excluded from calculation — — — — Net (loss) income $ (5,181) $ 3,342 $ (1,679) $ 6,362 Basic (loss) earnings per share $ (1.18) $ 0.77 $ (0.38) $ 1.47 Diluted (loss) earnings per share $ (1.18) $ 0.77 $ (0.38) $ 1.46 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | June 30, December 31, 2018 2017 (Dollars in thousands) Net unrealized (losses) gains on debt securities $ (1,434) $ 154 Tax effect 301 (33) Net of tax amount (1,133) 121 Accumulated pension adjustment (7,784) (7,784) Tax effect 1,635 1,635 Net of tax amount (6,149) (6,149) Total accumulated other comprehensive loss $ (7,282) $ (6,028) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Unrealized Gain (Loss) On Investments | (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair June 30, 2018 cost gains losses value U.S. Government and Agency securities $ 10,202 $ 16 $ (132) $ 10,086 Municipal securities 62,430 304 (709) 62,025 Trust preferred securities 4,064 — (97) 3,967 Agency mortgage-backed securities 49,874 63 (942) 48,995 Private-label mortgage-backed securities 796 65 — 861 Asset-backed securities 1,967 — (2) 1,965 $ 129,333 $ 448 $ (1,882) $ 127,899 (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2017 cost gains losses value Equity securities $ 164 $ 201 $ — $ 365 U.S. Government and Agency securities 11,451 64 (43) 11,472 Municipal securities 57,374 650 (252) 57,772 Trust preferred securities 6,000 — (183) 5,817 Agency mortgage-backed securities 51,307 197 (567) 50,937 Private-label mortgage-backed securities 858 88 — 946 Asset-backed securities 28 — (1) 27 $ 127,182 $ 1,200 $ (1,046) $ 127,336 |
Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity | (Dollars in thousands) Amortized cost Fair value Due in one year or less $ 8,917 $ 8,968 Due after one year through five years 39,810 39,779 Due after five years through ten years 28,024 27,450 Due after ten years 1,912 1,846 78,663 78,043 Mortgage-backed securities 50,670 49,856 $ 129,333 $ 127,899 |
Composition Of Net Realized Securities Gains | For the Three Months Ended For the Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Gross gains realized $ 63 $ — $ 63 $ 2 Gross losses realized (11) — (11) — Net gains realized $ 52 $ — $ 52 $ 2 |
Schedule Of Unrealized Loss On Investments | June 30, 2018 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 $ 6,061 $ (92) 8 $ 3,066 $ (40) 9 $ 9,127 $ (132) 17 Municipal securities 29,373 (421) 44 7,839 (288) 15 37,212 (709) 59 Trust preferred securities 2,765 (64) 3 920 (33) 1 3,685 (97) 4 Agency mortgage-backed securities 24,530 (375) 50 19,501 (567) 43 44,031 (942) 93 Asset-backed securities 1,959 (1) 3 4 (1) 1 1,963 (2) 4 Total temporarily impaired securities $ 64,688 $ (953) 108 $ 31,330 $ (929) 69 $ 96,018 $ (1,882) 177 December 31, 2017 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 $ 2,315 $ (11) 5 $ 3,528 $ (32) 10 $ 5,843 $ (43) 15 Municipal securities 13,767 (89) 22 7,507 (163) 14 21,274 (252) 36 Trust preferred securities 1,216 (12) 2 4,601 (171) 5 5,817 (183) 7 Agency mortgage-backed securities 16,287 (129) 29 20,563 (438) 39 36,850 (567) 68 Asset-backed securities — — — 4 (1) 1 4 (1) 1 Total temporarily impaired securities $ 33,585 $ (241) 58 $ 36,203 $ (805) 69 $ 69,788 $ (1,046) 127 |
Other Than Temporary Impairment, Credit Losses Recognized In Earnings | Six Months Ended (Dollars in thousands) June 30, 2018 2017 Balance of cumulative credit-related OTTI at January 1 $ 595 $ 595 Additions for credit-related OTTI not previously recognized — — 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 June 30 $ 595 $ 595 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans [Abstract] | |
Schedule Of Loans Outstanding | June 30, December 31, (Dollars in thousands) 2018 2017 Residential Real Estate 1-4 Family Consumer first liens $ 90,479 $ 97,159 Commercial first lien 61,867 61,275 Total first liens 152,346 158,434 Consumer junior liens and lines of credit 43,038 45,043 Commercial junior liens and lines of credit 5,491 5,328 Total junior liens and lines of credit 48,529 50,371 Total residential real estate 1-4 family 200,875 208,805 Residential real estate - construction Consumer 3,269 1,813 Commercial 9,208 8,088 Total residential real estate construction 12,477 9,901 Commercial real estate 464,900 428,428 Commercial 284,060 291,519 Total commercial 748,960 719,947 Consumer 4,984 5,047 967,296 943,700 Less: Allowance for loan losses (12,482) (11,792) Net Loans $ 954,814 $ 931,908 Included in the loan balances are the following: Net unamortized deferred loan costs $ 53 $ 98 Loans pledged as collateral for borrowings and commitments from: FHLB $ 761,407 $ 737,313 Federal Reserve Bank 35,235 35,740 $ 796,642 $ 773,053 |
Loan Quality and Allowance fo27
Loan Quality and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loan Quality and Allowance for Loan Losses [Abstract] | |
Allowance For Loan Losses, By Loan Segment | The following table presents, by c l ass , the activity in the Allowance for Loan Losses (ALL) for the periods ended: Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total ALL at March 31, 2018 $ 1,043 $ 320 $ 260 $ 6,698 $ 2,073 $ 104 $ 1,491 $ 11,989 Charge-offs — — — — (8,736) (29) — (8,765) Recoveries — — — 16 108 5 — 129 Provision (21) (2) 22 314 8,788 27 1 9,129 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 Charge-offs — — — — (8,736) (55) — (8,791) Recoveries 1 — — 16 116 19 — 152 Provision (39) (12) 58 486 8,743 38 55 9,329 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 ALL at March 31, 2017 $ 1,100 $ 321 $ 274 $ 6,126 $ 1,984 $ 99 $ 1,374 $ 11,278 Charge-offs (5) — — (5) (2) (24) — (36) Recoveries — 1 — — 4 10 — 15 Provision (20) — 7 (69) 37 15 80 50 ALL at June 30, 2017 $ 1,075 $ 322 $ 281 $ 6,052 $ 2,023 $ 100 $ 1,454 $ 11,307 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 Charge-offs (13) — — (5) (2) (52) — (72) Recoveries 1 1 — — 106 26 — 134 Provision (18) (2) 57 (52) 26 26 133 170 ALL at June 30, 2017 $ 1,075 $ 322 $ 281 $ 6,052 $ 2,023 $ 100 $ 1,454 $ 11,307 T he following table presents, by c la ss , loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of June 30, 2018 and December 31, 2017 : Residential Real Estate 1-4 Family First Junior Liens & Commercial (Dollars in thousands) Liens Lines of Credit Construction Real Estate Commercial Consumer Unallocated Total June 30, 2018 Loans evaluated for ALL: Individually $ 450 $ — $ 462 $ 10,754 $ 3,133 $ — $ — $ 14,799 Collectively 151,896 48,529 12,015 454,146 280,927 4,984 — 952,497 Total $ 152,346 $ 48,529 $ 12,477 $ 464,900 $ 284,060 $ 4,984 $ — $ 967,296 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ 225 $ — $ — $ 225 Collectively 1,022 318 282 7,028 2,008 107 1,492 12,257 ALL at June 30, 2018 $ 1,022 $ 318 $ 282 $ 7,028 $ 2,233 $ 107 $ 1,492 $ 12,482 December 31, 2017 Loans evaluated for ALL: Individually $ 459 $ — $ 466 $ 10,981 $ — $ — $ — $ 11,906 Collectively 157,975 50,371 9,435 417,447 291,519 5,047 — 931,794 Total $ 158,434 $ 50,371 $ 9,901 $ 428,428 $ 291,519 $ 5,047 $ — $ 943,700 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 1,060 330 224 6,526 2,110 105 1,437 11,792 ALL at December 31, 2017 $ 1,060 $ 330 $ 224 $ 6,526 $ 2,110 $ 105 $ 1,437 $ 11,792 |
Impaired Financing Receivables | The following table shows additional information about those loans considered to be impaired at June 30, 2018 and December 31, 2017 : Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related June 30, 2018 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 828 $ 907 $ — $ — $ — Junior liens and lines of credit 23 23 — — — Total 851 930 — — — Residential real estate - construction 462 531 — — — Commercial real estate 10,904 11,416 — — — Commercial 2,406 9,843 825 825 225 Total $ 14,623 $ 22,720 $ 825 $ 825 $ 225 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 869 $ 950 $ — $ — $ — Junior liens and lines of credit — — — — — Total 869 950 — — — Residential real estate - construction 466 531 — — — Commercial real estate 11,061 11,541 — — — Commercial 187 201 — — — Total $ 12,583 $ 13,223 $ — $ — $ — The following table shows the average of impaired loans and related interest income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 831 $ 11 $ 818 $ 22 Junior liens and lines of credit 1,045 4 995 10 Total 1,876 15 1,813 32 Residential real estate - construction 463 — 465 — Commercial real estate 10,008 100 10,072 199 Commercial 11,835 — 5,927 — Total $ 24,182 $ 115 $ 18,277 $ 231 Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 1,168 $ 10 $ 1,039 $ 20 Junior liens and lines of credit 115 — 100 — Total 1,283 10 1,139 20 Residential real estate - construction 476 — 478 — Commercial real estate 12,043 102 12,104 218 Commercial 122 — 73 — Total $ 13,924 $ 112 $ 13,794 $ 238 |
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 June 30, 2018 Residential Real Estate 1-4 Family First liens $ 151,803 $ 264 $ 141 $ 31 $ 436 $ 107 $ 152,346 Junior liens and lines of credit 48,351 148 7 23 178 — 48,529 Total 200,154 412 148 54 614 107 200,875 Residential real estate - construction 11,173 842 — — 842 462 12,477 Commercial real estate 460,742 2,264 — — 2,264 1,894 464,900 Commercial 280,600 79 150 — 229 3,231 284,060 Consumer 4,915 62 2 5 69 — 4,984 Total $ 957,584 $ 3,659 $ 300 $ 59 $ 4,018 $ 5,694 $ 967,296 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 157,247 $ 485 $ 534 $ — $ 1,019 $ 168 $ 158,434 Junior liens and lines of credit 50,202 139 30 — 169 — 50,371 Total 207,449 624 564 — 1,188 168 208,805 Residential real estate - construction 9,435 — — — — 466 9,901 Commercial real estate 425,806 421 347 — 768 1,854 428,428 Commercial 291,221 111 — — 111 187 291,519 Consumer 5,017 23 7 — 30 — 5,047 Total $ 938,928 $ 1,179 $ 918 $ — $ 2,097 $ 2,675 $ 943,700 |
Internal Credit Rating For The Loan Portfolio | Pass Special Mention Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total June 30, 2018 Residential Real Estate 1-4 Family First liens $ 151,677 $ — $ 669 $ — $ 152,346 Junior liens and lines of credit 48,506 — 23 — 48,529 Total 200,183 — 692 — 200,875 Residential real estate - construction 11,742 — 735 — 12,477 Commercial real estate 454,286 2,104 8,510 — 464,900 Commercial 280,059 — 4,001 — 284,060 Consumer 4,979 — 5 — 4,984 Total $ 951,249 $ 2,104 $ 13,943 $ — $ 967,296 December 31, 2017 Residential Real Estate 1-4 Family First liens $ 157,395 $ — $ 1,039 $ — $ 158,434 Junior liens and lines of credit 50,371 — — — 50,371 Total 207,766 — 1,039 — 208,805 Residential real estate - construction 8,893 — 1,008 — 9,901 Commercial real estate 419,277 680 8,471 — 428,428 Commercial 289,916 — 1,603 — 291,519 Consumer 5,047 — — — 5,047 Total $ 930,899 $ 680 $ 12,121 $ — $ 943,700 |
Troubled Debt Restructuring Loans | Troubled Debt Restructurings Within the Last 12 Months That Have Defaulted (Dollars in thousands) Troubled Debt Restructurings On Modified Terms Number of Recorded Number of Recorded Contracts Investment Performing* Nonperforming* Contracts Investment June 30, 2018 Residential real estate - construction 1 $ 462 $ — $ 462 — $ — Residential real estate 5 726 690 36 — — Commercial real estate 11 10,754 9,010 1,744 — — Total 17 $ 11,942 $ 9,700 $ 2,242 — $ — December 31, 2017 Residential real estate - construction 1 $ 466 $ 466 $ — — $ — Residential real estate 5 737 701 36 — — Commercial real estate 11 10,983 10,388 595 — — Total 17 $ 12,186 $ 11,555 $ 631 — $ — * The performing status is determined by the loan’s compliance with the modified terms . |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Real Estate Owned [Abstract] | |
Summary Of Changes In Other Real Estate Owned | June 30, (Dollars in thousands) 2018 2017 Balance at beginning of the period $ 2,598 $ 4,915 Additions 105 — Proceeds from dispositions (32) (1,751) Loss on sales, net — — Valuation adjustment (6) (49) Balance at the end of the period $ 2,665 $ 3,115 |
Pension (Tables)
Pension (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Pension [Abstract] | |
Schedule Of Net Periodic Pension Costs | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2018 2017 2018 2017 Components of net periodic cost: Service cost $ 90 $ 79 $ 180 $ 157 Interest cost 138 167 276 333 Expected return on plan assets (279) (268) (558) (536) Recognized net actuarial loss 176 137 352 274 Net period cost $ 125 $ 115 $ 250 $ 228 |
Fair Value Measurements And F30
Fair Value Measurements And Fair Values Of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value, By Balance Sheet Grouping | June 30, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets, carried at cost: Cash and cash equivalents $ 29,470 $ 29,470 $ 29,470 $ — $ — Restricted stock 624 624 — 624 — Loans held for sale 456 456 456 Net loans 954,814 923,118 — — 923,118 Accrued interest receivable 4,068 4,068 — 4,068 — Financial assets, available for sale Debt securities 127,899 127,899 — 127,899 — Financial assets, fair value Equity securities 403 403 403 — — Financial liabilities: Deposits $ 1,057,680 $ 1,057,642 $ — $ 1,057,642 $ — Accrued interest payable 148 148 — 148 — Off balance sheet financial instruments — — — — — December 31, 2017 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 58,603 $ 58,603 $ 58,603 $ — $ — Investment securities available for sale 127,336 127,336 365 126,971 — Restricted stock 456 456 — 45 — Loans held for sale 442 442 — 442 — Net loans 931,908 929,891 — — 929,891 Accrued interest receivable 3,847 3,847 — 3,847 — Financial liabilities: Deposits $ 1,047,181 $ 1,046,476 $ — $ 1,046,476 $ — Accrued interest payable 149 149 — 149 — |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | (Dollars in Thousands Fair Value at June 30, 2018 Asset Description Level 1 Level 2 Level 3 Total Equity securities, at fair value $ 403 $ — $ — $ 403 Available for sale: U.S. Government and Agency securities — 10,086 — 10,086 Municipal securities — 62,025 — 62,025 Trust Preferred Securities — 3,967 — 3,967 Agency mortgage-backed securities — 48,995 — 48,995 Private-label mortgage-backed securities — 861 — 861 Asset-backed securities — 1,965 — 1,965 Total assets $ 403 $ 127,899 $ — $ 128,302 (Dollars in Thousands) Fair Value at December 31, 2017 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 365 $ — $ — $ 365 U.S. Government and Agency securities — 11,472 — 11,472 Municipal securities — 57,772 — 57,772 Trust Preferred Securities — 5,817 — 5,817 Agency mortgage-backed securities — 50,937 — 50,937 Private-label mortgage-backed securities — 946 — 946 Asset-backed securities — 27 — 27 Total assets $ 365 $ 126,971 $ — $ 127,336 |
Schedule Of Fair Value On A Nonrecurring Basis | (Dollars in Thousands) Fair Value at June 30, 2018 Asset Description Level 1 Level 2 Level 3 Total Impaired Loans (1) $ — $ — $ 2,219 $ 2,219 Total assets $ — $ — $ 2,219 $ 2,219 (Dollars in Thousands) Fair Value at December 31, 2017 Asset Description Level 1 Level 2 Level 3 Total Other real estate owned (1) $ — $ — $ 90 $ 90 Total assets $ — $ — $ 90 $ 90 (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 June 30, 2018 Fair Value Valuation Technique Unobservable Input (Weighted Average) Impaired loans (1) $ 2,219 Appraisal Appraisal Adjustments (2) 25% -50% ( 46% ) Cost to sell 0% -10% ( 8% ) December 31, 2017 Fair Value Valuation Technique Unobservable Input Weighted Average Other real estate owned (1) $ 90 Appraisal Cost to sell 8% (1) Includes assets directly charged-down to fair value during the year-to-date period. (2) Qualitative adjustments are discounts specific to each asset and are made as needed. |
Capital Ratios (Tables)
Capital Ratios (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Capital Ratios [Abstract] | |
Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements | Regulatory Ratios Adequately Well June 30, December 31, Capitalized Capitalized (Dollars in thousands) 2018 2017 Minimum Minimum Common Equity Tier 1 Risk-based Capital Ratio (1) Franklin Financial Services Corporation 13.25% 14.06% 4.500% N/A Farmers & Merchants Trust Company 13.13% 13.93% 4.500% 6.50% Tier 1 Risk-based Capital Ratio (2) Franklin Financial Services Corporation 13.25% 14.06% 6.000% N/A Farmers & Merchants Trust Company 13.13% 13.93% 6.000% 8.00% Total Risk-based Capital Ratio (3) Franklin Financial Services Corporation 14.51% 15.31% 8.000% N/A Farmers & Merchants Trust Company 14.39% 15.19% 8.000% 10.00% Tier 1 Leverage Ratio (4) Franklin Financial Services Corporation 9.32% 9.73% 4.000% N/A Farmers & Merchants Trust Company 9.24% 9.64% 4.000% 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 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Outstanding Commitments | June 30, December 31, (Dollars in thousands) 2018 2017 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 246,279 $ 249,526 Consumer commitments to extend credit (secured) 45,632 44,866 Consumer commitments to extend credit (unsecured) 5,626 5,668 $ 297,537 $ 300,060 Standby letters of credit $ 29,146 $ 28,630 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basis Of Presentation [Abstract] | ||||
Weighted average shares outstanding (basic) | 4,373 | 4,331 | 4,366 | 4,326 |
Impact of common stock equivalents | 21 | 21 | ||
Weighted average shares outstanding (diluted) | 4,373 | 4,352 | 4,366 | 4,347 |
Net (Loss) Income | $ (5,181) | $ 3,342 | $ (1,679) | $ 6,362 |
Basic earnings per share | $ (1.18) | $ 0.77 | $ (0.38) | $ 1.47 |
Diluted earnings per share | $ (1.18) | $ 0.77 | $ (0.38) | $ 1.46 |
Recent Accounting Pronounceme34
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Standards Update 2017-07 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New accounting pronouncement in accounting principle, effect of adoption quantification | $ 70 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax Cuts And Jobs Act Of 2017, Reclassification From AOCI To Retained | $ 992 | |
Cumulative adjustment for fair value of equity securities | 201 | |
Accumulated Other Comprehensive Loss [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax Cuts And Jobs Act Of 2017, Reclassification From AOCI To Retained | (992) | |
Cumulative adjustment for fair value of equity securities | $ (201) |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Loss [Abstract] | ||
Net unrealized (losses) gains on debt securities | $ (1,434) | $ 154 |
Tax effect | 301 | (33) |
Net of tax amount | (1,133) | 121 |
Accumulated pension adjustment | (7,784) | (7,784) |
Tax effect | 1,635 | 1,635 |
Net of tax amount | (6,149) | (6,149) |
Total accumulated other comprehensive loss | $ (7,282) | $ (6,028) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)security$ / shares | Dec. 31, 2017USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Restricted stock | $ 624 | $ 456 |
Number of temporarily impaired securities | security | 177 | 127 |
Fair value of temporarily impaired securities | $ 96,018 | $ 69,788 |
Unrealized Losses | $ 1,882 | 1,046 |
Equity securities held | security | 1 | |
Securities pledged as collateral | $ 72,400 | $ 84,100 |
Equity Securities, FV NI | $ 403 | |
Federal Home Loan Bank of Pittsburgh [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Restricted stock per share | $ / shares | $ 100 | |
Non-Federal Home Loan Bank Of Pittsburgh [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Restricted stock | $ 30 |
Investments (Unrealized Gain (l
Investments (Unrealized Gain (loss) On Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 129,333 | |
Gross unrealized gains | 448 | |
Gross unrealized losses | (1,882) | |
Available for sale | 127,899 | $ 126,971 |
Before Adoption Of ASU 2016-01 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 127,182 | |
Gross unrealized gains | 1,200 | |
Gross unrealized losses | (1,046) | |
Available for sale | 127,336 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 164 | |
Gross unrealized gains | 201 | |
Available for sale | 365 | |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 10,202 | 11,451 |
Gross unrealized gains | 16 | 64 |
Gross unrealized losses | (132) | (43) |
Available for sale | 10,086 | 11,472 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 62,430 | 57,374 |
Gross unrealized gains | 304 | 650 |
Gross unrealized losses | (709) | (252) |
Available for sale | 62,025 | 57,772 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 4,064 | 6,000 |
Gross unrealized losses | (97) | (183) |
Available for sale | 3,967 | 5,817 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 49,874 | 51,307 |
Gross unrealized gains | 63 | 197 |
Gross unrealized losses | (942) | (567) |
Available for sale | 48,995 | 50,937 |
Private-Label Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 796 | 858 |
Gross unrealized gains | 65 | 88 |
Available for sale | 861 | 946 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 1,967 | 28 |
Gross unrealized losses | (2) | (1) |
Available for sale | $ 1,965 | $ 27 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Investments [Abstract] | |
Due in one year or less, Amortized cost | $ 8,917 |
Due after one year through five years, Amortized cost | 39,810 |
Due after five years through ten years, Amortized cost | 28,024 |
Due after ten years, Amortized cost | 1,912 |
Amortized Cost Contractual Maturities Subtotal | 78,663 |
Mortgage-backed securities, Amortized cost | 50,670 |
Available-for-sale Securities, Debt Maturities, Amortized cost | 129,333 |
Due in one year or less, Fair value | 8,968 |
Due after one year through five years, Fair value | 39,779 |
Due after five years through ten years, Fair value | 27,450 |
Due after ten years, Fair value | 1,846 |
Fair Value Contractual Maturities Subtotal | 78,043 |
Mortgage-backed securities, Fair value | 49,856 |
Available-for-sale Securities, Debt Securities, Fair Value | $ 127,899 |
Investments (Composition Of Net
Investments (Composition Of Net Realized Securities Gains) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments [Abstract] | |||
Gross gains realized | $ 63 | $ 63 | $ 2 |
Gross losses realized | (11) | (11) | |
Net gains realized | $ 52 | $ 52 | $ 2 |
Investments (Schedule Of Unreal
Investments (Schedule Of Unrealized Loss On Investments) (Details) $ in Thousands | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 64,688 | $ 33,585 |
Less than 12 months: Unrealized Losses | $ (953) | $ (241) |
Less than 12 months: Count | security | 108 | 58 |
12 months or more: Fair Value | $ 31,330 | $ 36,203 |
12 months or more: Unrealized Losses | $ (929) | $ (805) |
12 months or more: Count | security | 69 | 69 |
Fair Value | $ 96,018 | $ 69,788 |
Unrealized Losses | $ (1,882) | $ (1,046) |
Count | security | 177 | 127 |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 6,061 | $ 2,315 |
Less than 12 months: Unrealized Losses | $ (92) | $ (11) |
Less than 12 months: Count | security | 8 | 5 |
12 months or more: Fair Value | $ 3,066 | $ 3,528 |
12 months or more: Unrealized Losses | $ (40) | $ (32) |
12 months or more: Count | security | 9 | 10 |
Fair Value | $ 9,127 | $ 5,843 |
Unrealized Losses | $ (132) | $ (43) |
Count | security | 17 | 15 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 29,373 | $ 13,767 |
Less than 12 months: Unrealized Losses | $ (421) | $ (89) |
Less than 12 months: Count | security | 44 | 22 |
12 months or more: Fair Value | $ 7,839 | $ 7,507 |
12 months or more: Unrealized Losses | $ (288) | $ (163) |
12 months or more: Count | security | 15 | 14 |
Fair Value | $ 37,212 | $ 21,274 |
Unrealized Losses | $ (709) | $ (252) |
Count | security | 59 | 36 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 2,765 | $ 1,216 |
Less than 12 months: Unrealized Losses | $ (64) | $ (12) |
Less than 12 months: Count | security | 3 | 2 |
12 months or more: Fair Value | $ 920 | $ 4,601 |
12 months or more: Unrealized Losses | $ (33) | $ (171) |
12 months or more: Count | security | 1 | 5 |
Fair Value | $ 3,685 | $ 5,817 |
Unrealized Losses | $ (97) | $ (183) |
Count | security | 4 | 7 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 24,530 | $ 16,287 |
Less than 12 months: Unrealized Losses | $ (375) | $ (129) |
Less than 12 months: Count | security | 50 | 29 |
12 months or more: Fair Value | $ 19,501 | $ 20,563 |
12 months or more: Unrealized Losses | $ (567) | $ (438) |
12 months or more: Count | security | 43 | 39 |
Fair Value | $ 44,031 | $ 36,850 |
Unrealized Losses | $ (942) | $ (567) |
Count | security | 93 | 68 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 1,959 | |
Less than 12 months: Unrealized Losses | $ (1) | |
Less than 12 months: Count | security | 3 | |
12 months or more: Fair Value | $ 4 | $ 4 |
12 months or more: Unrealized Losses | $ (1) | $ (1) |
12 months or more: Count | security | 1 | 1 |
Fair Value | $ 1,963 | $ 4 |
Unrealized Losses | $ (2) | $ (1) |
Count | security | 4 | 1 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairment, Credit Losses Recognized In Earnings) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Investments [Abstract] | ||
Balance of cumulative credit-related OTTI at January 1 | $ 595 | $ 595 |
Additions for credit-related OTTI not previously recognized | ||
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 June 30 | $ 595 | $ 595 |
Loans (Schedule Of Loans Outsta
Loans (Schedule Of Loans Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 967,296 | $ 943,700 |
Less: Allowance for loan losses | (12,482) | (11,792) |
Net Loans | 954,814 | 931,908 |
Net unamortized deferred loan costs | 53 | 98 |
Loans pledged as collateral for borrowings and commitments from: FHLB | 761,407 | 737,313 |
Loans pledged as collateral for borrowings and commitments from :Federal Reserve Bank | 35,235 | 35,740 |
Total | 796,642 | 773,053 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 200,875 | 208,805 |
Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,477 | 9,901 |
Less: Allowance for loan losses | (282) | (224) |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 464,900 | 428,428 |
Less: Allowance for loan losses | (7,028) | (6,526) |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 284,060 | 291,519 |
Less: Allowance for loan losses | (2,233) | (2,110) |
Total Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 748,960 | 719,947 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,984 | 5,047 |
Less: Allowance for loan losses | (107) | (105) |
Consumer First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 90,479 | 97,159 |
Consumer Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 43,038 | 45,043 |
Consumer [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,269 | 1,813 |
Commercial Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,491 | 5,328 |
Commercial [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 61,867 | 61,275 |
Commercial [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 9,208 | 8,088 |
First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 152,346 | 158,434 |
Less: Allowance for loan losses | (1,022) | (1,060) |
Junior Lines And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 48,529 | $ 50,371 |
Loan Quality and Allowance fo43
Loan Quality and Allowance for Loan Losses (Allowance For Loan Losses, By Loan Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | $ 11,989 | $ 11,278 | $ 11,792 | $ 11,075 | |
Charge-offs | (8,765) | (36) | (8,791) | (72) | |
Recoveries | 129 | 15 | 152 | 134 | |
Provision | 9,129 | 50 | 9,329 | 170 | |
Allowance, Ending Balance | 12,482 | 11,307 | 12,482 | 11,307 | |
Loans evaluated for allowance individually | 14,799 | 14,799 | $ 11,906 | ||
Loans evaluated for allowance collectively | 952,497 | 952,497 | 931,794 | ||
Total Loans | 967,296 | 967,296 | 943,700 | ||
Allowance established for loans evaluated individually | 225 | 225 | |||
Allowance established for loan evaluated collectively | 12,257 | 12,257 | 11,792 | ||
Total Allowance | 12,482 | 12,482 | 11,792 | ||
Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total Loans | 200,875 | 200,875 | 208,805 | ||
Residential Real Estate - Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 260 | 274 | 224 | 224 | |
Provision | 22 | 7 | 58 | 57 | |
Allowance, Ending Balance | 282 | 281 | 282 | 281 | |
Loans evaluated for allowance individually | 462 | 462 | 466 | ||
Loans evaluated for allowance collectively | 12,015 | 12,015 | 9,435 | ||
Total Loans | 12,477 | 12,477 | 9,901 | ||
Allowance established for loan evaluated collectively | 282 | 282 | 224 | ||
Total Allowance | 282 | 282 | 224 | ||
Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 6,698 | 6,126 | 6,526 | 6,109 | |
Charge-offs | (5) | (5) | |||
Recoveries | 16 | 16 | |||
Provision | 314 | (69) | 486 | (52) | |
Allowance, Ending Balance | 7,028 | 6,052 | 7,028 | 6,052 | |
Loans evaluated for allowance individually | 10,754 | 10,754 | 10,981 | ||
Loans evaluated for allowance collectively | 454,146 | 454,146 | 417,447 | ||
Total Loans | 464,900 | 464,900 | 428,428 | ||
Allowance established for loan evaluated collectively | 7,028 | 7,028 | 6,526 | ||
Total Allowance | 7,028 | 7,028 | 6,526 | ||
Commercial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 2,073 | 1,984 | 2,110 | 1,893 | |
Charge-offs | (8,736) | (2) | (8,736) | (2) | |
Recoveries | 108 | 4 | 116 | 106 | |
Provision | 8,788 | 37 | 8,743 | 26 | |
Allowance, Ending Balance | 2,233 | 2,023 | 2,233 | 2,023 | |
Loans evaluated for allowance individually | 3,133 | 3,133 | |||
Loans evaluated for allowance collectively | 280,927 | 280,927 | 291,519 | ||
Total Loans | 284,060 | 284,060 | 291,519 | ||
Allowance established for loans evaluated individually | 225 | 225 | |||
Allowance established for loan evaluated collectively | 2,008 | 2,008 | 2,110 | ||
Total Allowance | 2,233 | 2,233 | 2,110 | ||
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 104 | 99 | 105 | 100 | |
Charge-offs | (29) | (24) | (55) | (52) | |
Recoveries | 5 | 10 | 19 | 26 | |
Provision | 27 | 15 | 38 | 26 | |
Allowance, Ending Balance | 107 | 100 | 107 | 100 | |
Loans evaluated for allowance collectively | 4,984 | 4,984 | 5,047 | ||
Total Loans | 4,984 | 4,984 | 5,047 | ||
Allowance established for loan evaluated collectively | 107 | 107 | 105 | ||
Total Allowance | 107 | 107 | 105 | ||
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 1,491 | 1,374 | 1,437 | 1,321 | |
Provision | 1 | 80 | 55 | 133 | |
Allowance, Ending Balance | 1,492 | 1,454 | 1,492 | 1,454 | |
Allowance established for loan evaluated collectively | 1,492 | 1,492 | 1,437 | ||
Total Allowance | 1,492 | 1,492 | 1,437 | ||
First Liens [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 1,043 | 1,100 | 1,060 | 1,105 | |
Charge-offs | (5) | (13) | |||
Recoveries | 1 | 1 | |||
Provision | (21) | (20) | (39) | (18) | |
Allowance, Ending Balance | 1,022 | 1,075 | 1,022 | 1,075 | |
Loans evaluated for allowance individually | 450 | 450 | 459 | ||
Loans evaluated for allowance collectively | 151,896 | 151,896 | 157,975 | ||
Total Loans | 152,346 | 152,346 | 158,434 | ||
Allowance established for loan evaluated collectively | 1,022 | 1,022 | 1,060 | ||
Total Allowance | 1,022 | 1,022 | 1,060 | ||
Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance, Beginning Balance | 320 | 321 | 330 | 323 | |
Recoveries | 1 | 1 | |||
Provision | (2) | (12) | (2) | ||
Allowance, Ending Balance | 318 | $ 322 | 318 | $ 322 | |
Loans evaluated for allowance collectively | 48,529 | 48,529 | 50,371 | ||
Total Loans | 48,529 | 48,529 | 50,371 | ||
Allowance established for loan evaluated collectively | 318 | 318 | 330 | ||
Total Allowance | $ 318 | $ 318 | $ 330 |
Loan Quality and Allowance fo44
Loan Quality and Allowance for Loan Losses (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | $ 14,623 | $ 14,623 | $ 12,583 | ||
Unpaid Principal Balance With No Allowance | 22,720 | 22,720 | 13,223 | ||
Recorded Investment With Allowance | 825 | 825 | |||
Unpaid Principal Balance With Allowance | 825 | 825 | |||
Related Allowance | 225 | 225 | |||
Average Recorded Investment | 24,182 | $ 13,924 | 18,277 | $ 13,794 | |
Interest Income Recognized | 115 | 112 | 231 | 238 | |
Residential Real Estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | 851 | 851 | 869 | ||
Unpaid Principal Balance With No Allowance | 930 | 930 | 950 | ||
Recorded Investment With Allowance | |||||
Unpaid Principal Balance With Allowance | |||||
Related Allowance | |||||
Average Recorded Investment | 1,876 | 1,283 | 1,813 | 1,139 | |
Interest Income Recognized | 15 | 10 | 32 | 20 | |
Residential Real Estate [Member] | First Liens [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | 828 | 828 | 869 | ||
Unpaid Principal Balance With No Allowance | 907 | 907 | 950 | ||
Recorded Investment With Allowance | |||||
Unpaid Principal Balance With Allowance | |||||
Related Allowance | |||||
Average Recorded Investment | 831 | 1,168 | 818 | 1,039 | |
Interest Income Recognized | 11 | 10 | 22 | 20 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | 23 | 23 | |||
Unpaid Principal Balance With No Allowance | 23 | 23 | |||
Recorded Investment With Allowance | |||||
Unpaid Principal Balance With Allowance | |||||
Related Allowance | |||||
Average Recorded Investment | 1,045 | 115 | 995 | 100 | |
Interest Income Recognized | 4 | 10 | |||
Residential Real Estate - Construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | 462 | 462 | 466 | ||
Unpaid Principal Balance With No Allowance | 531 | 531 | 531 | ||
Recorded Investment With Allowance | |||||
Unpaid Principal Balance With Allowance | |||||
Related Allowance | |||||
Average Recorded Investment | 463 | 476 | 465 | 478 | |
Commercial Real Estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | 10,904 | 10,904 | 11,061 | ||
Unpaid Principal Balance With No Allowance | 11,416 | 11,416 | 11,541 | ||
Recorded Investment With Allowance | |||||
Unpaid Principal Balance With Allowance | |||||
Related Allowance | |||||
Average Recorded Investment | 10,008 | 12,043 | 10,072 | 12,104 | |
Interest Income Recognized | 100 | 102 | 199 | 218 | |
Commercial [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Allowance | 2,406 | 2,406 | 187 | ||
Unpaid Principal Balance With No Allowance | 9,843 | 9,843 | 201 | ||
Recorded Investment With Allowance | 825 | 825 | |||
Unpaid Principal Balance With Allowance | 825 | 825 | |||
Related Allowance | 225 | 225 | |||
Average Recorded Investment | $ 11,835 | $ 122 | $ 5,927 | $ 73 |
Loan Quality and Allowance fo45
Loan Quality and Allowance for Loan Losses (Aging Of Payments Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 957,584 | $ 938,928 |
Loans Past Due and Still Accruing | 4,018 | 2,097 |
Non-accrual loans | 5,694 | 2,675 |
Total Loans | 967,296 | 943,700 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 3,659 | 1,179 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 300 | 918 |
90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 59 | |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 200,154 | 207,449 |
Loans Past Due and Still Accruing | 614 | 1,188 |
Non-accrual loans | 107 | 168 |
Total Loans | 200,875 | 208,805 |
Residential Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 412 | 624 |
Residential Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 148 | 564 |
Residential Real Estate [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 54 | |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 151,803 | 157,247 |
Loans Past Due and Still Accruing | 436 | 1,019 |
Non-accrual loans | 107 | 168 |
Total Loans | 152,346 | 158,434 |
Residential Real Estate [Member] | First Liens [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 264 | 485 |
Residential Real Estate [Member] | First Liens [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 141 | 534 |
Residential Real Estate [Member] | First Liens [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 31 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 48,351 | 50,202 |
Loans Past Due and Still Accruing | 178 | 169 |
Total Loans | 48,529 | 50,371 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 148 | 139 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 7 | 30 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 23 | |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,173 | 9,435 |
Loans Past Due and Still Accruing | 842 | |
Non-accrual loans | 462 | 466 |
Total Loans | 12,477 | 9,901 |
Residential Real Estate - Construction [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 842 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 460,742 | 425,806 |
Loans Past Due and Still Accruing | 2,264 | 768 |
Non-accrual loans | 1,894 | 1,854 |
Total Loans | 464,900 | 428,428 |
Commercial Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 2,264 | 421 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 347 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 280,600 | 291,221 |
Loans Past Due and Still Accruing | 229 | 111 |
Non-accrual loans | 3,231 | 187 |
Total Loans | 284,060 | 291,519 |
Commercial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 79 | 111 |
Commercial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 150 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,915 | 5,017 |
Loans Past Due and Still Accruing | 69 | 30 |
Total Loans | 4,984 | 5,047 |
Consumer [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 62 | 23 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 2 | $ 7 |
Consumer [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | $ 5 |
Loan Quality and Allowance fo46
Loan Quality and Allowance for Loan Losses (Internal Credit Rating For The Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 967,296 | $ 943,700 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 951,249 | 930,899 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 2,104 | 680 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 13,943 | 12,121 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 200,875 | 208,805 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 200,183 | 207,766 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 692 | 1,039 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 152,346 | 158,434 |
Residential Real Estate [Member] | First Liens [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 151,677 | 157,395 |
Residential Real Estate [Member] | First Liens [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 669 | 1,039 |
Residential Real Estate [Member] | First Liens [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
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 | 48,529 | 50,371 |
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 | 48,506 | 50,371 |
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 | 23 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 12,477 | 9,901 |
Residential Real Estate - Construction [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 11,742 | 8,893 |
Residential Real Estate - Construction [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 735 | 1,008 |
Residential Real Estate - Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 464,900 | 428,428 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 454,286 | 419,277 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 2,104 | 680 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 8,510 | 8,471 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 284,060 | 291,519 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 280,059 | 289,916 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4,001 | 1,603 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | ||
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4,984 | 5,047 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4,979 | 5,047 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 5 | |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount |
Loan Quality and Allowance fo47
Loan Quality and Allowance for Loan Losses (Troubled Debt Restructuring Loans) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)itemcontract | Jun. 30, 2017item | Jun. 30, 2018USD ($)itemcontract | Jun. 30, 2017item | Dec. 31, 2017USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Number of Contracts | contract | 17 | 17 | 17 | |||
Troubled Debt Restructurings: Recorded Investment | $ 11,942 | $ 11,942 | $ 12,186 | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | ||||||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | ||||||
New During Period, Number of Contracts | item | 0 | 0 | 0 | 0 | ||
Performing [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 9,700 | $ 9,700 | 11,555 | ||
Nonperforming [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 2,242 | $ 2,242 | $ 631 | ||
Residential Real Estate - Construction [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Number of Contracts | contract | 1 | 1 | 1 | |||
Troubled Debt Restructurings: Recorded Investment | $ 462 | $ 462 | $ 466 | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | ||||||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | ||||||
Residential Real Estate - Construction [Member] | Performing [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 466 | ||||
Residential Real Estate - Construction [Member] | Nonperforming [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 462 | $ 462 | |||
Residential Real Estate [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Number of Contracts | contract | 5 | 5 | 5 | |||
Troubled Debt Restructurings: Recorded Investment | $ 726 | $ 726 | $ 737 | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | ||||||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | ||||||
Residential Real Estate [Member] | Performing [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | 690 | 690 | 701 | ||
Residential Real Estate [Member] | Nonperforming [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 36 | $ 36 | $ 36 | ||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Number of Contracts | contract | 11 | 11 | 11 | |||
Troubled Debt Restructurings: Recorded Investment | $ 10,754 | $ 10,754 | $ 10,983 | |||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | ||||||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | ||||||
Commercial Real Estate [Member] | Performing [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | 9,010 | 9,010 | 10,388 | ||
Commercial Real Estate [Member] | Nonperforming [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 1,744 | $ 1,744 | $ 595 | ||
[1] | The performing status is determined by the loan's compliance with the modified terms. |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Other Real Estate Owned [Abstract] | ||
Balance at beginning of the period | $ 2,598 | $ 4,915 |
Additions | 105 | |
Proceeds from dispositions | (32) | (1,751) |
Valuation adjustment | (6) | (49) |
Balance at the end of the period | $ 2,665 | $ 3,115 |
Pension (Narrative) (Details)
Pension (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Pension [Abstract] | ||||||
Expected pension expense | $ 500 | $ 500 | ||||
Pension Contributions | $ 1,000 | 1,000 | ||||
Pension expense | $ 125 | $ 115 | $ 250 | $ 228 | $ 459 |
Pension (Schedule Of Net Period
Pension (Schedule Of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Pension [Abstract] | |||||
Service cost | $ 90 | $ 79 | $ 180 | $ 157 | |
Interest cost | 138 | 167 | 276 | 333 | |
Expected return on plan assets | (279) | (268) | (558) | (536) | |
Recognized net actuarial loss | 176 | 137 | 352 | 274 | |
Net period cost | $ 125 | $ 115 | $ 250 | $ 228 | $ 459 |
Fair Value Measurements And F51
Fair Value Measurements And Fair Values Of Financial Instruments (Narrative) (Details) | Jun. 30, 2018USD ($) |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Liabilities, nonrecurring basis | $ 0 |
Assets, Level 1 to Level 2 Transfers | 0 |
Liabilities, Level 1 to Level 2 Transfers | $ 0 |
Fair Value Measurements And F52
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value, By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | $ 127,899 | $ 126,971 |
Equity Securities, FV NI | 403 | |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 29,470 | 58,603 |
Restricted stock | 624 | 456 |
Loans held for sale | 456 | 442 |
Net loans | 954,814 | 931,908 |
Accrued interest receivable | 4,068 | 3,847 |
Available for sale | 127,899 | |
Equity Securities, FV NI | 403 | |
Deposits | 1,057,680 | 1,047,181 |
Accrued interest payable | 148 | 149 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 29,470 | 58,603 |
Restricted stock | 624 | 456 |
Loans held for sale | 456 | 442 |
Net loans | 923,118 | 929,891 |
Accrued interest receivable | 4,068 | 3,847 |
Available for sale | 127,899 | |
Equity Securities, FV NI | 403 | |
Deposits | 1,057,642 | 1,046,476 |
Accrued interest payable | 148 | 149 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 29,470 | 58,603 |
Equity Securities, FV NI | 403 | |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted stock | 624 | 45 |
Loans held for sale | 456 | 442 |
Accrued interest receivable | 4,068 | 3,847 |
Available for sale | 127,899 | |
Deposits | 1,057,642 | 1,046,476 |
Accrued interest payable | 148 | 149 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loans | $ 923,118 | 929,891 |
Before Adoption Of ASU 2016-01 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 127,336 | |
Before Adoption Of ASU 2016-01 [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 127,336 | |
Before Adoption Of ASU 2016-01 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 127,336 | |
Before Adoption Of ASU 2016-01 [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 365 | |
Before Adoption Of ASU 2016-01 [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | $ 126,971 |
Fair Value Measurements And F53
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 403 | |
Available for sale | 127,899 | $ 126,971 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 403 | |
Total assets | 128,302 | 127,336 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 403 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 403 | |
Total assets | 403 | 365 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 127,899 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 127,899 | 126,971 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 365 | |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 365 | |
Equity Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 365 | |
U.S. Government And Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 10,086 | 11,472 |
U.S. Government And Agency Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 10,086 | 11,472 |
U.S. Government And Agency Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 10,086 | 11,472 |
Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 62,025 | 57,772 |
Municipal Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 62,025 | 57,772 |
Municipal Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 62,025 | 57,772 |
Trust Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,967 | 5,817 |
Trust Preferred Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,967 | 5,817 |
Trust Preferred Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,967 | 5,817 |
Agency Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 48,995 | 50,937 |
Agency Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 48,995 | 50,937 |
Agency Mortgage-Backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 48,995 | 50,937 |
Private-Label Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 861 | 946 |
Private-Label Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 861 | 946 |
Private-Label Mortgage-Backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 861 | 946 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 1,965 | 27 |
Asset-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 1,965 | 27 |
Asset-Backed Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | $ 1,965 | $ 27 |
Fair Value Measurements And F54
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value On A Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,219 | $ 90 | |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 2,219 | 90 | |
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | 2,219 | |
Impaired Loans [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [2] | 2,219 | |
Impaired Loans [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 2,219 | |
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | 90 | |
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 | [2] | 90 | |
Other Real Estate Owned [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 90 | |
[1] | (Dollars in Thousands)Fair Value at December 31, 2017Asset DescriptionLevel 1Level 2Level 3TotalOther real estate owned (1)$ -$ -$ 90$ 90Total assets$ -$ -$ 90$ 90Includes assets directly charged-down to fair value during the year-to-date period. | ||
[2] | Includes assets directly charged-down to fair value during the year-to-date period. |
Fair Value Measurements And F55
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) - Level 3 [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Impaired Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 2,219 | |
Fair Value Measurements, Valuation Techniques | Appraisal | ||
Impaired Loans [Member] | Minimum [Member] | Appraisal Adjustment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 25.00% | ||
Impaired Loans [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] | Maximum [Member] | Appraisal Adjustment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 50.00% | ||
Impaired Loans [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] | Weighted Average [Member] | Appraisal Adjustment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount Rate | 46.00% | ||
Impaired Loans [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% | ||
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | [1] | $ 90 | |
Other Real Estate Owned [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% | ||
[1] | Includes assets directly charged-down to fair value during the year-to-date period. |
Capital Ratios (Narrative) (Det
Capital Ratios (Narrative) (Details) | 6 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Total Risk-based Capital Ratio: Ratio | 14.51% | ||||
Capital Ratios, Basel III, Capital Conservation Buffer | 1.25% | 0.625% | |||
Capital Ratios, Basel III, Capital Conservation Buffer, Year Two | 1.875% | ||||
Capital Ratios, Basel III, Capital Conservation Buffer, Year Three | 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 | 8.00% | [2] | 6.00% | ||
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | [3] | 5.00% | |||
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [4] | 10.00% | |||
Capital ratios, capital conservation buffer | 6.51% | ||||
Total Risk-based Capital Ratio: Ratio | [4] | 14.39% | 15.19% | ||
[1] | 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 |
Capital Ratios (Schedule Of The
Capital Ratios (Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements) (Details) | Jun. 30, 2018 | Dec. 31, 2017 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk-based Capital Ratio: Ratio | 14.51% | |||
Franklin Financial Services Corporation [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | [1] | 13.25% | 14.06% | |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [1] | 4.50% | ||
Tier 1 Risk-based Capital Ratio: Ratio | [2] | 13.25% | 14.06% | |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [2] | 6.00% | ||
Total Risk-based Capital Ratio: Ratio | [3] | 14.51% | 15.31% | |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [3] | 8.00% | ||
Tier 1 Leverage Ratio: Ratio | [4] | 9.32% | 9.73% | |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | [4] | 4.00% | ||
Bank [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | [1] | 13.13% | 13.93% | |
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] | 13.13% | 13.93% | |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [2] | 6.00% | ||
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 8.00% | [2] | 6.00% | |
Total Risk-based Capital Ratio: Ratio | [3] | 14.39% | 15.19% | |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | [3] | 8.00% | ||
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | [3] | 10.00% | ||
Tier 1 Leverage Ratio: Ratio | [4] | 9.24% | 9.64% | |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | [4] | 4.00% | ||
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | [4] | 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 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Revenue Recognition [Abstract] | ||
Asset management fees | $ 1,300 | $ 2,600 |
Estate management services Fees recognition period | 18 months | |
Estate management services fees | 81 | $ 142 |
Commissions from sale of investment and insurance products | $ 76 | $ 144 |
Commitments and Contingencies59
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Commitments and Contingencies [Abstract] | ||
Allowance against letters of credit | $ 2,361 | $ 2,361 |
Commitments And Contingencies60
Commitments And Contingencies (Outstanding Commitments )(Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Commercial Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 246,279 | $ 249,526 |
Consumer Commitments To Extend Credit (Secured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 45,632 | 44,866 |
Consumer Commitments To Extend Credit (Unsecured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 5,626 | 5,668 |
Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 297,537 | 300,060 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 29,146 | $ 28,630 |