Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Registrant Name | FRANKLIN FINANCIAL SERVICES CORP /PA/ | ||
Entity Central Index Key | 0000723646 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,414,234 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 137,841,146 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | fraf | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 16,957 | $ 21,433 |
Interest-bearing deposits in other banks | 36,000 | 37,170 |
Total cash and cash equivalents | 52,957 | 58,603 |
Debt securities available for sale, at fair value | 131,472 | 126,971 |
Equity securities | 374 | 365 |
Restricted stock | 452 | 456 |
Loans held for sale | 118 | 442 |
Loans | 973,375 | 943,700 |
Allowance for loan losses | (12,415) | (11,792) |
Net Loans | 960,960 | 931,908 |
Premises and equipment, net | 13,521 | 13,741 |
Bank owned life insurance | 23,496 | 22,980 |
Goodwill | 9,016 | 9,016 |
Other real estate owned | 2,684 | 2,598 |
Deferred tax asset, net | 5,992 | 5,803 |
Other assets | 8,545 | 6,930 |
Total assets | 1,209,587 | 1,179,813 |
Deposits | ||
Non-interest bearing checking | 197,417 | 196,853 |
Money management, savings and interest checking | 823,619 | 774,857 |
Time | 61,593 | 75,471 |
Total deposits | 1,082,629 | 1,047,181 |
Other liabilities | 8,562 | 17,488 |
Total liabilities | 1,091,191 | 1,064,669 |
Shareholders' equity | ||
Common stock, $1 par value per share,15,000,000 shares authorized with 4,701,367 shares issued and 4,408,761 shares outstanding at December 31, 2018 and 4,689,099 shares issued and 4,354,788 shares outstanding at December 31, 2017 | 4,701 | 4,689 |
Capital stock without par value, 5,000,000 shares authorized with no shares issued and outstanding | ||
Additional paid-in capital | 41,530 | 40,396 |
Retained earnings | 83,946 | 82,218 |
Accumulated other comprehensive loss | (6,380) | (6,028) |
Treasury stock, 292,606 shares at December 31, 2018 and 334,311 shares at December 31, 2017, at cost | (5,401) | (6,131) |
Total shareholders' equity | 118,396 | 115,144 |
Total liabilities and shareholders' equity | $ 1,209,587 | $ 1,179,813 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 4,701,367 | 4,689,099 |
Common Stock, Shares, Outstanding | 4,408,761 | 4,354,788 |
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 | 292,606 | 334,311 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | |||
Loans, including fees | $ 41,095 | $ 36,274 | $ 32,992 |
Interest and dividends on investments: | |||
Taxable interest | 2,087 | 2,062 | 2,271 |
Tax exempt interest | 1,173 | 1,122 | 1,412 |
Dividend income | 24 | 26 | 17 |
Deposits and obligations of other banks | 489 | 401 | 287 |
Total interest income | 44,868 | 39,885 | 36,979 |
Interest expense | |||
Deposits | 4,190 | 2,475 | 2,212 |
Short-term borrowings | 24 | 16 | 33 |
Total interest expense | 4,214 | 2,491 | 2,245 |
Net interest income | 40,654 | 37,394 | 34,734 |
Provision for loan losses | 9,954 | 670 | 3,775 |
Net interest income after provision for loan losses | 30,700 | 36,724 | 30,959 |
Noninterest income | |||
Investment and trust services fees | 5,669 | 5,370 | 4,969 |
Loan service charges | 882 | 831 | 714 |
Deposit service charges and fees | 2,310 | 2,399 | 2,468 |
Other service charges and fees | 1,409 | 1,327 | 1,257 |
Debit card income | 1,653 | 1,543 | 1,469 |
Increase in cash surrender value of life insurance | 515 | 521 | 531 |
Net loss on sale of other real estate owned | (5) | (26) | (31) |
OTTI losses on debt securities | (40) | ||
Debt securities gains, net | 56 | 3 | 22 |
Change in fair value of equity securities | 9 | ||
Other | 131 | 221 | 246 |
Total noninterest income | 12,629 | 12,189 | 11,605 |
Noninterest Expense | |||
Salaries and employee benefits | 20,048 | 18,729 | 17,691 |
Occupancy, furniture and equipment, net | 3,206 | 3,152 | 3,120 |
Advertising | 1,556 | 1,197 | 1,155 |
Legal and professional | 1,567 | 1,813 | 1,508 |
Data processing | 2,510 | 2,229 | 2,093 |
Pennsylvania bank shares tax | 951 | 971 | 902 |
FDIC Insurance | 600 | 372 | 580 |
ATM/debit card processing | 999 | 959 | 855 |
Foreclosed real estate | 54 | 151 | 1,333 |
Telecommunications | 433 | 418 | 429 |
Legal reserve | 10,000 | ||
Provision for credit losses on off-balance sheet exposures | 2,361 | ||
Other | 3,084 | 3,181 | 3,509 |
Total noninterest expense | 37,369 | 43,172 | 33,175 |
Income before federal income taxes | 5,960 | 5,741 | 9,389 |
Federal income tax expense (benefit) | (165) | 3,565 | 1,302 |
Net income | $ 6,125 | $ 2,176 | $ 8,087 |
Per share | |||
Basic earnings per share | $ 1.40 | $ 0.50 | $ 1.88 |
Diluted earnings per share | 1.39 | 0.50 | 1.88 |
Cash dividends declared | $ 1.05 | $ 0.93 | $ 0.82 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net income | $ 6,125 | $ 2,176 | $ 8,087 | |
Securities: | ||||
Unrealized (losses) gains arising during the period | [1] | (998) | 177 | (1,176) |
Reclassification for net (gains) losses and OTTI included in net income | [1] | (56) | (3) | 18 |
Net unrealized (losses) gains | [1] | (1,054) | 174 | (1,158) |
Tax effect | [1] | 264 | (60) | 394 |
Net of tax amount | [1] | (790) | 114 | (764) |
Pension | ||||
Change in plan assets and benefit obligations | [2] | 104 | (1,965) | (638) |
Reclassification for net actuarial losses included in net income | [2] | 705 | 547 | 1,049 |
Net unrealized gains (losses) | [2] | 809 | (1,418) | 411 |
Tax effect | [2] | (170) | 483 | (140) |
Net of tax amount | [2] | 639 | (935) | 271 |
Total other comprehensive (loss) income | (151) | (821) | (493) | |
Total Comprehensive Income | 5,974 | 1,355 | 7,594 | |
Reclassification adjustment / Statement line item: Tax expense (benefit) | ||||
Securities / securities (gains) losses and OTTI losses, net | 12 | 1 | (6) | |
Pension / Salary & Benefits | $ (148) | $ (186) | $ (357) | |
[1] | Securities / securities (gains) losses and OTTI losses, net $12, $1, and $(6) for years ended December 31, 2018, 2017, and 2016, respectively. | |||
[2] | Pension / Salary & Benefits ($148), ($186), and ($357), for years ended December 31, 2018, 2017, and 2016, respectively. |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Common Stocks [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2015 | $ 4,659 | $ 38,778 | $ 78,517 | $ (3,722) | $ (6,856) | $ 111,376 |
Net income | 8,087 | 8,087 | ||||
Other comprehensive income (loss) | (493) | (493) | ||||
Cash dividends declared | (3,523) | (3,523) | ||||
Acquisition of treasury stock | (795) | (795) | ||||
Treasury shares issued under employee stock purchase plan | 4 | 16 | 20 | |||
Treasury shares issued under dividend reinvestment plan | 296 | 822 | 1,118 | |||
Common stock issued under dividend reinvestment plan | 25 | 528 | 553 | |||
Common stock issued under incentive stock option plan | 4 | 58 | 62 | |||
Stock option compensation expense | 88 | 88 | ||||
Balance at Dec. 31, 2016 | 4,688 | 39,752 | 83,081 | (4,215) | (6,813) | 116,493 |
Net income | 2,176 | 2,176 | ||||
Other comprehensive income (loss) | (821) | (821) | ||||
Cash dividends declared | (4,031) | (4,031) | ||||
Treasury shares issued under employee stock purchase plan | 32 | 125 | 157 | |||
Treasury shares issued under dividend reinvestment plan | 434 | 557 | 991 | |||
Common stock issued under incentive stock option plan | 1 | 17 | 18 | |||
Revaluation of net deferred tax assets | 992 | (992) | ||||
Stock option compensation expense | 161 | 161 | ||||
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 income | 6,125 | 6,125 | ||||
Other comprehensive income (loss) | (151) | (151) | ||||
Cash dividends declared | (4,598) | (4,598) | ||||
Acquisition of treasury stock | (88) | (88) | ||||
Treasury shares issued under employee stock purchase plan | 38 | 60 | 98 | |||
Treasury shares issued under dividend reinvestment plan | 659 | 758 | 1,417 | |||
Common stock issued under incentive stock option plan | 12 | 252 | 264 | |||
Stock option compensation expense | 185 | 185 | ||||
Balance at Dec. 31, 2018 | $ 4,701 | $ 41,530 | $ 83,946 | $ (6,380) | $ (5,401) | $ 118,396 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | |||
Cash dividends declared | $ 1.05 | $ 0.93 | $ 0.82 |
Acquisition of treasury stock, shares | 2,605 | 34,048 | |
Treasury shares issued under employee stock purchase plan, shares | 3,257 | 6,827 | 907 |
Treasury shares issued under dividend reinvestment plan, shares | 41,053 | 30,375 | 45,068 |
Common stock issued under dividend reinvestment plan, shares | 25,230 | ||
Common stock issued under incentive stock option plans, shares | 12,268 | 750 | 3,800 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 6,125 | $ 2,176 | $ 8,087 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 1,330 | 1,325 | 1,345 |
Net amortization of loans and investment securities | 1,708 | 1,730 | 1,617 |
Amortization and net change in mortgage servicing rights valuation | 55 | 55 | |
Provision for loan losses | 9,954 | 670 | 3,775 |
Change in fair value of equity securities | (9) | ||
Debt securities gains, net | (56) | (3) | (22) |
Impairment write-down on securities recognized in earnings | 40 | ||
Legal reserve | 10,000 | ||
Legal reserve, pay-out | (10,000) | ||
Provision for credit losses on off-balance sheet exposures | 2,361 | ||
Loans originated for sale | (21,633) | (9,887) | (8,972) |
Proceeds from sale of loans | 21,957 | 9,985 | 8,893 |
Write-down on premises and equipment | 17 | 45 | 69 |
Write-down of other real estate owned | 6 | 83 | 1,209 |
Net loss on sale or disposal of other real estate/other repossessed assets | 5 | 26 | 31 |
Increase in cash surrender value of life insurance | (515) | (521) | (531) |
Gain from surrender of life insurance policy | (76) | ||
Stock option compensation | 185 | 161 | 88 |
Contribution to pension plan | (1,000) | ||
(Increase) decrease in other assets | (957) | 293 | 1,174 |
(Decrease) increase in other liabilities | (175) | 945 | (1,094) |
Deferred tax benefit | (1) | (831) | (832) |
Net cash provided by operating activities | 9,302 | 16,252 | 14,856 |
Cash flows from investing activities | |||
Proceeds from sales and calls of investment securities available for sale | 4,171 | 1,205 | 3,825 |
Proceeds from maturities and pay-downs of securities available for sale | 18,665 | 22,424 | 25,393 |
Purchase of investment securities available for sale | (30,175) | (8,602) | (985) |
Net decrease (increase) in restricted stock | 4 | 1,311 | (16,605) |
Net increase in loans | (39,083) | (49,911) | (114,780) |
Acquisition of other real estate owned | (105) | ||
Proceeds from sale of other real estate/other repossessed assets | 79 | 2,298 | 625 |
Proceeds from surrender of life insurance policy | 436 | ||
Proceeds from sale of other assets | 117 | 154 | |
Capital expenditures | (1,162) | (1,119) | (579) |
Net cash used in investing activities | (47,489) | (32,240) | (102,670) |
Cash flows from financing activities | |||
Net increase in demand deposits, interest-bearing checking, and savings accounts | 49,326 | 64,225 | 74,704 |
Net (decrease) increase in time deposits | (13,878) | 836 | (11,096) |
Net (decrease) increase in short-term borrowings | (24,270) | 24,270 | |
Dividends paid | (4,598) | (4,031) | (3,523) |
Purchase of Treasury shares | (88) | (795) | |
Cash received from option exercises | 362 | 175 | 82 |
Common stock issued under dividend reinvestment plan | 1,417 | 991 | 1,671 |
Net cash provided by financing activities | 32,541 | 37,926 | 85,313 |
(Decrease) increase in cash and cash equivalents | (5,646) | 21,938 | (2,501) |
Cash and cash equivalents as of January 1 | 58,603 | 36,665 | 39,166 |
Cash and cash equivalents as of September 30 | 52,957 | 58,603 | 36,665 |
Supplemental Disclosures of Cash Flow Information | |||
Cash paid during the year for: Interest on deposits and other borrowed funds | 4,170 | 2,458 | 2,253 |
Cash paid during the year for: Income taxes | 250 | 3,955 | 2,100 |
Noncash Activities: | |||
Loans transferred to Other Real Estate | $ 71 | $ 90 | $ 329 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies The accounting policies of Franklin Financial Services Corporation and its subsidiaries conform to U.S. generally accepted accounting principles and to general industry practices. A summary of the more significant accounting policies, which have been consistently app lied, except as noted, in the preparation of the accompanying consolidated financial statements, follows: Principles of Consolidation – The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation) and its wholly-owned subsidiaries; Farmers and Merchants Trust Company of Chambersburg and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank (the Bank) that has one wholly-owned subsidiary, Franklin Financial Properties Corp., which holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company that makes venture capital investments within the Corporation’s primary market area. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions have been eliminated in consolidation. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. Nature of Operations – The Corporation conducts substantially all of its business through its subsidiary bank, Farmers and Merchants Trust Company of Chambersburg, which serves its customer base through twenty-two community-banking offices located in Franklin, Cumberland, Fulton and Huntingdon Counties, Pennsylvania. These counties are considered to be the Corporation’s primary market area, but it may do business in the greater South-Central Pennsylvania market. The Bank is a community-oriented commercial bank that emphasizes customer service and convenience. As part of its strategy, the Bank has sought to develop a variety of products and services that meet the needs of both its retail and commercial customers. The Corporation and the Bank are subject to the regulations of various federal and state agencies and undergo periodic examinations by these regulatory authorities. Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the assessment of other than temporary impairment of investment securities and the valuation allowance on the deferred tax asset. Significant Group Concentrations of Credit Risk – Most of the Corporation’s activities are with customers located within its primary market area. Note 4 of the consolidated financial statements shows the types of securities in which the Corporation invests. Note 5 of the consolidated financial statements shows the types of lending in which the Corporation engages. The Corporation does not have any significant concentrations of any one industry or customer. Statement of Cash Flows – For purposes of reporting cash flows, cash and cash equivalents include Cash and due from banks, Interest-bearing deposits in other banks and Federal funds sold. Generally, Federal funds are purchased and sold for one-day periods. Investment Securities – M anagement classifies its debt securities at the time of purchase as available for sale or held to maturity. At December 31, 2018 and 2017, all debt securities were classified as available for sale, meaning that the Corporation intends to hold them for an indefinite period of time, but not necessarily to maturity. Available for sale debt securities are stated at estimated fair value, adjusted for amortization of premiums and accretion of discounts which are recognized as adjustments of interest income through call date or maturity. The related unrealized holding gains and losses are reported as other comprehensive income or loss, net of tax, until realized. Declines in the fair value of held-to-maturity and available-for-sale debt securities to amounts below cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating the other-than-temporary impairment losses, Management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) determines if the Corporation does not intend to sell the security or it if is not more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost. When a determination is made that an other-than-temporary impairment exists but the Corporation does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Realized securities gains and losses are computed using the specific identification method. Gains or losses on the disposition of debt investment securities are based on the net proceeds and the adjusted carrying amount of the specific security sold. Any decision to sell a debt security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity or mix of the Bank’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Effective January 1, 2018, equity investments are carried at fair value with changes in fair value recognized in net income. Restricted Stock – – Restricted stock, which is carried at cost, consists of stock of the Federal Home Loan Bank of Pittsburgh (FHLB) and Atlantic Central Bankers Bank (ACBB). The Bank held $452 thousand of restricted stock at the end of 2018. With the exception of $30 thousand, this investment represents stock in the FHLB that the Bank is required to hold in order to be a member of FHLB and is carried at a cost of $100 per share. FHLB stock is divided into two classes: membership stock and activity stock, which is based on outstanding loan balances. Federal law requires a member institution of the FHLB to hold FHLB stock according to a predetermined formula. Management evaluates the restricted stock for impairment in accordance with ASC Topic 320. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the banks as compared to the capital stock amount for the banks and the length of time this situation has persisted, (2) commitments by the banks to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the banks. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support its operations. There is not a public market for FHLB or ACBB stock and the benefits of membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2018. Loans – Loans, that Management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at the outstanding unpaid principal balances, net of any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the interest method. The Corporation is amortizing these amounts over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or Management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in a prior year is charged against the allowance for loan losses. Payments received on nonaccrual loans are applied initially against principal, then interest income, late charges and any other expenses and fees. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loans. Loans Held for Sale – Mortgage loans originated and intended for sale in the secondary market at the time of origination are carried at the lower of cost or estimated fair value (determined on an aggregate basis). All sales are made without recourse. Loans held for sale at December 31, 2018 represent loans originated through a third-party brokerage agreement for a fee and present no price risk to the Bank. Loan Servicing – Servicing assets are recognized as separate assets when rights are acquired through sale of financial assets. A portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the periods of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. For the purpose of computing impairment, mortgage servicing rights are stratified based on risk characteristics of the underlying loans that are expected to have the most impact on projected prepayments including loan type, interest rate and term. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If the Corporation later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Loans serviced by the Bank for the benefit of others totaled $10.3 million, $12.6 million and $15.8 million at December 31, 2018 , 2017 and 2016 , respectively. Allowance for Loan Losses – The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews, borrowers’ actual or perceived financial and managerial strengths, and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial real estate loans by one of the following methods: the fair value of the collateral if the loan is collateral dependent, the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s obtainable market price. The Corporation’s allowance for possible loan losses consists of four elements: (1) specific valuation allowances established for probable losses on specific loans, (2) historical (quantitative) valuation allowances calculated based on historical loan loss experience for similar loans with similar characteristics and trends, (3) qualitative valuation to reflect the impact general economic conditions and other risk factors both internal and external to the Corporation and (4) an unallocated component. An unallocated component is maintained to cover uncertainties that could affect Management’s estimate of probable loss. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment using historical charge-offs as the starting point in estimating loss. Accordingly, the Corporation may not separately identify individual consumer and residential loans for impairment disclosures. Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or the lease term for lease hold improvements, whichever is shorter. When assets are retired or sold, the asset cost and related accumulated depreciation are eliminated from the respective accounts, and any resultant gain or loss is included in net income. The cost of maintenance and repairs is charged to operating expense as incurred, and the cost of major additions and improvements is capitalized. Intangible Assets – The Bank has $9.0 million of goodwill recorded on its balance sheet as the result of corporate acquisitions. Goodwill is not amortized, nor deductible for tax purposes. However, goodwill is tested for impairment at least annually, as of August 31, in accordance with ASC Topic 350. ASC Topic 350 allows for a qualitative assessment method that requires the use of significant assumptions in order to make a determination of impairment which the Corporation used as of August 31, 2018. These assumptions may include, but are not limited to: macroeconomic factors, banking industry conditions, banking merger and acquisition trends, the Bank’s historical financial performance, the Corporation’s stock price, forecast Bank financial performance, and change of control premiums. ASC Topic 350 requires the use of the “step-one” test if the qualitative assessment is not used. The step-one test is more quantitative than the qualitative test, but still requires numerous assumptions. The assumptions that may be used in the step-one test may include, but are not limited to: a dividend analysis, comparable sale transactions, and change of control premium estimates. If the step-one test fails, a more comprehensive step-two test is performed before a final determination of impairment is made. If goodwill is determined to be impaired, an impairment write-down is charged to results of operations in the period in which the impairment is determined. Bank Owned Life Insurance – The Bank invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. The Bank purchases life insurance coverage on the lives of a select group of employees. The Bank is the owner and beneficiary of the policies and records the investment at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in noninterest income. Other Real Estate Owned (OREO) – Foreclosed real estate (OREO) is comprised of property acquired through a foreclosure proceeding or an acceptance of a deed in lieu of foreclosure. Balances are initially reflected at the estimated fair value less any estimated disposition costs, with subsequent adjustments made to reflect further declines in value. Any losses realized upon disposition of the property, and holding costs prior thereto, are charged against income. All properties are actively marketed to potential buyers. Transfers of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Federal Income Taxes – Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance, when in the opinion of Management, it is more likely than not that some portion or all deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted through the provision for income taxes for the effects of changes in tax laws and rates on the date of enactment. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC Topic 740, “Income Taxes” also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. Advertising Expenses – Advertising costs are expensed as incurred. Treasury Stock – The acquisition of treasury stock is recorded under the cost method. The subsequent disposition or sale of the treasury stock is recorded using the average cost method. Investment and Trust Services – Assets held in a fiduciary capacity are not assets of the Corporation and therefore are not included in the consolidated financial statements. The fair value of trust assets under management (including assets held at third party brokers) at December 31, 2018 was $807.0 million and $845.1 million at the prior year-end. Off-Balance Sheet Financial Instruments – In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded on the balance sheet when they are funded. The amount of any liability for the credit risk associated with off-balance sheet financial instruments is recorded in other liabilities and was not material to the financial position of the Corporation at December 31, 2018 or 2017. Stock-Based Compensation – The Corporation accounts for stock based compensation in accordance with the ASC Topic 718, “Stock Compensation.” ASC Topic 718 requires compensation costs related to share-based payment transactions to be recognized in the financial statements (with limited exceptions). The amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued and forfeitures are accounted for as they occur. Compensation cost is recognized over the period that an employee provides services in exchange for the award. Compensation expense was $185 thousand in 2018 $161 thousand in 2017 and $88 thousand in 2016 . The Corporation does not allow the employee to use shares to satisfy employer income tax withholding obligations. Pension – The provision for pension expense was actuarially determined using the projected unit credit actuarial cost method. The funding policy is to contribute an amount sufficient to meet the requirements of ERISA, subject to Internal Revenue Code contribution limitations. In accordance with ASC Topic 715, “Compensation – Retirement Benefits”, the Corporation recognizes the plan’s over-funded or under-funded status as an asset or liability with an offsetting adjustment to Accumulated Other Comprehensive Income (AOCI). ASC Topic 715 requires the determination of the fair value of a plan’s assets at the company’s year-end and the recognition of actuarial gains and losses, prior service costs or credits, transition assets or obligations as a component of AOCI. These amounts were previously netted against the plan’s funded status in the Corporation’s consolidated Balance Sheet. These amounts will be subsequently recognized as components of net periodic benefit costs. Further, actuarial gains and losses that arise in subsequent periods that are not initially recognized as a component of net periodic benefit costs will be recognized as a component of AOCI. Those amounts will subsequently be recorded as component of net periodic benefit costs as they are amortized during future periods. Earnings per share – Earnings per share are computed based on the weighted average number of shares outstanding during each year. The Corporation’s basic earnings per share are calculated as net income divided by the weighted average number of shares outstanding. For diluted earnings per share, net income is divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivalents consist of stock options. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: (Dollars and shares in thousands, except per share data) 2018 2017 2016 Weighted average shares outstanding (basic) 4,382 4,337 4,297 Impact of common stock equivalents 22 22 5 Weighted average shares outstanding (diluted) 4,404 4,359 4,302 Anti-dilutive options excluded from calculation — — 9 Net income $ 6,125 $ 2,176 $ 8,087 Basic earnings per share $ 1.40 $ 0.50 $ 1.88 Diluted earnings per share $ 1.39 $ 0.50 $ 1.88 Segment Reporting – The Bank acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business and government customers. Through its community office and electronic banking applications, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Bank also performs personal, corporate, pension and fiduciary services through its Investment and Trust Services Department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Bank. As such, discrete information is not available and segment reporting would not be meaningful. Comprehensive Income – Comprehensive income is reflected in the Consolidated Statements of Comprehensive Income and includes net income and unrealized gains or losses, net of tax, on investment securities and derivatives and the change in plan assets and benefit obligations on the Bank’s pension plan, net of tax. Recent Accounting Pronouncements: 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 $142 thousand in 2017 and $585 thousand in 2016, and was reclassified in both years. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequently issued amendments 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 22. 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 elec |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 2. Regulatory Matters The Bank is limited as to the amount it may lend to the Corporation, unless such loans are collateralized by specific obligations. State regulations also limit the amount of dividends the Bank can pay to the Corporation and are generally limited to the Bank’s accumulated net earnings, which were $96.1 million at December 31, 2018 . In addition, dividends paid by the Bank to the Corporation would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. The Corporation and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Although not adopted in regulation form, the Pennsylvania Department of Banking utilizes capital standards requiring a minimum leverage capital ratio of 6% and a risk-based capital ratio of 10% , defined substantially the same as those by the FDIC. Management believes, as of December 31, 201 8 , that the Corporation and the Bank met all capital adequacy requirements to which it is subject. In July 201 3, 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 rules also include changes in the risk weights of certain assets to better reflect credit and other risk exposure s. In addition, a capital conservation buffer is phased-in beginning in at 0.625% for 2016, 1.25% for 2017, 1.875% for 2018 and 2.50% for 2019 and thereafter. The capital conservation buffer i s applicable to all of the capital ratios except for the Tier 1 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 December 31, 2018 was 7.06% (total risk-based capital 15.06% less 8.00% ) compared to the 2017 regulatory buffer of 1.875% . Com pliance with the capital conservation buffer is required in order to avoid limiting certain capital distributions. As of December 31 , 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 presents the regulatory capital ratio requirements for the Corporation and the Bank . As of December 31, 2018 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Risk-based Capital Ratio (1) Corporation $ 115,760 13.96% $ 37,328 4.50% N/A N/A Bank 115,326 13.80% 37,605 4.50% $ 54,319 6.50% Tier 1 Risk-based Capital Ratio (2) Corporation $ 115,760 13.96% $ 49,771 6.00% N/A N/A Bank 115,326 13.80% 50,140 6.00% $ 66,854 8.00% Total Risk-based Capital Ratio (3) Corporation $ 126,129 15.21% $ 66,361 8.00% N/A N/A Bank 125,825 15.06% 66,854 8.00% $ 83,567 10.00% Tier 1 Leverage Ratio (4) Corporation $ 115,760 9.78% $ 47,323 4.00% N/A N/A Bank 115,326 9.68% 47,675 4.00% $ 59,593 5.00% As of December 31, 2017 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Risk-based Capital Ratio (1) Corporation $ 112,315 14.06% $ 35,953 4.50% N/A N/A Bank 111,496 13.93% 36,010 4.50% $ 52,014 6.50% Tier 1 Risk-based Capital Ratio (2) Corporation $ 112,315 14.06% $ 47,938 6.00% N/A N/A Bank 111,496 13.93% 48,013 6.00% $ 64,018 8.00% Total Risk-based Capital Ratio (3) Corporation $ 122,324 15.31% $ 63,917 8.00% N/A N/A Bank 121,521 15.19% 64,018 8.00% $ 80,022 10.00% Tier 1 Leverage Ratio (4) Corporation $ 112,315 9.73% $ 46,175 4.00% N/A N/A Bank 111,496 9.64% 46,242 4.00% $ 57,802 5.00% (1) Common equity Tier 1 capital / total risk-weighted assets , (2) Tier 1 capital / total risk-weighted assets , (3) Total risk-based capital / total risk-weighted assets , (4) Tier 1 capital / average quarterly assets |
Restricted Cash Balances
Restricted Cash Balances | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash Balances [Abstract] | |
Restricted Cash Balances | Note 3. Restricted Cash Balances The Bank is required to maintain reserves against its deposit liabilities in the form of vault cash and/or balances with the Federal Reserve Bank. Deposit reserves that the Bank was required to hold were approximately $ 9.1 million and $ 7.1 million at December 31, 2018 and 2017 , respectively and were satisfied by the Bank’s vault cash. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | Note 4. Investments Available for Sale (AFS) Securities The investment portfolio serves as a mechanism to invest funds if funding sources out pace lending activity, to provide liquidity for lending and operations , and provide collateral for deposits and borrowings. The mix of securities and investing decisions are made as a component of balance sheet management. Debt securities include U.S. Government Agencies, U.S. Government Agency mortgage-backed securities, non-agency mortgage-backed securities, state and municipal government bonds, and trust preferred securities. The average life of the portfolio is 3.9 years and $84.6 million (fair value) is pledged as collateral for deposits. The Bank has no investments in a single issuer that exceeds 10% of shareholders equity. All securities are classified as available for sale, except equity, and all investment balances ref er to fair value, unless noted otherwise. The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2018 and 2017 is as follows: (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2018 cost gains losses value U.S. Government and Agency securities $ 9,120 $ 21 $ (65) $ 9,076 Municipal securities 67,811 320 (484) 67,647 Trust preferred securities 4,074 — (316) 3,758 Agency mortgage-backed securities 45,241 65 (648) 44,658 Private-label mortgage-backed securities 457 31 — 488 Asset-backed securities 5,869 — (24) 5,845 Total $ 132,572 $ 437 $ (1,537) $ 131,472 (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 Total $ 127,182 $ 1,200 $ (1,046) $ 127,336 At December 31, 2018 and 2017 , the fair value of investment securities pledged to secure public funds and trust deposits totaled $ 84.6 million and $ 84.1 million, respectively. The amortized cost and estimated fair value of debt securities at December 31, 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 $ 16,674 $ 16,712 Due after one year through five years 32,672 32,691 Due after five years through ten years 37,085 36,497 Due after ten years 443 426 86,874 86,326 Mortgage-backed securities 45,698 45,146 Total $ 132,572 $ 131,472 The composition of the net realized securities gains for the years ended December 31 is as follows: (Dollars in thousands) 2018 2017 2016 Gross gains realized $ 67 $ 3 $ 22 Gross losses realized (11) — — Net gains realized $ 56 $ 3 $ 22 The 2018 gains were generated by the sale of and calls on bonds. The 2017 and 2016 gains were generated from calls on bonds. Impairment : The following table reflects the temporary impairment in the investment portfolio, aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of December 31, 2018 and 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. Equity securities are assessed for other-than-temporary impairment based on the length of time of impairment, dollar amount of the impairment and general market and financial conditions relating to specific issues. The impairment identified on debt and equity securities and subject to assessment at December 31, 2018, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following tables present the temporary impairment in the security portfolio for the years presented: December 31, 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 $ 2,071 $ (6) 2 $ 5,175 $ (59) 14 $ 7,246 $ (65) 16 Municipal securities 5,832 (12) 10 25,091 (472) 42 30,923 (484) 52 Trust preferred securities 2,008 (159) 3 1,750 (157) 2 3,758 (316) 5 Agency mortgage-backed securities 7,687 (46) 16 30,511 (602) 74 38,198 (648) 90 Asset-backed securities 5,826 (22) 6 19 (2) 2 5,845 (24) 8 Total temporarily impaired securities $ 23,424 $ (245) 37 $ 62,546 $ (1,292) 134 $ 85,970 $ (1,537) 171 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 debt securities recognized in earnings as of December 31, 2018 (Dollars in thousands) Twelve Months Ended 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 (323) — Reduction for increases in cash flows expected to be collected — — Balance of credit-related OTTI at December 31 $ 272 $ 595 Equity Securities at fair value The Corporation owns one equity investm ent with a readily determinable fair value. At De cember 31, 2018, this investment was reported at fair value ( $374 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 $452 thousand of restricted stock at the end of 2018 of which $422 thousand is stock in the Federal Home Loan Bank of Pittsburgh (FHLB). FHLB stock is carried at a cost of $100 per share. FHLB stock is evaluated for impairment primarily based on an assessment of the ultimate recoverability of its cost. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support it operations. There is not a public market for FHLB stock and the benefits of FHLB membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. If FHLB stock were deemed to be impaired, the write-down for the Bank could be significant. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment. |
Loans
Loans | 12 Months Ended |
Dec. 31, 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 mortgage loans include long-term loans to individuals and businesses secured by mortgages on the borrower’s real property. Construction loans are made to finance the purchase of land and the construction of residential and commercial buildings thereon, and are secured by mortgages on real estate. Commercial loans are made to businesses of various sizes for a variety of purposes including construction, property, plant and equipment, and working capital. Commercial loans also include loans to government municipalities. Commercial lending is concentrated in the Bank’s primary market, but also includes purchased loan participations. Consumer loans are comprised of installment, home equity and unsecured personal lines of credit. A summary of loans outstandin g, by primary collateral, at December 31 is as follows: (Dollars in thousands) 2018 2017 Residential Real Estate 1-4 Family Consumer first liens $ 89,673 $ 97,159 Commercial first lien 59,227 61,275 Total first liens 148,900 158,434 Consumer junior liens and lines of credit 42,504 45,043 Commercial junior liens and lines of credit 4,716 5,328 Total junior liens and lines of credit 47,220 50,371 Total residential real estate 1-4 family 196,120 208,805 Residential real estate - construction Consumer 1,667 1,813 Commercial 8,558 8,088 Total residential real estate construction 10,225 9,901 Commercial real estate 487,980 428,428 Commercial 274,054 291,519 Total commercial 762,034 719,947 Consumer 4,996 5,047 973,375 943,700 Less: Allowance for loan losses (12,415) (11,792) Net Loans $ 960,960 $ 931,908 Included in the loan balances are the following: Net unamortized deferred loan costs $ 123 $ 98 Loans pledged as collateral for borrowings and commitments from: FHLB $ 772,564 $ 737,313 Federal Reserve Bank 34,160 35,740 Total $ 806,724 $ 773,053 Loans to directors and executive officers and related interests and affiliated enterprises were as follows: (Dollars in thousands) 2018 2017 Balance at beginning of year $ 22,123 $ 23,243 New loans made 1,461 1,513 Repayments (3,095) (2,633) Balance at end of year $ 20,489 $ 22,123 |
Loan Quality And Allowance for
Loan Quality And Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Loan Quality And Allowance for Loan Losses [Abstract] | |
Loan Quality and Allowance for Loan Losses | Note 6. Loan Quality Management utilizes a risk rating scale ranging from 1-Prime to 9-Loss to evaluate loan quality. This risk rating scale is used primarily for commercial purpose loans. Consumer purpose loans are identified as either a pass or substandard rating based on the performance status of the loans. Substandard consumer loans are loans that are 90 days or more past due and still accruing. Loans rated 1 – 4 are considered pass credits. Loans that are rated 5 are pass credits, but have been identified as credits that are likely to warrant additional attention and monitoring. Loans rated 6-Special Mention or worse begin to receive enhanced monitoring and reporting by the Bank. Loans rated 7-Substandard or 8-Doubtful exhibit the greatest financial weakness and present the greatest possible risk of loss to the Bank. Nonaccrual loans are rated no better than 7-Substandard. The following factors represent some of the factors used in determining the risk rating of a borrower: cash flow, debt coverage, liquidity, management, and collateral. Risk ratings, for pass credits, are generally reviewed annually for term debt and at renewal for revolving or renewing debt. The Bank monitors loan quality by reviewing three primary measurements: (1) loans rated 6-Special Mention or worse (collectively “watch list”), (2) delinquent loans and (3) net-charge-offs. The following table reports on the risk rating for those loans in the portfolio that are assigned an individual risk rating as of December 31, 2018 and 2017 Pass Special Mention Substandard Doubtful (Dollars in thousands) (1-5) (6) (7) (8) Total December 31, 2018 Residential Real Estate 1-4 Family First liens $ 148,453 $ — $ 447 $ — $ 148,900 Junior liens and lines of credit 47,171 — 49 — 47,220 Total 195,624 — 496 — 196,120 Residential real estate - construction 9,572 — 653 — 10,225 Commercial real estate 479,969 660 7,351 — 487,980 Commercial 272,959 — 1,095 — 274,054 Consumer 4,991 — 5 — 4,996 Total $ 963,115 $ 660 $ 9,600 $ — $ 973,375 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 Delinquent loans are a result of borrowers’ cash flow and/or alternative sources of cash being insufficient to repay loans. The Bank’s likelihood of collateral liquidation to repay the loans becomes more probable the further behind a borrower falls, particularly when loans reach 90 days or more past due. Management monitors the performance status of loans by the use of an aging report. The aging report can provide an early indicator of loans that may become severely delinquent and possibly result in a loss to the Bank. The following table presents the aging of payments in the loan portfolio as of December 31, 2018 and 2017 (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans December 31, 2018 Residential Real Estate 1-4 Family First liens $ 148,183 $ 322 $ 202 $ 113 $ 637 $ 80 $ 148,900 Junior liens and lines of credit 47,040 131 — 26 157 23 47,220 Total 195,223 453 202 139 794 103 196,120 Residential real estate - construction 9,572 — 198 — 198 455 10,225 Commercial real estate 481,774 1,343 3,323 113 4,779 1,427 487,980 Commercial 273,534 65 40 100 205 315 274,054 Consumer 4,933 46 12 5 63 — 4,996 Total $ 965,036 $ 1,907 $ 3,775 $ 357 $ 6,039 $ 2,300 $ 973,375 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 Impaired loans generally represent Management’s determination that the borrower will be unable to repay the loan in accordance with its contractual terms and that collateral liquidation may or may not fully repay both interest and principal. It is the Bank’s policy to evaluate the probable collectability of principal and interest due under terms of loan contracts for all loans 90-days or more, nonaccrual loans, or impaired loans. Further, it is the Bank’s policy to discontinue accruing interest on loans that are not adequately secured and in the process of collection. Upon determination of nonaccrual status, the Bank subtracts any current year accrued and unpaid interest from its income, and any prior year accrued and unpaid interest from the allowance for loan losses. Management continually monitors the status of nonperforming loans, the value of any collateral and potential of risk of loss. Nonaccrual loans are rated no better than 7 - Substandard . At December 31, 201 8 , the Bank had $129 thousand of residential properties in the process of foreclosure compared to $132 thousand at the end of 201 7 . Interest not recognized on nonaccrual loans was $108 thousand, $159 thousan d and $175 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively. In addition to monitoring nonaccrual loans, the Bank als o closely monitors impaired loans and troubled debt restructurings. A loan is considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect all interest and principal payments due according to the originally contracted terms of the loan agreement. Nonaccrual loans, excluding consumer purpose loans, and troubled-debt restructuring (TDR) loans are considered impaired. For impaired loans with balances less than $250 thousand and consumer purpose loans, a specific reserve analysis is not performed and these loans are added to the general allocation pool. These loans totaled $786 thousand at December 31, 20 1 8 and are comprised primarily of loans secured by residential real estate. Management does not believe that excluding these loans from the specific reserve analysis presents any additional risk. Impaired loans totaled $11.9 million at December 31, 201 8 compared to $12.6 million at December 31, 201 7 . The following tables present information on impaired loans: Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related December 31, 2018 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 871 $ 958 $ — $ — $ — Junior liens and lines of credit 49 49 — — — Total 920 1,007 — — — Residential real estate - construction 455 531 — — — Commercial real estate 10,236 10,808 — — — Commercial 315 9,763 — — — Total $ 11,926 $ 22,109 $ — $ — $ — 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 $ — $ — $ — Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Average Interest Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 914 $ 45 $ 1,083 $ 39 $ 1,194 $ 38 Junior liens and lines of credit 85 1 64 — 93 1 Total 999 46 1,147 39 1,287 39 Residential real estate - construction 462 — 473 — 492 4 Commercial real estate 10,809 417 11,938 435 17,806 589 Commercial 4,329 — 245 — 32 — Total $ 16,599 $ 463 $ 13,803 $ 474 $ 19,617 $ 632 A loan is considered a troubled debt restructuring (TDR) if the creditor (the Bank), for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. These concessions may include lowering the interest rate, extending the maturity, reamortization of payment, or a combination of multiple concessions. The Bank reviews all loans rated 6 or worse when it is providing a loan restructure, modification or new credit facility to determine if the action is a TDR. If a TDR loan is placed on nonaccrual status, it remains on nonaccrual status for at least six months to ensure performance. The following table presents TDR loans as of December 31, 2018 and 2017: 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 December 31, 2018 Residential real estate - construction 1 $ 455 $ — $ 455 — $ — Residential real estate 4 678 678 — — — Commercial real estate 11 10,099 8,809 1,290 — — Total 16 $ 11,232 $ 9,487 $ 1,745 — $ — December 31, 2017 Residential real estate - construction 1 $ 466 $ 466 $ — — $ — Residential real estate 5 737 701 36 1 39 Commercial real estate 11 10,983 10,388 595 1 595 Total 17 $ 12,186 $ 11,555 $ 631 2 $ 634 * The performing status is determined by the loan’s compliance with the modified terms. There were no new TDR loans made during the years ended December 31, 2018 and 2017. Al lowance for Loan Losses: Management monitors loan performance on a monthly basis and performs a quarterly evaluation of the adequacy of the allowance for loan losses (ALL). The ALL is determined by segmenting the loan portfolio based on the loan’s collateral. When calculating the ALL, consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews, historical charge-offs, the adequacy of the underlying collateral (if collateral dependent) and other relevant factors. The Bank begins enhanced monitoring of all loans rated 6 - Special Mention or worse, and obtains a new appraisal or asset valuation for any placed on nonaccrual and rated 7 - Substandard or worse. Management, at its discretion, may determine that additional adjustments to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited to: the economy, deferred maintenance, industry, type of property/equipment, age of the appraisal, etc. and the knowledge Management has about a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in order to determine the net realizable value to the Bank. When determining the allowance for loan losses, certain factors involved in the evaluation are inherently subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. Management monitors the adequacy of the allowance for loan losses on an ongoing basis and reports its adequacy quarterly to the Credit Risk Oversight Committee of the Board of Directors. Management believes that the allowance for loan losses at December 31, 2018 is adequate. The following table shows the activity in the Allowance for Loan Loss (ALL), for the years ended December 31, 2018 , 2017 and 2016 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 December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 Charge-offs (49) — (41) (2,751) (74) (167) — (3,082) Recoveries 35 — — 19 167 75 — 296 Provision 130 15 71 3,192 281 90 (4) 3,775 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 Charge-offs (13) — — (14) (8) (102) — (137) Recoveries 2 11 — 17 117 37 — 184 Provision (34) (4) — 414 108 70 116 670 ALL at December 31, 2017 $ 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 Charge-offs — — — — (9,482) (107) — (9,589) Recoveries 2 8 — 60 157 31 — 258 Provision (571) (205) (116) (888) 11,726 41 (33) 9,954 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 The following table shows the loans that were evaluated for the Allowance for Loan Loss (ALL) under a specific reserve (individually) and those that were evaluated under a general reserve (collectively), and the amount of the allowance established in each category as of December 31, 2018 and 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 December 31, 2018 Loans evaluated for ALL: Individually $ 405 $ — $ 455 $ 10,099 $ 181 $ — $ — $ 11,140 Collectively 148,495 47,220 9,770 477,881 273,873 4,996 — 962,235 Total $ 148,900 $ 47,220 $ 10,225 $ 487,980 $ 274,054 $ 4,996 $ — $ 973,375 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 491 133 108 5,698 4,511 70 1,404 12,415 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 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 |
Premises And Equipment
Premises And Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | Note 7. Premises and Equipment At December 31, p remises and equipment consist ed of: (Dollars in thousands) Estimated Life 2018 2017 Land $ 2,909 $ 2,962 Buildings and leasehold improvements 15 - 30 years, or lease term 24,522 24,347 Furniture, fixtures and equipment 3 - 10 years 12,471 12,447 Total cost 39,902 39,756 Less: Accumulated depreciation (26,381) (26,015) Net premises and equipment $ 13,521 $ 13,741 The following table shows the amount of depreciation and rental expense for the years ended December 31: 2018 2017 2016 Depreciation expense $ 1,232 $ 1,236 $ 1,270 Rent expense on leases $ 719 $ 704 $ 713 The Corporation leases various premises and equipment for use in banking operations through 2032. Some of these leases provide renewal options of varying terms. The rental cost of these optional renewals is not included below. At December 31, 2018 , future minimum payments on these leases are as follows: (Dollars in thousands) 2019 $ 743 2020 691 2021 662 2022 581 2023 536 2024 and beyond 3,359 Total $ 6,572 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 8. Other Real Estate Owned The following table summarizes the changes in other real estate owned for the years ended December 31: (Dollars in thousands) 2018 2017 2016 Balance at beginning of the period $ 2,598 $ 4,915 $ 6,451 Additions 176 90 329 Proceeds from dispositions (79) (2,298) (625) (Loss) gain on sales, net (5) (26) (31) Valuation adjustment (6) (83) (1,209) Balance at the end of the period $ 2,684 $ 2,598 $ 4,915 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 9. Intangible Assets The Bank has $9.0 million of goodwill recorded on its balance sheet as the result of corporate acquisitions. Goodwill is not amortized, nor deductible for tax purposes. Goodwill was tested for impairment using the qualitative assessment method as of August 31, 2018. Based upon this assessment, Management determined the Bank’s goodwill was not impaired. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | Note 10. Deposits Deposits are summarized as follows at December 31: (Dollars in thousands) 2018 2017 Noninterest-bearing checking $ 197,417 $ 196,853 Interest-bearing checking 305,661 280,944 Money management 436,752 415,045 Savings 81,206 78,868 Total interest-bearing checking and savings 823,619 774,857 Retail time deposits 58,332 72,211 Brokered time deposits 3,261 3,260 Total time deposits 61,593 75,471 Total deposits $ 1,082,629 $ 1,047,181 Overdrawn deposit accounts reclassified as loans $ 120 $ 154 The following table shows the maturity of time deposits greater than $250,000 at December 31, 2018 : (Dollars in thousands) Maturity distribution: Within three months $ 2,359 Over three through six months 1,227 Over six through twelve months 258 Over twelve months 1,688 Total $ 5,532 Time deposits greater than $250,000 at December 31, 201 7 were $ 12 . 0 million. At December 31, 2018 the scheduled maturities of time deposits are as follows: Retail Brokered Total (Dollars in thousands) Time Deposits Time Deposits Time Deposits 2019 $ 33,416 $ 3,008 $ 36,424 2020 12,129 253 12,382 2021 5,163 — 5,163 2022 4,828 — 4,828 2023 2,796 — 2,796 Total $ 58,332 $ 3,261 $ 61,593 The deposits of directors, executive officers, related interests and affiliated enterprises totaled $1.5 million and $4.1 million at December 31, 2018 and 2017, respectively. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Other Borrowings [Abstract] | |
Other Borrowings | Note 11. Other Borrowings The Bank's short-term borrowings are comprised of a line-of-credit with the Federal Home Loan Bank of Pittsburgh (Open Repo Plus). Open Repo Plus is a revolving term commitment used on an overnight basis. The term of this commitment may not exceed 364 days and it reprices daily at market rates. These borrowings at December 31 are described below: 2018 2017 FHLB FHLB (Dollars in thousands) Open Repo Open Repo Ending balance $ — $ — Weighted average rate at year end — — Range of interest rates paid at year end — — Maximum month-end balance during the year $ — $ 13,000 Average balance during the year $ 1,069 $ 1,894 Weighted average interest rate during the year 2.25% 0.83% The Bank’s maximum borrowing capacity with the FHLB at December 31, 2018 was $348.6 million with $348.6 million available to borrow. The Bank has established credit at the Federal Reserve Discount Window and as of year-end had the ability to borrow approximately $17 million. The Bank also has a $6 .0 million unsecured line of credit at a correspondent bank. |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | Note 12. Federal Income Taxes The temporary differences which give rise to significant portions of deferred tax assets and liabilities at December 31 are as follows: (Dollars in thousands) Deferred Tax Assets 2018 2017 Allowance for loan losses $ 2,607 $ 2,476 Deferred compensation 601 676 Purchase accounting 16 16 Deferred loan fees and costs, net — 99 Capital loss carryover 34 173 Other than temporary impairment of investments 124 124 Net operating loss carryforward 1,787 — Accumulated other comprehensive loss 1,696 1,603 Other 759 2,191 7,624 7,358 Valuation allowance (158) (297) Total gross deferred tax assets 7,466 7,061 Deferred Tax Liabilities Depreciation 239 162 Joint ventures and partnerships 36 28 Pension 1,173 1,068 Deferred loan fees and costs, net 26 — Total gross deferred tax liabilities 1,474 1,258 Net deferred tax asset $ 5,992 $ 5,803 In assessing the realizability of deferred tax assets, M anagement considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, M anagement believes it is more likely than not that the Bank will realize the benefits of these deferred tax assets other than those for which a valuation allowance has been recorded . The components of the provision for Federal income taxes attributable to income from operations were as follows: For the Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Current tax (benefit) expense $ (164) $ 4,396 $ 2,134 Deferred tax benefit (1) (831) (832) Income tax provision $ (165) $ 3,565 $ 1,302 For the years ended December 31, 2018 , 2017 , and 2016 , the income tax provisions are different from the tax expense which would be computed by applying the Federal statutory rate to pretax operating earnings. The Federal statutory rate was 21% for 2018 and 34% for 2017 and 2016. A reconciliation between the tax provision at the statutory rate and the tax provision at the effective tax rate is as follows: For the Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Tax provision at statutory rate $ 1,252 $ 3,252 $ 3,192 Income on tax-exempt loans and securities (1,404) (2,056) (1,751) Nondeductible interest expense relating to carrying tax-exempt obligations 33 32 24 Revaluation of deferred tax assets — 2,291 — Income from bank owned life insurance (108) (171) (210) Stock option compensation 39 55 30 Other, net 23 162 17 Income tax provision $ (165) $ 3,565 $ 1,302 Effective income tax rate (2.8%) 62.1% 13.9% In 2017, income tax expense and the effective tax rate increased due to the write-down of net deferred tax assets as a result of the passage of the Tax Cuts and Jobs Act of 2017 (the Act). The Act reduced the federal corporate income tax rate to 21% , effective January 1, 2018, from the Corporation’s statutory rate of 34% in prior periods. With the passage of the Act, net deferred tax assets were required to be revalued using the new rate of 21%. The Corporation recorded additional income tax expense of $2.3 million in 2017 as a result of the revaluation of net deferred tax assets. At December 31, 2018, the Corporation had a net operating loss (NOL) carryforward of $8.5 million. The NOL can be carried forward indefinitely, but is limited to the amount that can be utilized each year. At December 31, 2018, the Corporation had a capital loss carryover of $160 thousand, expiring in 2019. This loss carryover can only be offset with capital gains for federal income tax purposes. The tax benefit of this carryover is $34 thousand, and the Corporation has recorded a valuation allowance of $34 thousand against the capital loss carryover. The Corporation recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense for all periods presented. No penalties or interest were recognized in 201 8 , 201 7 or 201 6 . The Corporation has no uncertain tax positions at December 31, 201 8 . The Corporation is no longer subject to U.S. Federal examinations by tax authorities for the years before 201 5 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 13. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss included in shareholders' equity at December 31 are as follows: (Dollars in thousands) 2018 2017 Net unrealized (losses) gains on securities $ (1,100) $ 154 Tax effect 230 (33) Net of tax amount (870) 121 Accumulated pension adjustment (6,975) (7,784) Tax effect 1,465 1,635 Net of tax amount (5,510) (6,149) Total accumulated other comprehensive loss $ (6,380) $ (6,028) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 14. Benefit Plans The Bank has a 401(k) plan covering substantially all employees of F&M Trust who have completed one year and 1,000 hours of service. Employee contributions to the plan are matched at 100% up to 4% of each participant’s deferrals plus 50% of the next 2% of deferrals from participants’ eligible compensation. Under this plan, the maximum amount of employee contributions in any given year is defined by Internal Revenue Service regulations. In addition, a 100% discretionary profit sharing contribution of up to 2% of each employee’s eligible compensation is possible provided net income targets are achieved. T he Personnel Committee of the Corporation’s Board of Directors approves the established net income targets annually. Effective January 1, 2017 the time in service requirement for 401(k) eligibility was reduced from one year to four months, the hours of service requirement was removed and an auto-enrollment feature was added. The related expense for the 401(k) plan, and the profit sharing plan as approved by the Board of Directors, was $647 thousand in 201 8 , $707 thousand in 201 7 , and $494 thousand in 201 6 . The Bank has a noncontributory defined benefit pension plan covering employees hired prior to April 1, 2007. The pension plan was closed to new participants on April 1, 2007. Benefits are based on years of service and the employee’s compensation using a career average formula. The Bank’s funding policy is to contribute the annual amount required to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Contributions are intended to provide not only for the benefits attributed to service to date but also for those expected to be earned in the future. Employees who are eligible for pension benefits may elect to receive an annuity style payment or a lump-sum payout of their pension benefits. The return on pension assets and the discount rate are the two largest variables in determining pension expense. A low rate environment generally results in higher pension expense. The Bank uses the Citigroup Above Median Pension Discount Curve from the Citigroup Pension Discount Curve and Liability Index for its discount rate. The Bank’s pension expense for each of the last three years is shown in the section of the following table titled “Components of Net Periodic Pension Cost”. Pension plan asset classes include cash, fixed income securities and equities. The fixed income portion is comprised of Government Bonds, Corporate Bonds and Taxable Municipal Bonds; the equity portion is comprised of financial institution equities and individual corporate equities across a broad range of sectors. Investments are made on the basis of sound economic principles and in accordance with established guidelines. Target allocations of fund assets measured at fair value are as follows: fixed income, a range of 60% - 90% , equities, a range of 10% to 30% and cash as needed. The allocation as of December 31, 201 8 is shown in a table within this note. The Bank manages its pension portfolio in order to closely align the duration of the assets with the duration of the pension liability. On a regular basis, the Pension and Benefits Committee (the “Committee”) monitors the allocation to each asset class. Due to changes in market conditions, the asset allocation may vary from time to time. The Committee is responsible to direct the rebalancing of Plan assets when allocations are not within the established guidelines and to ensure that such action is implemented. The Bank attempts to allocate the pension assets in a manner that the cash flow from the assets is similar to the cash flow of the liabilities. This has and will continue to result in a smaller allocation of equity investments and a higher allocation of longer duration bonds. By closely matching the asset and liability cash flow, large fluctuations in projected benefit obligations should be reduced. Specific guidelines for fixed income investments are that no individual bond shall have a rating of less than an A as rated by Standard and Poor’s and Moody’s at the time of purchase. If the rating subsequently falls below an A rating, the Committee, at its next quarterly meeting, will discuss the merits of retaining that particular security. Allowable securities include obligations of the U.S. Government and its agencies, CDs, commercial paper, corporate obligations and insured municipal bonds. General guidelines for equities are that a diversified common stock program is used and that diversification patterns can be changed with the ongoing analysis of the outlook for economic and financial conditions. Specific guidelines for equities include a sector cap and an individual stock cap. The guidelines for the sector cap direct that because the Plan sponsor is a bank, a significantly large exposure to the financial sector is permissible; therefore, there is no sector cap for financial equities. All other sectors are limited to 25% of the equity component. The individual stock cap guidelines direct that no one stock may represent more than 5% of the total equity portfolio. The Committee revisits and determines the expected long-term rate of return on Plan assets annually. The policy of the Committee has been to take a conservative approach to all Plan assumptions. This rate is reviewed annually and historical investment returns play a significant role in determining what this rate should be. The following table sets forth the plan’s funded status, based on the December 31, 2018 , 2017 and 2016 actuarial valuations. For the Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Change in projected benefit obligation Benefit obligation at beginning of measurement year $ 19,889 $ 17,881 $ 18,609 Service cost 361 317 337 Interest cost 553 667 701 Actuarial loss (gain) (1,762) 2,260 632 Settlement loss — — (1,590) Benefits paid (1,104) (1,236) (808) Benefit obligation at end of measurement year 17,937 19,889 17,881 Change in plan assets Fair value of plan assets at beginning of measurement year 17,192 17,062 18,301 Actual return on plan assets net of expenses (539) 1,366 1,159 Settlement loss — — (1,590) Employer contribution 1,000 — — Benefits paid (1,104) (1,236) (808) Fair value of plan assets at end of measurement year 16,549 17,192 17,062 Funded status of projected benefit obligation $ (1,388) $ (2,697) $ (819) For the Years Ended December 31 2018 2017 2016 Assumptions used to determine benefit obligations: Discount rate 4.15% 3.46% 3.89% Rate of compensation increase 4.00% 4.00% 4.00% Amounts recognized in accumulated other comprehensive For the Years Ended December 31 income (loss), net of tax 2018 2017 2016 Net actuarial loss $ (6,975) $ (7,784) $ (6,366) Prior service cost obligation — — — (6,975) (7,784) (6,366) Tax effect 1,465 1,635 2,164 Net amount recognized in accumulated other comprehensive loss $ (5,510) $ (6,149) $ (4,202) For the Years Ended December 31 Components of net periodic pension cost 2018 2017 2016 Service cost $ 361 $ 317 $ 337 Interest cost 553 667 701 Expected return on plan assets (1,120) (1,072) (1,165) Amortization of prior service cost — — (94) Recognized net actuarial loss 705 547 579 Net periodic pension cost 499 459 358 Effect of settlement loss — — 564 Total pension expense $ 499 $ 459 $ 922 For the Years Ended December 31 2018 2017 2016 Assumptions used to determine net periodic benefit cost: Discount rate 3.46% 3.89% 3.89% Expected long-term return on plan assets 6.50% 6.50% 6.50% Rate of compensation increase 4.00% 4.00% 4.00% Asset allocations: Cash and cash equivalents 2% 2% 4% Common stocks 22% 24% 33% Corporate bonds 15% 18% 8% Municipal bonds 36% 38% 42% Investment fund - debt 8% 9% 9% Investment fund - equity 7% 0% 0% Deposit in immediate participation guarantee contract 6% 4% 3% Other 4% 5% 1% Total 100% 100% 100% The following table sets forth by level, within the fair value hierarchy, the Plan's investments at fair value as of December 31, 2018 and 2017 . For more information on the levels within the fair value hierarchy, please refer to Note 19. (Dollars in Thousands) December 31, 2018 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 350 $ 350 $ — $ — Common stocks 3,604 3,604 — — Corporate bonds 2,416 — 2,416 — Municipal bonds 6,052 — 6,052 — Investment fund - debt 1,409 — 1,409 — Investment fund - equity 1,112 1,112 — — Cash value of life insurance 25 — — 25 Deposit in immediate participation guarantee contract 934 934 — — Other 647 127 520 — Total assets $ 16,549 $ 6,127 $ 10,397 $ 25 (Dollars in Thousands) December 31, 2017 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 399 $ 399 $ — $ — Common stocks 4,158 4,158 — — Corporate bonds 3,108 — 3,108 — Municipal bonds 6,556 — 6,556 — Investment fund - debt 1,570 1,570 — — Cash value of life insurance 25 — — 25 Deposit in immediate participation guarantee contract 683 683 — — Other 693 143 550 — Total assets $ 17,192 $ 6,953 $ 10,214 $ 25 The following table sets forth a summary of the changes in the fair value of the Plan's level 3 investments for the years ended December 31, 2018 and 2017 Cash Value of Life Insurance December 31 2018 2017 Balance at the beginning of the period $ 25 $ 25 Unrealized gain (loss) relating to investments held at the reporting date — — Purchases, sales, issuances and settlement, net — — Balance at the end of the period $ 25 $ 25 Contributions The Bank contributed $1.0 million to its pension plan in February 2018, but does not expect to make any additional contributions in 201 9 . Estimated future benefit payments at December 31, 2018 ( Dollars in Thousands ) 2019 $ 985 2020 1,332 2021 929 2022 1,115 2023 969 2024-2028 5,755 Total $ 11,085 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note 15. Stock Based Compensation In 2004, the Corporation adopted the Employee Stock Purchase Plan of 2004 (ESPP). Under the ESPP of 2004, options for 250,000 shares of stock can be issued to eligible employees. The number of shares that can be purchased by each participant is defined by the plan and the Board of Directors sets the option price. However, the option price cannot be less than 90% of the fair market value of a share of the Corporation’s common stock on the date the option is granted. The Board of Directors also determines the expiration date of the options; however, no option may have a term that exceeds one year from the grant date. ESPP options are exercisable immediately upon grant. Any shares related to unexercised options are available for future grant The Board of Directors may amend, suspend or terminate the ESPP at any time. The grant price of the 2018 ESPP options was set at 95% of the stock’s fair value at the time of the award. In 2002, the Corporation adopted the Incentive Stock Option Plan of 2002 (ISOP). The plan had a 10 year life with regard to awarding options and expired in 2012. However, awards granted prior to expiration of the plan will continue to be exercisable in accordance with the plan or, if forfeited, rolled into the 2013 plan. In 2013, the Corporation approved the Incentive Stock Option Plan of 2013. Under the 2013 ISOP, options for 354,877 shares of stock were authorized to be issued to selected Officers, as defined in the plan. The number of options available to be awarded to each eligible Officer is determined by the Board of Directors, but is limited with respect to the aggregate fair value of the options as defined in the plan. The exercise price of the option may be no less than 100% of the fair value of a share of the Corporation’s common stock on the date the option is granted. The options have a life of 10 years and may be exercised only after the optionee has completed 6 months of continuous employment with the Corporation or its Subsidiary immediately following the grant date, or upon a change of control as defined in the plan. The ESPP and ISOP options outstanding at December 31, 2018 are all exercisable. The ESPP options expire on June 30, 2019 and the ISOP options expire 10 years from the grant date. The following table summarizes the stock option activity: (Dollars in thousands except share and per share data) ESPP Weighted Average Aggregate Options Price Per Share Intrinsic Value Balance Outstanding at December 31, 2015 22,286 $ 23.42 $ 2 Granted 24,434 22.46 Exercised (907) 22.66 Expired (23,055) 23.38 Balance Outstanding at December 31, 2016 22,758 $ 22.46 $ 140 Granted 19,086 29.95 Exercised (6,827) 23.00 Expired (17,180) 22.79 Balance Outstanding at December 31, 2017 17,837 $ 29.95 $ 132 Granted 19,790 32.73 Exercised (3,257) 30.54 Expired (15,992) 30.07 Balance Outstanding at December 31, 2018 18,378 $ 32.73 $ — Shares available for future grants at December 31, 2018 196,284 ISOP Weighted Average Aggregate Options Price Per Share Intrinsic Value Balance Outstanding at December 31, 2015 53,075 $ 22.56 $ 50 Granted 24,450 21.27 Exercised (3,800) 16.00 Forfeited (15,000) 24.14 Balance Outstanding at December 31, 2016 58,725 $ 22.03 $ 386 Granted 33,450 30.00 Exercised (750) 23.77 Forfeited (6,200) 27.37 Balance Outstanding at December 31, 2017 85,225 $ 24.75 $ 1,075 Granted 34,054 34.10 Exercised (12,268) 21.55 Forfeited (3,000) 23.77 Balance Outstanding at December 31, 2018 104,011 $ 28.22 $ 341 Shares available for future grants at December 31, 2018 259,123 The following table provides information about the options outstanding at December 31, 2018 : Options Weighted Outstanding Exercise Price or Weighted Average Average Remaining Stock Option Plan and Exercisable Price Range Exercise Price Life (years) Employee Stock Purchase Plan 18,378 $ 32.73 $ 32.73 0.5 Incentive Stock Option Plan 3,107 16.11 16.11 0.2 Incentive Stock Option Plan 33,400 21.27 - 22.05 21.56 6.8 Incentive Stock Option Plan 67,504 30.00 - 34.10 32.07 8.7 ISOP Total/Average 104,011 $ 28.22 7.8 The fair value of the ISOP options granted has been estimated using the Black-Scholes method and the following assumptions for the years shown: 2018 2017 2016 Incentive Stock Option Plan Options granted 34,054 33,450 24,450 Risk-free interest rate 2.66% 1.87% 1.22% Expected volatility of the Corporation's stock 19.51% 23.12% 25.76% Expected dividend yield 2.49% 2.94% 3.23% Expected life (in years) 5.25 5.25 5.25 Weighted average fair value of options granted $ 5.42 $ 4.81 $ 3.58 (Dollars in thousands) Compensation expense included in net income ESPP $ — $ — $ — ISOP 185 161 88 Total compensation expense included in net income $ 185 $ 161 $ 88 The Corporation uses the “simplified” method for estimating the expected term of the ISO award. The risk-free interest rate is the U.S. Treasury rate commensurate with the expected average life of the option at the date of grant. The volatility of the Corporation’s stock is based on historical volatility for a period equal to the term of the award and the dividend yield is the yield at the date of the award. There is no unrecognized compensation expense on any options outstanding at December 31, 2018. |
Deferred Compensation Agreement
Deferred Compensation Agreement | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Compensation Agreement [Abstract] | |
Deferred Compensation Agreement | Note 16. Deferred Compensation Agreement The Bank has a Director’s Deferred Compensation Plan, whereby each director may voluntarily participate and elect each year to defer all or a portion of their Bank director’s fees. Each participant directs the investment of their own account among various publicly available mutual funds designated by the Bank’s Investment and Trust Services department. Changes in the account balance beyond the amount deferred to the account are solely the result of the performance of the selected mutual fund. The Bank maintains an offsetting asset and liability for the deferred account balances and the annual expense is recorded as a component of director’s fees as if it were a direct payment to the director. The Bank will not incur any expense when the account goes into payout. The Corporation has two deferred compensation agreements it recorded as part of its acquisition of Fulton Bancshares Corporation in 2006. No future expense will be recognized for these plans. Payments for the deferred compensation agreements total $240 thousand through 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders’ Equity | Note 17. Shareholders’ Equity The Board of Directors, from time to time, authorizes the repurchase of the Corporation’s $1.00 par value common stock. The repurchased shares will be held as Treasury shares available for issuance in connection with future stock dividends and stock splits, employee benefit plans, executive compensation plans, the Dividend Reinvestment Plan (DRIP) and other appropriate corporate purposes. The term of the repurchase plans is normally one year. The Corporation held 292,606 and 334,311 treasury shares at cost at December 31, 2018 and 2017 , respectively. The following table provides information about the Corporation’s stock repurchase activity: Shares Repurchased Plan Date Authorized Expiration 2018 2017 10/12/2017 100,000 shares 9/30/2018 2,605 - 12/20/2018 100,000 shares 12/21/2019 - N/A The Corporation’s DRI P allows for shareholders to purchase additional shares of the Corporation’s common stock by reinvesting cash dividends paid on their shares or through optional cash payments. The Corporation has authorized one million (1,000,000) shares of its curr ently authorized common stock to be issued under the plan or may issue from Treasury shares. The DRIP added $1.4 million to capital during 2018. This total was comprised of $747 thousand from the reinvestment of quarterly dividends and $671 thousand of optional cash contributions. During 2018, 41,053 shares of common stock were purchased through the DRIP at a value of $1.4 million an d 573,302 shares remain to be issued |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 18. Commitments and Contingencies In the normal course of business, the Bank is a party to financial instruments that are not reflected in the accompanying financial statements and are commonly referred to as off-balance-sheet instruments. These financial instruments are entered into primarily to meet the financing needs of the Bank’s customers and include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the consolidated balance sheet. The Corporation’s exposure to credit loss in the event of nonperformance by other parties to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contract or notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance-sheet instruments. The Bank had the following outstanding commitments as of December 31: (Dollars in thousands) 2018 2017 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 216,913 $ 249,526 Consumer commitments to extend credit (secured) 49,221 44,866 Consumer commitments to extend credit (unsecured) 5,605 5,668 $ 271,739 $ 300,060 Standby letters of credit $ 25,429 $ 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 supp orting 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 Ban k establishe d a $2.4 million allo wance against letters of credit issued as part of the Participation discussed in the Loan Quality section which remains at December 31, 2018. 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 December 31, 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 settlemen t agreements further provided for general releas es 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. |
Fair Value Measurements And Fai
Fair Value Measurements And Fair Values Of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value Measurements And Fair Values Of Financial Instruments | Note 19 . Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective year-ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates maybe different than the amounts reported at each year-end. FASB ASC Topic 820, “Financial Instruments”, requires disclosure of the fair value of financial assets and liabilities, including those financial assets and liabilities that are not measured and reported at fair value on a recurring and nonrecurring basis. The Corporation does not report any nonfinancial assets at fair value. FASB ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1 : Valuation is based on unadjusted, quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 : Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. There may be substantial differences in the assumptions used for securities within the same level. For example, prices for U.S. Agency securities have fewer assumptions and are closer to level 1 valuations than the private label mortgage backed securities that require more assumptions and are closer to level 3 valuations. Level 3 : Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Corporation’s assumptions regarding what market participants would assume when pricing a financial instrument. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The level within the hierarchy does not represent risk. The fair value of the Corporation's financial instruments are as follows: December 31, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 52,957 $ 52,957 $ 52,957 $ — $ — Restricted stock 452 452 — 452 — Loans held for sale 118 118 — 118 — Net loans 960,960 941,930 — — 941,930 Accrued interest receivable 4,103 4,103 — 4,103 — Financial assets, available for sale: Debt securities 131,472 131,472 — 131,472 — Financial assets, fair value: Equity securities 374 374 374 — — Financial liabilities: Deposits $ 1,082,629 $ 1,082,425 $ — $ 1,082,425 $ — Accrued interest payable 193 193 — 193 — 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 — 456 — 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 December 31, 2018 and 2017 are as follows: (Dollars in Thousands Fair Value at December 31, 2018 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 374 $ — $ — $ 374 U.S. Government and Agency securities — 9,076 — 9,076 Municipal securities — 67,647 — 67,647 Trust Preferred Securities — 3,758 — 3,758 Agency mortgage-backed securities — 44,658 — 44,658 Private-label mortgage-backed securities — 488 — 488 Asset-backed securities — 5,845 — 5,845 Total assets $ 374 $ 131,472 $ — $ 131,846 (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 from nationally recognized markets. Level 2 securities represent debt securities that are valued using a mathematical model based upon the specific characteristics of a security in relationship to quoted pri ces for similar securities. Nonrecurring Fair Value Measurements For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2018 and 2017 are as follows: (Dollars in Thousands) Fair Value at December 31, 2018 Asset Description Level 1 Level 2 Level 3 Total Other real estate owned (1) $ — $ — $ 71 $ 71 Total assets $ — $ — $ 71 $ 71 (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 obtained through a process similar to the valuation process for impaired loans. In connection with the measurement and initial recognition of the foregoing assets, the Corporation recognizes charge-offs through the allowance for loan losses. The Corporation did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis at December 31, 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 December 31, 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 December 31, 2018 Fair Value Valuation Technique Unobservable Input (Weighted Average) Other real estate owned $ 71 Appraisal N/A — Cost to sell 8% ( 8% ) Range December 31, 2017 Fair Value Valuation Technique Unobservable Input (Weighted Average) Other real estate owned $ 90 Appraisal N/A — Cost to sell 8% (8%) |
Parent Company (Franklin Financ
Parent Company (Franklin Financial Services Corporation) Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company (Franklin Financial Services Corporation) Financial Information [Abstract] | |
Parent Company (Franklin Financial Services Corporation) Financial Information | Note 2 0 . Parent Company (Franklin Financial Services Corporation) Financial Information Balance Sheets December 31 (Dollars in thousands) 2018 2017 Assets: Cash and cash equivalents $ 108 $ 250 Investment securities 374 365 Equity investment in subsidiaries 118,027 114,387 Other assets — 184 Total assets $ 118,509 115,186 Liabilities: Other liabilities $ 113 $ 42 Total liabilities 113 42 Shareholders' equity 118,396 115,144 Total liabilities and shareholders' equity $ 118,509 $ 115,186 Statement s of Income Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Income: Dividends from Bank subsidiary $ 3,259 $ 3,225 $ 4,006 Other income 9 — — 3,268 3,225 4,006 Expenses: Operating expenses 1,184 1,107 972 Income before income taxes and equity in undistributed income of subsidiaries 2,084 2,118 3,034 Income tax benefit 207 348 301 Equity in undistributed income of subsidiaries 3,834 (290) 4,752 Net income $ 6,125 $ 2,176 $ 8,087 Statements of Comprehensive Income Years ended December 31 (Dollars in thousands) 2018 2017 2016 Net Income $ 6,125 $ 2,176 $ 8,087 Securities: Unrealized gains arising during the period - 201 — Reclassification adjustment for net (gains) losses included in net income - - — Net Unrealized gains - 201 — Tax effect - (68) — Net of tax amount - 133 — Total other comprehensive income of Parent - 133 — Other comprehensive (loss) income of subsidiaries (151) (954) (493) Total Comprehensive Income $ 5,974 $ 1,355 $ 7,594 Statements of Cash Flows Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 6,125 $ 2,176 $ 8,087 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (income) loss of subsidiary (3,834) 290 (4,752) Stock option compensation 185 161 88 Deferred tax benefit — (26) — Decrease (increase) in other assets/liabilities 289 (337) (307) Net cash provided by operating activities 2,765 2,264 3,116 Cash flows from financing activities Dividends paid (4,598) (4,031) (3,523) Cash received from option exercises 362 175 82 Common stock issued under dividend reinvestment plan 1,417 991 1,671 Treasury stock purchase (88) — (795) Net cash used in financing activities (2,907) (2,865) (2,565) (Decrease) increase in cash and cash equivalents (142) (601) 551 Cash and cash equivalents as of January 1 250 851 300 Cash and cash equivalents as of December 31 $ 108 $ 250 $ 851 |
Quarterly Results Of Operations
Quarterly Results Of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Results Of Operations [Abstract] | |
Quarterly Results Of Operations | Note 2 1 . Quarterly Results of Operations (unaudited) The following is a condensed summary of the quarterly results of consolidated operations of the Corporation for the years ended December 31, 2018 and 2017 : (Dollars in thousands, except per share) Three months ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Interest income $ 10,488 $ 11,053 $ 11,477 $ 11,849 Interest expense 795 954 1,122 1,343 Net interest income 9,693 10,099 10,355 10,506 Provision for loan losses 200 9,129 * 250 375 Other noninterest income 3,148 3,221 3,120 3,140 Noninterest expense 8,648 11,188 * 8,571 8,961 Income (loss) before income taxes 3,993 (6,997) 4,654 4,310 Federal income tax expense 491 (1,816) 654 506 Net Income (loss) $ 3,502 (5,181) 4,000 3,804 Basic earnings per share $ 0.80 $ (1.18) $ 0.91 $ 0.86 Diluted earnings per share $ 0.80 $ (1.18) $ 0.91 $ 0.86 Dividends declared per share $ 0.24 $ 0.27 $ 0.27 $ 0.27 * Includes impairment charges on a loan participation (Dollars in thousands, except per share) Three months ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Interest income $ 9,546 $ 9,938 $ 10,063 $ 10,339 Interest expense 581 590 629 691 Net interest income 8,965 9,348 9,434 9,648 Provision for loan losses 120 50 250 250 Other noninterest income 2,925 3,155 2,971 3,137 Noninterest expense 7,957 8,161 8,305 18,750 ** Income (loss) before income taxes 3,813 4,292 3,850 (6,215) Federal income tax expense 793 950 774 1,048 *** Net Income (loss) $ 3,020 3,342 3,076 (7,263) Basic earnings per share $ 0.70 $ 0.77 $ 0.71 $ (1.67) Diluted earnings per share $ 0.70 $ 0.77 $ 0.70 $ (1.67) Dividends declared per share $ 0.21 $ 0.24 $ 0.24 $ 0.24 ** Includes $10 million for the accrual of a legal settlement *** Includes $2.3 million for revaluation of the net deferred tax assets Due to rounding, the sum of the quarters may not equal the amount reported for the year. Note 2 2 . 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 $5.1 million for 2018 and $4.8 million for 2017. · 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 $314 thousand for 2018 and $243 thousand for the 2017. · Commissions from the sale of investment and insurance products are recognized upon the completion of the transaction. Fees recognized were $ 282 thousand for 2018 and $315 thousand for 2017. 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 Fees – 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. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 2 . 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 $5.1 million for 2018 and $4.8 million for 2017. · 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 $314 thousand for 2018 and $243 thousand for the 2017. · Commissions from the sale of investment and insurance products are recognized upon the completion of the transaction. Fees recognized were $ 282 thousand for 2018 and $315 thousand for 2017. 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 Fees – 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. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of Franklin Financial Services Corporation (the Corporation) and its wholly-owned subsidiaries; Farmers and Merchants Trust Company of Chambersburg and Franklin Future Fund Inc. Farmers and Merchants Trust Company of Chambersburg is a commercial bank (the Bank) that has one wholly-owned subsidiary, Franklin Financial Properties Corp., which holds real estate assets that are leased by the Bank. Franklin Future Fund Inc. is a non-bank investment company that makes venture capital investments within the Corporation’s primary market area. The activities of non-bank entities are not significant to the consolidated totals. All significant intercompany transactions have been eliminated in consolidation. Management has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Nature Of Operations | Nature of Operations – The Corporation conducts substantially all of its business through its subsidiary bank, Farmers and Merchants Trust Company of Chambersburg, which serves its customer base through twenty-two community-banking offices located in Franklin, Cumberland, Fulton and Huntingdon Counties, Pennsylvania. These counties are considered to be the Corporation’s primary market area, but it may do business in the greater South-Central Pennsylvania market. The Bank is a community-oriented commercial bank that emphasizes customer service and convenience. As part of its strategy, the Bank has sought to develop a variety of products and services that meet the needs of both its retail and commercial customers. The Corporation and the Bank are subject to the regulations of various federal and state agencies and undergo periodic examinations by these regulatory authorities. |
Use Of Estimates In The Preparation Of Financial Statements | Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the assessment of other than temporary impairment of investment securities and the valuation allowance on the deferred tax asset. |
Significant Group Concentrations Of Credit Risk | Significant Group Concentrations of Credit Risk – Most of the Corporation’s activities are with customers located within its primary market area. Note 4 of the consolidated financial statements shows the types of securities in which the Corporation invests. Note 5 of the consolidated financial statements shows the types of lending in which the Corporation engages. The Corporation does not have any significant concentrations of any one industry or customer. |
Statement Of Cash Flows | Statement of Cash Flows – For purposes of reporting cash flows, cash and cash equivalents include Cash and due from banks, Interest-bearing deposits in other banks and Federal funds sold. Generally, Federal funds are purchased and sold for one-day periods. |
Investment Securities | Investment Securities – M anagement classifies its debt securities at the time of purchase as available for sale or held to maturity. At December 31, 2018 and 2017, all debt securities were classified as available for sale, meaning that the Corporation intends to hold them for an indefinite period of time, but not necessarily to maturity. Available for sale debt securities are stated at estimated fair value, adjusted for amortization of premiums and accretion of discounts which are recognized as adjustments of interest income through call date or maturity. The related unrealized holding gains and losses are reported as other comprehensive income or loss, net of tax, until realized. Declines in the fair value of held-to-maturity and available-for-sale debt securities to amounts below cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating the other-than-temporary impairment losses, Management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) determines if the Corporation does not intend to sell the security or it if is not more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost. When a determination is made that an other-than-temporary impairment exists but the Corporation does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Realized securities gains and losses are computed using the specific identification method. Gains or losses on the disposition of debt investment securities are based on the net proceeds and the adjusted carrying amount of the specific security sold. Any decision to sell a debt security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity or mix of the Bank’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Effective January 1, 2018, equity investments are carried at fair value with changes in fair value recognized in net income. |
Restricted Stock | Restricted Stock – – Restricted stock, which is carried at cost, consists of stock of the Federal Home Loan Bank of Pittsburgh (FHLB) and Atlantic Central Bankers Bank (ACBB). The Bank held $452 thousand of restricted stock at the end of 2018. With the exception of $30 thousand, this investment represents stock in the FHLB that the Bank is required to hold in order to be a member of FHLB and is carried at a cost of $100 per share. FHLB stock is divided into two classes: membership stock and activity stock, which is based on outstanding loan balances. Federal law requires a member institution of the FHLB to hold FHLB stock according to a predetermined formula. Management evaluates the restricted stock for impairment in accordance with ASC Topic 320. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the banks as compared to the capital stock amount for the banks and the length of time this situation has persisted, (2) commitments by the banks to make payments required by law or regulation and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the banks. As a government sponsored entity, FHLB has the ability to raise funding through the U.S. Treasury that can be used to support its operations. There is not a public market for FHLB or ACBB stock and the benefits of membership (e.g., liquidity and low cost funding) add value to the stock beyond purely financial measures. Management intends to remain a member of the FHLB and believes that it will be able to fully recover the cost basis of this investment. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2018. |
Loans | Loans – Loans, that Management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are stated at the outstanding unpaid principal balances, net of any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the interest method. The Corporation is amortizing these amounts over the contractual life of the loan. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or Management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in a prior year is charged against the allowance for loan losses. Payments received on nonaccrual loans are applied initially against principal, then interest income, late charges and any other expenses and fees. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loans. |
Loans Held For Sale | Loans Held for Sale – Mortgage loans originated and intended for sale in the secondary market at the time of origination are carried at the lower of cost or estimated fair value (determined on an aggregate basis). All sales are made without recourse. Loans held for sale at December 31, 2018 represent loans originated through a third-party brokerage agreement for a fee and present no price risk to the Bank. |
Loan Servicing | Loan Servicing – Servicing assets are recognized as separate assets when rights are acquired through sale of financial assets. A portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the periods of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. For the purpose of computing impairment, mortgage servicing rights are stratified based on risk characteristics of the underlying loans that are expected to have the most impact on projected prepayments including loan type, interest rate and term. Impairment is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If the Corporation later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Loans serviced by the Bank for the benefit of others totaled $10.3 million, $12.6 million and $15.8 million at December 31, 2018 , 2017 and 2016 , respectively. |
Allowance For Loan Losses | Allowance for Loan Losses – The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, diversification of the loan portfolio, delinquency statistics, results of internal loan reviews, borrowers’ actual or perceived financial and managerial strengths, and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows expected to be received on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by Management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and commercial real estate loans by one of the following methods: the fair value of the collateral if the loan is collateral dependent, the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s obtainable market price. The Corporation’s allowance for possible loan losses consists of four elements: (1) specific valuation allowances established for probable losses on specific loans, (2) historical (quantitative) valuation allowances calculated based on historical loan loss experience for similar loans with similar characteristics and trends, (3) qualitative valuation to reflect the impact general economic conditions and other risk factors both internal and external to the Corporation and (4) an unallocated component. An unallocated component is maintained to cover uncertainties that could affect Management’s estimate of probable loss. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment using historical charge-offs as the starting point in estimating loss. Accordingly, the Corporation may not separately identify individual consumer and residential loans for impairment disclosures. |
Premises And Equipment | Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or the lease term for lease hold improvements, whichever is shorter. When assets are retired or sold, the asset cost and related accumulated depreciation are eliminated from the respective accounts, and any resultant gain or loss is included in net income. The cost of maintenance and repairs is charged to operating expense as incurred, and the cost of major additions and improvements is capitalized. |
Intangible Assets | Intangible Assets – The Bank has $9.0 million of goodwill recorded on its balance sheet as the result of corporate acquisitions. Goodwill is not amortized, nor deductible for tax purposes. However, goodwill is tested for impairment at least annually, as of August 31, in accordance with ASC Topic 350. ASC Topic 350 allows for a qualitative assessment method that requires the use of significant assumptions in order to make a determination of impairment which the Corporation used as of August 31, 2018. These assumptions may include, but are not limited to: macroeconomic factors, banking industry conditions, banking merger and acquisition trends, the Bank’s historical financial performance, the Corporation’s stock price, forecast Bank financial performance, and change of control premiums. ASC Topic 350 requires the use of the “step-one” test if the qualitative assessment is not used. The step-one test is more quantitative than the qualitative test, but still requires numerous assumptions. The assumptions that may be used in the step-one test may include, but are not limited to: a dividend analysis, comparable sale transactions, and change of control premium estimates. If the step-one test fails, a more comprehensive step-two test is performed before a final determination of impairment is made. If goodwill is determined to be impaired, an impairment write-down is charged to results of operations in the period in which the impairment is determined. |
Bank Owned Life Insurance | Bank Owned Life Insurance – The Bank invests in bank owned life insurance (BOLI) as a source of funding for employee benefit expenses. The Bank purchases life insurance coverage on the lives of a select group of employees. The Bank is the owner and beneficiary of the policies and records the investment at the cash surrender value of the underlying policies. Income from the increase in cash surrender value of the policies is included in noninterest income. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO) – Foreclosed real estate (OREO) is comprised of property acquired through a foreclosure proceeding or an acceptance of a deed in lieu of foreclosure. Balances are initially reflected at the estimated fair value less any estimated disposition costs, with subsequent adjustments made to reflect further declines in value. Any losses realized upon disposition of the property, and holding costs prior thereto, are charged against income. All properties are actively marketed to potential buyers. |
Transfers Of Financial Assets | Transfers of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Federal Income Taxes | Federal Income Taxes – Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance, when in the opinion of Management, it is more likely than not that some portion or all deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted through the provision for income taxes for the effects of changes in tax laws and rates on the date of enactment. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. ASC Topic 740, “Income Taxes” also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. |
Advertising Expenses | Advertising Expenses – Advertising costs are expensed as incurred. |
Treasury Stock | Treasury Stock – The acquisition of treasury stock is recorded under the cost method. The subsequent disposition or sale of the treasury stock is recorded using the average cost method. |
Investment And Trust Services | Investment and Trust Services – Assets held in a fiduciary capacity are not assets of the Corporation and therefore are not included in the consolidated financial statements. The fair value of trust assets under management (including assets held at third party brokers) at December 31, 2018 was $807.0 million and $845.1 million at the prior year-end. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments – In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded on the balance sheet when they are funded. The amount of any liability for the credit risk associated with off-balance sheet financial instruments is recorded in other liabilities and was not material to the financial position of the Corporation at December 31, 2018 or 2017. |
Stock-Based Compensation | Stock-Based Compensation – The Corporation accounts for stock based compensation in accordance with the ASC Topic 718, “Stock Compensation.” ASC Topic 718 requires compensation costs related to share-based payment transactions to be recognized in the financial statements (with limited exceptions). The amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued and forfeitures are accounted for as they occur. Compensation cost is recognized over the period that an employee provides services in exchange for the award. Compensation expense was $185 thousand in 2018 $161 thousand in 2017 and $88 thousand in 2016 . The Corporation does not allow the employee to use shares to satisfy employer income tax withholding obligations. |
Pension | Pension – The provision for pension expense was actuarially determined using the projected unit credit actuarial cost method. The funding policy is to contribute an amount sufficient to meet the requirements of ERISA, subject to Internal Revenue Code contribution limitations. In accordance with ASC Topic 715, “Compensation – Retirement Benefits”, the Corporation recognizes the plan’s over-funded or under-funded status as an asset or liability with an offsetting adjustment to Accumulated Other Comprehensive Income (AOCI). ASC Topic 715 requires the determination of the fair value of a plan’s assets at the company’s year-end and the recognition of actuarial gains and losses, prior service costs or credits, transition assets or obligations as a component of AOCI. These amounts were previously netted against the plan’s funded status in the Corporation’s consolidated Balance Sheet. These amounts will be subsequently recognized as components of net periodic benefit costs. Further, actuarial gains and losses that arise in subsequent periods that are not initially recognized as a component of net periodic benefit costs will be recognized as a component of AOCI. Those amounts will subsequently be recorded as component of net periodic benefit costs as they are amortized during future periods. |
Earnings Per Share | Earnings per share – Earnings per share are computed based on the weighted average number of shares outstanding during each year. The Corporation’s basic earnings per share are calculated as net income divided by the weighted average number of shares outstanding. For diluted earnings per share, net income is divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivalents consist of stock options. A reconciliation of the weighted average shares outstanding used to calculate basic earnings per share and diluted earnings per share follows: (Dollars and shares in thousands, except per share data) 2018 2017 2016 Weighted average shares outstanding (basic) 4,382 4,337 4,297 Impact of common stock equivalents 22 22 5 Weighted average shares outstanding (diluted) 4,404 4,359 4,302 Anti-dilutive options excluded from calculation — — 9 Net income $ 6,125 $ 2,176 $ 8,087 Basic earnings per share $ 1.40 $ 0.50 $ 1.88 Diluted earnings per share $ 1.39 $ 0.50 $ 1.88 |
Segment Reporting | Segment Reporting – The Bank acts as an independent community financial services provider and offers traditional banking and related financial services to individual, business and government customers. Through its community office and electronic banking applications, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of safe deposit services. The Bank also performs personal, corporate, pension and fiduciary services through its Investment and Trust Services Department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and trust operations of the Bank. As such, discrete information is not available and segment reporting would not be meaningful. |
Comprehensive Income | Comprehensive Income – Comprehensive income is reflected in the Consolidated Statements of Comprehensive Income and includes net income and unrealized gains or losses, net of tax, on investment securities and derivatives and the change in plan assets and benefit obligations on the Bank’s pension plan, net of tax. |
Recent Accounting Pronouncements, Policy | 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 $142 thousand in 2017 and $585 thousand in 2016, and was reclassified in both years. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequently issued amendments 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 22. 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. Upon adoption, as of January 1, 2018, these investments were reclassified from available for sale securities and the 2017 balance sheet presentation is conformed accordingly. 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 19. Fair Value Measurements and Fair Values of Financial Instruments for more information. ASU 2016-02, Leases (Topic 842) and all subsequently issued amendments 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 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. ASU 2018-11, Leases - Targeted Improvements (Topic 842). This guidance provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Corporation). January 1, 2019 See paragraph below for information on the Corporation's adoption of ASU 2016-02. In February 2016, the FASB issued ASU 2016-02, "Leases (Subtopic 842)." This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The amendments in ASU 2016-02 are effective for fiscal years, including interim periods, beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. Subsequently, the FASB issued the following standards related to ASU 2016-02: ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840, and Leases (Topic 842): Amendments to SEC Parragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments;" ASU 2018-1, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, "Codification Improvements to Topic 842, Leases;" and ASU 2018-11, "Leases (Topic 842): Targeted Improvements." Based on the current lease portfolio, upon adoption of the new accounting standard, the Corporation anticipates recognizing a lease liability and related right-of-use asset on the Consolidated Balance Sheet. Management is continuing to evaluate the Corporation's outstanding inventory of leases and determining the effect of recognizing operating leases on the Consolidated Balance Sheet. The Corporation plans to adopt the modified retrospective approach under ASU 2018-11 in the first quarter of 2019. Based on the current composition of leases, at adoption, the Corporation is expected to record an estimated lease liability with a corresponding right-of-use asset in the range of $5.0 to $6.0 million on the Consolidated Balance Sheet. The Corporation expects its regulatory capital ratios to remain above the thresholds necessary to be classified as a "well captialized" institution. ASU 2018-13, Disclosure Framework (Topic 820) This guidance eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. January 1, 2019 The Corporation adopted the standard on January 1, 2019 and it did not have a material effect on its consolidated results of operations. ASU 2018-14, Disclosure Framework (Topic 715): Changes to the Disclosure Requirements for Defined Benefit Plans This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. January 1, 2020 The Corporation will adopt the provisions of the ASU on January 1, 2020. As the ASU only revises disclosure requirements, it is not expected to have a material effect on the consolidated financial statements. ASU 2018-15, Accounting for Implementation Costs in a Cloud Computing Arrangement (Topic 350) This ASU required an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an "other asset"). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. The ASU is effective January 1, 2020 with early adoption permitted. January 1, 2020 The Corporation adopted the standard on January 1, 2019 and it did 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. Early adoption is permitted for any impairment tests performed after January 1, 2017, applied prospectively. January 1, 2020 The Corporation early adopted the ASU in the fourth quarter of 2018 with the completion of the 2018 impairment analysis. The Corporation is still evaluating the effect of the standard on its consolidated financial statements. 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. A third-party vendor has been selected to assist with the CECL calculations and the implementation process has started. The Corporation expects to be able to run the CECL model in test mode starting near the end of the first quarter of 2019. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | (Dollars and shares in thousands, except per share data) 2018 2017 2016 Weighted average shares outstanding (basic) 4,382 4,337 4,297 Impact of common stock equivalents 22 22 5 Weighted average shares outstanding (diluted) 4,404 4,359 4,302 Anti-dilutive options excluded from calculation — — 9 Net income $ 6,125 $ 2,176 $ 8,087 Basic earnings per share $ 1.40 $ 0.50 $ 1.88 Diluted earnings per share $ 1.39 $ 0.50 $ 1.88 |
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 $142 thousand in 2017 and $585 thousand in 2016, and was reclassified in both years. ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequently issued amendments 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 22. 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. Upon adoption, as of January 1, 2018, these investments were reclassified from available for sale securities and the 2017 balance sheet presentation is conformed accordingly. 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 19. Fair Value Measurements and Fair Values of Financial Instruments for more information. ASU 2016-02, Leases (Topic 842) and all subsequently issued amendments 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 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. ASU 2018-11, Leases - Targeted Improvements (Topic 842). This guidance provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Corporation). January 1, 2019 See paragraph below for information on the Corporation's adoption of ASU 2016-02. In February 2016, the FASB issued ASU 2016-02, "Leases (Subtopic 842)." This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The amendments in ASU 2016-02 are effective for fiscal years, including interim periods, beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. Subsequently, the FASB issued the following standards related to ASU 2016-02: ASU 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840, and Leases (Topic 842): Amendments to SEC Parragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments;" ASU 2018-1, "Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, "Codification Improvements to Topic 842, Leases;" and ASU 2018-11, "Leases (Topic 842): Targeted Improvements." Based on the current lease portfolio, upon adoption of the new accounting standard, the Corporation anticipates recognizing a lease liability and related right-of-use asset on the Consolidated Balance Sheet. Management is continuing to evaluate the Corporation's outstanding inventory of leases and determining the effect of recognizing operating leases on the Consolidated Balance Sheet. The Corporation plans to adopt the modified retrospective approach under ASU 2018-11 in the first quarter of 2019. Based on the current composition of leases, at adoption, the Corporation is expected to record an estimated lease liability with a corresponding right-of-use asset in the range of $5.0 to $6.0 million on the Consolidated Balance Sheet. The Corporation expects its regulatory capital ratios to remain above the thresholds necessary to be classified as a "well captialized" institution. ASU 2018-13, Disclosure Framework (Topic 820) This guidance eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reason for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. January 1, 2019 The Corporation adopted the standard on January 1, 2019 and it did not have a material effect on its consolidated results of operations. ASU 2018-14, Disclosure Framework (Topic 715): Changes to the Disclosure Requirements for Defined Benefit Plans This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. January 1, 2020 The Corporation will adopt the provisions of the ASU on January 1, 2020. As the ASU only revises disclosure requirements, it is not expected to have a material effect on the consolidated financial statements. ASU 2018-15, Accounting for Implementation Costs in a Cloud Computing Arrangement (Topic 350) This ASU required an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an "other asset"). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. The ASU is effective January 1, 2020 with early adoption permitted. January 1, 2020 The Corporation adopted the standard on January 1, 2019 and it did 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. Early adoption is permitted for any impairment tests performed after January 1, 2017, applied prospectively. January 1, 2020 The Corporation early adopted the ASU in the fourth quarter of 2018 with the completion of the 2018 impairment analysis. The Corporation is still evaluating the effect of the standard on its consolidated financial statements. 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. A third-party vendor has been selected to assist with the CECL calculations and the implementation process has started. The Corporation expects to be able to run the CECL model in test mode starting near the end of the first quarter of 2019. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters [Abstract] | |
Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements | As of December 31, 2018 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Risk-based Capital Ratio (1) Corporation $ 115,760 13.96% $ 37,328 4.50% N/A N/A Bank 115,326 13.80% 37,605 4.50% $ 54,319 6.50% Tier 1 Risk-based Capital Ratio (2) Corporation $ 115,760 13.96% $ 49,771 6.00% N/A N/A Bank 115,326 13.80% 50,140 6.00% $ 66,854 8.00% Total Risk-based Capital Ratio (3) Corporation $ 126,129 15.21% $ 66,361 8.00% N/A N/A Bank 125,825 15.06% 66,854 8.00% $ 83,567 10.00% Tier 1 Leverage Ratio (4) Corporation $ 115,760 9.78% $ 47,323 4.00% N/A N/A Bank 115,326 9.68% 47,675 4.00% $ 59,593 5.00% As of December 31, 2017 Regulatory Ratios Adequately Capitalized Well Capitalized Actual Minimum Minimum (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Risk-based Capital Ratio (1) Corporation $ 112,315 14.06% $ 35,953 4.50% N/A N/A Bank 111,496 13.93% 36,010 4.50% $ 52,014 6.50% Tier 1 Risk-based Capital Ratio (2) Corporation $ 112,315 14.06% $ 47,938 6.00% N/A N/A Bank 111,496 13.93% 48,013 6.00% $ 64,018 8.00% Total Risk-based Capital Ratio (3) Corporation $ 122,324 15.31% $ 63,917 8.00% N/A N/A Bank 121,521 15.19% 64,018 8.00% $ 80,022 10.00% Tier 1 Leverage Ratio (4) Corporation $ 112,315 9.73% $ 46,175 4.00% N/A N/A Bank 111,496 9.64% 46,242 4.00% $ 57,802 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | (Dollars in thousands) 2018 2017 Net unrealized (losses) gains on securities $ (1,100) $ 154 Tax effect 230 (33) Net of tax amount (870) 121 Accumulated pension adjustment (6,975) (7,784) Tax effect 1,465 1,635 Net of tax amount (5,510) (6,149) Total accumulated other comprehensive loss $ (6,380) $ (6,028) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Unrealized Gain (Loss) On Investments | (Dollars in thousands) Gross Gross Amortized unrealized unrealized Fair December 31, 2018 cost gains losses value U.S. Government and Agency securities $ 9,120 $ 21 $ (65) $ 9,076 Municipal securities 67,811 320 (484) 67,647 Trust preferred securities 4,074 — (316) 3,758 Agency mortgage-backed securities 45,241 65 (648) 44,658 Private-label mortgage-backed securities 457 31 — 488 Asset-backed securities 5,869 — (24) 5,845 Total $ 132,572 $ 437 $ (1,537) $ 131,472 (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 Total $ 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 $ 16,674 $ 16,712 Due after one year through five years 32,672 32,691 Due after five years through ten years 37,085 36,497 Due after ten years 443 426 86,874 86,326 Mortgage-backed securities 45,698 45,146 Total $ 132,572 $ 131,472 |
Composition Of Net Realized Securities Gains | (Dollars in thousands) 2018 2017 2016 Gross gains realized $ 67 $ 3 $ 22 Gross losses realized (11) — — Net gains realized $ 56 $ 3 $ 22 |
Schedule Of Unrealized Loss On Investments | December 31, 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 $ 2,071 $ (6) 2 $ 5,175 $ (59) 14 $ 7,246 $ (65) 16 Municipal securities 5,832 (12) 10 25,091 (472) 42 30,923 (484) 52 Trust preferred securities 2,008 (159) 3 1,750 (157) 2 3,758 (316) 5 Agency mortgage-backed securities 7,687 (46) 16 30,511 (602) 74 38,198 (648) 90 Asset-backed securities 5,826 (22) 6 19 (2) 2 5,845 (24) 8 Total temporarily impaired securities $ 23,424 $ (245) 37 $ 62,546 $ (1,292) 134 $ 85,970 $ (1,537) 171 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 | (Dollars in thousands) Twelve Months Ended 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 (323) — Reduction for increases in cash flows expected to be collected — — Balance of credit-related OTTI at December 31 $ 272 $ 595 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans [Abstract] | |
Schedule Of Loans Outstanding | (Dollars in thousands) 2018 2017 Residential Real Estate 1-4 Family Consumer first liens $ 89,673 $ 97,159 Commercial first lien 59,227 61,275 Total first liens 148,900 158,434 Consumer junior liens and lines of credit 42,504 45,043 Commercial junior liens and lines of credit 4,716 5,328 Total junior liens and lines of credit 47,220 50,371 Total residential real estate 1-4 family 196,120 208,805 Residential real estate - construction Consumer 1,667 1,813 Commercial 8,558 8,088 Total residential real estate construction 10,225 9,901 Commercial real estate 487,980 428,428 Commercial 274,054 291,519 Total commercial 762,034 719,947 Consumer 4,996 5,047 973,375 943,700 Less: Allowance for loan losses (12,415) (11,792) Net Loans $ 960,960 $ 931,908 Included in the loan balances are the following: Net unamortized deferred loan costs $ 123 $ 98 Loans pledged as collateral for borrowings and commitments from: FHLB $ 772,564 $ 737,313 Federal Reserve Bank 34,160 35,740 Total $ 806,724 $ 773,053 |
Schedule Of Loans To Related Parties | (Dollars in thousands) 2018 2017 Balance at beginning of year $ 22,123 $ 23,243 New loans made 1,461 1,513 Repayments (3,095) (2,633) Balance at end of year $ 20,489 $ 22,123 |
Loan Quality and Allowance fo_2
Loan Quality and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loan Quality And Allowance for Loan Losses [Abstract] | |
Allowance For Loan Losses, By Loan Segment | The following table shows the activity in the Allowance for Loan Loss (ALL), for the years ended December 31, 2018 , 2017 and 2016 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 December 31, 2015 $ 989 $ 308 $ 194 $ 5,649 $ 1,519 $ 102 $ 1,325 $ 10,086 Charge-offs (49) — (41) (2,751) (74) (167) — (3,082) Recoveries 35 — — 19 167 75 — 296 Provision 130 15 71 3,192 281 90 (4) 3,775 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 ALL at December 31, 2016 $ 1,105 $ 323 $ 224 $ 6,109 $ 1,893 $ 100 $ 1,321 $ 11,075 Charge-offs (13) — — (14) (8) (102) — (137) Recoveries 2 11 — 17 117 37 — 184 Provision (34) (4) — 414 108 70 116 670 ALL at December 31, 2017 $ 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 Charge-offs — — — — (9,482) (107) — (9,589) Recoveries 2 8 — 60 157 31 — 258 Provision (571) (205) (116) (888) 11,726 41 (33) 9,954 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 The following table shows the loans that were evaluated for the Allowance for Loan Loss (ALL) under a specific reserve (individually) and those that were evaluated under a general reserve (collectively), and the amount of the allowance established in each category as of December 31, 2018 and 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 December 31, 2018 Loans evaluated for ALL: Individually $ 405 $ — $ 455 $ 10,099 $ 181 $ — $ — $ 11,140 Collectively 148,495 47,220 9,770 477,881 273,873 4,996 — 962,235 Total $ 148,900 $ 47,220 $ 10,225 $ 487,980 $ 274,054 $ 4,996 $ — $ 973,375 ALL established for loans evaluated: Individually $ — $ — $ — $ — $ — $ — $ — $ — Collectively 491 133 108 5,698 4,511 70 1,404 12,415 ALL at December 31, 2018 $ 491 $ 133 $ 108 $ 5,698 $ 4,511 $ 70 $ 1,404 $ 12,415 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 | Impaired Loans With No Allowance With Allowance (Dollars in thousands) Unpaid Unpaid Recorded Principal Recorded Principal Related December 31, 2018 Investment Balance Investment Balance Allowance Residential Real Estate 1-4 Family First liens $ 871 $ 958 $ — $ — $ — Junior liens and lines of credit 49 49 — — — Total 920 1,007 — — — Residential real estate - construction 455 531 — — — Commercial real estate 10,236 10,808 — — — Commercial 315 9,763 — — — Total $ 11,926 $ 22,109 $ — $ — $ — 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 $ — $ — $ — Twelve Months Ended December 31, 2018 December 31, 2017 December 31, 2016 Average Interest Average Interest Average Interest (Dollars in thousands) Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Residential Real Estate 1-4 Family First liens $ 914 $ 45 $ 1,083 $ 39 $ 1,194 $ 38 Junior liens and lines of credit 85 1 64 — 93 1 Total 999 46 1,147 39 1,287 39 Residential real estate - construction 462 — 473 — 492 4 Commercial real estate 10,809 417 11,938 435 17,806 589 Commercial 4,329 — 245 — 32 — Total $ 16,599 $ 463 $ 13,803 $ 474 $ 19,617 $ 632 |
Aging Of Payments Of The Loan Portfolio | (Dollars in thousands) Loans Past Due and Still Accruing Total Current 30-59 Days 60-89 Days 90 Days+ Total Non-Accrual Loans December 31, 2018 Residential Real Estate 1-4 Family First liens $ 148,183 $ 322 $ 202 $ 113 $ 637 $ 80 $ 148,900 Junior liens and lines of credit 47,040 131 — 26 157 23 47,220 Total 195,223 453 202 139 794 103 196,120 Residential real estate - construction 9,572 — 198 — 198 455 10,225 Commercial real estate 481,774 1,343 3,323 113 4,779 1,427 487,980 Commercial 273,534 65 40 100 205 315 274,054 Consumer 4,933 46 12 5 63 — 4,996 Total $ 965,036 $ 1,907 $ 3,775 $ 357 $ 6,039 $ 2,300 $ 973,375 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 December 31, 2018 Residential Real Estate 1-4 Family First liens $ 148,453 $ — $ 447 $ — $ 148,900 Junior liens and lines of credit 47,171 — 49 — 47,220 Total 195,624 — 496 — 196,120 Residential real estate - construction 9,572 — 653 — 10,225 Commercial real estate 479,969 660 7,351 — 487,980 Commercial 272,959 — 1,095 — 274,054 Consumer 4,991 — 5 — 4,996 Total $ 963,115 $ 660 $ 9,600 $ — $ 973,375 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 December 31, 2018 Residential real estate - construction 1 $ 455 $ — $ 455 — $ — Residential real estate 4 678 678 — — — Commercial real estate 11 10,099 8,809 1,290 — — Total 16 $ 11,232 $ 9,487 $ 1,745 — $ — December 31, 2017 Residential real estate - construction 1 $ 466 $ 466 $ — — $ — Residential real estate 5 737 701 36 1 39 Commercial real estate 11 10,983 10,388 595 1 595 Total 17 $ 12,186 $ 11,555 $ 631 2 $ 634 * The performing status is determined by the loan’s compliance with the modified terms. |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate Owned [Abstract] | |
Summary Of Changes In Other Real Estate Owned | (Dollars in thousands) 2018 2017 2016 Balance at beginning of the period $ 2,598 $ 4,915 $ 6,451 Additions 176 90 329 Proceeds from dispositions (79) (2,298) (625) (Loss) gain on sales, net (5) (26) (31) Valuation adjustment (6) (83) (1,209) Balance at the end of the period $ 2,684 $ 2,598 $ 4,915 |
Premises And Equipment (Tables)
Premises And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Premises And Equipment [Abstract] | |
Premises And Equipment | (Dollars in thousands) Estimated Life 2018 2017 Land $ 2,909 $ 2,962 Buildings and leasehold improvements 15 - 30 years, or lease term 24,522 24,347 Furniture, fixtures and equipment 3 - 10 years 12,471 12,447 Total cost 39,902 39,756 Less: Accumulated depreciation (26,381) (26,015) Net premises and equipment $ 13,521 $ 13,741 |
Schedule Of Depreciation And Rent Expense | 2018 2017 2016 Depreciation expense $ 1,232 $ 1,236 $ 1,270 Rent expense on leases $ 719 $ 704 $ 713 |
Operating Leases Of Lessee Disclosure | (Dollars in thousands) 2019 $ 743 2020 691 2021 662 2022 581 2023 536 2024 and beyond 3,359 Total $ 6,572 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule Of Deposits | (Dollars in thousands) 2018 2017 Noninterest-bearing checking $ 197,417 $ 196,853 Interest-bearing checking 305,661 280,944 Money management 436,752 415,045 Savings 81,206 78,868 Total interest-bearing checking and savings 823,619 774,857 Retail time deposits 58,332 72,211 Brokered time deposits 3,261 3,260 Total time deposits 61,593 75,471 Total deposits $ 1,082,629 $ 1,047,181 Overdrawn deposit accounts reclassified as loans $ 120 $ 154 |
Maturity of Time Deposits Of $250,000 Or More | (Dollars in thousands) Maturity distribution: Within three months $ 2,359 Over three through six months 1,227 Over six through twelve months 258 Over twelve months 1,688 Total $ 5,532 |
Maturities Of Time Deposits | Retail Brokered Total (Dollars in thousands) Time Deposits Time Deposits Time Deposits 2019 $ 33,416 $ 3,008 $ 36,424 2020 12,129 253 12,382 2021 5,163 — 5,163 2022 4,828 — 4,828 2023 2,796 — 2,796 Total $ 58,332 $ 3,261 $ 61,593 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Borrowings [Abstract] | |
Short Term Borrowings | 2018 2017 FHLB FHLB (Dollars in thousands) Open Repo Open Repo Ending balance $ — $ — Weighted average rate at year end — — Range of interest rates paid at year end — — Maximum month-end balance during the year $ — $ 13,000 Average balance during the year $ 1,069 $ 1,894 Weighted average interest rate during the year 2.25% 0.83% |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Benefit Plans [Abstract] | |
Schedule Of Plan's Funded Status | For the Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Change in projected benefit obligation Benefit obligation at beginning of measurement year $ 19,889 $ 17,881 $ 18,609 Service cost 361 317 337 Interest cost 553 667 701 Actuarial loss (gain) (1,762) 2,260 632 Settlement loss — — (1,590) Benefits paid (1,104) (1,236) (808) Benefit obligation at end of measurement year 17,937 19,889 17,881 Change in plan assets Fair value of plan assets at beginning of measurement year 17,192 17,062 18,301 Actual return on plan assets net of expenses (539) 1,366 1,159 Settlement loss — — (1,590) Employer contribution 1,000 — — Benefits paid (1,104) (1,236) (808) Fair value of plan assets at end of measurement year 16,549 17,192 17,062 Funded status of projected benefit obligation $ (1,388) $ (2,697) $ (819) |
Schedule Of Amounts Recognized In Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive For the Years Ended December 31 income (loss), net of tax 2018 2017 2016 Net actuarial loss $ (6,975) $ (7,784) $ (6,366) Prior service cost obligation — — — (6,975) (7,784) (6,366) Tax effect 1,465 1,635 2,164 Net amount recognized in accumulated other comprehensive loss $ (5,510) $ (6,149) $ (4,202) |
Schedule Of Net Periodic Pension Costs | For the Years Ended December 31 Components of net periodic pension cost 2018 2017 2016 Service cost $ 361 $ 317 $ 337 Interest cost 553 667 701 Expected return on plan assets (1,120) (1,072) (1,165) Amortization of prior service cost — — (94) Recognized net actuarial loss 705 547 579 Net periodic pension cost 499 459 358 Effect of settlement loss — — 564 Total pension expense $ 499 $ 459 $ 922 |
Schedule Of Amounts Recognized In Balance Sheet | (Dollars in Thousands) December 31, 2018 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 350 $ 350 $ — $ — Common stocks 3,604 3,604 — — Corporate bonds 2,416 — 2,416 — Municipal bonds 6,052 — 6,052 — Investment fund - debt 1,409 — 1,409 — Investment fund - equity 1,112 1,112 — — Cash value of life insurance 25 — — 25 Deposit in immediate participation guarantee contract 934 934 — — Other 647 127 520 — Total assets $ 16,549 $ 6,127 $ 10,397 $ 25 (Dollars in Thousands) December 31, 2017 Asset Description Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 399 $ 399 $ — $ — Common stocks 4,158 4,158 — — Corporate bonds 3,108 — 3,108 — Municipal bonds 6,556 — 6,556 — Investment fund - debt 1,570 1,570 — — Cash value of life insurance 25 — — 25 Deposit in immediate participation guarantee contract 683 683 — — Other 693 143 550 — Total assets $ 17,192 $ 6,953 $ 10,214 $ 25 |
Schedule Of Changes In Fair Value Of Plan Assets | Cash Value of Life Insurance December 31 2018 2017 Balance at the beginning of the period $ 25 $ 25 Unrealized gain (loss) relating to investments held at the reporting date — — Purchases, sales, issuances and settlement, net — — Balance at the end of the period $ 25 $ 25 |
Schedule Of Expected Benefit Payments | 2019 $ 985 2020 1,332 2021 929 2022 1,115 2023 969 2024-2028 5,755 Total $ 11,085 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock Based Compensation [Abstract] | |
Schedule Of Share-based Compensation, Stock Options, Activity | (Dollars in thousands except share and per share data) ESPP Weighted Average Aggregate Options Price Per Share Intrinsic Value Balance Outstanding at December 31, 2015 22,286 $ 23.42 $ 2 Granted 24,434 22.46 Exercised (907) 22.66 Expired (23,055) 23.38 Balance Outstanding at December 31, 2016 22,758 $ 22.46 $ 140 Granted 19,086 29.95 Exercised (6,827) 23.00 Expired (17,180) 22.79 Balance Outstanding at December 31, 2017 17,837 $ 29.95 $ 132 Granted 19,790 32.73 Exercised (3,257) 30.54 Expired (15,992) 30.07 Balance Outstanding at December 31, 2018 18,378 $ 32.73 $ — Shares available for future grants at December 31, 2018 196,284 ISOP Weighted Average Aggregate Options Price Per Share Intrinsic Value Balance Outstanding at December 31, 2015 53,075 $ 22.56 $ 50 Granted 24,450 21.27 Exercised (3,800) 16.00 Forfeited (15,000) 24.14 Balance Outstanding at December 31, 2016 58,725 $ 22.03 $ 386 Granted 33,450 30.00 Exercised (750) 23.77 Forfeited (6,200) 27.37 Balance Outstanding at December 31, 2017 85,225 $ 24.75 $ 1,075 Granted 34,054 34.10 Exercised (12,268) 21.55 Forfeited (3,000) 23.77 Balance Outstanding at December 31, 2018 104,011 $ 28.22 $ 341 Shares available for future grants at December 31, 2018 259,123 |
Share-based Compensation Arrangement By Share-based Payment Award, Options, Vested And Expected To Vest, Outstanding And Exercisable | Options Weighted Outstanding Exercise Price or Weighted Average Average Remaining Stock Option Plan and Exercisable Price Range Exercise Price Life (years) Employee Stock Purchase Plan 18,378 $ 32.73 $ 32.73 0.5 Incentive Stock Option Plan 3,107 16.11 16.11 0.2 Incentive Stock Option Plan 33,400 21.27 - 22.05 21.56 6.8 Incentive Stock Option Plan 67,504 30.00 - 34.10 32.07 8.7 ISOP Total/Average 104,011 $ 28.22 7.8 |
Valuation Assumptions Using Black-Scholes Method | 2018 2017 2016 Incentive Stock Option Plan Options granted 34,054 33,450 24,450 Risk-free interest rate 2.66% 1.87% 1.22% Expected volatility of the Corporation's stock 19.51% 23.12% 25.76% Expected dividend yield 2.49% 2.94% 3.23% Expected life (in years) 5.25 5.25 5.25 Weighted average fair value of options granted $ 5.42 $ 4.81 $ 3.58 (Dollars in thousands) Compensation expense included in net income ESPP $ — $ — $ — ISOP 185 161 88 Total compensation expense included in net income $ 185 $ 161 $ 88 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Schedule Of Stock Repurchase Activity | Shares Repurchased Plan Date Authorized Expiration 2018 2017 10/12/2017 100,000 shares 9/30/2018 2,605 - 12/20/2018 100,000 shares 12/21/2019 - N/A |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Outstanding Commitments | (Dollars in thousands) 2018 2017 Financial instruments whose contract amounts represent credit risk Commercial commitments to extend credit $ 216,913 $ 249,526 Consumer commitments to extend credit (secured) 49,221 44,866 Consumer commitments to extend credit (unsecured) 5,605 5,668 $ 271,739 $ 300,060 Standby letters of credit $ 25,429 $ 28,630 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Income Taxes [Abstract] | |
Schedule Of Deferred Tax Assets And Liabilities | (Dollars in thousands) Deferred Tax Assets 2018 2017 Allowance for loan losses $ 2,607 $ 2,476 Deferred compensation 601 676 Purchase accounting 16 16 Deferred loan fees and costs, net — 99 Capital loss carryover 34 173 Other than temporary impairment of investments 124 124 Net operating loss carryforward 1,787 — Accumulated other comprehensive loss 1,696 1,603 Other 759 2,191 7,624 7,358 Valuation allowance (158) (297) Total gross deferred tax assets 7,466 7,061 Deferred Tax Liabilities Depreciation 239 162 Joint ventures and partnerships 36 28 Pension 1,173 1,068 Deferred loan fees and costs, net 26 — Total gross deferred tax liabilities 1,474 1,258 Net deferred tax asset $ 5,992 $ 5,803 |
Schedule Of Components Of Income Tax Expense (Benefit) | For the Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Current tax (benefit) expense $ (164) $ 4,396 $ 2,134 Deferred tax benefit (1) (831) (832) Income tax provision $ (165) $ 3,565 $ 1,302 |
Schedule Of Effective Income Tax Rate Reconciliation | For the Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Tax provision at statutory rate $ 1,252 $ 3,252 $ 3,192 Income on tax-exempt loans and securities (1,404) (2,056) (1,751) Nondeductible interest expense relating to carrying tax-exempt obligations 33 32 24 Revaluation of deferred tax assets — 2,291 — Income from bank owned life insurance (108) (171) (210) Stock option compensation 39 55 30 Other, net 23 162 17 Income tax provision $ (165) $ 3,565 $ 1,302 Effective income tax rate (2.8%) 62.1% 13.9% |
Fair Value Measurements And F_2
Fair Value Measurements And Fair Values Of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements And Fair Values Of Financial Instruments [Abstract] | |
Fair Value, By Balance Sheet Grouping | December 31, 2018 Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 52,957 $ 52,957 $ 52,957 $ — $ — Restricted stock 452 452 — 452 — Loans held for sale 118 118 — 118 — Net loans 960,960 941,930 — — 941,930 Accrued interest receivable 4,103 4,103 — 4,103 — Financial assets, available for sale: Debt securities 131,472 131,472 — 131,472 — Financial assets, fair value: Equity securities 374 374 374 — — Financial liabilities: Deposits $ 1,082,629 $ 1,082,425 $ — $ 1,082,425 $ — Accrued interest payable 193 193 — 193 — 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 — 456 — 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 December 31, 2018 Asset Description Level 1 Level 2 Level 3 Total Equity securities $ 374 $ — $ — $ 374 U.S. Government and Agency securities — 9,076 — 9,076 Municipal securities — 67,647 — 67,647 Trust Preferred Securities — 3,758 — 3,758 Agency mortgage-backed securities — 44,658 — 44,658 Private-label mortgage-backed securities — 488 — 488 Asset-backed securities — 5,845 — 5,845 Total assets $ 374 $ 131,472 $ — $ 131,846 (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 December 31, 2018 Asset Description Level 1 Level 2 Level 3 Total Other real estate owned (1) $ — $ — $ 71 $ 71 Total assets $ — $ — $ 71 $ 71 (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 December 31, 2018 Fair Value Valuation Technique Unobservable Input (Weighted Average) Other real estate owned $ 71 Appraisal N/A — Cost to sell 8% ( 8% ) Range December 31, 2017 Fair Value Valuation Technique Unobservable Input (Weighted Average) Other real estate owned $ 90 Appraisal N/A — Cost to sell 8% (8%) |
Parent Company (Franklin Fina_2
Parent Company (Franklin Financial Services Corporation) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company (Franklin Financial Services Corporation) Financial Information [Abstract] | |
Balance Sheets | December 31 (Dollars in thousands) 2018 2017 Assets: Cash and cash equivalents $ 108 $ 250 Investment securities 374 365 Equity investment in subsidiaries 118,027 114,387 Other assets — 184 Total assets $ 118,509 115,186 Liabilities: Other liabilities $ 113 $ 42 Total liabilities 113 42 Shareholders' equity 118,396 115,144 Total liabilities and shareholders' equity $ 118,509 $ 115,186 |
Statements Of Income | Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Income: Dividends from Bank subsidiary $ 3,259 $ 3,225 $ 4,006 Other income 9 — — 3,268 3,225 4,006 Expenses: Operating expenses 1,184 1,107 972 Income before income taxes and equity in undistributed income of subsidiaries 2,084 2,118 3,034 Income tax benefit 207 348 301 Equity in undistributed income of subsidiaries 3,834 (290) 4,752 Net income $ 6,125 $ 2,176 $ 8,087 |
Statements Of Comprehensive Income | Years ended December 31 (Dollars in thousands) 2018 2017 2016 Net Income $ 6,125 $ 2,176 $ 8,087 Securities: Unrealized gains arising during the period - 201 — Reclassification adjustment for net (gains) losses included in net income - - — Net Unrealized gains - 201 — Tax effect - (68) — Net of tax amount - 133 — Total other comprehensive income of Parent - 133 — Other comprehensive (loss) income of subsidiaries (151) (954) (493) Total Comprehensive Income $ 5,974 $ 1,355 $ 7,594 |
Statements Of Cash Flows | Years Ended December 31 (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 6,125 $ 2,176 $ 8,087 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (income) loss of subsidiary (3,834) 290 (4,752) Stock option compensation 185 161 88 Deferred tax benefit — (26) — Decrease (increase) in other assets/liabilities 289 (337) (307) Net cash provided by operating activities 2,765 2,264 3,116 Cash flows from financing activities Dividends paid (4,598) (4,031) (3,523) Cash received from option exercises 362 175 82 Common stock issued under dividend reinvestment plan 1,417 991 1,671 Treasury stock purchase (88) — (795) Net cash used in financing activities (2,907) (2,865) (2,565) (Decrease) increase in cash and cash equivalents (142) (601) 551 Cash and cash equivalents as of January 1 250 851 300 Cash and cash equivalents as of December 31 $ 108 $ 250 $ 851 |
Quarterly Results Of Operatio_2
Quarterly Results Of Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Results Of Operations [Abstract] | |
Schedule Of Quarterly Financial Information | (Dollars in thousands, except per share) Three months ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Interest income $ 10,488 $ 11,053 $ 11,477 $ 11,849 Interest expense 795 954 1,122 1,343 Net interest income 9,693 10,099 10,355 10,506 Provision for loan losses 200 9,129 * 250 375 Other noninterest income 3,148 3,221 3,120 3,140 Noninterest expense 8,648 11,188 * 8,571 8,961 Income (loss) before income taxes 3,993 (6,997) 4,654 4,310 Federal income tax expense 491 (1,816) 654 506 Net Income (loss) $ 3,502 (5,181) 4,000 3,804 Basic earnings per share $ 0.80 $ (1.18) $ 0.91 $ 0.86 Diluted earnings per share $ 0.80 $ (1.18) $ 0.91 $ 0.86 Dividends declared per share $ 0.24 $ 0.27 $ 0.27 $ 0.27 * Includes impairment charges on a loan participation (Dollars in thousands, except per share) Three months ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Interest income $ 9,546 $ 9,938 $ 10,063 $ 10,339 Interest expense 581 590 629 691 Net interest income 8,965 9,348 9,434 9,648 Provision for loan losses 120 50 250 250 Other noninterest income 2,925 3,155 2,971 3,137 Noninterest expense 7,957 8,161 8,305 18,750 ** Income (loss) before income taxes 3,813 4,292 3,850 (6,215) Federal income tax expense 793 950 774 1,048 *** Net Income (loss) $ 3,020 3,342 3,076 (7,263) Basic earnings per share $ 0.70 $ 0.77 $ 0.71 $ (1.67) Diluted earnings per share $ 0.70 $ 0.77 $ 0.70 $ (1.67) Dividends declared per share $ 0.21 $ 0.24 $ 0.24 $ 0.24 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted stock | $ 452 | $ 456 | $ 452 | |
Servicing Asset | 10,300 | 12,600 | $ 15,800 | |
Goodwill | 9,016 | 9,016 | ||
Assets Held-in-trust | 807,000 | 845,100 | ||
Share-based Compensation | 185 | $ 161 | $ 88 | |
Federal Home Loan Bank of Pittsburgh [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted stock | $ 30 | |||
Restricted Stock Cost | $ 100 | |||
Federal Home Loan Bank of Pittsburgh [Member] | Non Required FHLB Stock [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted stock | $ 422 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule Of Earnings Per Share Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |||||||||||
Weighted average shares outstanding (basic) | 4,382 | 4,337 | 4,297 | ||||||||
Impact of common stock equivalents | 22 | 22 | 5 | ||||||||
Weighted average shares outstanding (diluted) | 4,404 | 4,359 | 4,302 | ||||||||
Anti-dilutive options excluded from calculation | 9 | ||||||||||
Net income | $ 3,804 | $ 4,000 | $ (5,181) | $ 3,502 | $ (7,263) | $ 3,076 | $ 3,342 | $ 3,020 | $ 6,125 | $ 2,176 | $ 8,087 |
Basic earnings per share | $ 0.86 | $ 0.91 | $ (1.18) | $ 0.80 | $ (1.67) | $ 0.71 | $ 0.77 | $ 0.70 | $ 1.40 | $ 0.50 | $ 1.88 |
Diluted earnings per share | $ 0.86 | $ 0.91 | $ (1.18) | $ 0.80 | $ (1.67) | $ 0.70 | $ 0.77 | $ 0.70 | $ 1.39 | $ 0.50 | $ 1.88 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 142 | $ 585 | ||
Accounting Standards Update 2018-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings | $ 992 | |||
Accounting Standards Update 2016-01 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative adjustment for fair value of equity securities | $ 201 | |||
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 earnings | 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 earnings | $ (992) | |||
Cumulative adjustment for fair value of equity securities | $ (201) |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 96.1 | ||
Capital Ratios, Basel III, Capital Conservation Buffer | 0.625% | ||
Capital Ratios, Basel III, Capital Conservation Buffer, Year Two | 1.25% | ||
Capital Ratios, Basel III, Capital Conservation Buffer, Year Three | 1.875% | ||
Capital Ratios, Basel III, Capital Conservation Buffer, Year Four | 2.50% | ||
Regulatory buffer percentage | 1.875% | ||
Pennsylvania [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 10.00% | ||
Tier One Leverage Capital to Average Assets | 6.00% | ||
Farmers & Merchants Trust Company [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 13.80% | 13.93% | [1] |
Tier One Leverage Capital to Average Assets | 9.68% | 9.64% | [2] |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 6.50% | 6.50% | [1] |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 8.00% | 8.00% | [3] |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 5.00% | 5.00% | [2] |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 10.00% | 10.00% | [4] |
Capital ratios, capital conservation buffer | 7.06% | ||
Total Risk-based Capital Ratio: Ratio | 15.06% | 15.19% | [4] |
[1] | Common equity Tier 1 capital / total risk-weighted assets | ||
[2] | Tier 1 capital / average quarterly assets | ||
[3] | Tier 1 capital / total risk-weighted assets | ||
[4] | Total risk-based capital / total risk-weighted assets |
Regulatory Matters (Schedule Of
Regulatory Matters (Schedule Of The Total Risk-based, Tier 1 Risk-based And Tier 1 Leverage Requirements) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Franklin Financial Services Corporation [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 13.96% | 14.06% | [1] |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 4.50% | 4.50% | [1] |
Tier 1 Risk-based Capital Ratio: Ratio | 13.96% | 14.06% | [2] |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 6.00% | 6.00% | [2] |
Total Risk-based Capital Ratio: Ratio | 15.21% | 15.31% | [3] |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 8.00% | 8.00% | [3] |
Tier 1 Leverage Ratio: Ratio | 9.78% | 9.73% | [4] |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | 4.00% | 4.00% | [4] |
Common Equity Tier 1 Risk-based Capital Ratio: Amount | $ 115,760 | $ 112,315 | [1] |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum, Amount | 37,328 | 35,953 | [1] |
Tier 1 Risk-based Capital Ratio: Amount | 115,760 | 112,315 | [2] |
Tier 1 Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | 49,771 | 47,938 | [2] |
Total Risk-based Capital Ratio: Amount | 126,129 | 122,324 | [3] |
Total Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | 66,361 | 63,917 | [3] |
Tier 1 Leverage Ratio: Amount | 115,760 | 112,315 | [4] |
Tier 1 Leverage Ratio: Minimum to be Adequately Capitalized Amount | $ 47,323 | $ 46,175 | [4] |
Farmers & Merchants Trust Company [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Risk-based Capital Ratio: Ratio | 13.80% | 13.93% | [1] |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 4.50% | 4.50% | [1] |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 6.50% | 6.50% | [1] |
Tier 1 Risk-based Capital Ratio: Ratio | 13.80% | 13.93% | [2] |
Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 6.00% | 6.00% | [2] |
Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 8.00% | 8.00% | [2] |
Total Risk-based Capital Ratio: Ratio | 15.06% | 15.19% | [3] |
Total Risk-based Capital Ratio: Adequately Capitalized Minimum: Ratio | 8.00% | 8.00% | [3] |
Total Risk-based Capital Ratio: Well Capitalized Minimum: Ratio | 10.00% | 10.00% | [3] |
Tier 1 Leverage Ratio: Ratio | 9.68% | 9.64% | [4] |
Tier 1 Leverage Ratio: Adequately Capitalized Minimum: Ratio | 4.00% | 4.00% | [4] |
Tier 1 Leverage Ratio: Well Capitalized Minimum: Ratio | 5.00% | 5.00% | [4] |
Common Equity Tier 1 Risk-based Capital Ratio: Amount | $ 115,326 | $ 111,496 | [1] |
Common Equity Tier 1 Risk-based Capital Ratio: Adequately Capitalized Minimum, Amount | 37,605 | 36,010 | [1] |
Common Equity Tier 1 Risk-based Capital Ratio: Well Capitalized Minimum, Amount | 54,319 | 52,014 | [1] |
Tier 1 Risk-based Capital Ratio: Amount | 115,326 | 111,496 | [2] |
Tier 1 Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | 50,140 | 48,013 | [2] |
Tier 1 Risk-based Capital Ratio: Minimum to be Well Capitalized Amount | 66,854 | 64,018 | [2] |
Total Risk-based Capital Ratio: Amount | 125,825 | 121,521 | [3] |
Total Risk-based Capital Ratio: Minimum to be Adequately Capitalized Amount | 66,854 | 64,018 | [3] |
Total Risk-based Capital Ratio: Minimum to be Well Capitalized Amount | 83,567 | 80,022 | [3] |
Tier 1 Leverage Ratio: Amount | 115,326 | 111,496 | [4] |
Tier 1 Leverage Ratio: Minimum to be Adequately Capitalized Amount | 47,675 | 46,242 | [4] |
Tier 1 Leverage Ratio: Minimum to be Well Capitalized Amount | $ 59,593 | $ 57,802 | [4] |
[1] | Common equity Tier 1 capital / total risk-weighted assets | ||
[2] | Tier 1 capital / total risk-weighted assets | ||
[3] | Total risk-based capital / total risk-weighted assets | ||
[4] | Tier 1 capital / average quarterly assets |
Restricted Cash Balances (Detai
Restricted Cash Balances (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Cash Balances [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 9.1 | $ 7.1 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)itemsecurity$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | |||
Average life of the equity portfolio | 3 years 10 months 24 days | ||
Percent of shareholders equity benchmark for investments in a single issuer | 10.00% | ||
Number of temporarily impaired securities | security | 171 | 127 | |
Unrealized Losses | $ 1,537 | $ 1,046 | |
Number of investments in a single issuer exceeding benchmark | item | 0 | ||
Number of investments | item | 1 | ||
Securities pledged as collateral | $ 84,600 | 84,100 | |
Restricted stock | 452 | $ 452 | 456 |
Equity securities | 374 | $ 365 | |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Restricted stock | $ 30 | ||
Restricted Stock Cost | $ / shares | $ 100 | ||
Federal Home Loan Bank of Pittsburgh [Member] | Non Required FHLB Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Restricted stock | $ 422 |
Investments (Unrealized Gain (l
Investments (Unrealized Gain (loss) On Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 132,572 | $ 127,182 |
Gross unrealized gains | 437 | 1,200 |
Gross unrealized losses | (1,537) | (1,046) |
Available for sale | 131,472 | 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 | 9,120 | 11,451 |
Gross unrealized gains | 21 | 64 |
Gross unrealized losses | (65) | (43) |
Available for sale | 9,076 | 11,472 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 67,811 | 57,374 |
Gross unrealized gains | 320 | 650 |
Gross unrealized losses | (484) | (252) |
Available for sale | 67,647 | 57,772 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 4,074 | 6,000 |
Gross unrealized losses | (316) | (183) |
Available for sale | 3,758 | 5,817 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 45,241 | 51,307 |
Gross unrealized gains | 65 | 197 |
Gross unrealized losses | (648) | (567) |
Available for sale | 44,658 | 50,937 |
Private-Label Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 457 | 858 |
Gross unrealized gains | 31 | 88 |
Available for sale | 488 | 946 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 5,869 | 28 |
Gross unrealized losses | (24) | (1) |
Available for sale | $ 5,845 | $ 27 |
Investments (Amortized Cost And
Investments (Amortized Cost And Fair Value Of Debt Securities, By Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Due in one year or less, Amortized cost | $ 16,674 | |
Due after one year through five years, Amortized cost | 32,672 | |
Due after five years through ten years, Amortized cost | 37,085 | |
Due after ten years, Amortized cost | 443 | |
Amortized Cost Contractual Maturities Subtotal | 86,874 | |
Mortgage-backed securities, Amortized cost | 45,698 | |
Available-for-sale Securities, Debt Maturities, Amortized cost | 132,572 | |
Due in one year or less, Fair value | 16,712 | |
Due after one year through five years, Fair value | 32,691 | |
Due after five years through ten years, Fair value | 36,497 | |
Due after ten years, Fair value | 426 | |
Fair Value Contractual Maturities Subtotal | 86,326 | |
Mortgage-backed securities, Fair value | 45,146 | |
Available-for-sale Securities, Debt Securities, Fair Value | $ 131,472 | $ 126,971 |
Investments (Composition Of Net
Investments (Composition Of Net Realized Securities Gains) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | |||
Gross gains realized | $ 67 | $ 3 | $ 22 |
Gross losses realized | (11) | ||
Net gains realized | $ 56 | $ 3 | $ 22 |
Investments (Schedule Of Unreal
Investments (Schedule Of Unrealized Loss On Investments) (Details) $ in Thousands | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 23,424 | $ 33,585 |
Less than 12 months: Unrealized Losses | $ (245) | $ (241) |
Less than 12 months: Count | security | 37 | 58 |
12 months or more: Fair Value | $ 62,546 | $ 36,203 |
12 months or more: Unrealized Losses | $ (1,292) | $ (805) |
12 months or more: Count | security | 134 | 69 |
Fair Value | $ 85,970 | $ 69,788 |
Unrealized Losses | $ (1,537) | $ (1,046) |
Count | security | 171 | 127 |
U.S. Government And Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 2,071 | $ 2,315 |
Less than 12 months: Unrealized Losses | $ (6) | $ (11) |
Less than 12 months: Count | security | 2 | 5 |
12 months or more: Fair Value | $ 5,175 | $ 3,528 |
12 months or more: Unrealized Losses | $ (59) | $ (32) |
12 months or more: Count | security | 14 | 10 |
Fair Value | $ 7,246 | $ 5,843 |
Unrealized Losses | $ (65) | $ (43) |
Count | security | 16 | 15 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 5,832 | $ 13,767 |
Less than 12 months: Unrealized Losses | $ (12) | $ (89) |
Less than 12 months: Count | security | 10 | 22 |
12 months or more: Fair Value | $ 25,091 | $ 7,507 |
12 months or more: Unrealized Losses | $ (472) | $ (163) |
12 months or more: Count | security | 42 | 14 |
Fair Value | $ 30,923 | $ 21,274 |
Unrealized Losses | $ (484) | $ (252) |
Count | security | 52 | 36 |
Trust Preferred Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 2,008 | $ 1,216 |
Less than 12 months: Unrealized Losses | $ (159) | $ (12) |
Less than 12 months: Count | security | 3 | 2 |
12 months or more: Fair Value | $ 1,750 | $ 4,601 |
12 months or more: Unrealized Losses | $ (157) | $ (171) |
12 months or more: Count | security | 2 | 5 |
Fair Value | $ 3,758 | $ 5,817 |
Unrealized Losses | $ (316) | $ (183) |
Count | security | 5 | 7 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 7,687 | $ 16,287 |
Less than 12 months: Unrealized Losses | $ (46) | $ (129) |
Less than 12 months: Count | security | 16 | 29 |
12 months or more: Fair Value | $ 30,511 | $ 20,563 |
12 months or more: Unrealized Losses | $ (602) | $ (438) |
12 months or more: Count | security | 74 | 39 |
Fair Value | $ 38,198 | $ 36,850 |
Unrealized Losses | $ (648) | $ (567) |
Count | security | 90 | 68 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair Value | $ 5,826 | |
Less than 12 months: Unrealized Losses | $ (22) | |
Less than 12 months: Count | security | 6 | |
12 months or more: Fair Value | $ 19 | $ 4 |
12 months or more: Unrealized Losses | $ (2) | $ (1) |
12 months or more: Count | security | 2 | 1 |
Fair Value | $ 5,845 | $ 4 |
Unrealized Losses | $ (24) | $ (1) |
Count | security | 8 | 1 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairment, Credit Losses Recognized In Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | ||
Balance of cumulative credit-related OTTI at January 1 | $ 595 | $ 595 |
Additions for credit-related OTTI not previously recognized | ||
Decreases for previously recognized credit-related OTTI because there was an intent to sell | (323) | |
Balance of credit-related OTTI at September 30 | $ 272 | $ 595 |
Loans (Schedule Of Loans Outsta
Loans (Schedule Of Loans Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 973,375 | $ 943,700 |
Less: Allowance for loan losses | (12,415) | (11,792) |
Net Loans | 960,960 | 931,908 |
Net unamortized deferred loan costs | 123 | 98 |
Loans pledged as collateral for borrowings and commitments from: FHLB | 772,564 | 737,313 |
Loans pledged as collateral for borrowings and commitments from :Federal Reserve Bank | 34,160 | 35,740 |
Total | 806,724 | 773,053 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 196,120 | 208,805 |
Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,225 | 9,901 |
Less: Allowance for loan losses | (108) | (224) |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 487,980 | 428,428 |
Less: Allowance for loan losses | (5,698) | (6,526) |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 274,054 | 291,519 |
Less: Allowance for loan losses | (4,511) | (2,110) |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,996 | 5,047 |
Less: Allowance for loan losses | (70) | (105) |
Consumer First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 89,673 | 97,159 |
Consumer Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 42,504 | 45,043 |
Consumer [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,667 | 1,813 |
Commercial First Lien [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 59,227 | 61,275 |
Commercial Junior Liens And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,716 | 5,328 |
Commercial [Member] | Residential Real Estate - Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,558 | 8,088 |
First Liens [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 148,900 | 158,434 |
Less: Allowance for loan losses | (491) | (1,060) |
Junior Lines And Lines Of Credit [Member] | Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 47,220 | $ 50,371 |
Loans (Schedule Of Loans To Rel
Loans (Schedule Of Loans To Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans [Abstract] | ||
Balance at beginning of year | $ 22,123 | $ 23,243 |
New loans made | 1,461 | 1,513 |
Repayments | (3,095) | (2,633) |
Balance at end of year | $ 20,489 | $ 22,123 |
Loan Quality (Narrative) (Detai
Loan Quality (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Residential properties in the process of foreclosure | $ 129 | $ 132 | |
Interest not recognized on nonaccrual loans | 108 | 159 | $ 175 |
Impaired loans balances, general allocation pool | 786 | ||
Impaired loans | 11,900 | $ 12,600 | |
Maximum [Member] | Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired loans balances, added to general allocation pool | $ 250 |
Loan Quality and Allowance fo_3
Loan Quality and Allowance for Loan Losses (Allowance For Loan Losses, By Loan Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | $ 11,792 | $ 11,075 | $ 11,792 | $ 11,075 | $ 10,086 | |||||||
Charge-offs | (9,589) | (137) | (3,082) | |||||||||
Recoveries | 258 | 184 | 296 | |||||||||
Provision | $ 375 | $ 250 | $ 9,129 | 200 | $ 250 | $ 250 | $ 50 | 120 | 9,954 | 670 | 3,775 | |
Allowance, Ending Balance | 12,415 | 11,792 | 12,415 | 11,792 | 11,075 | |||||||
Loans evaluated for allowance individually | 11,140 | 11,906 | 11,140 | 11,906 | ||||||||
Loans evaluated for allowance collectively | 962,235 | 931,794 | 962,235 | 931,794 | ||||||||
Total Loans | 973,375 | 943,700 | 973,375 | 943,700 | ||||||||
Allowance established for loan evaluated collectively | 12,415 | 11,792 | 12,415 | 11,792 | ||||||||
Total Allowance | 12,415 | 11,792 | 12,415 | 11,792 | ||||||||
Residential Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Total Loans | 196,120 | 208,805 | 196,120 | 208,805 | ||||||||
Residential Real Estate - Construction [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 224 | 224 | 224 | 224 | 194 | |||||||
Charge-offs | (41) | |||||||||||
Provision | (116) | 71 | ||||||||||
Allowance, Ending Balance | 108 | 224 | 108 | 224 | 224 | |||||||
Loans evaluated for allowance individually | 455 | 466 | 455 | 466 | ||||||||
Loans evaluated for allowance collectively | 9,770 | 9,435 | 9,770 | 9,435 | ||||||||
Total Loans | 10,225 | 9,901 | 10,225 | 9,901 | ||||||||
Allowance established for loan evaluated collectively | 108 | 224 | 108 | 224 | ||||||||
Total Allowance | 108 | 224 | 108 | 224 | ||||||||
Commercial Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 6,526 | 6,109 | 6,526 | 6,109 | 5,649 | |||||||
Charge-offs | (14) | (2,751) | ||||||||||
Recoveries | 60 | 17 | 19 | |||||||||
Provision | (888) | 414 | 3,192 | |||||||||
Allowance, Ending Balance | 5,698 | 6,526 | 5,698 | 6,526 | 6,109 | |||||||
Loans evaluated for allowance individually | 10,099 | 10,981 | 10,099 | 10,981 | ||||||||
Loans evaluated for allowance collectively | 477,881 | 417,447 | 477,881 | 417,447 | ||||||||
Total Loans | 487,980 | 428,428 | 487,980 | 428,428 | ||||||||
Allowance established for loan evaluated collectively | 5,698 | 6,526 | 5,698 | 6,526 | ||||||||
Total Allowance | 5,698 | 6,526 | 5,698 | 6,526 | ||||||||
Commercial [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 2,110 | 1,893 | 2,110 | 1,893 | 1,519 | |||||||
Charge-offs | (9,482) | (8) | (74) | |||||||||
Recoveries | 157 | 117 | 167 | |||||||||
Provision | 11,726 | 108 | 281 | |||||||||
Allowance, Ending Balance | 4,511 | 2,110 | 4,511 | 2,110 | 1,893 | |||||||
Loans evaluated for allowance individually | 181 | 181 | ||||||||||
Loans evaluated for allowance collectively | 273,873 | 291,519 | 273,873 | 291,519 | ||||||||
Total Loans | 274,054 | 291,519 | 274,054 | 291,519 | ||||||||
Allowance established for loan evaluated collectively | 4,511 | 2,110 | 4,511 | 2,110 | ||||||||
Total Allowance | 4,511 | 2,110 | 4,511 | 2,110 | ||||||||
Consumer [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 105 | 100 | 105 | 100 | 102 | |||||||
Charge-offs | (107) | (102) | (167) | |||||||||
Recoveries | 31 | 37 | 75 | |||||||||
Provision | 41 | 70 | 90 | |||||||||
Allowance, Ending Balance | 70 | 105 | 70 | 105 | 100 | |||||||
Loans evaluated for allowance collectively | 4,996 | 5,047 | 4,996 | 5,047 | ||||||||
Total Loans | 4,996 | 5,047 | 4,996 | 5,047 | ||||||||
Allowance established for loan evaluated collectively | 70 | 105 | 70 | 105 | ||||||||
Total Allowance | 70 | 105 | 70 | 105 | ||||||||
Unallocated [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 1,437 | 1,321 | 1,437 | 1,321 | 1,325 | |||||||
Provision | (33) | 116 | (4) | |||||||||
Allowance, Ending Balance | 1,404 | 1,437 | 1,404 | 1,437 | 1,321 | |||||||
Allowance established for loan evaluated collectively | 1,404 | 1,437 | 1,404 | 1,437 | ||||||||
Total Allowance | 1,404 | 1,437 | 1,404 | 1,437 | ||||||||
First Liens [Member] | Residential Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | 1,060 | 1,105 | 1,060 | 1,105 | 989 | |||||||
Charge-offs | (13) | (49) | ||||||||||
Recoveries | 2 | 2 | 35 | |||||||||
Provision | (571) | (34) | 130 | |||||||||
Allowance, Ending Balance | 491 | 1,060 | 491 | 1,060 | 1,105 | |||||||
Loans evaluated for allowance individually | 405 | 459 | 405 | 459 | ||||||||
Loans evaluated for allowance collectively | 148,495 | 157,975 | 148,495 | 157,975 | ||||||||
Total Loans | 148,900 | 158,434 | 148,900 | 158,434 | ||||||||
Allowance established for loan evaluated collectively | 491 | 1,060 | 491 | 1,060 | ||||||||
Total Allowance | 491 | 1,060 | 491 | 1,060 | ||||||||
Junior Liens & Lines Of Credit [Member] | Residential Real Estate [Member] | ||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||||
Allowance, Beginning Balance | $ 330 | $ 323 | 330 | 323 | 308 | |||||||
Recoveries | 8 | 11 | ||||||||||
Provision | (205) | (4) | 15 | |||||||||
Allowance, Ending Balance | 133 | 330 | 133 | 330 | $ 323 | |||||||
Loans evaluated for allowance collectively | 47,220 | 50,371 | 47,220 | 50,371 | ||||||||
Total Loans | 47,220 | 50,371 | 47,220 | 50,371 | ||||||||
Allowance established for loan evaluated collectively | 133 | 330 | 133 | 330 | ||||||||
Total Allowance | $ 133 | $ 330 | $ 133 | $ 330 | ||||||||
[1] | Includes impairment charges on a loan participation |
Loan Quality and Allowance fo_4
Loan Quality and Allowance for Loan Losses (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | $ 11,926 | $ 12,583 | |
Unpaid Principal Balance With No Allowance | 22,109 | 13,223 | |
Average Recorded Investment | 16,599 | 13,803 | $ 19,617 |
Interest Income Recognized | 463 | 474 | 632 |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 920 | 869 | |
Unpaid Principal Balance With No Allowance | 1,007 | 950 | |
Average Recorded Investment | 999 | 1,147 | 1,287 |
Interest Income Recognized | 46 | 39 | 39 |
Residential Real Estate [Member] | First Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 871 | 869 | |
Unpaid Principal Balance With No Allowance | 958 | 950 | |
Average Recorded Investment | 914 | 1,083 | 1,194 |
Interest Income Recognized | 45 | 39 | 38 |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 49 | ||
Unpaid Principal Balance With No Allowance | 49 | ||
Average Recorded Investment | 85 | 64 | 93 |
Interest Income Recognized | 1 | 1 | |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 455 | 466 | |
Unpaid Principal Balance With No Allowance | 531 | 531 | |
Average Recorded Investment | 462 | 473 | 492 |
Interest Income Recognized | 4 | ||
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 10,236 | 11,061 | |
Unpaid Principal Balance With No Allowance | 10,808 | 11,541 | |
Average Recorded Investment | 10,809 | 11,938 | 17,806 |
Interest Income Recognized | 417 | 435 | 589 |
Commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 315 | 187 | |
Unpaid Principal Balance With No Allowance | 9,763 | 201 | |
Average Recorded Investment | $ 4,329 | $ 245 | $ 32 |
Loan Quality and Allowance fo_5
Loan Quality and Allowance for Loan Losses (Aging Of Payments Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 965,036 | $ 938,928 |
Loans Past Due and Still Accruing | 6,039 | 2,097 |
Non-accrual loans | 2,300 | 2,675 |
Total Loans | 973,375 | 943,700 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 1,907 | 1,179 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 3,775 | 918 |
90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 357 | |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 195,223 | 207,449 |
Loans Past Due and Still Accruing | 794 | 1,188 |
Non-accrual loans | 103 | 168 |
Total Loans | 196,120 | 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 | 453 | 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 | 202 | 564 |
Residential Real Estate [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 139 | |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 148,183 | 157,247 |
Loans Past Due and Still Accruing | 637 | 1,019 |
Non-accrual loans | 80 | 168 |
Total Loans | 148,900 | 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 | 322 | 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 | 202 | 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 | 113 | |
Residential Real Estate [Member] | Junior Liens & Lines Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 47,040 | 50,202 |
Loans Past Due and Still Accruing | 157 | 169 |
Non-accrual loans | 23 | |
Total Loans | 47,220 | 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 | 131 | 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 | 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 | 26 | |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 9,572 | 9,435 |
Loans Past Due and Still Accruing | 198 | |
Non-accrual loans | 455 | 466 |
Total Loans | 10,225 | 9,901 |
Residential Real Estate - Construction [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 198 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 481,774 | 425,806 |
Loans Past Due and Still Accruing | 4,779 | 768 |
Non-accrual loans | 1,427 | 1,854 |
Total Loans | 487,980 | 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 | 1,343 | 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 | 3,323 | 347 |
Commercial Real Estate [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 113 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 273,534 | 291,221 |
Loans Past Due and Still Accruing | 205 | 111 |
Non-accrual loans | 315 | 187 |
Total Loans | 274,054 | 291,519 |
Commercial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 65 | 111 |
Commercial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 40 | |
Commercial [Member] | 90 Days+ Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 100 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,933 | 5,017 |
Loans Past Due and Still Accruing | 63 | 30 |
Total Loans | 4,996 | 5,047 |
Consumer [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 46 | 23 |
Consumer [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due and Still Accruing | 12 | $ 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 fo_6
Loan Quality and Allowance for Loan Losses (Internal Credit Rating For The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 973,375 | $ 943,700 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 963,115 | 930,899 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 660 | 680 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 9,600 | 12,121 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 196,120 | 208,805 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 195,624 | 207,766 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 496 | 1,039 |
Residential Real Estate [Member] | First Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 148,900 | 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 | 148,453 | 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 | 447 | 1,039 |
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 | 47,220 | 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 | 47,171 | 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 | 49 | |
Residential Real Estate - Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 10,225 | 9,901 |
Residential Real Estate - Construction [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 9,572 | 8,893 |
Residential Real Estate - Construction [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 653 | 1,008 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 487,980 | 428,428 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 479,969 | 419,277 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 660 | 680 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 7,351 | 8,471 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 274,054 | 291,519 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 272,959 | 289,916 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 1,095 | 1,603 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4,996 | 5,047 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | 4,991 | $ 5,047 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Gross, Carrying Amount | $ 5 |
Loan Quality and Allowance fo_7
Loan Quality and Allowance for Loan Losses (Troubled Debt Restructuring Loans) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 16 | 17 | |
Troubled Debt Restructurings: Recorded Investment | $ 11,232 | $ 12,186 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | 2 | ||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | $ 634 | ||
New During Period, Number of Contracts | contract | 0 | ||
Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 9,487 | 11,555 |
Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 1,745 | $ 631 |
Residential Real Estate - Construction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 1 | 1 | |
Troubled Debt Restructurings: Recorded Investment | $ 455 | $ 466 | |
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] | $ 455 | |
Residential Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 4 | 5 | |
Troubled Debt Restructurings: Recorded Investment | $ 678 | $ 737 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | 1 | ||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | $ 39 | ||
Residential Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 678 | 701 |
Residential Real Estate [Member] | Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 36 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Number of Contracts | contract | 11 | 11 | |
Troubled Debt Restructurings: Recorded Investment | $ 10,099 | $ 10,983 | |
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Number of Contracts | contract | 1 | ||
Troubled Debt Restructurings That Have Defaulted on Modified Terms in the Last Twelve Months: Recorded Investment | $ 595 | ||
Commercial Real Estate [Member] | Performing [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | 8,809 | 10,388 |
Commercial Real Estate [Member] | Nonperforming [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled Debt Restructurings: Recorded Investment | [1] | $ 1,290 | $ 595 |
[1] | The performing status is determined by the loan's compliance with the modified terms. |
Premises And Equipment (Premise
Premises And Equipment (Premises And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 39,902 | $ 39,756 |
Less: Accumulated depreciation | (26,381) | (26,015) |
Net premises and equipment | 13,521 | 13,741 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,909 | 2,962 |
Building and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 24,522 | 24,347 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 12,471 | $ 12,447 |
Maximum [Member] | Building and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 30 years | |
Maximum [Member] | Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 10 years | |
Minimum [Member] | Building and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 15 years | |
Minimum [Member] | Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Life | 3 years |
Premises And Equipment (Schedul
Premises And Equipment (Schedule Of Depreciation And Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premises And Equipment [Abstract] | |||
Depreciation expense | $ 1,232 | $ 1,236 | $ 1,270 |
Rent expense on leases | $ 719 | $ 704 | $ 713 |
Premises And Equipment (Operati
Premises And Equipment (Operating Leases Of Lessee Disclosure) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Premises And Equipment [Abstract] | |
2019 | $ 743 |
2020 | 691 |
2021 | 662 |
2022 | 581 |
2023 | 536 |
2024 and beyond | 3,359 |
Total | $ 6,572 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate Owned [Abstract] | |||
Balance at beginning of the period | $ 2,598 | $ 4,915 | $ 6,451 |
Additions | 176 | 90 | 329 |
Proceeds from dispositions | (79) | (2,298) | (625) |
Loss on sales, net | (5) | (26) | (31) |
Valuation adjustment | (6) | (83) | (1,209) |
Balance at the end of the period | $ 2,684 | $ 2,598 | $ 4,915 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets [Abstract] | ||
Goodwill | $ 9,016,000 | $ 9,016,000 |
Goodwill impaired | $ 0 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Time deposits greater than $250,000 | $ 5,532 | $ 12,000 |
Deposits of directors and executive officers and related interests and affiliated enterprises | $ 1,500 | $ 4,100 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Non-interest bearing checking | $ 197,417 | $ 196,853 |
Interest-bearing checking | 305,661 | 280,944 |
Money Management | 436,752 | 415,045 |
Savings | 81,206 | 78,868 |
Total interest-bearing checking and savings | 823,619 | 774,857 |
Retail time deposits | 58,332 | 72,211 |
Brokered time deposits | 3,261 | 3,260 |
Total time deposits | 61,593 | 75,471 |
Total deposits | 1,082,629 | 1,047,181 |
Overdrawn deposit accounts reclassified as loans | $ 120 | $ 154 |
Deposits (Maturity Of Time Depo
Deposits (Maturity Of Time Deposits Of $250,000 Or More) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Within three months | $ 2,359 | |
Over three through six months | 1,227 | |
Over six through twelve months | 258 | |
Over twelve months | 1,688 | |
Total | $ 5,532 | $ 12,000 |
Deposits (Maturities Of Time De
Deposits (Maturities Of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Line Items] | ||
2019 | $ 36,424 | |
2020 | 12,382 | |
2021 | 5,163 | |
2022 | 4,828 | |
2023 | 2,796 | |
Total time deposits | 61,593 | $ 75,471 |
Retail Time Deposits [Member] | ||
Deposits [Line Items] | ||
2019 | 33,416 | |
2020 | 12,129 | |
2021 | 5,163 | |
2022 | 4,828 | |
2023 | 2,796 | |
Total time deposits | 58,332 | |
Brokered Time Deposits [Member] | ||
Deposits [Line Items] | ||
2019 | 3,008 | |
2020 | 253 | |
Total time deposits | $ 3,261 |
Other Borrowings (Narrative) (D
Other Borrowings (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Other Borrowings [Abstract] | |
Federal Home Loan Bank, Maximum Term Of Commitment | 364 days |
Maximum borrowing capacity with the FHLB | $ 348.6 |
Amount available to borrow at year-end | 348.6 |
Unsecured line of credit | 6 |
Available through federal reserve discount window | $ 17 |
Other Borrowings (Short Term Bo
Other Borrowings (Short Term Borrowings) (Details) - FHLB Open Repo [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maximum month-end balance during the year | $ 13,000 | |
Average balance during the year | $ 1,069 | $ 1,894 |
Weighted average interest rate during the year | 2.25% | 0.83% |
Federal Income Taxes (Narrative
Federal Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Income Taxes [Abstract] | |||
Federal corporate income tax rate | 21.00% | 34.00% | |
Tax Cuts and Jobs Act of 2017, Revaluation of deferred tax assets | $ 2,291,000 | ||
Net operating loss carryforward | $ 8,500,000 | ||
Tax Credit Carryforward, Amount | 160,000 | ||
Capital loss carryover | 34,000 | 173,000 | |
Tax Credit Carryforward, Valuation Allowance | 34,000 | ||
Penalties and interest expense | 0 | $ 0 | $ 0 |
Uncertain tax positions | $ 0 |
Federal Income Taxes (Schedule
Federal Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Allowance for loan losses | $ 2,607 | $ 2,476 |
Deferred compensation | 601 | 676 |
Purchase accounting | 16 | 16 |
Deferred loan fees and costs, net | 99 | |
Capital loss carryover | 34 | 173 |
Other than temporary impairment of investments | 124 | 124 |
Net operating loss carryforward | 1,787 | |
Accumulated other comprehensive loss | 1,696 | 1,603 |
Other | 759 | 2,191 |
Deferred Tax Assets, Gross, Total | 7,624 | 7,358 |
Valuation allowance | (158) | (297) |
Total gross deferred tax assets | 7,466 | 7,061 |
Deferred Tax Liabilities | ||
Depreciation | 239 | 162 |
Joint ventures and partnerships | 36 | 28 |
Pension | 1,173 | 1,068 |
Deferred loan fees and costs, net | 26 | |
Total gross deferred tax liabilities | 1,474 | 1,258 |
Net deferred tax asset | $ 5,992 | $ 5,803 |
Federal Income Taxes (Schedul_2
Federal Income Taxes (Schedule Of Components Of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Income Taxes [Abstract] | |||||||||||||
Current tax expense | $ (164) | $ 4,396 | $ 2,134 | ||||||||||
Deferred tax expense (benefit) | (1) | (831) | (832) | ||||||||||
Income tax provision | $ 506 | $ 654 | $ (1,816) | $ 491 | $ 1,048 | $ 774 | $ 950 | $ 793 | $ (165) | $ 3,565 | $ 1,302 | ||
[1] | Includes $2.3 million for revaluation of the net deferred tax assets |
Federal Income Taxes (Schedul_3
Federal Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | [1] | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Income Taxes [Abstract] | |||||||||||||
Tax provision at statutory rate (34%) | $ 1,252 | $ 3,252 | $ 3,192 | ||||||||||
Income on tax-exempt loans and securities | (1,404) | (2,056) | (1,751) | ||||||||||
Nondeductible interest expense relating to carrying tax-exempt obligations | 33 | 32 | 24 | ||||||||||
Revaluation of deferred tax assets | 2,291 | ||||||||||||
Income from bank owned life insurance | (108) | (171) | (210) | ||||||||||
Stock option compensation | 39 | 55 | 30 | ||||||||||
Other, net | 23 | 162 | 17 | ||||||||||
Income tax provision | $ 506 | $ 654 | $ (1,816) | $ 491 | $ 1,048 | $ 774 | $ 950 | $ 793 | $ (165) | $ 3,565 | $ 1,302 | ||
Effective income tax rate | (2.80%) | 62.10% | 13.90% | ||||||||||
Statutory rate | 21.00% | 34.00% | |||||||||||
[1] | Includes $2.3 million for revaluation of the net deferred tax assets |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Loss [Abstract] | |||
Net unrealized (losses) gains on debt securities | $ (1,100) | $ 154 | |
Tax effect | 230 | (33) | |
Net of tax amount | (870) | 121 | |
Accumulated pension adjustment | (6,975) | (7,784) | $ (6,366) |
Tax effect | 1,465 | 1,635 | 2,164 |
Net of tax amount | (5,510) | (6,149) | $ (4,202) |
Total accumulated other comprehensive loss | $ (6,380) | $ (6,028) |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Term of service completed before eligible for coverage | 4 months | 1 year 1000 hours | ||
Employer Matching Contribution, Percent of Match | 100.00% | |||
Maximum Annual Contributions Per Employee, Percent | 4.00% | |||
Additional Employer Matching Contribution Percent Of Deferral Match From Eligible Compensation | 50.00% | |||
Maximum Additional Annual Contributions Per Employee Deferral Percent | 2.00% | |||
Employer Discretionary Contribution Percent | 100.00% | |||
Maximum Discretionary Profit Sharing Percent Of Eligible Compensation | 2.00% | |||
Related plan expense | $ 647 | $ 707 | $ 494 | |
Defined Benefit Plan General Guidelines Plan Asset Allocations | 25.00% | |||
Defined Benefit Plan, Individual Stock Cap Guildlines Percentage | 5.00% | |||
Maximum [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | (90.00%) | |||
Maximum [Member] | Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 30.00% | |||
Minimum [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 60.00% | |||
Minimum [Member] | Equities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 10.00% | |||
Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to plan | $ 1,000 |
Benefit Plans (Schedule Of Plan
Benefit Plans (Schedule Of Plan's Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Plans [Abstract] | |||
Benefit obligation at beginning of measurement year | $ 19,889 | $ 17,881 | $ 18,609 |
Service cost | 361 | 317 | 337 |
Interest cost | 553 | 667 | 701 |
Actuarial loss | (1,762) | 2,260 | 632 |
Settlement loss | (1,590) | ||
Benefits paid | (1,104) | (1,236) | (808) |
Benefit obligation at end of measurement year | 17,937 | 19,889 | 17,881 |
Fair value of plan assets at beginning of measurement year | 17,192 | 17,062 | 18,301 |
Actual return on plan assets net of expenses | (539) | 1,366 | 1,159 |
Settlement loss | (1,590) | ||
Employer contribution | 1,000 | ||
Benefits paid | (1,104) | (1,236) | (808) |
Fair value of plan assets at end of measurement year | 16,549 | 17,192 | 17,062 |
Defined Benefit Plan, Funded Status of Plan, Total | $ (1,388) | $ (2,697) | $ (819) |
Benefit Plans (Schedule Of Amou
Benefit Plans (Schedule Of Amounts Recognized In Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Benefit Plans [Abstract] | |||
Net Actuarial loss | $ (6,975) | $ (7,784) | $ (6,366) |
Accumulated pension adjustment | (6,975) | (7,784) | (6,366) |
Tax effect | 1,465 | 1,635 | 2,164 |
Net amount recognized in accumulated other comprehensive loss | $ (5,510) | $ (6,149) | $ (4,202) |
Benefit Plans (Schedule Of Net
Benefit Plans (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Plans [Abstract] | |||
Service cost | $ 361 | $ 317 | $ 337 |
Interest cost | 553 | 667 | 701 |
Expected return on plan assets | (1,120) | (1,072) | (1,165) |
Amortization of prior service cost | (94) | ||
Recognized net actuarial loss | 705 | 547 | 579 |
Net period cost | 499 | 459 | 358 |
Effect of settlement loss | 564 | ||
Total pension expense | $ 499 | $ 459 | $ 922 |
Benefit Plans (Schedule Of Assu
Benefit Plans (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Assumptions used to determine benefit obligations: Discount rate | 4.15% | 3.46% | 3.89% |
Assumptions used to determine benefit obligations: Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Assumptions used to determine net periodic benefit cost: Discount rate | 3.46% | 3.89% | 3.89% |
Assumptions used to determine net periodic benefit cost: Expected long-term return on plan assets | 6.50% | 6.50% | 6.50% |
Assumptions used to determine net periodic benefit cost: Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Asset allocations as of measurement date: | 100.00% | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 2.00% | 2.00% | 4.00% |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 22.00% | 24.00% | 33.00% |
Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 15.00% | 18.00% | 8.00% |
Municipal Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 36.00% | 38.00% | 42.00% |
Investment Fund-Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 8.00% | 9.00% | 9.00% |
Investment Fund-Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 7.00% | 0.00% | 0.00% |
Deposit In Immediate Participation Guarantee Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 6.00% | 4.00% | 3.00% |
Other Defined Benefit Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocations as of measurement date: | 4.00% | 5.00% | 1.00% |
Benefit Plans (Schedule Of Am_2
Benefit Plans (Schedule Of Amount Recognized In Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 16,549 | $ 17,192 | $ 17,062 | $ 18,301 |
Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 16,549 | 17,192 | ||
Cash and Cash Equivalents [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 350 | 399 | ||
Equity Securities [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,604 | 4,158 | ||
Corporate Debt Securities [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,416 | 3,108 | ||
Municipal Securities [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 6,052 | 6,556 | ||
Investment Fund-Debt [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,409 | 1,570 | ||
Investment Fund-Equity [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,112 | |||
Cash Value Of Life Insurance [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 25 | 25 | ||
Deposit In Immediate Participation Guarantee Contract [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 934 | 683 | ||
Other Defined Benefit Plan Assets [Member] | Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 647 | 693 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 6,127 | 6,953 | ||
Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 350 | 399 | ||
Level 1 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,604 | 4,158 | ||
Level 1 [Member] | Investment Fund-Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,570 | |||
Level 1 [Member] | Investment Fund-Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,112 | |||
Level 1 [Member] | Deposit In Immediate Participation Guarantee Contract [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 934 | 683 | ||
Level 1 [Member] | Other Defined Benefit Plan Assets [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 127 | 143 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 10,397 | 10,214 | ||
Level 2 [Member] | Corporate Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,416 | 3,108 | ||
Level 2 [Member] | Municipal Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 6,052 | 6,556 | ||
Level 2 [Member] | Investment Fund-Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,409 | |||
Level 2 [Member] | Other Defined Benefit Plan Assets [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 520 | 550 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 25 | 25 | ||
Level 3 [Member] | Cash Value Of Life Insurance [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 25 | $ 25 |
Benefit Plans (Schedule Of Chan
Benefit Plans (Schedule Of Changes In Fair Value Of Plan Assets) (Details) - Cash Value Of Life Insurance [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance | $ 25 | $ 25 |
Unrealized gain (loss) relating to investments held at the reporting date | ||
Purchases, sales, issuances and settlement, net | ||
Balance | $ 25 | $ 25 |
Benefit Plans (Schedule Of Expe
Benefit Plans (Schedule Of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Benefit Plans [Abstract] | |
2019 | $ 985 |
2020 | 1,332 |
2021 | 929 |
2022 | 1,115 |
2023 | 969 |
2024-2028 | 5,755 |
Total | $ 11,085 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of service completed before eligible for coverage | 4 months | 1 year 1000 hours |
ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance | 250,000 | |
Minimum percent of fair value market option price | 90.00% | |
Expiration date, maximum term from grant date, in years | 1 year | |
Grant price, percent of the stock's fair value at the time of award | 95.00% | |
ISOP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period, in years | P10Y | |
Number of shares available for issuance | 354,877 | |
Minimum percent of fair value market option price | 100.00% | |
Period of incentive stock option plan, in years | 10 years | |
Option term, in years | 10 years | |
Term of service completed before eligible for coverage | 6 months |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule Of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Exercised | (12,268) | (750) | (3,800) | |
ESPP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Balance Outstanding | 17,837 | 22,758 | 22,286 | |
Options Granted | 19,790 | 19,086 | 24,434 | |
Options Exercised | (3,257) | (6,827) | (907) | |
Options Expired | (15,992) | (17,180) | (23,055) | |
Balance Outstanding | 18,378 | 17,837 | 22,758 | |
Weighted Average Price Per Share: Balance Outstanding | $ 29.95 | $ 22.46 | $ 23.42 | |
Weighted Average Price Per Share: Granted | 32.73 | 29.95 | 22.46 | |
Weighted Average Price Per Share: Exercised | 30.54 | 23 | 22.66 | |
Weighted Average Price Per Share: Expired | 30.07 | 22.79 | 23.38 | |
Weighted Average Price Per Share: Balance Outstanding | $ 32.73 | $ 29.95 | $ 22.46 | |
Aggregate Intrinsic Value | $ 132 | $ 140 | $ 2 | |
Number of shares available for fututre grants | 196,284 | |||
ISOP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Balance Outstanding | 85,225 | 58,725 | 53,075 | |
Options Granted | 34,054 | 33,450 | 24,450 | |
Options Exercised | (12,268) | (750) | (3,800) | |
Options Forfeited | (3,000) | (6,200) | (15,000) | |
Balance Outstanding | 104,011 | 85,225 | 58,725 | |
Weighted Average Price Per Share: Balance Outstanding | $ 24.75 | $ 22.03 | $ 22.56 | |
Weighted Average Price Per Share: Granted | 34.10 | 30 | 21.27 | |
Weighted Average Price Per Share: Exercised | 21.55 | 23.77 | 16 | |
Weighted Average Price Per Share: Forfeited | 23.77 | 27.37 | 24.14 | |
Weighted Average Price Per Share: Balance Outstanding | $ 28.22 | $ 24.75 | $ 22.03 | |
Aggregate Intrinsic Value | $ 341 | $ 1,075 | $ 386 | $ 50 |
Number of shares available for fututre grants | 259,123 |
Stock Based Compensation (Share
Stock Based Compensation (Share-based Compensation Arrangement By Share-based Payment Award, Options, Vested And Expected To Vest, Outstanding And Exercisable) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 18,378 |
Price Range, Upper Range Limit | $ 32.73 |
Weighted Average Exercise Price | $ 32.73 |
Weighted Average Remaining Life (years) | 6 months |
ISOP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 104,011 |
Weighted Average Exercise Price | $ 28.22 |
Weighted Average Remaining Life (years) | 7 years 9 months 18 days |
ISOP [Member] | Exercise Price Or Price Range One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 3,107 |
Price Range, Upper Range Limit | $ 16.11 |
Weighted Average Exercise Price | $ 16.11 |
Weighted Average Remaining Life (years) | 2 months 12 days |
ISOP [Member] | Exercise Price Or Price Range Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 33,400 |
Price Range, Lower Range Limit | $ 21.27 |
Price Range, Upper Range Limit | 22.05 |
Weighted Average Exercise Price | $ 21.56 |
Weighted Average Remaining Life (years) | 6 years 9 months 18 days |
ISOP [Member] | Exercise Price Or Price Range Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding and Exercisable | shares | 67,504 |
Price Range, Lower Range Limit | $ 30 |
Price Range, Upper Range Limit | 34.10 |
Weighted Average Exercise Price | $ 32.07 |
Weighted Average Remaining Life (years) | 8 years 8 months 12 days |
Stock Based Compensation (Valua
Stock Based Compensation (Valuation Assumptions Using Black-Scholes Method) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense included in net income | $ 185 | $ 161 | $ 88 |
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 19,790 | 19,086 | 24,434 |
ISOP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 34,054 | 33,450 | 24,450 |
Risk-free interest rate | 2.66% | 1.87% | 1.22% |
Expected volatility of the Corporation's stock | 19.51% | 23.12% | 25.76% |
Expected dividend yield | 2.49% | 2.94% | 3.23% |
Expected life (in years) | 5 years 3 months | 5 years 3 months | 5 years 3 months |
Weighted average fair value of options granted | $ 5.42 | $ 4.81 | $ 3.58 |
Total compensation expense included in net income | $ 185 | $ 161 | $ 88 |
Deferred Compensation Agreeme_2
Deferred Compensation Agreement (Details) - Fulton Bancshares Corporation [Member] | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2006item | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Obligation under deferred compensation agreements | $ 240,000 | |
Number of Agreements | item | 2 | |
Expected future deferred compensation expenses | $ 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Repurchase plan period, in years | 1 year | |
Shares held at cost | 292,606 | 334,311 |
Common stock shares authorized | 15,000,000 | 15,000,000 |
Dividend Reinvestment Plan (DRIP) [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Common stock shares authorized | 1,000,000 | |
Addition to capital from dividend reinvestment plan | $ 1,400 | |
Shares purchased through DRIP, shares | 41,053 | |
Shares purchased through DRIP, value | $ 1,400 | |
Dividend Reinvestment plan shares remain to be issues | 573,302 | |
Dividend Reinvestment Plan (DRIP) - Quarterly Dividends [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Addition to capital from dividend reinvestment plan | $ 747 | |
Dividend Reinvestment Plan (DRIP) - Optional Cash Contributions [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Addition to capital from dividend reinvestment plan | $ 671 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Stock Repurchase Activity) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
10/12/2017 - 100,000 shares [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Plan Date | Oct. 12, 2017 | |
Expiration | Sep. 30, 2018 | |
Stock repurchase program, authorized amount | $ 100,000 | |
Shares Repurchased | 2,605 | |
12/20/2018 - 100,000 shares [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Plan Date | Dec. 20, 2018 | |
Expiration | Dec. 21, 2019 | |
Shares Authorized | 100,000 | |
Shares Repurchased |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | |
Commitments And Contingencies [Abstract] | ||
Standby letters of credit extension period, in years | 1 year | |
Allowance against letters of credit | $ 2,361 | |
Accrued settlement payment | $ 10,000 |
Commitments And Contingencies_3
Commitments And Contingencies (Outstanding Commitments ) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commercial Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 216,913 | $ 249,526 |
Consumer Commitments To Extend Credit (Secured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 49,221 | 44,866 |
Consumer Commitments To Extend Credit (Unsecured) [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 5,605 | 5,668 |
Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | 271,739 | 300,060 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Commitments outstanding | $ 25,429 | $ 28,630 |
Fair Value Measurements And F_3
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value, By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale, at fair value | $ 131,472 | $ 127,336 |
Equity securities, at fair value | 374 | 365 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 52,957 | 58,603 |
Restricted stock | 452 | 456 |
Loans held for sale | 118 | 442 |
Net loans | 960,960 | 931,908 |
Accrued interest receivable | 4,103 | 3,847 |
Debt securities available for sale, at fair value | 131,472 | 127,336 |
Equity securities, at fair value | 374 | |
Deposits | 1,082,629 | 1,047,181 |
Accrued interest payable | 193 | 149 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 52,957 | 58,603 |
Restricted stock | 452 | 456 |
Loans held for sale | 118 | 442 |
Net loans | 941,930 | 929,891 |
Accrued interest receivable | 4,103 | 3,847 |
Debt securities available for sale, at fair value | 131,472 | 127,336 |
Equity securities, at fair value | 374 | |
Deposits | 1,082,425 | 1,046,476 |
Accrued interest payable | 193 | 149 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 52,957 | 58,603 |
Debt securities available for sale, at fair value | 365 | |
Equity securities, at fair value | 374 | |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted stock | 452 | 456 |
Loans held for sale | 118 | 442 |
Accrued interest receivable | 4,103 | 3,847 |
Debt securities available for sale, at fair value | 131,472 | 126,971 |
Deposits | 1,082,425 | 1,046,476 |
Accrued interest payable | 193 | 149 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loans | $ 941,930 | $ 929,891 |
Fair Value Measurements And F_4
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 374 | $ 365 |
Available for sale | 131,472 | 127,336 |
Total assets | 131,846 | 127,336 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 374 | |
Available for sale | 365 | |
Total assets | 374 | 365 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 131,472 | 126,971 |
Total assets | 131,472 | 126,971 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 374 | 365 |
Available for sale | 365 | |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 374 | 365 |
U.S. Government And Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 9,076 | 11,472 |
U.S. Government And Agency Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 9,076 | 11,472 |
Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 67,647 | 57,772 |
Municipal Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 67,647 | 57,772 |
Trust Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,758 | 5,817 |
Trust Preferred Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 3,758 | 5,817 |
Agency Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 44,658 | 50,937 |
Agency Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 44,658 | 50,937 |
Private-Label Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 488 | 946 |
Private-Label Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 488 | 946 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | 5,845 | 27 |
Asset-Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale | $ 5,845 | $ 27 |
Fair Value Measurements And F_5
Fair Value Measurements And Fair Values Of Financial Instruments (Schedule Of Fair Value On A Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $ 131,846 | $ 127,336 | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 71 | 90 | [1] | |
Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 374 | 365 | ||
Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | 131,472 | 126,971 | ||
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 | 71 | 90 | [1] | |
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 | [1] | 71 | 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 | 71 | 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 | [1] | $ 71 | $ 90 | |
[1] | Includes assets directly charged-down to fair value during the year-to-date period. |
Fair Value Measurements And F_6
Fair Value Measurements And Fair Values Of Financial Instruments (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 131,846 | $ 127,336 |
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 | $ 71 | $ 90 |
Other Real Estate Owned [Member] | Level 3 [Member] | Cost To Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 8.00% | 8.00% |
Other Real Estate Owned [Member] | Level 3 [Member] | Weighted Average [Member] | Cost To Sell [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Quantitative Information Percentage | 8.00% | 8.00% |
Parent Company (Franklin Fina_3
Parent Company (Franklin Financial Services Corporation) Financial Information (Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 52,957 | $ 58,603 | $ 36,665 | $ 39,166 |
Other assets | 8,545 | 6,930 | ||
Total assets | 1,209,587 | 1,179,813 | ||
Other Liabilities | 8,562 | 17,488 | ||
Total liabilities | 1,091,191 | 1,064,669 | ||
Shareholders' equity | 118,396 | 115,144 | 116,493 | 111,376 |
Total liabilities and shareholders' equity | 1,209,587 | 1,179,813 | ||
Franklin Financial Services Corporation [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 108 | 250 | $ 851 | $ 300 |
Investment securities | 374 | 365 | ||
Equity investment in subsidiaries | 118,027 | 114,387 | ||
Other assets | 184 | |||
Total assets | 118,509 | 115,186 | ||
Other Liabilities | 113 | 42 | ||
Total liabilities | 113 | 42 | ||
Shareholders' equity | 118,396 | 115,144 | ||
Total liabilities and shareholders' equity | $ 118,509 | $ 115,186 |
Parent Company (Franklin Fina_4
Parent Company (Franklin Financial Services Corporation) Financial Information (Statements Of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Other income | $ 131 | $ 221 | $ 246 | ||||||||||
Income before federal income tax expense | $ 4,310 | $ 4,654 | $ (6,997) | $ 3,993 | $ (6,215) | $ 3,850 | $ 4,292 | $ 3,813 | 5,960 | 5,741 | 9,389 | ||
Income tax benefit | (506) | [1] | (654) | 1,816 | (491) | (1,048) | [1] | (774) | (950) | (793) | 165 | (3,565) | (1,302) |
Net income | $ 3,804 | $ 4,000 | $ (5,181) | $ 3,502 | $ (7,263) | $ 3,076 | $ 3,342 | $ 3,020 | 6,125 | 2,176 | 8,087 | ||
Franklin Financial Services Corporation [Member] | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Dividends from Bank subsidiary | 3,259 | 3,225 | 4,006 | ||||||||||
Other income | 9 | ||||||||||||
Income | 3,268 | 3,225 | 4,006 | ||||||||||
Operating expenses | 1,184 | 1,107 | 972 | ||||||||||
Income before federal income tax expense | 2,084 | 2,118 | 3,034 | ||||||||||
Income tax benefit | 207 | 348 | 301 | ||||||||||
Equity in undistributed income of subsidiaries | 3,834 | (290) | 4,752 | ||||||||||
Net income | $ 6,125 | $ 2,176 | $ 8,087 | ||||||||||
[1] | Includes $2.3 million for revaluation of the net deferred tax assets |
Parent Company (Franklin Fina_5
Parent Company (Franklin Financial Services Corporation) Financial Information (Statements Of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | $ 3,804 | $ 4,000 | $ (5,181) | $ 3,502 | $ (7,263) | $ 3,076 | $ 3,342 | $ 3,020 | $ 6,125 | $ 2,176 | $ 8,087 | |
Securities: | ||||||||||||
Unrealized gains arising during the period | [1] | (998) | 177 | (1,176) | ||||||||
Reclassification adjustment for net (gains) losses included in net income | [1] | (56) | (3) | 18 | ||||||||
Net unrealized (losses) gains | [1] | (1,054) | 174 | (1,158) | ||||||||
Tax effect | [1] | 264 | (60) | 394 | ||||||||
Net of tax amount | [1] | (790) | 114 | (764) | ||||||||
Total other comprehensive (loss) income | (151) | (821) | (493) | |||||||||
Franklin Financial Services Corporation [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | 6,125 | 2,176 | 8,087 | |||||||||
Securities: | ||||||||||||
Unrealized gains arising during the period | 201 | |||||||||||
Reclassification adjustment for net (gains) losses included in net income | ||||||||||||
Net unrealized (losses) gains | 201 | |||||||||||
Tax effect | (68) | |||||||||||
Net of tax amount | 133 | |||||||||||
Total other comprehensive (loss) income | 133 | |||||||||||
Other comprehensive (loss) income of subsidiaries | (151) | (954) | (493) | |||||||||
Total Comprehensive Income | $ 5,974 | $ 1,355 | $ 7,594 | |||||||||
[1] | Securities / securities (gains) losses and OTTI losses, net $12, $1, and $(6) for years ended December 31, 2018, 2017, and 2016, respectively. |
Parent Company (Franklin Fina_6
Parent Company (Franklin Financial Services Corporation) Financial Information (Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 3,804 | $ 4,000 | $ (5,181) | $ 3,502 | $ (7,263) | $ 3,076 | $ 3,342 | $ 3,020 | $ 6,125 | $ 2,176 | $ 8,087 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Stock option compensation | 185 | 161 | 88 | ||||||||
Deferred tax benefit | (1) | (831) | (832) | ||||||||
Net cash provided by operating activities | 9,302 | 16,252 | 14,856 | ||||||||
Dividends paid | (4,598) | (4,031) | (3,523) | ||||||||
Cash received from option exercises | 362 | 175 | 82 | ||||||||
Common stock issued under dividend reinvestment plan | 1,417 | 991 | 1,671 | ||||||||
Treasury stock purchase | (88) | (795) | |||||||||
Net cash provided by financing activities | 32,541 | 37,926 | 85,313 | ||||||||
(Decrease) increase in cash and cash equivalents | (5,646) | 21,938 | (2,501) | ||||||||
Cash and cash equivalents as of January 1 | 58,603 | 36,665 | 58,603 | 36,665 | 39,166 | ||||||
Cash and cash equivalents as of September 30 | 52,957 | 58,603 | 52,957 | 58,603 | 36,665 | ||||||
Franklin Financial Services Corporation [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 6,125 | 2,176 | 8,087 | ||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Equity in undistributed loss (income) of subsidiary | 3,834 | (290) | 4,752 | ||||||||
Stock option compensation | 185 | 161 | 88 | ||||||||
Deferred tax benefit | (26) | ||||||||||
(Increase) decrease in other assets/liabilities | 289 | (337) | (307) | ||||||||
Net cash provided by operating activities | 2,765 | 2,264 | 3,116 | ||||||||
Dividends paid | (4,598) | (4,031) | (3,523) | ||||||||
Cash received from option exercises | 362 | 175 | 82 | ||||||||
Common stock issued under dividend reinvestment plan | 1,417 | 991 | 1,671 | ||||||||
Treasury stock purchase | (88) | (795) | |||||||||
Net cash provided by financing activities | (2,907) | (2,865) | (2,565) | ||||||||
(Decrease) increase in cash and cash equivalents | (142) | (601) | 551 | ||||||||
Cash and cash equivalents as of January 1 | $ 250 | $ 851 | 250 | 851 | 300 | ||||||
Cash and cash equivalents as of September 30 | $ 108 | $ 250 | $ 108 | $ 250 | $ 851 |
Quarterly Results Of Operatio_3
Quarterly Results Of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2018 | ||||
Quarterly Results Of Operations [Abstract] | |||||||||||||||
Interest Income | $ 11,849 | $ 11,477 | $ 11,053 | $ 10,488 | $ 10,339 | $ 10,063 | $ 9,938 | $ 9,546 | $ 44,868 | $ 39,885 | $ 36,979 | ||||
Interest Expense | 1,343 | 1,122 | 954 | 795 | 691 | 629 | 590 | 581 | 4,214 | 2,491 | 2,245 | ||||
Net interest income | 10,506 | 10,355 | 10,099 | 9,693 | 9,648 | 9,434 | 9,348 | 8,965 | 40,654 | 37,394 | 34,734 | ||||
Provision for loan losses | 375 | 250 | 9,129 | [1] | 200 | 250 | 250 | 50 | 120 | 9,954 | 670 | 3,775 | |||
Other noninterest income | 3,140 | 3,120 | 3,221 | 3,148 | 3,137 | 2,971 | 3,155 | 2,925 | 12,629 | 12,189 | 11,605 | ||||
Securities (losses) gains | 56 | 3 | 22 | ||||||||||||
Noninterest expense | 8,961 | [2] | 8,571 | 11,188 | [1] | 8,648 | 18,750 | [2] | 8,305 | 8,161 | 7,957 | 37,369 | 43,172 | 33,175 | |
Income before income taxes | 4,310 | 4,654 | (6,997) | 3,993 | (6,215) | 3,850 | 4,292 | 3,813 | 5,960 | 5,741 | 9,389 | ||||
Available-for-sale Securities Pledged as Collateral | 84,600 | 84,100 | 84,600 | 84,100 | |||||||||||
Federal income tax expense (benefit) | 506 | [3] | 654 | (1,816) | 491 | 1,048 | [3] | 774 | 950 | 793 | (165) | 3,565 | 1,302 | ||
Net income | $ 3,804 | $ 4,000 | $ (5,181) | $ 3,502 | $ (7,263) | $ 3,076 | $ 3,342 | $ 3,020 | $ 6,125 | $ 2,176 | $ 8,087 | ||||
Basic earnings per share | $ 0.86 | $ 0.91 | $ (1.18) | $ 0.80 | $ (1.67) | $ 0.71 | $ 0.77 | $ 0.70 | $ 1.40 | $ 0.50 | $ 1.88 | ||||
Diluted earnings per share | 0.86 | 0.91 | (1.18) | 0.80 | (1.67) | 0.70 | 0.77 | 0.70 | 1.39 | 0.50 | 1.88 | ||||
Dividend declared per share | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.21 | $ 1.05 | $ 0.93 | $ 0.82 | ||||
Accrued settlement payment | $ 10,000 | ||||||||||||||
Revaluation of deferred tax assets | $ 2,291 | ||||||||||||||
[1] | Includes impairment charges on a loan participation | ||||||||||||||
[2] | Includes $10 million for the accrual of a legal settlement | ||||||||||||||
[3] | Includes $2.3 million for revaluation of the net deferred tax assets |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Investment and trust services fees | $ 5,669 | $ 5,370 | $ 4,969 |
Estate management services Fees recognition period | 18 months | ||
Asset Management Fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Investment and trust services fees | $ 5,100 | 4,800 | |
Estate Management Services Fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Investment and trust services fees | 314 | 243 | |
Commisions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Investment and trust services fees | $ 282 | $ 315 |