Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | FIRST KEYSTONE CORP | ||
Entity Central Index Key | 737875 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | FKYS | ||
Entity Common Stock, Shares Outstanding | 5,567,872 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $123,933,063 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $7,543 | $8,257 |
Interest-bearing deposits in other banks | 424 | 22,366 |
Total cash and cash equivalents | 7,967 | 30,623 |
Time deposits with other banks | 1,482 | 0 |
Investment securities available-for-sale | 347,666 | 353,698 |
Investment securities held-to-maturity (fair value 2014 - $1,060; 2013 - $1,083) | 1,056 | 1,072 |
Restricted investment in bank stocks | 5,308 | 4,761 |
Loans | 487,461 | 446,518 |
Allowance for loan losses | -6,390 | -6,519 |
Net loans | 481,071 | 439,999 |
Premises and equipment, net | 20,871 | 21,516 |
Accrued interest receivable | 3,313 | 3,616 |
Cash surrender value of bank owned life insurance | 21,236 | 20,556 |
Investments in low-income housing partnerships | 1,130 | 1,289 |
Goodwill | 19,133 | 19,133 |
Core deposit intangible, net | 122 | 395 |
Foreclosed assets held for resale | 55 | 480 |
Deferred income taxes | 0 | 2,080 |
Other assets | 1,943 | 2,296 |
TOTAL ASSETS | 912,353 | 901,514 |
Deposits: | ||
Non-interest bearing | 96,530 | 85,156 |
Interest bearing | 565,032 | 604,919 |
Total deposits | 661,562 | 690,075 |
Short-term borrowings | 73,123 | 68,233 |
Long-term borrowings | 65,339 | 40,429 |
Accrued interest payable | 399 | 392 |
Deferred income taxes | 211 | 0 |
Other liabilities | 5,448 | 6,034 |
TOTAL LIABILITIES | 806,082 | 805,163 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $2.00 per share; authorized 1,000,000 shares in 2014 and 2013; issued 0 in 2014 and 2013 | 0 | 0 |
Common stock, par value $2.00 per share; authorized 20,000,000 shares in 2014 and 2013; issued 5,802,521 in 2014 and 5,756,474 in 2013; outstanding 5,567,372 in 2014 and 5,521,325 in 2013 | 11,605 | 11,513 |
Surplus | 32,674 | 31,626 |
Retained earnings | 63,485 | 59,089 |
Accumulated other comprehensive income (loss) | 4,330 | -54 |
Treasury stock, at cost, 235,149 shares in 2014 and 2013 | -5,823 | -5,823 |
TOTAL STOCKHOLDERS’ EQUITY | 106,271 | 96,351 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $912,353 | $901,514 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities held-to-maturity, estimated fair value | $1,060 | $1,083 |
Preferred stock, par value (in dollars per share) | $2 | $2 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $2 | $2 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 5,802,521 | 5,756,474 |
Common stock, shares outstanding | 5,567,372 | 5,521,325 |
Treasury stock, shares | 235,149 | 235,149 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME | |||
Interest and fees on loans | $20,545 | $20,471 | $22,599 |
Interest and dividend income on investment securities: | |||
Taxable | 7,781 | 6,843 | 7,956 |
Tax-exempt | 2,366 | 3,533 | 4,309 |
Dividends | 69 | 61 | 62 |
Dividend income on restricted investment in bank stocks | 252 | 35 | 9 |
Interest on interest-bearing deposits in other banks | 6 | 18 | 1 |
Total interest income | 31,019 | 30,961 | 34,936 |
INTEREST EXPENSE | |||
Interest on deposits | 2,953 | 3,623 | 4,556 |
Interest on short-term borrowings | 215 | 105 | 118 |
Interest on long-term borrowings | 1,284 | 1,226 | 1,840 |
Total interest expense | 4,452 | 4,954 | 6,514 |
Net interest income | 26,567 | 26,007 | 28,422 |
Provision for loan losses | 433 | 1,372 | 1,600 |
Net interest income after provision for loan losses | 26,134 | 24,635 | 26,822 |
NON-INTEREST INCOME | |||
Trust department | 921 | 841 | 746 |
Service charges and fees | 1,614 | 1,402 | 1,205 |
Bank owned life insurance income | 680 | 687 | 723 |
ATM fees and debit card income | 1,123 | 1,000 | 977 |
Gains on sales of mortgage loans | 284 | 618 | 1,016 |
Net investment securities gains | 2,756 | 2,900 | 813 |
Other | 524 | 357 | 395 |
Total non-interest income | 7,902 | 7,805 | 5,875 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 11,475 | 10,929 | 10,413 |
Occupancy, net | 1,677 | 1,523 | 1,405 |
Furniture and equipment | 585 | 641 | 586 |
Computer expense | 1,072 | 1,062 | 1,063 |
Professional services | 615 | 534 | 607 |
Pennsylvania shares tax | 635 | 782 | 762 |
FDIC insurance | 505 | 422 | 486 |
ATM and debit card fees | 578 | 529 | 469 |
Data processing fees | 300 | 0 | 0 |
Foreclosed assets held for resale expense | 80 | 41 | 654 |
Advertising | 569 | 441 | 336 |
FHLB prepayment penalties | 0 | 345 | 811 |
Other | 3,117 | 2,693 | 2,929 |
Total non-interest expense | 21,208 | 19,942 | 20,521 |
Income before income tax expense | 12,828 | 12,498 | 12,176 |
Income tax expense | 2,617 | 2,225 | 2,006 |
NET INCOME | $10,211 | $10,273 | $10,170 |
Net income per share: | |||
Basic (in dollars per share) | $1.84 | $1.87 | $1.86 |
Diluted (in dollars per share) | $1.84 | $1.87 | $1.86 |
Dividends per share (in dollars per share) | $1.05 | $1.04 | $1.01 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net Income | $10,211 | $10,273 | $10,170 | |||
Other comprehensive income (loss): | ||||||
Unrealized net holding gains (losses) on available-for-sale investment securities arising during the period, net of income taxes of $3,192, $(5,439) and $2,762, respectively | 6,191 | -10,668 | 5,308 | |||
Less reclassification adjustment for net gains included in net income, net of income taxes of $(949), $(986) and $(276), respectively | -1,807 | [1],[2] | -1,914 | [1],[2] | -537 | [1],[2] |
Total other comprehensive income (loss) | 4,384 | -12,582 | 4,771 | |||
Total Comprehensive Income (Loss) | $14,595 | ($2,309) | $14,941 | |||
[1] | Gross amounts are included in net investment securities gains on the Consolidated Statements of Income in non-interest income. | |||||
[2] | Income tax amounts are included in income tax expense on the Consolidated Statements of Income. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Parenthetical] (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $3,192 | ($5,439) | $2,762 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | ($949) | ($986) | ($276) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2011 | $93,092 | $11,375 | $30,157 | $49,872 | $7,757 | ($6,069) |
Balance (in shares) at Dec. 31, 2011 | 5,687,767 | |||||
Net Income | 10,170 | 10,170 | ||||
Other comprehensive income, net of taxes | 4,771 | 4,771 | ||||
Issuance of common stock under dividend reinvestment and stock purchase plans | 807 | 60 | 568 | 179 | ||
Issuance of common stock under dividend reinvestment and stock purchase plans (in shares) | 29,633 | |||||
Dividends | -5,510 | -5,510 | ||||
Balance at Dec. 31, 2012 | 103,330 | 11,435 | 30,725 | 54,532 | 12,528 | -5,890 |
Balance (in shares) at Dec. 31, 2012 | 5,717,400 | |||||
Net Income | 10,273 | 10,273 | ||||
Other comprehensive income, net of taxes | -12,582 | -12,582 | ||||
Issuance of common stock under dividend reinvestment and stock purchase plans | 1,046 | 78 | 901 | 67 | ||
Issuance of common stock under dividend reinvestment and stock purchase plans (in shares) | 39,074 | |||||
Dividends | -5,716 | -5,716 | ||||
Balance at Dec. 31, 2013 | 96,351 | 11,513 | 31,626 | 59,089 | -54 | -5,823 |
Balance (in shares) at Dec. 31, 2013 | 5,756,474 | |||||
Net Income | 10,211 | 10,211 | ||||
Other comprehensive income, net of taxes | 4,384 | 4,384 | ||||
Issuance of common stock under dividend reinvestment and stock purchase plans | 1,140 | 92 | 1,048 | |||
Issuance of common stock under dividend reinvestment and stock purchase plans (in shares) | 46,047 | |||||
Dividends | -5,815 | -5,815 | ||||
Balance at Dec. 31, 2014 | $106,271 | $11,605 | $32,674 | $63,485 | $4,330 | ($5,823) |
Balance (in shares) at Dec. 31, 2014 | 5,802,521 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Parenthetical] (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends, per share | $1.05 | $1.04 | $1.01 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income | $10,211 | $10,273 | $10,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 433 | 1,372 | 1,600 |
Depreciation and amortization | 1,626 | 1,530 | 1,225 |
Net premium amortization on investment securities | 1,591 | 1,812 | 451 |
Deferred income tax expense (benefit) | 46 | -260 | -195 |
Gains on sales of mortgage loans | -284 | -618 | -1,016 |
Proceeds from sales of mortgage loans originated for resale | 11,256 | 26,271 | 31,748 |
Originations of mortgage loans originated for resale | -12,141 | -25,721 | -34,783 |
Gains on sales of investment securities | -2,756 | -2,900 | -813 |
(Gains) losses on sales of foreclosed real estate held for resale, including write-downs | -28 | -70 | 189 |
Decrease in accrued interest receivable | 303 | 444 | 315 |
Earnings on investment in bank owned life insurance | -680 | -687 | -723 |
Losses on disposals of premises and equipment | 30 | 147 | 0 |
Decrease (increase) in other assets | 375 | 846 | -31 |
Increase (decrease) in accrued interest payable | 7 | -2,836 | 45 |
(Decrease) increase in other liabilities | -2,913 | 2,618 | -229 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,076 | 12,221 | 7,953 |
INVESTING ACTIVITIES | |||
Proceeds from sales of investment securities available-for-sale | 195,847 | 79,981 | 49,235 |
Proceeds from maturities and redemptions of investment securities available-for-sale | 37,443 | 43,944 | 34,686 |
Purchases of investment securities available-for-sale | -217,140 | -196,281 | -43,781 |
Proceeds from maturities and redemptions of investment securities held-to-maturity | 16 | 1,486 | 34 |
Net increase in time deposits with other banks | -1,482 | 0 | 0 |
Net change in restricted investment in bank stocks | -547 | 122 | 306 |
Net increase in loans | -40,513 | -14,528 | -15,335 |
Purchases of premises and equipment | -664 | -3,356 | -7,414 |
Proceeds from sales of foreclosed assets held for resale | 715 | 492 | 936 |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | -26,325 | -88,140 | 18,667 |
FINANCING ACTIVITIES | |||
Net (decrease) increase in deposits | -28,513 | 81,241 | -15,515 |
Net increase in short-term borrowings | 4,890 | 13,164 | 24,187 |
Proceeds from long-term borrowings | 30,000 | 10,000 | 10,000 |
Repayment of long-term borrowings | -5,090 | -14,091 | -29,819 |
Common stock issued | 1,121 | 981 | 693 |
Proceeds from issuance of treasury stock | 0 | 43 | 85 |
Dividends paid | -5,815 | -5,716 | -5,510 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -3,407 | 85,622 | -15,879 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -22,656 | 9,703 | 10,741 |
CASH AND CASH EQUIVALENTS, BEGINNING | 30,623 | 20,920 | 10,179 |
CASH AND CASH EQUIVALENTS, ENDING | 7,967 | 30,623 | 20,920 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest paid | 4,445 | 5,090 | 6,771 |
Income taxes paid | 2,324 | 1,916 | 2,427 |
Loans transferred to foreclosed assets held for resale | $262 | $434 | $812 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Significant Accounting Policies [Text Block] | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
The accounting policies of First Keystone Corporation and Subsidiary (the “Corporation”) are in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to common practices within the banking industry. The more significant accounting policies follow: | |||||||||||
Principles of Consolidation | |||||||||||
The consolidated financial statements include the accounts of First Keystone Corporation and its wholly-owned subsidiary, First Keystone Community Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||||
Nature of Operations | |||||||||||
The Corporation, headquartered in Berwick, Pennsylvania, provides a full range of banking, trust and related services through its wholly-owned Bank subsidiary and is subject to competition from other financial institutions in connection with these services. The Bank serves a customer base which includes individuals, businesses, governments, and public and institutional customers primarily located in the Northeast Region of Pennsylvania. The Bank has 18 full service offices and 20 Automated Teller Machines (“ATM”) located in Columbia, Luzerne, Montour and Monroe counties. The Corporation and its subsidiary must also adhere to certain federal and state banking laws and regulations and are subject to periodic examinations made by various state and federal agencies. | |||||||||||
Segment Reporting | |||||||||||
The Corporation’s subsidiary acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business, government, and public and institutional customers. Through its branch and ATM network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services through its Trust Department. | |||||||||||
Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, trust and mortgage banking operations of the Corporation. As such, discrete financial information is not available and segment reporting would not be meaningful. | |||||||||||
Significant Concentrations of Credit Risk | |||||||||||
The majority of the Corporation’s activities involve customers located primarily in Columbia, Luzerne, Montour and Monroe counties in Pennsylvania. The types of securities in which the Corporation invests are presented in Note 3 – Investment Securities. Credit risk as it relates to investment activities is moderated through the monitoring of ratings and geographic concentrations residing in the portfolio and the observance of minimum rating levels in the investment policy. Note 4 – Loans and Allowance for Loan Losses summarizes the types of lending in which the Corporation engages. The inherent risks associated with lending activities are mitigated by adhering to conservative underwriting practices and policies, as well as portfolio diversification and thorough monitoring of the loan portfolio. It is management’s opinion that the investment and loan portfolios were well balanced at December 31, 2014, to the extent necessary to avoid any significant concentrations of credit risk. | |||||||||||
Use of Estimates | |||||||||||
The preparation of these consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. | |||||||||||
Material estimates that are particularly susceptible to significant changes include the determination of other-than-temporary impairment on securities, the determination of the allowance for loan losses, and the potential impairment of goodwill and core deposit intangibles. | |||||||||||
Subsequent Events | |||||||||||
The Corporation has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2014, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. | |||||||||||
Cash and Cash Equivalents | |||||||||||
For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent since they are represented by cash accounts essentially on a demand basis and mature within one year. Federal funds are also included as a cash equivalent because they are generally purchased and sold for one-day periods. | |||||||||||
Time Deposits with Other Banks | |||||||||||
Time deposits with other banks consist of fully insured certificates of deposit in other banks with maturity dates between one and five years. | |||||||||||
Investment Securities | |||||||||||
The Corporation classifies its investment securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Investment securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Corporation has the ability and positive intent to hold the securities to maturity. Investment securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. | |||||||||||
Debt securities not classified as Held-to-Maturity and equity securities are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive income (loss) in the Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders’ Equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity. | |||||||||||
The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income from investment securities. Realized gains and losses are included in net investment securities gains and losses. The cost of investment securities sold, redeemed or matured is based on the specific identification method. | |||||||||||
Restricted Investment in Bank Stocks | |||||||||||
The Bank owns restricted stock investments in the Federal Home Loan Bank of Pittsburgh (“FHLB-Pittsburgh”) and Atlantic Central Bankers Bank (“ACBB”). These investments do not have a readily determinable fair value because their ownership is restricted and they can be sold back only to the FHLB-Pittsburgh, ACBB or to another member institution. Therefore, these investments are carried at cost. At December 31, 2014, the Corporation held $5,273,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. At December 31, 2013, the Corporation held $4,726,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. | |||||||||||
Management evaluates the restricted investment in bank stocks for impairment on an annual basis. Management’s determination of whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the cost of these investments rather than by recognizing temporary declines in value. The following factors were evaluated to determine the ultimate recoverability of the cost of the Corporation’s restricted investment in bank stocks; (i) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted; (ii) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank; (iii) the impact of legislative and regulatory changes on the institutions and, accordingly, on the customer base of the correspondent bank; and (iv) the liquidity position of the correspondent bank. Based on the analysis of these factors, management determined that no impairment charge was necessary related to the restricted investment in bank stocks during 2014, 2013 or 2012. | |||||||||||
Loans | |||||||||||
Net loans are stated at their outstanding unpaid principal balances, net of deferred fees or costs, unearned income and the allowance for loan losses. Interest on loans is recognized as income over the term of each loan, generally, by the accrual method. Loan origination fees and certain direct loan origination costs have been deferred with the net amount amortized using the straight line method or the interest method over the contractual life of the related loans as an interest yield adjustment. | |||||||||||
Residential mortgage loans held for resale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. | |||||||||||
The loans receivable portfolio is segmented into commercial, residential and consumer loans. Commercial loans consist of the following classes: Commercial and Industrial and Commercial Real Estate. | |||||||||||
Commercial and Industrial Lending | |||||||||||
The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually. | |||||||||||
Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum thresholds have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, business financial statements, collateral appraisals, etc. Commercial and industrial loans are typically secured by personal guarantees of the borrower. | |||||||||||
In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower's character and capacity to repay the loan, the adequacy of the borrower's capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower's past, present and future cash flows is also an important aspect of the Corporation's analysis of the borrower’s ability to repay. | |||||||||||
Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment. | |||||||||||
Commercial Real Estate Lending | |||||||||||
The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial real estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, commercial real estate loans have terms that do not exceed twenty years, have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically secured by personal guarantees of the borrowers. | |||||||||||
In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. The value of the property is determined by either independent appraisers or internal evaluations by Bank officers. | |||||||||||
Commercial real estate loans generally present a higher level of risk than residential real estate secured loans. Repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project and/or the effect of the general economic conditions on income producing properties. | |||||||||||
Residential Real Estate Lending (Including Home Equity) | |||||||||||
The Corporation’s residential real estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Corporation’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within or with customers from the Corporation’s market area. | |||||||||||
The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The Corporation offers fixed-rate mortgage loans with terms up to a maximum of twenty years for both permanent structures and those under construction. Generally, the majority of the Corporation’s residential mortgage loans originate with a loan-to-value of eighty percent or less, or those with primary mortgage insurance at ninety-five percent or less. Generally, home equity term loans are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of fifteen years. Generally, home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of twenty years. | |||||||||||
In underwriting one-to-four family residential mortgage loans, the Corporation evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability and willingness to repay is determined by the borrower’s employment history, current financial conditions and credit background. A majority of the properties securing residential real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires mortgage loan borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance, including flood insurance, if applicable. | |||||||||||
Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower level of risk than consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Corporation is in a subordinate position, especially to another lender, for the loan collateral. | |||||||||||
Consumer Lending | |||||||||||
The Corporation offers a variety of secured and unsecured consumer loans, including vehicle loans, stock loans and loans secured by financial institution deposits. These loans originate primarily within or with customers from the market area. | |||||||||||
Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition and credit background. | |||||||||||
Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. | |||||||||||
Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 15 days or more. Delinquent notices are generated automatically when a loan is 15 days past-due. Collection efforts continue on past-due loans that have not been brought current, when it is believed that some chance exists for improvement in the status of the loan. Past-due loans are continually evaluated with the determination for charge-off being made when no reasonable chance remains that the status of the loan can be improved. | |||||||||||
Commercial and Industrial and Commercial Real Estate loans are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a collateral deficiency exists. Because all or part of the contractual cash flows are not expected to be collected, the loan is considered to be impaired, and the Bank estimates the impairment based on its analysis of the cash flows or collateral estimated at fair value less cost to sell. | |||||||||||
Residential Real Estate and Consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Loans with collateral are charged down to the estimated fair value of the collateral less cost to sell. | |||||||||||
Loans in which the borrower is in bankruptcy are considered on a case by case basis and are either charged off or reaffirmed by the borrower. | |||||||||||
Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is 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 may currently be performing. A loan may remain on accrual status if it is well secured (or supported by a strong guarantee) and in the process of collection. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against interest income. Certain non-accrual loans may continue to perform; that is, payments are still being received. Generally, the payments are applied to principal. These loans remain under constant scrutiny, and if performance continues, interest income may be recorded on a cash basis based on management's judgment as to collectability of principal. | |||||||||||
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 estimated by management to be adequate to absorb potential loan losses. Management’s periodic evaluation of the adequacy of the allowance for loan losses is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. | |||||||||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are individually classified as impaired. Select loans are not aggregated for collective impairment evaluation, as such; all loans are subject to individual impairment evaluation should the facts and circumstances pertinent to a particular loan suggest that such evaluation is necessary. Factors considered by management in determining impairment include payment status 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. If a loan is impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loans may be reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |||||||||||
The general component covers all other loans not identified as impaired and is based on historical losses and qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over a time period that management has determined represents the current credit cycle. Qualitative factors impacting each portfolio segment may include: delinquency trends, loan volume trends, Bank policy changes, management processes and oversight, economic trends (including change in consumer and business disposable incomes, unemployment and under-employment levels, and other conditions), concentrations by industry or product, internal and external loan review processes, collateral value and market conditions, and external factors including regulatory issues and competition. | |||||||||||
The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. 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. | |||||||||||
The Corporation is subject to periodic examination by its federal and state examiners, and may be required by such regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. | |||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Under current accounting standards, the allowance for loan losses related to impaired loans is based on discounted cash flows using the loan’s effective interest rate at inception or the fair value of the collateral for certain collateral dependent loans. | |||||||||||
The restructuring of a loan is considered a “troubled debt restructuring” if both the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the Bank has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, and (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan. A less common concession is the forgiveness of a portion of the principal. | |||||||||||
The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. | |||||||||||
Loans modified in a troubled debt restructuring are considered impaired and may or may not be placed on non-accrual status until the Bank determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrates a period of performance according to the restructured terms of six months. | |||||||||||
The Bank utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all Residential Real Estate, Consumer, Commercial and Industrial, and Commercial Real Estate borrowings. An asset quality rating is assigned using the guidance provided in the Bank’s loan policy. Primary responsibility for assigning the asset quality rating rests with the lender. The asset quality rating is validated periodically by both an internal and external loan review process. | |||||||||||
The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for the particular industry. Primary emphasis is placed on the financial condition and trends. The grade also reflects current economic and industry conditions; as well as other variables such as liquidity, cash flow, revenue/earnings trends, management strengths or weaknesses, quality of financial information, and credit history. | |||||||||||
The loan grading system for Residential Real Estate and Consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio, as well as other variables such as current economic conditions, and individual strengths and weaknesses. | |||||||||||
Risk grade characteristics are as follows: | |||||||||||
Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories) | |||||||||||
Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, leverage position, management expertise, and repayment history. | |||||||||||
At the low-risk end of the rating scale, a risk grade of 1 - Minimal Risk is the grade reserved for loans with exceptional credit fundamentals and virtually no risk of default or loss. Loan grades then progress through escalating ratings of 2 through 6 based upon risk. Risk Grade 2 - Modest Risk are loans with sufficient cash flows; Risk Grade 3 - Average Risk are loans with key balance sheet ratios slightly above the borrower’s peers; Risk Grade 4 - Acceptable Risk are loans with key balance sheet ratios usually near the borrower’s peers, but one or more ratios may be higher; and Risk Grade 5 – Marginally Acceptable are loans with strained cash flow, increasing leverage and/or weakening markets. Risk Grade 6 - Management Attention are loans with weaknesses resulting from declining performance trends and the borrower’s cash flows may be temporarily strained. Loans in this category are performing according to terms, but present some type of potential concern. | |||||||||||
Risk Grade 7 - SPECIAL MENTION (Non-Pass Category) | |||||||||||
Generally, these loans or assets are currently protected, but are “Potentially Weak”. They constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. | |||||||||||
Assets in this category are currently protected but have potential weakness which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. No loss of principal or interest is envisioned; however, they constitute an undue credit risk that may be minor but is unwarranted in light of the circumstances surrounding a specific asset. Risk is increasing beyond that at which the loan originally would have been granted. Historically, cash flows are inconsistent; financial trends show some deterioration. Liquidity and leverage are above industry averages. Financial information could be incomplete or inadequate. A Special Mention asset has potential weaknesses that deserve management’s close attention. | |||||||||||
Risk Grade 8 - SUBSTANDARD (Non-Pass Category) | |||||||||||
Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full liquidation of the debt. | |||||||||||
They are characterized by the distinct possibility that the Bank will sustain some loss if the aggregate amount of substandard assets is not fully covered by the liquidation of the collateral used as security. Substandard loans have a high probability of payment default; are inadequately protected by the current sound net worth, paying capacity of the borrower, or pledged collateral; and may have other well-defined weaknesses. Such assets require more intensive supervision by Bank Management. | |||||||||||
Risk Grade 9 - DOUBTFUL (Non-Pass Category) | |||||||||||
Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, collection or liquidation in full is deemed to be highly improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to strengthen the asset, its classification is deferred until, for example, a proposed merger, acquisition, liquidation procedure, capital injection, perfection of liens on additional collateral and/or refinancing plan is completed. Loans are graded doubtful if they contain weaknesses so serious that collection or liquidation in full is questionable. | |||||||||||
Premises and Equipment | |||||||||||
Premises, improvements, and equipment are stated at cost less accumulated depreciation computed principally utilizing the straight-line method over the estimated useful lives of the assets. Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value may not be recovered. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resulting gain or loss is reflected in current operations. | |||||||||||
Mortgage Servicing Rights | |||||||||||
The Corporation originates and sells real estate loans to investors in the secondary mortgage market. After the sale, the Corporation may retain the right to service these loans. When originated mortgage loans are sold and servicing is retained, a servicing asset is capitalized based on relative fair value at the date of sale. Servicing assets are amortized as an offset to other fees in proportion to, and over the period of, estimated net servicing income. The servicing asset is included in other assets in the Consolidated Balance Sheets. Gains or losses on sales of mortgage loans are recognized based on the differences between the selling price and the carrying value of the related mortgage loans sold. | |||||||||||
Bank Owned Life Insurance | |||||||||||
The cash surrender value of bank owned life insurance is carried as an asset, and changes in cash surrender value are recorded as non-interest income. | |||||||||||
The Bank entered into agreements to provide post-retirement benefits to two retired employees in the form of life insurance payable to the employee’s estate upon their death through endorsement split dollar life insurance arrangements. The Bank’s accrued liabilities for this benefit agreement as of December 31, 2014 and 2013 was $60,000 and $57,000, respectively. The related expense for this benefit agreement amounted to $3,000, $2,000 and $2,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Investments in Low-Income Housing Partnerships | |||||||||||
The Bank is a limited partner in real estate ventures that own and operate affordable residential low-income housing apartment buildings for elderly and mentally challenged adult residents. The investments are accounted for under the effective yield method. Under the effective yield method, the Bank recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that the tax credits are allocated to the Bank. Under this method, the tax credits allocated, net of any amortization of the investment in the limited partnerships, are recognized in the consolidated statements of income as a component of income tax expense. The amount of tax credits allocated to the Bank were $230,000 in 2014, $267,000 in 2013, and $277,000 in 2012, and the amortization of the investments in the limited partnerships were $159,000, $191,000 and $183,000 in 2014, 2013 and 2012, respectively. | |||||||||||
Goodwill and Core Deposit Intangibles | |||||||||||
Goodwill resulted from the acquisition of the Pocono Community Bank in November 2007 and of certain fixed and operating assets acquired and deposit liabilities assumed of the branch of another financial institution in Danville, Pennsylvania, in January 2004. Such goodwill represents the excess cost of the acquired assets relative to the assets fair value at the dates of acquisition. During the first quarter of 2008, $152,000 of liabilities related to the Pocono acquisition were recorded as a purchase accounting adjustment resulting in an increase in the excess purchase price. The amount was comprised of the finalization of severance agreements and contract terminations related to the acquisition. In accordance with current accounting standards, goodwill is not amortized. Management performs an annual evaluation for impairment. Any impairment of goodwill results in a charge to income. The Corporation periodically assesses whether events or changes in circumstances indicate that the carrying amounts of goodwill and other intangible assets may be impaired. Goodwill is evaluated for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. The Corporation has evaluated the goodwill included in its consolidated balance sheet at September 30, 2014, and has determined there was no impairment as of that date. In addition, the Corporation did not identify any impairment in 2013 or 2012. No assurance can be given that future impairment tests will not result in a charge to earnings. | |||||||||||
Intangible assets are comprised of core deposit intangibles and premium discount (negative premium) on certificates of deposit acquired. The core deposit intangible is being amortized over the average life of the deposits acquired as determined by an independent third party. Premium discount (negative premium) on acquired certificates of deposit resulted from the valuation of certificate of deposit accounts by an independent third party. The book value of certificates of deposit acquired was greater than their fair value at the date of acquisition which resulted in a negative premium due to higher cost of the certificates of deposit compared to the cost of similar term financing. The core deposit intangible is subject to impairment testing whenever events or changes in circumstances indicate its carrying amount may not reflect its benefit. | |||||||||||
Foreclosed Assets Held for Resale | |||||||||||
Real estate properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell on the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed and if fair value less costs to sell declines subsequent to foreclosure, a valuation allowance is recorded through expense. Revenues derived from and costs to maintain the assets and subsequent gains and losses on sales are included in non-interest expense on the Consolidated Statements of Income. | |||||||||||
Income Taxes | |||||||||||
The Corporation accounts for income taxes in accordance with income tax accounting guidance FASB ASC Topic 740, Income Taxes. | |||||||||||
Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Corporation determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |||||||||||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||||
The Corporation accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. | |||||||||||
The Corporation recognizes interest and penalties on income taxes, if any, as a component of income tax expense. | |||||||||||
Earnings Per Share | |||||||||||
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Corporation. Potential common shares that may be issued by the Corporation relate solely to outstanding stock options and are determined using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share. | |||||||||||
(In thousands, except earnings per share) | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 | ||||||||
Basic earnings per share | $ | 1.84 | $ | 1.87 | $ | 1.86 | |||||
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 | ||||||||
Common stock equivalents due to effect of stock options | 4 | 5 | 12 | ||||||||
Total weighted-average common shares and equivalents | 5,542 | 5,486 | 5,467 | ||||||||
Diluted earnings per share | $ | 1.84 | $ | 1.87 | $ | 1.86 | |||||
Trust Assets and Revenues | |||||||||||
Property held by the Corporation in a fiduciary or agency capacity for its customers is not included in the accompanying consolidated financial statements since such items are not assets of the Corporation. Assets held in Trust were $111,513,000 and $102,665,000 at December 31, 2014 and 2013, respectively. Trust Department income is generally recognized on a cash basis and is not materially different than if it were reported on an accrual basis. | |||||||||||
Recent Accounting Standards Updates (“ASU”) | |||||||||||
Except as disclosed below, there were no new accounting pronouncements affecting the Corporation during the year ended December 31, 2014 that were not already adopted by the Corporation in previous periods. | |||||||||||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323). The ASU provides guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. This ASU is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2014, and will be applied retrospectively to all periods presented. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The ASU clarifies that a creditor is considered to have physical possession of residential real estate that is collateral for a residential mortgage loan when it obtains legal title to the collateral or a deed in lieu of foreclosure or similar legal agreement is completed. Consequently, the creditor should reclassify the loan to other real estate owned at that time. The new guidance is intended to resolve the diversity in current practice as to when a creditor should reclassify a loan to other real estate on the balance sheet. This ASU is effective for annual periods beginning after December 15, 2014, and interim periods within those annual periods after December 15, 2015. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue requirements in Revenue Recognition (Topic 605). This ASU requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The ASU is effective is effective for annual reporting periods beginning after December 31, 2016, including interim periods within the reporting period. Early application is not permitted. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The ASU addresses the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs, whereby creditors will reclassify these loans to “other receivables” upon foreclosure. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In September 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860). The ASU provides guidance on accounting for repurchase-to-maturity transactions and certain linked repurchase financings. This guidance will result in accounting for both types of arrangements as secured borrowings on the balance sheet. Additionally, the ASU introduces new disclosures to (i) increase transparency about the types of collateral pledged in secured borrowing transactions and (ii) enable users to better understand transactions in which the transferor retains substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. This ASU is effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
Advertising Costs | |||||||||||
It is the Corporation’s policy to expense advertising costs in the period in which they are incurred. | |||||||||||
Transfer of Financial Assets | |||||||||||
Transfers of financial assets are accounted for as sales when control over 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. | |||||||||||
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 in the consolidated balance sheet when they are funded. | |||||||||||
Reclassifications | |||||||||||
Certain amounts previously reported have been reclassified, when necessary, to conform with presentations used in the 2014 consolidated financial statements. Such reclassifications have no effect on the Corporation’s net income. | |||||||||||
RESTRICTED_CASH_BALANCES
RESTRICTED CASH BALANCES | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | NOTE 2 — RESTRICTED CASH BALANCES |
The Bank is required to maintain certain average reserve balances as established by the Federal Reserve Bank. The amount of those reserve balances for the reserve computation period which included December 31, 2014 and 2013, was $1,189,000 and $1,296,000, respectively, which was satisfied through the restriction of vault cash. In addition, the Bank maintains a clearing balance at the Federal Reserve Bank to offset daily cash management activities and specific charges for services. At December 31, 2014 and 2013, the amount of this balance was $414,000 and $22,358,000, respectively. | |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3 — INVESTMENT SECURITIES | |||||||||||||||||||
The amortized cost, related estimated fair value, and unrealized gains and losses for investment securities classified as “Available-For-Sale” or “Held-to-Maturity” were as follows at December 31, 2014 and 2013: | ||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2014: | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities | $ | 11,356 | $ | 24 | $ | -2 | $ | 11,378 | ||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 112,146 | 1,055 | -487 | 112,714 | ||||||||||||||||
Other | 26,246 | 270 | -6 | 26,510 | ||||||||||||||||
Obligations of state and political subdivisions | 151,565 | 6,127 | -469 | 157,223 | ||||||||||||||||
Corporate debt securities | 38,499 | 112 | -825 | 37,786 | ||||||||||||||||
Marketable equity securities | 1,208 | 867 | -20 | 2,055 | ||||||||||||||||
Total | $ | 341,020 | $ | 8,455 | $ | -1,809 | $ | 347,666 | ||||||||||||
Held-to-Maturity Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2014: | Cost | Gains | Losses | Value | ||||||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | $ | 56 | $ | 2 | $ | — | $ | 58 | ||||||||||||
Other | 1,000 | 2 | — | 1,002 | ||||||||||||||||
Total | $ | 1,056 | $ | 4 | $ | — | $ | 1,060 | ||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 122,661 | 598 | -2,035 | 121,224 | ||||||||||||||||
Other | 32,107 | 238 | -60 | 32,285 | ||||||||||||||||
Obligations of state and political subdivisions | 147,112 | 4,136 | -2,859 | 148,389 | ||||||||||||||||
Corporate debt securities | 50,266 | 416 | -1,417 | 49,265 | ||||||||||||||||
Marketable equity securities | 1,533 | 1,004 | -2 | 2,535 | ||||||||||||||||
Total | $ | 353,679 | $ | 6,392 | $ | -6,373 | $ | 353,698 | ||||||||||||
Held-to-Maturity Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | $ | 72 | $ | 3 | $ | — | $ | 75 | ||||||||||||
Other | 1,000 | 8 | — | 1,008 | ||||||||||||||||
Total | $ | 1,072 | $ | 11 | $ | — | $ | 1,083 | ||||||||||||
Securities Available-for-Sale with an aggregate fair value of $222,847,000 at December 31, 2014 and $242,839,000 at December 31, 2013, and securities Held-to-Maturity with an aggregate book value of $1,056,000 at December 31, 2014 and $1,072,000 at December 31, 2013, were pledged to secure public funds, trust funds, securities sold under agreements to repurchase, FHLB advances and other balances of $155,895,000 at December 31, 2014 and $178,814,000 at December 31, 2013. | ||||||||||||||||||||
The amortized cost and fair value of securities, by contractual maturity, are shown below at December 31, 2014. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||
1 year or less | $ | 3,002 | $ | 3,037 | $ | 1,000 | $ | 1,002 | ||||||||||||
Over 1 year through 5 years | 25,650 | 26,130 | — | — | ||||||||||||||||
Over 5 years through 10 years | 103,919 | 103,826 | — | — | ||||||||||||||||
Over 10 years | 95,095 | 99,904 | — | — | ||||||||||||||||
Mortgage-backed securities | 112,146 | 112,714 | 56 | 58 | ||||||||||||||||
Marketable equity securities | 1,208 | 2,055 | — | — | ||||||||||||||||
$ | 341,020 | $ | 347,666 | $ | 1,056 | $ | 1,060 | |||||||||||||
There were no aggregate investments with a single issuer (excluding the U.S. Government and its political subdivisions and agencies) which exceeded ten percent of consolidated stockholders’ equity at December 31, 2014. The quality rating of the obligations of state and political subdivisions are generally investment grade, as rated by Moody’s, Standard and Poor’s or Fitch. The typical exceptions are local issues which are not rated, but are secured by the full faith and credit obligations of the communities that issued these securities. | ||||||||||||||||||||
Proceeds from sales of investments in Available-for-Sale debt and equity securities during 2014, 2013 and 2012 were $195,847,000, $79,981,000 and $49,235,000, respectively. Gross gains realized on these sales were $3,354,000, $3,546,000 and $1,762,000, respectively. Gross losses on these sales were $598,000, $646,000 and $949,000, respectively. There were no other-than-temporary impairment losses during 2014, 2103 and 2012. | ||||||||||||||||||||
There were no proceeds from sales of investments in Held-to-Maturity debt and equity securities during 2014, 2013 and 2012. Therefore, there were no gains or losses realized during these periods. | ||||||||||||||||||||
Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. In determining OTTI under the FASB ASC 320 model, management considers many factors, including (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, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | ||||||||||||||||||||
When other-than-temporary impairment occurs on debt securities, the amount of the other-than-temporary impairment recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the other-than-temporary impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is determined based on the present value of cash flows expected to be collected, and the realized loss is recognized in net investment securities gains on the Consolidated Statements of Income. The amount of the total other-than-temporary impairment related to the other factors shall be recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary impairment recognized in earnings shall become the new amortized cost basis of the investment. | ||||||||||||||||||||
The fair market value of the equity securities tends to fluctuate with the overall equity markets as well as the trends specific to each institution. The equity securities portfolio is reviewed in a similar manner as that of the debt securities with greater emphasis placed on the length of time the market value has been less than the carrying value and the financial sector outlook. The Corporation also reviews dividend payment activities, levels of non-performing assets and loan loss reserves. The starting point for the equity analysis is the length and severity of market value decline. The realized loss is recognized in net investment securities gains on the Consolidated Statements of Income. The amount of the total other-than-temporary impairment is recognized in other comprehensive income, net of applicable taxes. | ||||||||||||||||||||
The Corporation and its investment advisors monitor the entire portfolio monthly with particular attention given to securities in a continuous loss position of at least ten percent for over twelve months. Based on the factors described above, management did not consider any securities to be other-than-temporarily impaired at December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
In accordance with disclosures required by FASB ASC 320-10-50, Investments - Debt and Equity Securities, the summary below shows the gross unrealized losses and fair value of the Corporation’s investments, aggregated by investment category, that individual securities have been in a continuous unrealized loss position for less than 12 months or 12 months or more as of December 31, 2014 and 2013: | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Available-for-Sale: | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Treasury securities | $ | 6,030 | $ | -2 | $ | — | $ | — | $ | 6,030 | $ | -2 | ||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 19,823 | -230 | 17,099 | -257 | 36,922 | -487 | ||||||||||||||
Other | 7,154 | -6 | — | — | 7,154 | -6 | ||||||||||||||
Obligations of state and political subdivisions | 21,459 | -94 | 18,273 | -375 | 39,732 | -469 | ||||||||||||||
Corporate debt securities | 22,227 | -542 | 12,066 | -283 | 34,293 | -825 | ||||||||||||||
Marketable equity securities | 30 | -20 | — | — | 30 | -20 | ||||||||||||||
$ | 76,723 | $ | -894 | $ | 47,438 | $ | -915 | $ | 124,161 | $ | -1,809 | |||||||||
31-Dec-13 | ||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Available-for-Sale: | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 98,760 | -2,035 | — | — | 98,760 | -2,035 | ||||||||||||||
Other | 4,956 | -60 | — | — | 4,956 | -60 | ||||||||||||||
Obligations of state and political subdivisions | 48,853 | -2,859 | — | — | 48,853 | -2,859 | ||||||||||||||
Corporate debt securities | 26,099 | -1,417 | — | — | 26,099 | -1,417 | ||||||||||||||
Marketable equity securities | 21 | -2 | — | — | 21 | -2 | ||||||||||||||
$ | 178,689 | $ | -6,373 | $ | — | $ | — | $ | 178,689 | $ | -6,373 | |||||||||
The Corporation invests in various forms of agency debt including mortgage backed securities and callable debt. The mortgage backed securities are issued by FHLMC (“Federal Home Loan Mortgage Corporation”) or FNMA (“Federal National Mortgage Association”). The municipal securities consist of general obligations and revenue bonds. The marketable equity securities consist of stocks in other bank holding companies. The fair market value of the above securities is influenced by market interest rates, prepayment speeds on mortgage securities, bid-offer spreads in the market place and credit premiums for various types of agency debt. These factors change continuously and therefore the market value of these securities may be higher or lower than the Corporation’s carrying value at any measurement date. Management does not believe any of their 39 securities with a one year or less unrealized loss position or any of their 29 securities with a greater than one year unrealized loss position as of December 31, 2014, represent an other-than-temporary impairment, as these unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities. | ||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||
Financing Receivables [Text Block] | NOTE 4 — LOANS AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||
The following table presents the classes of the loan portfolio summarized by risk rating as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||
Commercial and | ||||||||||||||||||||||||||
(Dollars in thousands) | Industrial | Commercial Real Estate | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
6-Jan | Pass | $ | 64,459 | $ | 60,614 | $ | 237,404 | $ | 219,925 | |||||||||||||||||
7 | Special Mention | 47 | 65 | 11,008 | 1,717 | |||||||||||||||||||||
8 | Substandard | 21 | 21 | 5,472 | 3,782 | |||||||||||||||||||||
9 | Doubtful | — | — | — | — | |||||||||||||||||||||
Add (deduct): Unearned discount and | — | — | — | — | ||||||||||||||||||||||
Net deferred loan fees and costs | 129 | 122 | 38 | -19 | ||||||||||||||||||||||
Total loans | $ | 64,656 | $ | 60,822 | $ | 253,922 | $ | 225,405 | ||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
Including Home Equity | Consumer Loans | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
6-Jan | Pass | $ | 161,122 | $ | 153,292 | $ | 5,248 | $ | 5,612 | |||||||||||||||||
7 | Special Mention | 520 | 180 | 21 | 2 | |||||||||||||||||||||
8 | Substandard | 1,640 | 931 | 9 | — | |||||||||||||||||||||
9 | Doubtful | — | — | — | — | |||||||||||||||||||||
Add (deduct): Unearned discount and | — | — | -40 | -87 | ||||||||||||||||||||||
Net deferred loan fees and costs | 271 | 272 | 92 | 89 | ||||||||||||||||||||||
Total loans | $ | 163,553 | $ | 154,675 | $ | 5,330 | $ | 5,616 | ||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
6-Jan | Pass | $ | 468,233 | $ | 439,443 | |||||||||||||||||||||
7 | Special Mention | 11,596 | 1,964 | |||||||||||||||||||||||
8 | Substandard | 7,142 | 4,734 | |||||||||||||||||||||||
9 | Doubtful | — | — | |||||||||||||||||||||||
Add (deduct): Unearned discount and | -40 | -87 | ||||||||||||||||||||||||
Net deferred loan fees and costs | 530 | 464 | ||||||||||||||||||||||||
Total loans | $ | 487,461 | $ | 446,518 | ||||||||||||||||||||||
Commercial and Industrial and Commercial Real Estate include loans categorized as tax-free loans in the amounts of $30,334,000 and $3,235,000 at December 31, 2014 and $27,299,000 and $3,945,000 at December 31, 2013. Loans held for sale amount to $2,201,000 at December 31, 2014 and $0 at December 31, 2013. | ||||||||||||||||||||||||||
The activity in the allowance for loan losses, by loan segment, is summarized below for the years indicated. | ||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | |||||||||||||||||||||||
and Industrial | Real Estate | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 776 | $ | 3,320 | $ | 1,565 | $ | 53 | $ | 805 | $ | 6,519 | ||||||||||||||
Charge-offs | -107 | -328 | -209 | -47 | — | -691 | ||||||||||||||||||||
Recoveries | 31 | 81 | 14 | 3 | — | 129 | ||||||||||||||||||||
Provision | -158 | 103 | 558 | 98 | -168 | 433 | ||||||||||||||||||||
Ending Balance | $ | 542 | $ | 3,176 | $ | 1,928 | $ | 107 | $ | 637 | $ | 6,390 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 38 | $ | 81 | $ | — | $ | — | $ | 119 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 542 | $ | 3,138 | $ | 1,847 | $ | 107 | $ | 637 | $ | 6,271 | ||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||
Ending Balance | $ | 64,656 | $ | 253,922 | $ | 163,553 | $ | 5,330 | $ | — | $ | 487,461 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 399 | $ | 5,350 | $ | 1,291 | $ | 4 | $ | — | $ | 7,044 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 64,257 | $ | 248,572 | $ | 162,262 | $ | 5,326 | $ | — | $ | 480,417 | ||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | |||||||||||||||||||||||
and Industrial | Real Estate | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 573 | $ | 2,837 | $ | 1,524 | $ | 80 | $ | 758 | $ | 5,772 | ||||||||||||||
Charge-offs | -17 | -290 | -348 | -39 | — | -694 | ||||||||||||||||||||
Recoveries | 24 | 31 | 5 | 9 | — | 69 | ||||||||||||||||||||
Provision | 196 | 742 | 384 | 3 | 47 | 1,372 | ||||||||||||||||||||
Ending Balance | $ | 776 | $ | 3,320 | $ | 1,565 | $ | 53 | $ | 805 | $ | 6,519 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 125 | $ | 15 | $ | — | $ | — | $ | 140 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 776 | $ | 3,195 | $ | 1,550 | $ | 53 | $ | 805 | $ | 6,379 | ||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||
Ending Balance | $ | 60,822 | $ | 225,405 | $ | 154,675 | $ | 5,616 | $ | — | $ | 446,518 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 21 | $ | 5,022 | $ | 931 | $ | — | $ | — | $ | 5,974 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 60,801 | $ | 220,383 | $ | 153,744 | $ | 5,616 | $ | — | $ | 440,544 | ||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | |||||||||||||||||||||||
and Industrial | Real Estate | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||
2012 | ||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 489 | $ | 3,507 | $ | 1,228 | $ | 137 | $ | 568 | $ | 5,929 | ||||||||||||||
Charge-offs | -264 | -1,077 | -404 | -87 | — | -1,832 | ||||||||||||||||||||
Recoveries | 23 | 22 | 1 | 29 | — | 75 | ||||||||||||||||||||
Provision | 325 | 385 | 699 | 1 | 190 | 1,600 | ||||||||||||||||||||
Ending Balance | $ | 573 | $ | 2,837 | $ | 1,524 | $ | 80 | $ | 758 | $ | 5,772 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 111 | $ | 112 | $ | — | $ | — | $ | 223 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 573 | $ | 2,726 | $ | 1,412 | $ | 80 | $ | 758 | $ | 5,549 | ||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||
Ending Balance | $ | 54,187 | $ | 225,156 | $ | 147,167 | $ | 6,386 | $ | — | $ | 432,896 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 248 | $ | 1,312 | $ | 803 | $ | — | $ | — | $ | 2,363 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 53,939 | $ | 223,844 | $ | 146,364 | $ | 6,386 | $ | — | $ | 430,533 | ||||||||||||||
From time to time, the Bank may agree to modify the contractual terms of a borrower’s loan. In cases where the modifications represent a concession to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). | ||||||||||||||||||||||||||
The outstanding balance of TDRs as of December 31, 2014 and December 31, 2013 was $4,708,000 and $3,961,000, respectively. The increase in TDRs was attributable to deterioration in the respective borrowers’ financial position, and in some cases a declining collateral value, along with the Bank’s proactive monitoring of the loan portfolio. As of December 31, 2014 and 2013, there were no unfunded commitments on any TDRs. | ||||||||||||||||||||||||||
For the year ended December 31, 2014, fourteen loans with a combined post modification balance of $1,880,000 were classified as TDRs compared to the year ended December 31, 2013 when thirteen loans with a combined post modification balance of $4,382,000 were classified as TDRs. The loan modifications for the year ended December 31, 2014 consisted of one interest rate modification, four term modifications beyond the original stated term, and nine payment modifications. The loan modifications for the year ended December 31, 2013 consisted of four interest rate modifications, two term modifications beyond the original stated term, and seven payment modifications. | ||||||||||||||||||||||||||
The following table presents the unpaid balance of TDRs at the dates indicated: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Non-accrual TDRs | $ | 1,638 | $ | 1,538 | ||||||||||||||||||||||
Accruing TDRs | 3,070 | 2,423 | ||||||||||||||||||||||||
Total | $ | 4,708 | $ | 3,961 | ||||||||||||||||||||||
At December 31, 2014, five Commercial Real Estate loans classified as TDRs with a combined recorded investment of $2,087,000 were not in compliance with the terms of their restructure, compared to December 31, 2013 when three Commercial Real Estate loans classified as TDRs with a combined recorded investment of $386,000 were not in compliance with the terms of their restructure. | ||||||||||||||||||||||||||
The following table presents information regarding the loan modifications categorized as TDRs during the years ended December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
(Dollars in thousands, except number of contracts) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Year-End | ||||||||||||||||||||||||
Number | Outstanding Recorded | Outstanding Recorded | Recorded | |||||||||||||||||||||||
of Contracts | Investment | Investment | Investment | |||||||||||||||||||||||
Commercial and Industrial | 3 | $ | 397 | $ | 397 | $ | 394 | |||||||||||||||||||
Commercial Real Estate | 10 | 1,389 | 1,476 | 1,066 | ||||||||||||||||||||||
Consumer | 1 | 7 | 7 | 4 | ||||||||||||||||||||||
Total | 14 | $ | 1,793 | $ | 1,880 | $ | 1,464 | |||||||||||||||||||
(Dollars in thousands, except number of contracts) | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Year-End | ||||||||||||||||||||||||
Number | Outstanding Recorded | Outstanding Recorded | Recorded | |||||||||||||||||||||||
of Contracts | Investment | Investment | Investment | |||||||||||||||||||||||
Commercial and Industrial | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Commercial Real Estate | 13 | 4,519 | 4,382 | 3,961 | ||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||
Total | 13 | $ | 4,519 | $ | 4,382 | $ | 3,961 | |||||||||||||||||||
The following table provides detail regarding the types of loan modifications made for loans categorized as TDRs during the years ended December 31, 2014 and December 31, 2013 with the total number of each type of modification performed. | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||
Rate | Term | Payment | Number | Rate | Term | Payment | Number | |||||||||||||||||||
Modification | Modification | Modification | Modified | Modification | Modification | Modification | Modified | |||||||||||||||||||
Commercial and Industrial | — | — | 3 | 3 | — | — | — | — | ||||||||||||||||||
Commercial Real Estate | 1 | 4 | 5 | 10 | 4 | 2 | 7 | 13 | ||||||||||||||||||
Consumer | — | — | 1 | 1 | — | — | — | — | ||||||||||||||||||
Total | 1 | 4 | 9 | 14 | 4 | 2 | 7 | 13 | ||||||||||||||||||
The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below for the periods ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Unpaid | Unpaid | |||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 399 | $ | 545 | $ | — | $ | 21 | $ | 167 | $ | — | ||||||||||||||
Commercial Real Estate | 4,828 | 5,278 | — | 4,810 | 5,503 | — | ||||||||||||||||||||
Residential Real Estate | 727 | 892 | — | 868 | 1,176 | — | ||||||||||||||||||||
Consumer | 4 | 4 | — | — | — | — | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | — | — | — | — | — | — | ||||||||||||||||||||
Commercial Real Estate | 522 | 522 | 38 | 212 | 212 | 125 | ||||||||||||||||||||
Residential Real Estate | 564 | 569 | 81 | 63 | 63 | 15 | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 7,044 | $ | 7,810 | $ | 119 | $ | 5,974 | $ | 7,121 | $ | 140 | ||||||||||||||
Total consists of: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 399 | $ | 545 | $ | — | $ | 21 | $ | 167 | $ | — | ||||||||||||||
Commercial Real Estate | $ | 5,350 | $ | 5,800 | $ | 38 | $ | 5,022 | $ | 5,715 | $ | 125 | ||||||||||||||
Residential Real Estate | $ | 1,291 | $ | 1,461 | $ | 81 | $ | 931 | $ | 1,239 | $ | 15 | ||||||||||||||
Consumer | $ | 4 | $ | 4 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
At December 31, 2014 and 2013, $4,708,000 and $3,961,000 of loans classified as TDRs were included in impaired loans with a total allocated allowance of $27,000 and $0, respectively. The recorded investment represents the loan balance reflected on the Consolidated Balance Sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan. | ||||||||||||||||||||||||||
The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 228 | $ | 8 | $ | 28 | $ | — | $ | 174 | $ | 4 | ||||||||||||||
Commercial Real Estate | 4,409 | 107 | 3,950 | 128 | 1,064 | 7 | ||||||||||||||||||||
Residential Real Estate | 650 | 2 | 754 | 4 | 275 | 13 | ||||||||||||||||||||
Consumer | 5 | 1 | — | — | — | — | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | — | — | — | — | 167 | — | ||||||||||||||||||||
Commercial Real Estate | 292 | 21 | 189 | 1 | 1,351 | — | ||||||||||||||||||||
Residential Real Estate | 313 | 4 | 66 | — | 532 | 10 | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 5,897 | $ | 143 | $ | 4,987 | $ | 133 | $ | 3,563 | $ | 34 | ||||||||||||||
Total consists of: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 228 | $ | 8 | $ | 28 | $ | — | $ | 341 | $ | 4 | ||||||||||||||
Commercial Real Estate | $ | 4,701 | $ | 128 | $ | 4,139 | $ | 129 | $ | 2,415 | $ | 7 | ||||||||||||||
Residential Real Estate | $ | 963 | $ | 6 | $ | 820 | $ | 4 | $ | 807 | $ | 23 | ||||||||||||||
Consumer | $ | 5 | $ | 1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Loan receivables on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing, as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Commercial and Industrial | $ | 5 | $ | 21 | ||||||||||||||||||||||
Commercial real estate | 2,678 | 2,599 | ||||||||||||||||||||||||
Residential real estate | 1,291 | 931 | ||||||||||||||||||||||||
Total non-accrual loans | 3,974 | 3,551 | ||||||||||||||||||||||||
Foreclosed assets held for resale | 55 | 480 | ||||||||||||||||||||||||
Loans past-due 90 days or more and still accruing | 10 | 318 | ||||||||||||||||||||||||
Total non-performing assets | $ | 4,039 | $ | 4,349 | ||||||||||||||||||||||
If interest on non-accrual loans had been accrued at original contract rates, interest income would have increased by $159,000 in 2014, $140,000 in 2013, and $96,000 in 2012. | ||||||||||||||||||||||||||
The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2014 and 2013: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Or Greater | ||||||||||||||||||||||||||
90 Days | Past Due | |||||||||||||||||||||||||
30-59 Days | 60-89 Days | or Greater | Total | Total | and Still | |||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 72 | $ | 28 | $ | 5 | $ | 105 | $ | 64,551 | $ | 64,656 | $ | — | ||||||||||||
Commercial Real Estate | 1,657 | 613 | 2,375 | 4,645 | 249,277 | 253,922 | — | |||||||||||||||||||
Residential Real Estate | 1,998 | 224 | 1,220 | 3,442 | 160,111 | 163,553 | 10 | |||||||||||||||||||
Consumer | 27 | 8 | — | 35 | 5,295 | 5,330 | — | |||||||||||||||||||
Total | $ | 3,754 | $ | 873 | $ | 3,600 | $ | 8,227 | $ | 479,234 | $ | 487,461 | $ | 10 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Or Greater | ||||||||||||||||||||||||||
90 Days | Past Due | |||||||||||||||||||||||||
30-59 Days | 60-89 Days | or Greater | Total | Total | and Still | |||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 7 | $ | 7 | $ | 40 | $ | 54 | $ | 60,768 | $ | 60,822 | $ | 19 | ||||||||||||
Commercial Real Estate | 875 | 653 | 1,367 | 2,895 | 222,510 | 225,405 | 180 | |||||||||||||||||||
Residential Real Estate | 1,751 | 248 | 926 | 2,925 | 151,750 | 154,675 | 119 | |||||||||||||||||||
Consumer | 30 | 12 | — | 42 | 5,574 | 5,616 | — | |||||||||||||||||||
Total | $ | 2,663 | $ | 920 | $ | 2,333 | $ | 5,916 | $ | 440,602 | $ | 446,518 | $ | 318 | ||||||||||||
At December 31, 2014 and 2013, there were no commitments to lend additional funds with respect to impaired loans. | ||||||||||||||||||||||||||
MORTGAGE_SERVICING_RIGHTS
MORTGAGE SERVICING RIGHTS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Transfers and Servicing [Abstract] | |||||||||||
Transfers and Servicing of Financial Assets [Text Block] | NOTE 5 — MORTGAGE SERVICING RIGHTS | ||||||||||
The mortgage loans sold and serviced for others are not included in the Consolidated Balance Sheets. The unpaid principal balances of mortgage loans serviced for others were $92,175,000 and $89,712,000 at December 31, 2014 and 2013, respectively. The balances of amortized capitalized mortgage servicing rights, included in other assets at December 31, 2014 and 2013, were $481,000 and $521,000, respectively. | |||||||||||
The following summarizes mortgage servicing rights capitalized and amortized for the years 2014, 2013 and 2012: | |||||||||||
(Dollars in thousands) | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, January 1 | $ | 521 | $ | 478 | $ | 421 | |||||
Servicing asset additions | 83 | 193 | 230 | ||||||||
Amortization | -123 | -150 | -173 | ||||||||
Balance, December 31 | $ | 481 | $ | 521 | $ | 478 | |||||
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PREMISES AND EQUIPMENT [Text Block] | NOTE 6 — PREMISES AND EQUIPMENT | |||||||
Premises and equipment at December 31, 2014 and 2013 is as follows: | ||||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Land | $ | 3,180 | $ | 3,180 | ||||
Buildings | 19,062 | 19,130 | ||||||
Leasehold improvements | 286 | 286 | ||||||
Equipment | 7,938 | 8,236 | ||||||
30,466 | 30,832 | |||||||
Less: Accumulated depreciation | 9,595 | 9,316 | ||||||
Total | $ | 20,871 | $ | 21,516 | ||||
Depreciation amounted to $1,279,000 for 2014, $1,151,000 for 2013 and $1,023,000 for 2012. | ||||||||
The banking subsidiary leases land and a bank building in Stroudsburg, Pennsylvania, under a lease expiring in 2017. Please refer to Note 13 - Commitments and Contingencies. Included in buildings above is the bank building held under a capital lease with a cost of $948,000 at December 31, 2014 and 2013, and accumulated amortization of $810,000 and $762,000 at December 31, 2014 and 2013, respectively. Amortization of the bank building held under the capital lease was $48,000 for the year ended December 31, 2014, $47,000 for the year ended December 31, 2013 and $48,000 for the year ended December 31, 2012. | ||||||||
CORE_DEPOSIT_INTANGIBLES
CORE DEPOSIT INTANGIBLES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Intangible Assets Disclosure [Text Block] | NOTE 7 — CORE DEPOSIT INTANGIBLES | |||||||||||||
Core deposit intangibles were comprised of the following at December 31, 2014 and 2013: | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Gross | Accumulated | |||||||||||||
Carrying Amount | Amortization | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Core deposit intangibles | $ | 2,218 | $ | 2,218 | $ | 2,096 | $ | 1,823 | ||||||
Amortization expense of the core deposit intangibles was $273,000, $273,000 and $283,000 for each the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Estimated amortization for the year ending December 31, 2015 is $122,000. | ||||||||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits [Abstract] | ||||||||
Deposit Liabilities Disclosures [Text Block] | NOTE 8 — DEPOSITS | |||||||
Major classifications of deposits at December 31, 2014 and 2013 consisted of: | ||||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Non-interest bearing demand | $ | 96,530 | $ | 85,156 | ||||
Interest bearing demand | 185,511 | 208,883 | ||||||
Savings | 177,865 | 164,138 | ||||||
Time certificates of deposits less than $100,000 | 128,419 | 148,155 | ||||||
Time certificates of deposits $100,000 or greater | 72,092 | 82,592 | ||||||
Other time | 1,145 | 1,151 | ||||||
Total deposits | $ | 661,562 | $ | 690,075 | ||||
The following is a schedule reflecting classification and remaining maturities of time deposits at December 31, 2014: | ||||||||
(Dollars in thousands) | ||||||||
Year Ending | ||||||||
2015 | $ | 91,231 | ||||||
2016 | 33,109 | |||||||
2017 | 24,389 | |||||||
2018 | 14,301 | |||||||
2019 | 32,153 | |||||||
Thereafter | 6,473 | |||||||
$ | 201,656 | |||||||
At December 31, 2014, the largest two depositors had aggregate deposits of approximately $83,023,000 as follows: | ||||||||
School district | $ | 47,123,000 | ||||||
School district | 35,900,000 | |||||||
Total | $ | 83,023,000 | ||||||
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Short-term Debt [Abstract] | ||||||||||||||||||||
Short-term Debt [Text Block] | NOTE 9 — SHORT-TERM BORROWINGS | |||||||||||||||||||
Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, Federal Discount Window, and Federal Home Loan Bank (“FHLB”) advances, which generally represent overnight or less than 30-day borrowings. | ||||||||||||||||||||
Short-term borrowings and weighted-average interest rates at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Average | Average | |||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||
Federal funds purchased | $ | — | 0.76 | % | $ | — | 0 | % | ||||||||||||
Securities sold under agreements to repurchase | 16,730 | 0.24 | % | 16,261 | 0.41 | % | ||||||||||||||
Federal Discount Window | — | 0.75 | % | — | 0 | % | ||||||||||||||
Federal Home Loan Bank | 56,393 | 0.3 | % | 51,972 | 0.25 | % | ||||||||||||||
$ | 73,123 | 0.28 | % | $ | 68,233 | 0.35 | % | |||||||||||||
At December 31, 2014, the maximum borrowing capacity of federal funds purchased and the Federal Discount Window was $10,000,000 and $4,193,000, respectively. Please refer to Note 10 - Long-Term Borrowings for the Corporation’s maximum borrowing capacity at FHLB. | ||||||||||||||||||||
Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) | ||||||||||||||||||||
The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. | ||||||||||||||||||||
As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability on the Corporation’s Consolidated Balance Sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is not offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Corporation does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. | ||||||||||||||||||||
The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). The collateral is held by a correspondent bank in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. | ||||||||||||||||||||
The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 2014 and 2013. | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Gross | Net Amounts | |||||||||||||||||||
Amounts | of Liabilities | |||||||||||||||||||
Offset | Presented | |||||||||||||||||||
Gross | in the | in the | ||||||||||||||||||
Amounts of | Consolidated | Consolidated | Cash | |||||||||||||||||
Recognized | Balance | Balance | Financial | Collateral | Net | |||||||||||||||
Liabilities | Sheet | Sheet | Instruments | Pledge | Amount | |||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Repurchase agreements (a) | $ | 16,730 | $ | — | $ | 16,730 | $ | -16,730 | $ | — | $ | — | ||||||||
31-Dec-13 | ||||||||||||||||||||
Repurchase agreements (a) | $ | 16,261 | $ | — | $ | 16,261 | $ | -16,261 | $ | — | $ | — | ||||||||
(a) As of December 31, 2014 and 2013, the fair value of securities pledged in connection with repurchase agreements was $26,094,000 and $26,575,000, respectively. | ||||||||||||||||||||
LONGTERM_BORROWINGS
LONG-TERM BORROWINGS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Long-term Debt [Text Block] | NOTE 10 — LONG-TERM BORROWINGS | |||||||
Long-term borrowings are comprised of advances from FHLB and a capital lease assumed as a result of the acquisition of Pocono Community Bank. The long-term capital lease balance was $339,000 and $429,000 as of December 31, 2014 and 2013. Long-term capital lease scheduled maturities as of December 31, 2014 are: $107,000 in 2015, $116,000 in 2016 and $116,000 in 2017. | ||||||||
Under terms of a blanket agreement, collateral for the FHLB loans is certain qualifying assets of the Corporation’s banking subsidiary. The principal assets are real estate mortgages and certain investment securities. | ||||||||
A schedule of long-term borrowings by maturity as of December 31, 2014 and 2013 follows: | ||||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Due 2014, 1.49% | $ | — | $ | 5,000 | ||||
Due 2016, 2.69% | 5,000 | 5,000 | ||||||
Due 2017, 1.07% | 10,000 | — | ||||||
Due 2018, 1.27% to 4.86% | 23,000 | 18,000 | ||||||
Due 2019, 1.79% to 2.11% | 20,000 | 5,000 | ||||||
Due 2020, 1.95% | 5,000 | 5,000 | ||||||
Due 2028, 5.14% | 2,000 | 2,000 | ||||||
$ | 65,000 | $ | 40,000 | |||||
The Corporation’s long-term borrowings consist of one adjustable rate convertible note and the remaining notes are at fixed interest rates. At December 31, 2014, the Corporation’s maximum borrowing capacity at FHLB, which takes into account FHLB long-term notes and FHLB short-term borrowings, was $260,500,000. | ||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Tax Disclosure [Text Block] | NOTE 11 — INCOME TAXES | ||||||||||||||||
The current and deferred components of the income tax expense consisted of the following: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Federal | |||||||||||||||||
Current | $ | 2,571 | $ | 2,485 | $ | 2,201 | |||||||||||
Deferred | 46 | -260 | -195 | ||||||||||||||
Income tax expense | $ | 2,617 | $ | 2,225 | $ | 2,006 | |||||||||||
The following is a reconciliation between the income tax expense and the amount of income taxes which would have been provided at the statutory rate of 34%: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||
Federal income tax at statutory rate | $ | 4,362 | 34 | % | $ | 4,249 | 34 | % | $ | 4,140 | 34 | % | |||||
Tax-exempt income | -1,162 | -9.1 | -1,563 | -12.5 | -1,738 | -14.3 | |||||||||||
Low-income housing credits | -230 | -1.8 | -266 | -2.1 | -294 | -2.4 | |||||||||||
Bank owned life insurance income | -231 | -1.8 | -234 | -1.9 | -246 | -2 | |||||||||||
Other | -122 | -0.9 | 39 | 0.3 | 144 | 1.2 | |||||||||||
Income tax expense and rate | $ | 2,617 | 20.4 | % | $ | 2,225 | 17.8 | % | $ | 2,006 | 16.5 | % | |||||
The components of the net deferred tax (liability) asset at December 31, 2014 and 2013 are as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||
Allowance for loan losses | $ | 2,173 | $ | 2,217 | |||||||||||||
Deferred compensation | 528 | 514 | |||||||||||||||
Contributions | 29 | 35 | |||||||||||||||
Non-accrual interest | 43 | 32 | |||||||||||||||
Leases | 282 | 342 | |||||||||||||||
Limited partnership investments | 66 | 60 | |||||||||||||||
Alternative minimum tax credits | 279 | 279 | |||||||||||||||
Tax credits from limited partnerships | 7 | 193 | |||||||||||||||
Impairment loss on investment securities | — | 50 | |||||||||||||||
Capital and net operating loss carry forwards | 143 | 89 | |||||||||||||||
Total | 3,550 | 3,811 | |||||||||||||||
Deferred Tax Liabilities: | |||||||||||||||||
Net unrealized investment securities gains | 2,316 | 71 | |||||||||||||||
Loan fees and costs | 180 | 157 | |||||||||||||||
Accumulated depreciation | 828 | 1,003 | |||||||||||||||
Accretion | 65 | 62 | |||||||||||||||
Mortgage servicing rights | 44 | 43 | |||||||||||||||
Intangibles | 328 | 395 | |||||||||||||||
Total | 3,761 | 1,731 | |||||||||||||||
Net Deferred Tax (Liability) Asset | $ | -211 | $ | 2,080 | |||||||||||||
A valuation allowance for deferred tax assets was recorded at December 31, 2014 and 2013 in the amount of $20,000. The valuation allowance relates to state net operating loss carryforwards for which realizability is uncertain. At December 31, 2014 and 2013, the Corporation had state net operating loss carryforwards of $459,000 and $341,000, respectively, which are available to offset future state taxable income, and expire at various dates through 2034. At December 31, 2014 and 2013, the Corporation had no valuation allowance established against its low-income housing tax credit carryforward or alternative minimum tax credit carryforward, as management believes the Corporation will generate sufficient future taxable income to fully utilize these deferred tax assets. The low-income housing credit carryforward will expire between 2017 and 2022, and the alternative minimum tax credit carryforward has no expiration. | |||||||||||||||||
In assessing the realizability of deferred tax assets, management 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 and tax planning strategies, management believes it is more likely than not that the Corporation will realize the benefits of these deferred tax assets, net of any valuation allowance at December 31, 2014. | |||||||||||||||||
The Corporation did not have any uncertain tax positions at December 31, 2014 and 2013. | |||||||||||||||||
The Corporation and its subsidiary file a consolidated federal income tax return. The Corporation is no longer subject to examination by Federal or State taxing authorities for the years before 2011. | |||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_AND_DEF
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 12 — EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS |
The Corporation maintains a 401k Plan which has a combined tax qualified savings feature and profit sharing feature for the benefit of its employees. Effective January 1, 2014, the plan became a Safe Harbor Plan. Under the savings feature, the Corporation makes safe harbor matching contributions of 100% of the first 3% of compensation an employee contributes to the Plan and 50% of the next 2% of compensation an employee contributes to the Plan. In 2014, the safe harbor matching contributions amounted to $280,000. In 2013 and 2012, under the previous savings feature, the Corporation matched 100% of the employee contributions up to 3% of compensation which amounted to $206,000 and $190,000 respectively. Under the profit sharing feature, contributions, at the discretion of the Board of Directors, are funded currently and amounted to $431,000, $558,000 and $488,000 in 2014, 2013 and 2012, respectively. | |
The Bank also has non-qualified deferred compensation agreements with three of its officers and four retired officers. These agreements are essentially unsecured promises by the Bank to make monthly payments to the officers over a twenty year period. Payments begin based upon specific criteria — generally, when the officer retires. To account for the cost of payments yet to be made in the future, the Bank recognizes an accrued liability in years prior to when payments begin based on the present value of those future payments. The Bank’s accrued liability for these deferred compensation agreements as of December 31, 2014 and 2013, was $1,494,000 and $1,454,000, respectively. The related expense for these agreements amounted to $137,000, $154,000 and $150,000 in 2014, 2013 and 2012, respectively. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | NOTE 13 — COMMITMENTS AND CONTINGENCIES | ||||
The Corporation’s banking subsidiary currently leases three branch banking facilities and one parcel of land under operating leases. Rent expense for the years ended December 31, 2014, 2013 and 2012 was $122,000, $142,000 and $301,000, respectively. Minimum rental payments required under these operating leases are: 2015 - $124,000, 2016 - $95,000, 2017 - $101,000, 2018 - $101,000, and 2019 - $77,000, and thereafter $2,648,000. | |||||
The banking subsidiary leases land and a bank building in Stroudsburg, Pennsylvania, under a lease expiring in 2017. This lease has an operating lease commitment and a capital lease component. Minimum future rental payments as of December 31, 2014 under this non-cancelable operating lease component for land are due as follows and are not included in the amounts of operating lease payments above, 2015 - $48,000, 2016 - $48,000 and 2017 - $43,000. | |||||
Minimum future lease payments under the capital lease component for the bank building as of December 31, 2014 for each of the next three years and in the aggregate are: | |||||
Year Ending December 31 | |||||
2015 | $ | 132,000 | |||
2016 | 132,000 | ||||
2017 | 120,000 | ||||
Total minimum lease payments | 384,000 | ||||
Less amounts representing interest | 45,000 | ||||
Present value of net minimum lease payments | $ | 339,000 | |||
In the normal course of business, there are various pending legal actions and proceedings that are not reflected in the consolidated financial statements. Management does not believe the outcome of these actions and proceedings will have a material effect on the consolidated financial position of the Corporation. | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions Disclosure [Text Block] | NOTE 14 — RELATED PARTY TRANSACTIONS | ||||||||
Certain directors and executive officers of First Keystone Corporation and its subsidiary and companies in which they are principal owners (i.e., at least 10% ownership) were indebted to the Corporation at December 31, 2014 and 2013. These loans were made on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. The loans do not involve more than the normal risk of collectability nor present other unfavorable features. | |||||||||
A summary of the activity on the related party loans, comprised of directors and executive officers and their related companies consists of the following: | |||||||||
(Dollars in thousands) | |||||||||
2014 | 2013 | ||||||||
Balance at January 1 | $ | 3,389 | $ | 3,620 | |||||
Additions | 2,700 | 1,348 | |||||||
Deductions | -2,431 | -1,579 | |||||||
Balance at December 31 | $ | 3,658 | $ | 3,389 | |||||
The above loans represent funds drawn and outstanding at the date of the consolidated financial statements. Commitments by the Bank to related parties on lines of credit and letters of credit for 2014 and 2013, presented an additional off-balance sheet risk to the extent of undisbursed funds in the amounts of $2,921,000 and $2,707,000 respectively, on the above loans. | |||||||||
Deposits from certain officers and directors and/or their related companies held by the Bank amounted to $9,899,000 and $7,567,000 at December 31, 2014 and 2013, respectively. | |||||||||
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Regulatory Matters [Abstract] | ||||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 15 — REGULATORY MATTERS | |||||||||||||||||||||
Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2014, $7,384,000 of retained earnings were available for dividends without prior regulatory approval, subject to the regulatory capital requirements discussed below. Regulations also limit the amount of loans and advances from the Bank to the Corporation to 10% of consolidated net assets. | ||||||||||||||||||||||
The Corporation is subject to various regulatory capital requirements administered by the 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believes, as of December 31, 2014 and 2013, that the Corporation and the Bank met all capital adequacy requirements to which they are subject. | ||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier I Capital (as defined in the regulations) to Risk Weighted Assets (as defined), and of Tier I Capital (as defined) to Average Assets (as defined). | ||||||||||||||||||||||
As of December 31, 2014, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as Well Capitalized under the regulatory framework for prompt corrective action. To be categorized as Well Capitalized, the Bank must maintain minimum Total Risk Based, Tier I Risk Based and Tier I Leverage Ratios as set forth in the table. There are no conditions or events since the notification that management believes have changed the Bank’s category. | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
To Be Well | ||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||
Total Capital | $ | 83,813 | 15.07 | % | $ | 44,490 | 8 | % | $ | 55,612 | 10 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 77,423 | 13.92 | % | $ | 22,245 | 4 | % | $ | 33,367 | 6 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 77,423 | 8.63 | % | $ | 35,897 | 4 | % | $ | 44,871 | 5 | % | ||||||||||
(to Average Assets) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
To Be Well | ||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||
Total Capital | $ | 80,577 | 14.36 | % | $ | 44,901 | 8 | % | $ | 56,126 | 10 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 74,058 | 13.19 | % | $ | 22,450 | 4 | % | $ | 33,676 | 6 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 74,058 | 8.56 | % | $ | 34,589 | 4 | % | $ | 43,236 | 5 | % | ||||||||||
(to Average Assets) | ||||||||||||||||||||||
The Corporation’s capital ratios are not materially different from those of the Bank. | ||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Risks and Uncertainties [Abstract] | ||||||||
Schedule Off Balance Sheet Credit Risks [Text Block] | NOTE 16 | — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | ||||||
The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation does not engage in trading activities with respect to any of its financial instruments with off-balance sheet risk. | ||||||||
The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. | ||||||||
The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | ||||||||
The Corporation may require collateral or other security to support financial instruments with off-balance sheet credit risk. | ||||||||
The contract or notional amounts at December 31, 2014 and 2013 were as follows: | ||||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 84,983 | $ | 73,700 | ||||
Financial standby letters of credit | $ | 471 | $ | 418 | ||||
Performance standby letters of credit | $ | 5,851 | $ | 4,449 | ||||
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 that may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner-occupied income-producing commercial properties, and residential real estate. | ||||||||
Standby letters of credit are conditional commitments issued by the Corporation to guarantee payment to a third party when a customer either fails to repay an obligation or fails to perform some non-financial obligation. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Corporation may hold collateral to support standby letters of credit for which collateral is deemed necessary. | ||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 17 — STOCKHOLDERS’ EQUITY |
The Corporation also offers to its shareholders a Dividend Reinvestment and Stock Purchase Plan. Participation in this plan by shareholders began in 2001. The plan provides First Keystone shareholders a convenient and economical way to purchase additional shares of common stock by reinvesting dividends. A plan participant can elect full dividend reinvestment or partial dividend reinvestment provided at least 25 shares are enrolled in the plan. In addition, plan participants may make additional voluntary cash purchases of common stock under the plan of not less than $100 per calendar quarter or more than $2,500 in any calendar quarter. | |
Shares transferred under this Dividend Reinvestment and Stock Purchase Plan were 46,047 in 2014, 39,074 in 2013, and 29,633 in 2012. Remaining shares authorized in the plan were 165,850 as of December 31, 2014. | |
Shares of First Keystone common stock are purchased for the plan either in the open market by an independent broker on behalf of the plan, directly from First Keystone as original issue shares, or through negotiated transactions. A combination of the previous methods could also occur. | |
STOCK_COMPENSATION_PLAN
STOCK COMPENSATION PLAN | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 18 — STOCK COMPENSATION PLAN | |||||||||||||||||||
On February 10, 1998, the Board of Directors adopted the 1998 Employee Stock Option Plan and initially reserved 100,000 shares of common stock for issuance under the plan for certain employees of the Bank. After adjustments for the effects of stock dividends, options exercised and options forfeited, there remains 4,323 exercisable options issued and outstanding. Under the Plan, options are granted at fair market value and the time period during which any option granted may be exercised may not commence before six months or continue beyond the expiration of ten years after the option is awarded. Upon exercise of the stock options, shares of the Corporation’s stock are issued from Treasury Stock. The Plan expired in 2008, and therefore, no stock options are available for issuance. | ||||||||||||||||||||
The fair value of stock options issued to employees is measured on the date of the grant and is recognized as compensation expense over the requisite service period. Expected volatility and dividend yield are based on historical stock prices and dividend amounts over past time periods equal in length to the life of the options. The risk-free interest rate is determined using the U.S. Treasury yield curve in effect at the date of the grant. The expected life of the options is calculated using the average term of the vesting period and the maximum term. | ||||||||||||||||||||
Information about stock options outstanding at December 31, 2014, 2013 and 2012, is summarized as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||
Average | Average | Average | ||||||||||||||||||
Stock | Exercise | Stock | Exercise | Stock | Exercise | |||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||||
Balance at January 1 | 4,823 | $ | 18.12 | 11,904 | $ | 19.9 | 20,037 | $ | 18.18 | |||||||||||
Exercised | — | — | -2,034 | 21.11 | -5,334 | 15.97 | ||||||||||||||
Forfeited/Expired | -500 | 16.75 | -5,047 | 21.11 | -2,799 | 15.08 | ||||||||||||||
Balance at December 31 | 4,323 | $ | 18.28 | 4,823 | $ | 18.12 | 11,904 | $ | 19.9 | |||||||||||
Exercisable at December 31 | 4,323 | $ | 18.28 | 4,823 | $ | 18.12 | 11,904 | $ | 19.9 | |||||||||||
Under the terms of the stock option incentive plan, the stock options including amendments as to price and terms were adjusted for the stock dividend in 2006. | ||||||||||||||||||||
Exercise prices of options outstanding as of December 31, 2014, ranged from $16.75 to $20.95 per share. The weighted average remaining contracted life is approximately 2.17 years. | ||||||||||||||||||||
The 4,323 options outstanding as December 31, 2014 have an intrinsic value, which is the amount that the value of the underlying stock exceeds the exercise price of the options, of $28,000. The total intrinsic value of the options exercised during the years ended December 31, 2014, 2013 and 2012 was $0, $10,000 and $41,000, respectively. Cash received from stock options exercised for the years ended December 31, 2014, 2013 and 2012 was $0, $43,000 and $85,000, respectively. | ||||||||||||||||||||
The following table summarizes information concerning the 1998 Employee Stock Option Plan at December 31, 2014. | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||
Average | Average | Average | ||||||||||||||||||
Number | Remaining | Exercise | Number | Exercise | ||||||||||||||||
Year | Outstanding* | Contractual Life | Price | Exercisable | Price | |||||||||||||||
2005 | 1,573 | 0.75 | $ | 20.95 | 1,573 | $ | 20.95 | |||||||||||||
2007 | 2,750 | 3 | 16.75 | 2,750 | 16.75 | |||||||||||||||
4,323 | $ | 18.28 | 4,323 | $ | 18.28 | |||||||||||||||
*As adjusted for stock dividend noted above. | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Disclosures [Text Block] | NOTE 19 — FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This guidance provides additional information on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes information on identifying circumstances when a transaction may not be considered orderly. | |||||||||||||||||
Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with the fair value measurement and disclosure guidance. | |||||||||||||||||
This guidance clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. | |||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own belief about the assumptions market participants would use in pricing the asset or liability based upon the best information available in the circumstances. Fair value measurement and disclosure guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |||||||||||||||||
Level 1 Inputs: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |||||||||||||||||
Level 2 Inputs: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; | |||||||||||||||||
Level 3 Input: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). | |||||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth as follows. | |||||||||||||||||
Financial Assets Measured at Fair Value on a Recurring Basis | |||||||||||||||||
At December 31, 2014 and 2013, investments measured at fair value on a recurring basis and the valuation methods used are as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 11,378 | $ | — | $ | 11,378 | |||||||||
Obligations of U.S. Government Corporations and Agencies: | |||||||||||||||||
Mortgaged-backed | — | 112,714 | — | 112,714 | |||||||||||||
Other | — | 26,510 | — | 26,510 | |||||||||||||
Obligations of state and political subdivisions | — | 157,223 | — | 157,223 | |||||||||||||
Corporate debt securities | — | 37,786 | — | 37,786 | |||||||||||||
Marketable equity securities | 2,055 | — | — | 2,055 | |||||||||||||
Total | $ | 2,055 | $ | 345,611 | $ | — | $ | 347,666 | |||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | |||||||||
Obligations of U.S. Government Corporations and Agencies: | |||||||||||||||||
Mortgaged-backed | — | 121,224 | — | 121,224 | |||||||||||||
Other | — | 32,285 | — | 32,285 | |||||||||||||
Obligations of state and political subdivisions | — | 148,389 | — | 148,389 | |||||||||||||
Corporate debt securities | — | 49,265 | — | 49,265 | |||||||||||||
Marketable equity securities | 2,535 | — | — | 2,535 | |||||||||||||
Total | $ | 2,535 | $ | 351,163 | $ | — | $ | 353,698 | |||||||||
The estimated fair values of equity securities classified as Level 1 are derived from quoted market prices in active markets; these assets consist mainly of stocks held in other banks. The estimated fair values of all debt securities classified as Level 2 are obtained from nationally-recognized third-party pricing agencies. The estimated fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and prepayment speeds. The significant inputs utilized in the cash flow models are based on market data obtained from sources independent of the Corporation (observable inputs), and are therefore classified as Level 2 within the fair value hierarchy. The Corporation does not have any Level 3 inputs for investments. There were no transfers between Level 1 and Level 2 during 2014 and 2013. | |||||||||||||||||
Financial Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
At December 31, 2014 and 2013, impaired loans measured at fair value on a non-recurring basis and the valuation methods used are as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2014 | |||||||||||||||||
Impaired loans: | |||||||||||||||||
Commercial and Industrial | $ | — | $ | — | $ | 3 | $ | 3 | |||||||||
Commercial Real Estate | — | — | 2,073 | 2,073 | |||||||||||||
Residential Real Estate | — | — | 856 | 856 | |||||||||||||
Total impaired loans | $ | — | $ | — | $ | 2,932 | $ | 2,932 | |||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2013 | |||||||||||||||||
Impaired loans: | |||||||||||||||||
Commercial and Industrial | $ | — | $ | — | $ | 21 | $ | 21 | |||||||||
Commercial Real Estate | — | — | 656 | 656 | |||||||||||||
Residential Real Estate | — | — | 621 | 621 | |||||||||||||
Total impaired loans | $ | — | $ | — | $ | 1,298 | $ | 1,298 | |||||||||
The Bank’s impaired loan valuation procedure for any loans greater than $250,000 requires an appraisal to be obtained and reviewed annually at year end. A quarterly collateral evaluation is performed which may include a site visit, property pictures and discussions with realtors and other similar business professionals to ascertain current values. For impaired loans less than $250,000 upon classification and annually at year end, the Bank completes a Certificate of Inspection, which includes an onsite inspection, insured values, tax assessed values, recent sales comparisons and a review of the previous evaluations. These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. The fair value consists of the impaired loan balances less the valuation allowance and/or charge-offs. There were no transfers between valuation levels in 2014 and 2013. | |||||||||||||||||
Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
At December 31, 2014 and 2013, foreclosed assets held for resale measured at fair value on a non-recurring basis and the valuation methods used are as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2014 | |||||||||||||||||
Other foreclosed assets held for resale: | |||||||||||||||||
Commercial Real Estate | $ | — | $ | — | $ | 55 | $ | 55 | |||||||||
Total foreclosed assets held for resale | $ | — | $ | — | $ | 55 | $ | 55 | |||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2013 | |||||||||||||||||
Other foreclosed assets held for resale: | |||||||||||||||||
Commercial Real Estate | $ | — | $ | — | $ | — | $ | — | |||||||||
Total foreclosed assets held for resale | $ | — | $ | — | $ | — | $ | — | |||||||||
The Bank’s foreclosed asset valuation procedure requires an appraisal, which considers the sales prices of similar properties in the proximate vicinity, to be completed periodically with the exception of those cases which the Bank has obtained a sales agreement. These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. There were no transfers between valuation levels in 2014 and 2013. | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine the fair value: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
Fair Value | Weighted | ||||||||||||||||
31-Dec-14 | Estimate | Valuation Technique | Unobservable Input | Range | Average | ||||||||||||
Impaired loans | $ | 2,932 | Appraisal of collateral1,3 | Appraisal adjustments2 | (0%) – (63%) | -37% | |||||||||||
Foreclosed assets held for sale | $ | 55 | Appraisal of collateral1,3 | Appraisal adjustments2 | (33%) – (46%) | -37% | |||||||||||
31-Dec-13 | |||||||||||||||||
Impaired loans | $ | 1,298 | Appraisal of collateral1,3 | Appraisal adjustments2 | (0%) – (43%) | -25% | |||||||||||
Foreclosed assets held for sale | $ | — | Appraisal of collateral1,3 | Appraisal adjustments2 | (0%) – (0%) | 0% | |||||||||||
1Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators. | |||||||||||||||||
2Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. | |||||||||||||||||
3Includes qualitative adjustments by management and estimated liquidation expenses. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value Measurements at December 31, 2014 | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||
Cash and due from banks | $ | 7,543 | $ | 7,543 | $ | — | $ | — | $ | 7,543 | |||||||
Interest-bearing deposits in other banks | 424 | — | 424 | — | 424 | ||||||||||||
Time deposits with other banks | 1,482 | — | 1,482 | — | 1,482 | ||||||||||||
Investment securities available-for-sale | 347,666 | 2,055 | 345,611 | — | 347,666 | ||||||||||||
Investment securities held-to-maturity | 1,056 | — | 1,060 | — | 1,060 | ||||||||||||
Restricted investment in bank stocks | 5,308 | — | 5,308 | — | 5,308 | ||||||||||||
Net loans | 481,071 | — | — | 485,468 | 485,468 | ||||||||||||
Mortgage servicing rights | 481 | — | — | 481 | 481 | ||||||||||||
Accrued interest receivable | 3,313 | — | 3,313 | — | 3,313 | ||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||
Deposits | 661,562 | — | 661,819 | — | 661,819 | ||||||||||||
Short-term borrowings | 73,123 | — | 73,123 | — | 73,123 | ||||||||||||
Long-term borrowings | 65,339 | — | 66,747 | — | 66,747 | ||||||||||||
Accrued interest payable | 399 | — | 399 | — | 399 | ||||||||||||
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | — | — | — | — | — | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Carrying | Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||
Cash and due from banks | $ | 8,257 | $ | 8,257 | $ | — | $ | — | $ | 8,257 | |||||||
Interest-bearing deposits in other banks | 22,366 | — | 22,366 | — | 22,366 | ||||||||||||
Investment securities available-for-sale | 353,698 | 2,535 | 351,163 | — | 353,698 | ||||||||||||
Investment securities held-to-maturity | 1,072 | — | 1,083 | — | 1,083 | ||||||||||||
Restricted investment in bank stocks | 4,761 | — | 4,761 | — | 4,761 | ||||||||||||
Net loans | 439,999 | — | — | 443,844 | 443,844 | ||||||||||||
Mortgage servicing rights | 521 | — | — | 521 | 521 | ||||||||||||
Accrued interest receivable | 3,616 | — | 3,616 | — | 3,616 | ||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||
Deposits | 690,075 | — | 690,771 | — | 690,771 | ||||||||||||
Short-term borrowings | 68,233 | — | 68,233 | — | 68,233 | ||||||||||||
Long-term borrowings | 40,429 | — | 41,288 | — | 41,288 | ||||||||||||
Accrued interest payable | 392 | — | 392 | — | 392 | ||||||||||||
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | — | — | — | — | — | ||||||||||||
The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Corporation’s financial instruments at December 31, 2014 and December 31, 2013: | |||||||||||||||||
Cash and Due From Banks, Interest-Bearing Deposits in Other Banks, Time Deposits with Other Banks, Restricted Investment in Bank Stocks, Accrued Interest Receivable and Accrued Interest Payable | |||||||||||||||||
The fair values are equal to the current carrying values. | |||||||||||||||||
Investment Securities | |||||||||||||||||
The fair value of investment securities are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1) or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying on the securities’ relationship to other benchmark quoted prices. | |||||||||||||||||
Loans | |||||||||||||||||
Fair values are estimated for categories of loans with similar financial characteristics. Loans were segregated by type such as Commercial and Industrial, Commercial and Residential Real Estate mortgages and Consumer. For estimation purposes, each loan category was further segmented into fixed and adjustable rate interest terms. | |||||||||||||||||
The fair value of each category of performing loans is calculated by discounting future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | |||||||||||||||||
Fair value for impaired loans is based on management’s estimate of future cash flows discounted using a rate commensurate with the risk associated with the estimated future cash flows or based on the value of the collateral if repayment is expected solely from collateral. The assumptions used by management are judgmentally determined using information regarding each specific borrower. | |||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||
The fair value of servicing rights is based on the present value of estimated future cash flows on pools of mortgages stratified by rate and maturity date. | |||||||||||||||||
Deposits | |||||||||||||||||
The fair value of deposits with no stated maturity, such as demand deposits, savings accounts and money market accounts, is equal to the amount payable on demand at December 31, 2014 and 2013. | |||||||||||||||||
Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar term borrowings, to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||
Short-Term and Long-Term Borrowings | |||||||||||||||||
The fair values of short-term borrowings are equal to the current carrying values, and long-term borrowings are estimated using discounted cash flow analyses based on the Corporation’s incremental borrowing rate for similar instruments. | |||||||||||||||||
Off-Balance Sheet Financial Instruments | |||||||||||||||||
The fair values for the Corporation’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. | |||||||||||||||||
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 20 — PARENT COMPANY FINANCIAL INFORMATION | ||||||||||
Condensed financial information for First Keystone Corporation (parent company only) was as follows: | |||||||||||
BALANCE SHEETS | |||||||||||
(Dollars in thousands) | December 31, | ||||||||||
2014 | 2013 | ||||||||||
ASSETS | |||||||||||
Cash | $ | 4,214 | $ | 2,408 | |||||||
Investment in banking subsidiary | 100,552 | 92,989 | |||||||||
Investment securities available-for-sale | 2,055 | 2,535 | |||||||||
Prepaid expenses and other assets | 49 | 223 | |||||||||
TOTAL ASSETS | $ | 106,870 | $ | 98,155 | |||||||
LIABILITIES | |||||||||||
Advances from banking subsidiary | $ | 218 | $ | 1,536 | |||||||
Accrued expenses and other liabilities | 381 | 268 | |||||||||
TOTAL LIABILITIES | 599 | 1,804 | |||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Common stock | 11,605 | 11,513 | |||||||||
Surplus | 32,674 | 31,626 | |||||||||
Retained earnings | 63,485 | 59,089 | |||||||||
Accumulated other comprehensive income (loss) | 4,330 | -54 | |||||||||
Treasury stock, at cost | -5,823 | -5,823 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 106,271 | 96,351 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 106,870 | $ | 98,155 | |||||||
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
INCOME | |||||||||||
Dividends from subsidiary bank | $ | 7,041 | $ | 10,416 | $ | 5,867 | |||||
Net investment securities gains (losses) | 187 | — | -97 | ||||||||
Other income | 76 | 64 | 67 | ||||||||
TOTAL INCOME | 7,304 | 10,480 | 5,837 | ||||||||
OPERATING EXPENSES | 136 | 162 | 151 | ||||||||
7,168 | 10,318 | 5,686 | |||||||||
INCOME TAX EXPENSE (BENEFIT) | 43 | -61 | -80 | ||||||||
7,125 | 10,379 | 5,766 | |||||||||
EQUITY IN (EXCESS OF) UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY | 3,086 | -106 | 4,404 | ||||||||
NET INCOME | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
COMPREHENSIVE INCOME (LOSS) | $ | 14,595 | $ | -2,309 | $ | 14,941 | |||||
STATEMENTS OF CASH FLOWS | |||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Gains) losses on sales of investment securities | -187 | — | 97 | ||||||||
Deferred income tax expense (benefit) | 41 | — | -31 | ||||||||
(Equity in) excess of undistributed earnings of banking subsidiary | -3,086 | 106 | -4,404 | ||||||||
Decrease (increase) in prepaid expenses and other assets | 327 | 325 | -303 | ||||||||
(Decrease) increase in advances from banking subsidiary | -1,318 | -8,355 | 372 | ||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 5,988 | 2,349 | 5,901 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of investment securities available-for-sale | — | — | -445 | ||||||||
Proceeds from sales of investment securities available-for-sale | 512 | — | 389 | ||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 512 | — | -56 | ||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of common stock | 1,121 | 981 | 693 | ||||||||
Proceeds from issuance of treasury stock | — | 43 | 85 | ||||||||
Dividends paid | -5,815 | -5,716 | -5,510 | ||||||||
NET CASH USED IN FINANCING ACTIVITIES | -4,694 | -4,692 | -4,732 | ||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,806 | -2,343 | 1,113 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING | 2,408 | 4,751 | 3,638 | ||||||||
CASH AND CASH EQUIVALENTS, ENDING | $ | 4,214 | $ | 2,408 | $ | 4,751 | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | ||||||||||
The consolidated financial statements include the accounts of First Keystone Corporation and its wholly-owned subsidiary, First Keystone Community Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||||
Nature of Operations [Policy Text Block] | Nature of Operations | ||||||||||
The Corporation, headquartered in Berwick, Pennsylvania, provides a full range of banking, trust and related services through its wholly-owned Bank subsidiary and is subject to competition from other financial institutions in connection with these services. The Bank serves a customer base which includes individuals, businesses, governments, and public and institutional customers primarily located in the Northeast Region of Pennsylvania. The Bank has 18 full service offices and 20 Automated Teller Machines (“ATM”) located in Columbia, Luzerne, Montour and Monroe counties. The Corporation and its subsidiary must also adhere to certain federal and state banking laws and regulations and are subject to periodic examinations made by various state and federal agencies. | |||||||||||
Segment Reporting, Policy [Policy Text Block] | Segment Reporting | ||||||||||
The Corporation’s subsidiary acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business, government, and public and institutional customers. Through its branch and ATM network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services through its Trust Department. | |||||||||||
Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, trust and mortgage banking operations of the Corporation. As such, discrete financial information is not available and segment reporting would not be meaningful. | |||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Significant Concentrations of Credit Risk | ||||||||||
The majority of the Corporation’s activities involve customers located primarily in Columbia, Luzerne, Montour and Monroe counties in Pennsylvania. The types of securities in which the Corporation invests are presented in Note 3 – Investment Securities. Credit risk as it relates to investment activities is moderated through the monitoring of ratings and geographic concentrations residing in the portfolio and the observance of minimum rating levels in the investment policy. Note 4 – Loans and Allowance for Loan Losses summarizes the types of lending in which the Corporation engages. The inherent risks associated with lending activities are mitigated by adhering to conservative underwriting practices and policies, as well as portfolio diversification and thorough monitoring of the loan portfolio. It is management’s opinion that the investment and loan portfolios were well balanced at December 31, 2014, to the extent necessary to avoid any significant concentrations of credit risk. | |||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||||
The preparation of these consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of these consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. | |||||||||||
Material estimates that are particularly susceptible to significant changes include the determination of other-than-temporary impairment on securities, the determination of the allowance for loan losses, and the potential impairment of goodwill and core deposit intangibles. | |||||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent Events | ||||||||||
The Corporation has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2014, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. | |||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||||
For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent since they are represented by cash accounts essentially on a demand basis and mature within one year. Federal funds are also included as a cash equivalent because they are generally purchased and sold for one-day periods. | |||||||||||
Time Deposits with Other Banks [Policy Text Block] | Time Deposits with Other Banks | ||||||||||
Time deposits with other banks consist of fully insured certificates of deposit in other banks with maturity dates between one and five years. | |||||||||||
Investment, Policy [Policy Text Block] | Investment Securities | ||||||||||
The Corporation classifies its investment securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Investment securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Corporation has the ability and positive intent to hold the securities to maturity. Investment securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. | |||||||||||
Debt securities not classified as Held-to-Maturity and equity securities are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive income (loss) in the Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders’ Equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity. | |||||||||||
The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income from investment securities. Realized gains and losses are included in net investment securities gains and losses. The cost of investment securities sold, redeemed or matured is based on the specific identification method. | |||||||||||
Restricted Investments [Policy Text Block] | Restricted Investment in Bank Stocks | ||||||||||
The Bank owns restricted stock investments in the Federal Home Loan Bank of Pittsburgh (“FHLB-Pittsburgh”) and Atlantic Central Bankers Bank (“ACBB”). These investments do not have a readily determinable fair value because their ownership is restricted and they can be sold back only to the FHLB-Pittsburgh, ACBB or to another member institution. Therefore, these investments are carried at cost. At December 31, 2014, the Corporation held $5,273,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. At December 31, 2013, the Corporation held $4,726,000 in stock of FHLB-Pittsburgh and $35,000 in stock of ACBB. | |||||||||||
Management evaluates the restricted investment in bank stocks for impairment on an annual basis. Management’s determination of whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the cost of these investments rather than by recognizing temporary declines in value. The following factors were evaluated to determine the ultimate recoverability of the cost of the Corporation’s restricted investment in bank stocks; (i) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted; (ii) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank; (iii) the impact of legislative and regulatory changes on the institutions and, accordingly, on the customer base of the correspondent bank; and (iv) the liquidity position of the correspondent bank. Based on the analysis of these factors, management determined that no impairment charge was necessary related to the restricted investment in bank stocks during 2014, 2013 or 2012. | |||||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans | ||||||||||
Net loans are stated at their outstanding unpaid principal balances, net of deferred fees or costs, unearned income and the allowance for loan losses. Interest on loans is recognized as income over the term of each loan, generally, by the accrual method. Loan origination fees and certain direct loan origination costs have been deferred with the net amount amortized using the straight line method or the interest method over the contractual life of the related loans as an interest yield adjustment. | |||||||||||
Residential mortgage loans held for resale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. | |||||||||||
The loans receivable portfolio is segmented into commercial, residential and consumer loans. Commercial loans consist of the following classes: Commercial and Industrial and Commercial Real Estate. | |||||||||||
Commercial and Industrial Lending | |||||||||||
The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually. | |||||||||||
Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum thresholds have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, business financial statements, collateral appraisals, etc. Commercial and industrial loans are typically secured by personal guarantees of the borrower. | |||||||||||
In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower's character and capacity to repay the loan, the adequacy of the borrower's capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower's past, present and future cash flows is also an important aspect of the Corporation's analysis of the borrower’s ability to repay. | |||||||||||
Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment. | |||||||||||
Commercial Real Estate Lending | |||||||||||
The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial real estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, commercial real estate loans have terms that do not exceed twenty years, have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically secured by personal guarantees of the borrowers. | |||||||||||
In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. The value of the property is determined by either independent appraisers or internal evaluations by Bank officers. | |||||||||||
Commercial real estate loans generally present a higher level of risk than residential real estate secured loans. Repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project and/or the effect of the general economic conditions on income producing properties. | |||||||||||
Residential Real Estate Lending (Including Home Equity) | |||||||||||
The Corporation’s residential real estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Corporation’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within or with customers from the Corporation’s market area. | |||||||||||
The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The Corporation offers fixed-rate mortgage loans with terms up to a maximum of twenty years for both permanent structures and those under construction. Generally, the majority of the Corporation’s residential mortgage loans originate with a loan-to-value of eighty percent or less, or those with primary mortgage insurance at ninety-five percent or less. Generally, home equity term loans are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of fifteen years. Generally, home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of twenty years. | |||||||||||
In underwriting one-to-four family residential mortgage loans, the Corporation evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability and willingness to repay is determined by the borrower’s employment history, current financial conditions and credit background. A majority of the properties securing residential real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires mortgage loan borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance, including flood insurance, if applicable. | |||||||||||
Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower level of risk than consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Corporation is in a subordinate position, especially to another lender, for the loan collateral. | |||||||||||
Consumer Lending | |||||||||||
The Corporation offers a variety of secured and unsecured consumer loans, including vehicle loans, stock loans and loans secured by financial institution deposits. These loans originate primarily within or with customers from the market area. | |||||||||||
Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition and credit background. | |||||||||||
Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. | |||||||||||
Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 15 days or more. Delinquent notices are generated automatically when a loan is 15 days past-due. Collection efforts continue on past-due loans that have not been brought current, when it is believed that some chance exists for improvement in the status of the loan. Past-due loans are continually evaluated with the determination for charge-off being made when no reasonable chance remains that the status of the loan can be improved. | |||||||||||
Commercial and Industrial and Commercial Real Estate loans are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a collateral deficiency exists. Because all or part of the contractual cash flows are not expected to be collected, the loan is considered to be impaired, and the Bank estimates the impairment based on its analysis of the cash flows or collateral estimated at fair value less cost to sell. | |||||||||||
Residential Real Estate and Consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Loans with collateral are charged down to the estimated fair value of the collateral less cost to sell. | |||||||||||
Loans in which the borrower is in bankruptcy are considered on a case by case basis and are either charged off or reaffirmed by the borrower. | |||||||||||
Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is 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 may currently be performing. A loan may remain on accrual status if it is well secured (or supported by a strong guarantee) and in the process of collection. When a loan is placed on non-accrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against interest income. Certain non-accrual loans may continue to perform; that is, payments are still being received. Generally, the payments are applied to principal. These loans remain under constant scrutiny, and if performance continues, interest income may be recorded on a cash basis based on management's judgment as to collectability of principal. | |||||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | 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 estimated by management to be adequate to absorb potential loan losses. Management’s periodic evaluation of the adequacy of the allowance for loan losses is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. | |||||||||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are individually classified as impaired. Select loans are not aggregated for collective impairment evaluation, as such; all loans are subject to individual impairment evaluation should the facts and circumstances pertinent to a particular loan suggest that such evaluation is necessary. Factors considered by management in determining impairment include payment status 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. If a loan is impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loans may be reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |||||||||||
The general component covers all other loans not identified as impaired and is based on historical losses and qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over a time period that management has determined represents the current credit cycle. Qualitative factors impacting each portfolio segment may include: delinquency trends, loan volume trends, Bank policy changes, management processes and oversight, economic trends (including change in consumer and business disposable incomes, unemployment and under-employment levels, and other conditions), concentrations by industry or product, internal and external loan review processes, collateral value and market conditions, and external factors including regulatory issues and competition. | |||||||||||
The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. 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. | |||||||||||
The Corporation is subject to periodic examination by its federal and state examiners, and may be required by such regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. | |||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Under current accounting standards, the allowance for loan losses related to impaired loans is based on discounted cash flows using the loan’s effective interest rate at inception or the fair value of the collateral for certain collateral dependent loans. | |||||||||||
The restructuring of a loan is considered a “troubled debt restructuring” if both the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the Bank has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, and (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan. A less common concession is the forgiveness of a portion of the principal. | |||||||||||
The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. | |||||||||||
Loans modified in a troubled debt restructuring are considered impaired and may or may not be placed on non-accrual status until the Bank determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrates a period of performance according to the restructured terms of six months. | |||||||||||
The Bank utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all Residential Real Estate, Consumer, Commercial and Industrial, and Commercial Real Estate borrowings. An asset quality rating is assigned using the guidance provided in the Bank’s loan policy. Primary responsibility for assigning the asset quality rating rests with the lender. The asset quality rating is validated periodically by both an internal and external loan review process. | |||||||||||
The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for the particular industry. Primary emphasis is placed on the financial condition and trends. The grade also reflects current economic and industry conditions; as well as other variables such as liquidity, cash flow, revenue/earnings trends, management strengths or weaknesses, quality of financial information, and credit history. | |||||||||||
The loan grading system for Residential Real Estate and Consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio, as well as other variables such as current economic conditions, and individual strengths and weaknesses. | |||||||||||
Risk grade characteristics are as follows: | |||||||||||
Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories) | |||||||||||
Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, leverage position, management expertise, and repayment history. | |||||||||||
At the low-risk end of the rating scale, a risk grade of 1 - Minimal Risk is the grade reserved for loans with exceptional credit fundamentals and virtually no risk of default or loss. Loan grades then progress through escalating ratings of 2 through 6 based upon risk. Risk Grade 2 - Modest Risk are loans with sufficient cash flows; Risk Grade 3 - Average Risk are loans with key balance sheet ratios slightly above the borrower’s peers; Risk Grade 4 - Acceptable Risk are loans with key balance sheet ratios usually near the borrower’s peers, but one or more ratios may be higher; and Risk Grade 5 – Marginally Acceptable are loans with strained cash flow, increasing leverage and/or weakening markets. Risk Grade 6 - Management Attention are loans with weaknesses resulting from declining performance trends and the borrower’s cash flows may be temporarily strained. Loans in this category are performing according to terms, but present some type of potential concern. | |||||||||||
Risk Grade 7 - SPECIAL MENTION (Non-Pass Category) | |||||||||||
Generally, these loans or assets are currently protected, but are “Potentially Weak”. They constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. | |||||||||||
Assets in this category are currently protected but have potential weakness which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. No loss of principal or interest is envisioned; however, they constitute an undue credit risk that may be minor but is unwarranted in light of the circumstances surrounding a specific asset. Risk is increasing beyond that at which the loan originally would have been granted. Historically, cash flows are inconsistent; financial trends show some deterioration. Liquidity and leverage are above industry averages. Financial information could be incomplete or inadequate. A Special Mention asset has potential weaknesses that deserve management’s close attention. | |||||||||||
Risk Grade 8 - SUBSTANDARD (Non-Pass Category) | |||||||||||
Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full liquidation of the debt. | |||||||||||
They are characterized by the distinct possibility that the Bank will sustain some loss if the aggregate amount of substandard assets is not fully covered by the liquidation of the collateral used as security. Substandard loans have a high probability of payment default; are inadequately protected by the current sound net worth, paying capacity of the borrower, or pledged collateral; and may have other well-defined weaknesses. Such assets require more intensive supervision by Bank Management. | |||||||||||
Risk Grade 9 - DOUBTFUL (Non-Pass Category) | |||||||||||
Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, collection or liquidation in full is deemed to be highly improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to strengthen the asset, its classification is deferred until, for example, a proposed merger, acquisition, liquidation procedure, capital injection, perfection of liens on additional collateral and/or refinancing plan is completed. Loans are graded doubtful if they contain weaknesses so serious that collection or liquidation in full is questionable. | |||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment | ||||||||||
Premises, improvements, and equipment are stated at cost less accumulated depreciation computed principally utilizing the straight-line method over the estimated useful lives of the assets. Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value may not be recovered. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resulting gain or loss is reflected in current operations. | |||||||||||
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Mortgage Servicing Rights | ||||||||||
The Corporation originates and sells real estate loans to investors in the secondary mortgage market. After the sale, the Corporation may retain the right to service these loans. When originated mortgage loans are sold and servicing is retained, a servicing asset is capitalized based on relative fair value at the date of sale. Servicing assets are amortized as an offset to other fees in proportion to, and over the period of, estimated net servicing income. The servicing asset is included in other assets in the Consolidated Balance Sheets. Gains or losses on sales of mortgage loans are recognized based on the differences between the selling price and the carrying value of the related mortgage loans sold. | |||||||||||
Life Settlement Contracts, Policy [Policy Text Block] | Bank Owned Life Insurance | ||||||||||
The cash surrender value of bank owned life insurance is carried as an asset, and changes in cash surrender value are recorded as non-interest income. | |||||||||||
The Bank entered into agreements to provide post-retirement benefits to two retired employees in the form of life insurance payable to the employee’s estate upon their death through endorsement split dollar life insurance arrangements. The Bank’s accrued liabilities for this benefit agreement as of December 31, 2014 and 2013 was $60,000 and $57,000, respectively. The related expense for this benefit agreement amounted to $3,000, $2,000 and $2,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block] | Investments in Low-Income Housing Partnerships | ||||||||||
The Bank is a limited partner in real estate ventures that own and operate affordable residential low-income housing apartment buildings for elderly and mentally challenged adult residents. The investments are accounted for under the effective yield method. Under the effective yield method, the Bank recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that the tax credits are allocated to the Bank. Under this method, the tax credits allocated, net of any amortization of the investment in the limited partnerships, are recognized in the consolidated statements of income as a component of income tax expense. The amount of tax credits allocated to the Bank were $230,000 in 2014, $267,000 in 2013, and $277,000 in 2012, and the amortization of the investments in the limited partnerships were $159,000, $191,000 and $183,000 in 2014, 2013 and 2012, respectively. | |||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Core Deposit Intangibles | ||||||||||
Goodwill resulted from the acquisition of the Pocono Community Bank in November 2007 and of certain fixed and operating assets acquired and deposit liabilities assumed of the branch of another financial institution in Danville, Pennsylvania, in January 2004. Such goodwill represents the excess cost of the acquired assets relative to the assets fair value at the dates of acquisition. During the first quarter of 2008, $152,000 of liabilities related to the Pocono acquisition were recorded as a purchase accounting adjustment resulting in an increase in the excess purchase price. The amount was comprised of the finalization of severance agreements and contract terminations related to the acquisition. In accordance with current accounting standards, goodwill is not amortized. Management performs an annual evaluation for impairment. Any impairment of goodwill results in a charge to income. The Corporation periodically assesses whether events or changes in circumstances indicate that the carrying amounts of goodwill and other intangible assets may be impaired. Goodwill is evaluated for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. The Corporation has evaluated the goodwill included in its consolidated balance sheet at September 30, 2014, and has determined there was no impairment as of that date. In addition, the Corporation did not identify any impairment in 2013 or 2012. No assurance can be given that future impairment tests will not result in a charge to earnings. | |||||||||||
Intangible assets are comprised of core deposit intangibles and premium discount (negative premium) on certificates of deposit acquired. The core deposit intangible is being amortized over the average life of the deposits acquired as determined by an independent third party. Premium discount (negative premium) on acquired certificates of deposit resulted from the valuation of certificate of deposit accounts by an independent third party. The book value of certificates of deposit acquired was greater than their fair value at the date of acquisition which resulted in a negative premium due to higher cost of the certificates of deposit compared to the cost of similar term financing. The core deposit intangible is subject to impairment testing whenever events or changes in circumstances indicate its carrying amount may not reflect its benefit. | |||||||||||
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block] | Foreclosed Assets Held for Resale | ||||||||||
Real estate properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell on the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed and if fair value less costs to sell declines subsequent to foreclosure, a valuation allowance is recorded through expense. Revenues derived from and costs to maintain the assets and subsequent gains and losses on sales are included in non-interest expense on the Consolidated Statements of Income | |||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||||
The Corporation accounts for income taxes in accordance with income tax accounting guidance FASB ASC Topic 740, Income Taxes. | |||||||||||
Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Corporation determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |||||||||||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||||
The Corporation accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. | |||||||||||
The Corporation recognizes interest and penalties on income taxes, if any, as a component of income tax expense. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share | ||||||||||
Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Corporation. Potential common shares that may be issued by the Corporation relate solely to outstanding stock options and are determined using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share. | |||||||||||
(In thousands, except earnings per share) | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 | ||||||||
Basic earnings per share | $ | 1.84 | $ | 1.87 | $ | 1.86 | |||||
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 | ||||||||
Common stock equivalents due to effect of stock options | 4 | 5 | 12 | ||||||||
Total weighted-average common shares and equivalents | 5,542 | 5,486 | 5,467 | ||||||||
Diluted earnings per share | $ | 1.84 | $ | 1.87 | $ | 1.86 | |||||
Trust Assets And Income [Policy Text Block] | Trust Assets and Revenues | ||||||||||
Property held by the Corporation in a fiduciary or agency capacity for its customers is not included in the accompanying consolidated financial statements since such items are not assets of the Corporation. Assets held in Trust were $111,513,000 and $102,665,000 at December 31, 2014 and 2013, respectively. Trust Department income is generally recognized on a cash basis and is not materially different than if it were reported on an accrual basis. | |||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards Updates (“ASU”) | ||||||||||
Except as disclosed below, there were no new accounting pronouncements affecting the Corporation during the year ended December 31, 2014 that were not already adopted by the Corporation in previous periods. | |||||||||||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323). The ASU provides guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. This ASU is effective for annual periods and interim reporting periods within those annual periods beginning after December 15, 2014, and will be applied retrospectively to all periods presented. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The ASU clarifies that a creditor is considered to have physical possession of residential real estate that is collateral for a residential mortgage loan when it obtains legal title to the collateral or a deed in lieu of foreclosure or similar legal agreement is completed. Consequently, the creditor should reclassify the loan to other real estate owned at that time. The new guidance is intended to resolve the diversity in current practice as to when a creditor should reclassify a loan to other real estate on the balance sheet. This ASU is effective for annual periods beginning after December 15, 2014, and interim periods within those annual periods after December 15, 2015. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue requirements in Revenue Recognition (Topic 605). This ASU requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The ASU is effective is effective for annual reporting periods beginning after December 31, 2016, including interim periods within the reporting period. Early application is not permitted. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The ASU addresses the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs, whereby creditors will reclassify these loans to “other receivables” upon foreclosure. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
In September 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860). The ASU provides guidance on accounting for repurchase-to-maturity transactions and certain linked repurchase financings. This guidance will result in accounting for both types of arrangements as secured borrowings on the balance sheet. Additionally, the ASU introduces new disclosures to (i) increase transparency about the types of collateral pledged in secured borrowing transactions and (ii) enable users to better understand transactions in which the transferor retains substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. This ASU is effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The Corporation is currently evaluating the impact of this ASU on its consolidated financial statements. | |||||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Costs | ||||||||||
It is the Corporation’s policy to expense advertising costs in the period in which they are incurred. | |||||||||||
Stockholders' Equity, Policy [Policy Text Block] | Transfer of Financial Assets | ||||||||||
Transfers of financial assets are accounted for as sales when control over 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. | |||||||||||
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | 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 in the consolidated balance sheet when they are funded. | |||||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications | ||||||||||
Certain amounts previously reported have been reclassified, when necessary, to conform with presentations used in the 2014 consolidated financial statements. Such reclassifications have no effect on the Corporation’s net income. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share. | ||||||||||
(In thousands, except earnings per share) | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 | ||||||||
Basic earnings per share | $ | 1.84 | $ | 1.87 | $ | 1.86 | |||||
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 | ||||||||
Common stock equivalents due to effect of stock options | 4 | 5 | 12 | ||||||||
Total weighted-average common shares and equivalents | 5,542 | 5,486 | 5,467 | ||||||||
Diluted earnings per share | $ | 1.84 | $ | 1.87 | $ | 1.86 | |||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | The amortized cost, related estimated fair value, and unrealized gains and losses for investment securities classified as “Available-For-Sale” or “Held-to-Maturity” were as follows at December 31, 2014 and 2013: | |||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2014: | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities | $ | 11,356 | $ | 24 | $ | -2 | $ | 11,378 | ||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 112,146 | 1,055 | -487 | 112,714 | ||||||||||||||||
Other | 26,246 | 270 | -6 | 26,510 | ||||||||||||||||
Obligations of state and political subdivisions | 151,565 | 6,127 | -469 | 157,223 | ||||||||||||||||
Corporate debt securities | 38,499 | 112 | -825 | 37,786 | ||||||||||||||||
Marketable equity securities | 1,208 | 867 | -20 | 2,055 | ||||||||||||||||
Total | $ | 341,020 | $ | 8,455 | $ | -1,809 | $ | 347,666 | ||||||||||||
Held-to-Maturity Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2014: | Cost | Gains | Losses | Value | ||||||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | $ | 56 | $ | 2 | $ | — | $ | 58 | ||||||||||||
Other | 1,000 | 2 | — | 1,002 | ||||||||||||||||
Total | $ | 1,056 | $ | 4 | $ | — | $ | 1,060 | ||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 122,661 | 598 | -2,035 | 121,224 | ||||||||||||||||
Other | 32,107 | 238 | -60 | 32,285 | ||||||||||||||||
Obligations of state and political subdivisions | 147,112 | 4,136 | -2,859 | 148,389 | ||||||||||||||||
Corporate debt securities | 50,266 | 416 | -1,417 | 49,265 | ||||||||||||||||
Marketable equity securities | 1,533 | 1,004 | -2 | 2,535 | ||||||||||||||||
Total | $ | 353,679 | $ | 6,392 | $ | -6,373 | $ | 353,698 | ||||||||||||
Held-to-Maturity Securities | ||||||||||||||||||||
(Dollars in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | $ | 72 | $ | 3 | $ | — | $ | 75 | ||||||||||||
Other | 1,000 | 8 | — | 1,008 | ||||||||||||||||
Total | $ | 1,072 | $ | 11 | $ | — | $ | 1,083 | ||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of securities, by contractual maturity, are shown below at December 31, 2014. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||
1 year or less | $ | 3,002 | $ | 3,037 | $ | 1,000 | $ | 1,002 | ||||||||||||
Over 1 year through 5 years | 25,650 | 26,130 | — | — | ||||||||||||||||
Over 5 years through 10 years | 103,919 | 103,826 | — | — | ||||||||||||||||
Over 10 years | 95,095 | 99,904 | — | — | ||||||||||||||||
Mortgage-backed securities | 112,146 | 112,714 | 56 | 58 | ||||||||||||||||
Marketable equity securities | 1,208 | 2,055 | — | — | ||||||||||||||||
$ | 341,020 | $ | 347,666 | $ | 1,056 | $ | 1,060 | |||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | In accordance with disclosures required by FASB ASC 320-10-50, Investments - Debt and Equity Securities, the summary below shows the gross unrealized losses and fair value of the Corporation’s investments, aggregated by investment category, that individual securities have been in a continuous unrealized loss position for less than 12 months or 12 months or more as of December 31, 2014 and 2013: | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Available-for-Sale: | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Treasury securities | $ | 6,030 | $ | -2 | $ | — | $ | — | $ | 6,030 | $ | -2 | ||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 19,823 | -230 | 17,099 | -257 | 36,922 | -487 | ||||||||||||||
Other | 7,154 | -6 | — | — | 7,154 | -6 | ||||||||||||||
Obligations of state and political subdivisions | 21,459 | -94 | 18,273 | -375 | 39,732 | -469 | ||||||||||||||
Corporate debt securities | 22,227 | -542 | 12,066 | -283 | 34,293 | -825 | ||||||||||||||
Marketable equity securities | 30 | -20 | — | — | 30 | -20 | ||||||||||||||
$ | 76,723 | $ | -894 | $ | 47,438 | $ | -915 | $ | 124,161 | $ | -1,809 | |||||||||
31-Dec-13 | ||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Available-for-Sale: | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Obligations of U.S. Government Corporations and Agencies: | ||||||||||||||||||||
Mortgage-backed | 98,760 | -2,035 | — | — | 98,760 | -2,035 | ||||||||||||||
Other | 4,956 | -60 | — | — | 4,956 | -60 | ||||||||||||||
Obligations of state and political subdivisions | 48,853 | -2,859 | — | — | 48,853 | -2,859 | ||||||||||||||
Corporate debt securities | 26,099 | -1,417 | — | — | 26,099 | -1,417 | ||||||||||||||
Marketable equity securities | 21 | -2 | — | — | 21 | -2 | ||||||||||||||
$ | 178,689 | $ | -6,373 | $ | — | $ | — | $ | 178,689 | $ | -6,373 | |||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table presents the classes of the loan portfolio summarized by risk rating as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
Commercial and | ||||||||||||||||||||||||||
(Dollars in thousands) | Industrial | Commercial Real Estate | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
6-Jan | Pass | $ | 64,459 | $ | 60,614 | $ | 237,404 | $ | 219,925 | |||||||||||||||||
7 | Special Mention | 47 | 65 | 11,008 | 1,717 | |||||||||||||||||||||
8 | Substandard | 21 | 21 | 5,472 | 3,782 | |||||||||||||||||||||
9 | Doubtful | — | — | — | — | |||||||||||||||||||||
Add (deduct): Unearned discount and | — | — | — | — | ||||||||||||||||||||||
Net deferred loan fees and costs | 129 | 122 | 38 | -19 | ||||||||||||||||||||||
Total loans | $ | 64,656 | $ | 60,822 | $ | 253,922 | $ | 225,405 | ||||||||||||||||||
Residential Real Estate | ||||||||||||||||||||||||||
Including Home Equity | Consumer Loans | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
6-Jan | Pass | $ | 161,122 | $ | 153,292 | $ | 5,248 | $ | 5,612 | |||||||||||||||||
7 | Special Mention | 520 | 180 | 21 | 2 | |||||||||||||||||||||
8 | Substandard | 1,640 | 931 | 9 | — | |||||||||||||||||||||
9 | Doubtful | — | — | — | — | |||||||||||||||||||||
Add (deduct): Unearned discount and | — | — | -40 | -87 | ||||||||||||||||||||||
Net deferred loan fees and costs | 271 | 272 | 92 | 89 | ||||||||||||||||||||||
Total loans | $ | 163,553 | $ | 154,675 | $ | 5,330 | $ | 5,616 | ||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
6-Jan | Pass | $ | 468,233 | $ | 439,443 | |||||||||||||||||||||
7 | Special Mention | 11,596 | 1,964 | |||||||||||||||||||||||
8 | Substandard | 7,142 | 4,734 | |||||||||||||||||||||||
9 | Doubtful | — | — | |||||||||||||||||||||||
Add (deduct): Unearned discount and | -40 | -87 | ||||||||||||||||||||||||
Net deferred loan fees and costs | 530 | 464 | ||||||||||||||||||||||||
Total loans | $ | 487,461 | $ | 446,518 | ||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The activity in the allowance for loan losses, by loan segment, is summarized below for the years indicated. | |||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | |||||||||||||||||||||||
and Industrial | Real Estate | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 776 | $ | 3,320 | $ | 1,565 | $ | 53 | $ | 805 | $ | 6,519 | ||||||||||||||
Charge-offs | -107 | -328 | -209 | -47 | — | -691 | ||||||||||||||||||||
Recoveries | 31 | 81 | 14 | 3 | — | 129 | ||||||||||||||||||||
Provision | -158 | 103 | 558 | 98 | -168 | 433 | ||||||||||||||||||||
Ending Balance | $ | 542 | $ | 3,176 | $ | 1,928 | $ | 107 | $ | 637 | $ | 6,390 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 38 | $ | 81 | $ | — | $ | — | $ | 119 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 542 | $ | 3,138 | $ | 1,847 | $ | 107 | $ | 637 | $ | 6,271 | ||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||
Ending Balance | $ | 64,656 | $ | 253,922 | $ | 163,553 | $ | 5,330 | $ | — | $ | 487,461 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 399 | $ | 5,350 | $ | 1,291 | $ | 4 | $ | — | $ | 7,044 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 64,257 | $ | 248,572 | $ | 162,262 | $ | 5,326 | $ | — | $ | 480,417 | ||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | |||||||||||||||||||||||
and Industrial | Real Estate | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 573 | $ | 2,837 | $ | 1,524 | $ | 80 | $ | 758 | $ | 5,772 | ||||||||||||||
Charge-offs | -17 | -290 | -348 | -39 | — | -694 | ||||||||||||||||||||
Recoveries | 24 | 31 | 5 | 9 | — | 69 | ||||||||||||||||||||
Provision | 196 | 742 | 384 | 3 | 47 | 1,372 | ||||||||||||||||||||
Ending Balance | $ | 776 | $ | 3,320 | $ | 1,565 | $ | 53 | $ | 805 | $ | 6,519 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 125 | $ | 15 | $ | — | $ | — | $ | 140 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 776 | $ | 3,195 | $ | 1,550 | $ | 53 | $ | 805 | $ | 6,379 | ||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||
Ending Balance | $ | 60,822 | $ | 225,405 | $ | 154,675 | $ | 5,616 | $ | — | $ | 446,518 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 21 | $ | 5,022 | $ | 931 | $ | — | $ | — | $ | 5,974 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 60,801 | $ | 220,383 | $ | 153,744 | $ | 5,616 | $ | — | $ | 440,544 | ||||||||||||||
(Dollars in thousands) | Commercial | Commercial | Residential | |||||||||||||||||||||||
and Industrial | Real Estate | Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||
2012 | ||||||||||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 489 | $ | 3,507 | $ | 1,228 | $ | 137 | $ | 568 | $ | 5,929 | ||||||||||||||
Charge-offs | -264 | -1,077 | -404 | -87 | — | -1,832 | ||||||||||||||||||||
Recoveries | 23 | 22 | 1 | 29 | — | 75 | ||||||||||||||||||||
Provision | 325 | 385 | 699 | 1 | 190 | 1,600 | ||||||||||||||||||||
Ending Balance | $ | 573 | $ | 2,837 | $ | 1,524 | $ | 80 | $ | 758 | $ | 5,772 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 111 | $ | 112 | $ | — | $ | — | $ | 223 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 573 | $ | 2,726 | $ | 1,412 | $ | 80 | $ | 758 | $ | 5,549 | ||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||
Ending Balance | $ | 54,187 | $ | 225,156 | $ | 147,167 | $ | 6,386 | $ | — | $ | 432,896 | ||||||||||||||
Ending balance: individually evaluated for impairment | $ | 248 | $ | 1,312 | $ | 803 | $ | — | $ | — | $ | 2,363 | ||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 53,939 | $ | 223,844 | $ | 146,364 | $ | 6,386 | $ | — | $ | 430,533 | ||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table presents the unpaid balance of TDRs at the dates indicated: | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Non-accrual TDRs | $ | 1,638 | $ | 1,538 | ||||||||||||||||||||||
Accruing TDRs | 3,070 | 2,423 | ||||||||||||||||||||||||
Total | $ | 4,708 | $ | 3,961 | ||||||||||||||||||||||
Troubled Debt Restructurings On Financing Receivables By Type [Table Text Block] | The following table presents information regarding the loan modifications categorized as TDRs during the years ended December 31, 2014 and December 31, 2013: | |||||||||||||||||||||||||
(Dollars in thousands, except number of contracts) | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Year-End | ||||||||||||||||||||||||
Number | Outstanding Recorded | Outstanding Recorded | Recorded | |||||||||||||||||||||||
of Contracts | Investment | Investment | Investment | |||||||||||||||||||||||
Commercial and Industrial | 3 | $ | 397 | $ | 397 | $ | 394 | |||||||||||||||||||
Commercial Real Estate | 10 | 1,389 | 1,476 | 1,066 | ||||||||||||||||||||||
Consumer | 1 | 7 | 7 | 4 | ||||||||||||||||||||||
Total | 14 | $ | 1,793 | $ | 1,880 | $ | 1,464 | |||||||||||||||||||
(Dollars in thousands, except number of contracts) | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Year-End | ||||||||||||||||||||||||
Number | Outstanding Recorded | Outstanding Recorded | Recorded | |||||||||||||||||||||||
of Contracts | Investment | Investment | Investment | |||||||||||||||||||||||
Commercial and Industrial | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Commercial Real Estate | 13 | 4,519 | 4,382 | 3,961 | ||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||
Total | 13 | $ | 4,519 | $ | 4,382 | $ | 3,961 | |||||||||||||||||||
Loan Modifications By Type [Table Text Block] | The following table provides detail regarding the types of loan modifications made for loans categorized as TDRs during the years ended December 31, 2014 and December 31, 2013 with the total number of each type of modification performed. | |||||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||||||
Rate | Term | Payment | Number | Rate | Term | Payment | Number | |||||||||||||||||||
Modification | Modification | Modification | Modified | Modification | Modification | Modification | Modified | |||||||||||||||||||
Commercial and Industrial | — | — | 3 | 3 | — | — | — | — | ||||||||||||||||||
Commercial Real Estate | 1 | 4 | 5 | 10 | 4 | 2 | 7 | 13 | ||||||||||||||||||
Consumer | — | — | 1 | 1 | — | — | — | — | ||||||||||||||||||
Total | 1 | 4 | 9 | 14 | 4 | 2 | 7 | 13 | ||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below for the periods ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Unpaid | Unpaid | |||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 399 | $ | 545 | $ | — | $ | 21 | $ | 167 | $ | — | ||||||||||||||
Commercial Real Estate | 4,828 | 5,278 | — | 4,810 | 5,503 | — | ||||||||||||||||||||
Residential Real Estate | 727 | 892 | — | 868 | 1,176 | — | ||||||||||||||||||||
Consumer | 4 | 4 | — | — | — | — | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | — | — | — | — | — | — | ||||||||||||||||||||
Commercial Real Estate | 522 | 522 | 38 | 212 | 212 | 125 | ||||||||||||||||||||
Residential Real Estate | 564 | 569 | 81 | 63 | 63 | 15 | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 7,044 | $ | 7,810 | $ | 119 | $ | 5,974 | $ | 7,121 | $ | 140 | ||||||||||||||
Total consists of: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 399 | $ | 545 | $ | — | $ | 21 | $ | 167 | $ | — | ||||||||||||||
Commercial Real Estate | $ | 5,350 | $ | 5,800 | $ | 38 | $ | 5,022 | $ | 5,715 | $ | 125 | ||||||||||||||
Residential Real Estate | $ | 1,291 | $ | 1,461 | $ | 81 | $ | 931 | $ | 1,239 | $ | 15 | ||||||||||||||
Consumer | $ | 4 | $ | 4 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 228 | $ | 8 | $ | 28 | $ | — | $ | 174 | $ | 4 | ||||||||||||||
Commercial Real Estate | 4,409 | 107 | 3,950 | 128 | 1,064 | 7 | ||||||||||||||||||||
Residential Real Estate | 650 | 2 | 754 | 4 | 275 | 13 | ||||||||||||||||||||
Consumer | 5 | 1 | — | — | — | — | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and Industrial | — | — | — | — | 167 | — | ||||||||||||||||||||
Commercial Real Estate | 292 | 21 | 189 | 1 | 1,351 | — | ||||||||||||||||||||
Residential Real Estate | 313 | 4 | 66 | — | 532 | 10 | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 5,897 | $ | 143 | $ | 4,987 | $ | 133 | $ | 3,563 | $ | 34 | ||||||||||||||
Total consists of: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 228 | $ | 8 | $ | 28 | $ | — | $ | 341 | $ | 4 | ||||||||||||||
Commercial Real Estate | $ | 4,701 | $ | 128 | $ | 4,139 | $ | 129 | $ | 2,415 | $ | 7 | ||||||||||||||
Residential Real Estate | $ | 963 | $ | 6 | $ | 820 | $ | 4 | $ | 807 | $ | 23 | ||||||||||||||
Consumer | $ | 5 | $ | 1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Schedule of Non-Performing Assets [Table Text Block] | Loan receivables on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing, as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Commercial and Industrial | $ | 5 | $ | 21 | ||||||||||||||||||||||
Commercial real estate | 2,678 | 2,599 | ||||||||||||||||||||||||
Residential real estate | 1,291 | 931 | ||||||||||||||||||||||||
Total non-accrual loans | 3,974 | 3,551 | ||||||||||||||||||||||||
Foreclosed assets held for resale | 55 | 480 | ||||||||||||||||||||||||
Loans past-due 90 days or more and still accruing | 10 | 318 | ||||||||||||||||||||||||
Total non-performing assets | $ | 4,039 | $ | 4,349 | ||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2014 and 2013: | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Or Greater | ||||||||||||||||||||||||||
90 Days | Past Due | |||||||||||||||||||||||||
30-59 Days | 60-89 Days | or Greater | Total | Total | and Still | |||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 72 | $ | 28 | $ | 5 | $ | 105 | $ | 64,551 | $ | 64,656 | $ | — | ||||||||||||
Commercial Real Estate | 1,657 | 613 | 2,375 | 4,645 | 249,277 | 253,922 | — | |||||||||||||||||||
Residential Real Estate | 1,998 | 224 | 1,220 | 3,442 | 160,111 | 163,553 | 10 | |||||||||||||||||||
Consumer | 27 | 8 | — | 35 | 5,295 | 5,330 | — | |||||||||||||||||||
Total | $ | 3,754 | $ | 873 | $ | 3,600 | $ | 8,227 | $ | 479,234 | $ | 487,461 | $ | 10 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
90 Days | ||||||||||||||||||||||||||
Or Greater | ||||||||||||||||||||||||||
90 Days | Past Due | |||||||||||||||||||||||||
30-59 Days | 60-89 Days | or Greater | Total | Total | and Still | |||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Current | Loans | Accruing | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||||||||
Commercial and Industrial | $ | 7 | $ | 7 | $ | 40 | $ | 54 | $ | 60,768 | $ | 60,822 | $ | 19 | ||||||||||||
Commercial Real Estate | 875 | 653 | 1,367 | 2,895 | 222,510 | 225,405 | 180 | |||||||||||||||||||
Residential Real Estate | 1,751 | 248 | 926 | 2,925 | 151,750 | 154,675 | 119 | |||||||||||||||||||
Consumer | 30 | 12 | — | 42 | 5,574 | 5,616 | — | |||||||||||||||||||
Total | $ | 2,663 | $ | 920 | $ | 2,333 | $ | 5,916 | $ | 440,602 | $ | 446,518 | $ | 318 | ||||||||||||
MORTGAGE_SERVICING_RIGHTS_Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Transfers and Servicing [Abstract] | |||||||||||
Servicing Asset at Amortized Cost [Table Text Block] | The following summarizes mortgage servicing rights capitalized and amortized for the years 2014, 2013 and 2012: | ||||||||||
(Dollars in thousands) | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, January 1 | $ | 521 | $ | 478 | $ | 421 | |||||
Servicing asset additions | 83 | 193 | 230 | ||||||||
Amortization | -123 | -150 | -173 | ||||||||
Balance, December 31 | $ | 481 | $ | 521 | $ | 478 | |||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Premises and equipment at December 31, 2014 and 2013 is as follows: | |||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Land | $ | 3,180 | $ | 3,180 | ||||
Buildings | 19,062 | 19,130 | ||||||
Leasehold improvements | 286 | 286 | ||||||
Equipment | 7,938 | 8,236 | ||||||
30,466 | 30,832 | |||||||
Less: Accumulated depreciation | 9,595 | 9,316 | ||||||
Total | $ | 20,871 | $ | 21,516 | ||||
CORE_DEPOSIT_INTANGIBLES_Table
CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Core deposit intangibles were comprised of the following at December 31, 2014 and 2013: | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Gross | Accumulated | |||||||||||||
Carrying Amount | Amortization | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Core deposit intangibles | $ | 2,218 | $ | 2,218 | $ | 2,096 | $ | 1,823 | ||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits [Abstract] | ||||||||
Schedule Of Deposit Liabilities [Table Text Block] | Major classifications of deposits at December 31, 2014 and 2013 consisted of: | |||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Non-interest bearing demand | $ | 96,530 | $ | 85,156 | ||||
Interest bearing demand | 185,511 | 208,883 | ||||||
Savings | 177,865 | 164,138 | ||||||
Time certificates of deposits less than $100,000 | 128,419 | 148,155 | ||||||
Time certificates of deposits $100,000 or greater | 72,092 | 82,592 | ||||||
Other time | 1,145 | 1,151 | ||||||
Total deposits | $ | 661,562 | $ | 690,075 | ||||
Schedule Of Maturities Of Time Deposits [Table Text Block] | The following is a schedule reflecting classification and remaining maturities of time deposits at December 31, 2014: | |||||||
(Dollars in thousands) | ||||||||
Year Ending | ||||||||
2015 | $ | 91,231 | ||||||
2016 | 33,109 | |||||||
2017 | 24,389 | |||||||
2018 | 14,301 | |||||||
2019 | 32,153 | |||||||
Thereafter | 6,473 | |||||||
$ | 201,656 | |||||||
Schedule Of Discrete Deposits [Table Text Block] | At December 31, 2014, the largest two depositors had aggregate deposits of approximately $83,023,000 as follows: | |||||||
School district | $ | 47,123,000 | ||||||
School district | 35,900,000 | |||||||
Total | $ | 83,023,000 | ||||||
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Short-term Debt [Abstract] | ||||||||||||||||||||
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings and weighted-average interest rates at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Average | Average | |||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||
Federal funds purchased | $ | — | 0.76 | % | $ | — | 0 | % | ||||||||||||
Securities sold under agreements to repurchase | 16,730 | 0.24 | % | 16,261 | 0.41 | % | ||||||||||||||
Federal Discount Window | — | 0.75 | % | — | 0 | % | ||||||||||||||
Federal Home Loan Bank | 56,393 | 0.3 | % | 51,972 | 0.25 | % | ||||||||||||||
$ | 73,123 | 0.28 | % | $ | 68,233 | 0.35 | % | |||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | The following table presents the short-term borrowings subject to an enforceable master netting arrangement or repurchase agreements as of December 31, 2014 and 2013. | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Gross | Net Amounts | |||||||||||||||||||
Amounts | of Liabilities | |||||||||||||||||||
Offset | Presented | |||||||||||||||||||
Gross | in the | in the | ||||||||||||||||||
Amounts of | Consolidated | Consolidated | Cash | |||||||||||||||||
Recognized | Balance | Balance | Financial | Collateral | Net | |||||||||||||||
Liabilities | Sheet | Sheet | Instruments | Pledge | Amount | |||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Repurchase agreements (a) | $ | 16,730 | $ | — | $ | 16,730 | $ | -16,730 | $ | — | $ | — | ||||||||
31-Dec-13 | ||||||||||||||||||||
Repurchase agreements (a) | $ | 16,261 | $ | — | $ | 16,261 | $ | -16,261 | $ | — | $ | — | ||||||||
(a) As of December 31, 2014 and 2013, the fair value of securities pledged in connection with repurchase agreements was $26,094,000 and $26,575,000, respectively. | ||||||||||||||||||||
LONGTERM_BORROWINGS_Tables
LONG-TERM BORROWINGS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | A schedule of long-term borrowings by maturity as of December 31, 2014 and 2013 follows: | |||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Due 2014, 1.49% | $ | — | $ | 5,000 | ||||
Due 2016, 2.69% | 5,000 | 5,000 | ||||||
Due 2017, 1.07% | 10,000 | — | ||||||
Due 2018, 1.27% to 4.86% | 23,000 | 18,000 | ||||||
Due 2019, 1.79% to 2.11% | 20,000 | 5,000 | ||||||
Due 2020, 1.95% | 5,000 | 5,000 | ||||||
Due 2028, 5.14% | 2,000 | 2,000 | ||||||
$ | 65,000 | $ | 40,000 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The current and deferred components of the income tax expense consisted of the following: | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Federal | |||||||||||||||||
Current | $ | 2,571 | $ | 2,485 | $ | 2,201 | |||||||||||
Deferred | 46 | -260 | -195 | ||||||||||||||
Income tax expense | $ | 2,617 | $ | 2,225 | $ | 2,006 | |||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation between the income tax expense and the amount of income taxes which would have been provided at the statutory rate of 34%: | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||
Federal income tax at statutory rate | $ | 4,362 | 34 | % | $ | 4,249 | 34 | % | $ | 4,140 | 34 | % | |||||
Tax-exempt income | -1,162 | -9.1 | -1,563 | -12.5 | -1,738 | -14.3 | |||||||||||
Low-income housing credits | -230 | -1.8 | -266 | -2.1 | -294 | -2.4 | |||||||||||
Bank owned life insurance income | -231 | -1.8 | -234 | -1.9 | -246 | -2 | |||||||||||
Other | -122 | -0.9 | 39 | 0.3 | 144 | 1.2 | |||||||||||
Income tax expense and rate | $ | 2,617 | 20.4 | % | $ | 2,225 | 17.8 | % | $ | 2,006 | 16.5 | % | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the net deferred tax (liability) asset at December 31, 2014 and 2013 are as follows: | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||
Allowance for loan losses | $ | 2,173 | $ | 2,217 | |||||||||||||
Deferred compensation | 528 | 514 | |||||||||||||||
Contributions | 29 | 35 | |||||||||||||||
Non-accrual interest | 43 | 32 | |||||||||||||||
Leases | 282 | 342 | |||||||||||||||
Limited partnership investments | 66 | 60 | |||||||||||||||
Alternative minimum tax credits | 279 | 279 | |||||||||||||||
Tax credits from limited partnerships | 7 | 193 | |||||||||||||||
Impairment loss on investment securities | — | 50 | |||||||||||||||
Capital and net operating loss carry forwards | 143 | 89 | |||||||||||||||
Total | 3,550 | 3,811 | |||||||||||||||
Deferred Tax Liabilities: | |||||||||||||||||
Net unrealized investment securities gains | 2,316 | 71 | |||||||||||||||
Loan fees and costs | 180 | 157 | |||||||||||||||
Accumulated depreciation | 828 | 1,003 | |||||||||||||||
Accretion | 65 | 62 | |||||||||||||||
Mortgage servicing rights | 44 | 43 | |||||||||||||||
Intangibles | 328 | 395 | |||||||||||||||
Total | 3,761 | 1,731 | |||||||||||||||
Net Deferred Tax (Liability) Asset | $ | -211 | $ | 2,080 | |||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Minimum future lease payments under the capital lease component for the bank building as of December 31, 2014 for each of the next three years and in the aggregate are: | ||||
Year Ending December 31 | |||||
2015 | $ | 132,000 | |||
2016 | 132,000 | ||||
2017 | 120,000 | ||||
Total minimum lease payments | 384,000 | ||||
Less amounts representing interest | 45,000 | ||||
Present value of net minimum lease payments | $ | 339,000 | |||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Schedule of Related Party Transactions [Table Text Block] | A summary of the activity on the related party loans, comprised of directors and executive officers and their related companies consists of the following: | ||||||||
(Dollars in thousands) | |||||||||
2014 | 2013 | ||||||||
Balance at January 1 | $ | 3,389 | $ | 3,620 | |||||
Additions | 2,700 | 1,348 | |||||||
Deductions | -2,431 | -1,579 | |||||||
Balance at December 31 | $ | 3,658 | $ | 3,389 | |||||
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Regulatory Matters [Abstract] | ||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | As of December 31, 2014, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as Well Capitalized under the regulatory framework for prompt corrective action. To be categorized as Well Capitalized, the Bank must maintain minimum Total Risk Based, Tier I Risk Based and Tier I Leverage Ratios as set forth in the table. There are no conditions or events since the notification that management believes have changed the Bank’s category. | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
To Be Well | ||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||
Total Capital | $ | 83,813 | 15.07 | % | $ | 44,490 | 8 | % | $ | 55,612 | 10 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 77,423 | 13.92 | % | $ | 22,245 | 4 | % | $ | 33,367 | 6 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 77,423 | 8.63 | % | $ | 35,897 | 4 | % | $ | 44,871 | 5 | % | ||||||||||
(to Average Assets) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
To Be Well | ||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||
For Capital | Prompt Corrective | |||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||
Total Capital | $ | 80,577 | 14.36 | % | $ | 44,901 | 8 | % | $ | 56,126 | 10 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 74,058 | 13.19 | % | $ | 22,450 | 4 | % | $ | 33,676 | 6 | % | ||||||||||
(to Risk Weighted Assets) | ||||||||||||||||||||||
Tier I Capital | $ | 74,058 | 8.56 | % | $ | 34,589 | 4 | % | $ | 43,236 | 5 | % | ||||||||||
(to Average Assets) | ||||||||||||||||||||||
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Risks and Uncertainties [Abstract] | ||||||||
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | The contract or notional amounts at December 31, 2014 and 2013 were as follows: | |||||||
(Dollars in thousands) | ||||||||
2014 | 2013 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 84,983 | $ | 73,700 | ||||
Financial standby letters of credit | $ | 471 | $ | 418 | ||||
Performance standby letters of credit | $ | 5,851 | $ | 4,449 | ||||
STOCK_COMPENSATION_PLAN_Tables
STOCK COMPENSATION PLAN (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Information about stock options outstanding at December 31, 2014, 2013 and 2012, is summarized as follows: | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||
Average | Average | Average | ||||||||||||||||||
Stock | Exercise | Stock | Exercise | Stock | Exercise | |||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||||
Balance at January 1 | 4,823 | $ | 18.12 | 11,904 | $ | 19.9 | 20,037 | $ | 18.18 | |||||||||||
Exercised | — | — | -2,034 | 21.11 | -5,334 | 15.97 | ||||||||||||||
Forfeited/Expired | -500 | 16.75 | -5,047 | 21.11 | -2,799 | 15.08 | ||||||||||||||
Balance at December 31 | 4,323 | $ | 18.28 | 4,823 | $ | 18.12 | 11,904 | $ | 19.9 | |||||||||||
Exercisable at December 31 | 4,323 | $ | 18.28 | 4,823 | $ | 18.12 | 11,904 | $ | 19.9 | |||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information concerning the 1998 Employee Stock Option Plan at December 31, 2014. | |||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||
Average | Average | Average | ||||||||||||||||||
Number | Remaining | Exercise | Number | Exercise | ||||||||||||||||
Year | Outstanding* | Contractual Life | Price | Exercisable | Price | |||||||||||||||
2005 | 1,573 | 0.75 | $ | 20.95 | 1,573 | $ | 20.95 | |||||||||||||
2007 | 2,750 | 3 | 16.75 | 2,750 | 16.75 | |||||||||||||||
4,323 | $ | 18.28 | 4,323 | $ | 18.28 | |||||||||||||||
*As adjusted for stock dividend noted above. | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | At December 31, 2014 and 2013, investments measured at fair value on a recurring basis and the valuation methods used are as follows: | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | 11,378 | $ | — | $ | 11,378 | |||||||||
Obligations of U.S. Government Corporations and Agencies: | |||||||||||||||||
Mortgaged-backed | — | 112,714 | — | 112,714 | |||||||||||||
Other | — | 26,510 | — | 26,510 | |||||||||||||
Obligations of state and political subdivisions | — | 157,223 | — | 157,223 | |||||||||||||
Corporate debt securities | — | 37,786 | — | 37,786 | |||||||||||||
Marketable equity securities | 2,055 | — | — | 2,055 | |||||||||||||
Total | $ | 2,055 | $ | 345,611 | $ | — | $ | 347,666 | |||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Available-for-Sale Securities: | |||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | |||||||||
Obligations of U.S. Government Corporations and Agencies: | |||||||||||||||||
Mortgaged-backed | — | 121,224 | — | 121,224 | |||||||||||||
Other | — | 32,285 | — | 32,285 | |||||||||||||
Obligations of state and political subdivisions | — | 148,389 | — | 148,389 | |||||||||||||
Corporate debt securities | — | 49,265 | — | 49,265 | |||||||||||||
Marketable equity securities | 2,535 | — | — | 2,535 | |||||||||||||
Total | $ | 2,535 | $ | 351,163 | $ | — | $ | 353,698 | |||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | Financial Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||
At December 31, 2014 and 2013, impaired loans measured at fair value on a non-recurring basis and the valuation methods used are as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2014 | |||||||||||||||||
Impaired loans: | |||||||||||||||||
Commercial and Industrial | $ | — | $ | — | $ | 3 | $ | 3 | |||||||||
Commercial Real Estate | — | — | 2,073 | 2,073 | |||||||||||||
Residential Real Estate | — | — | 856 | 856 | |||||||||||||
Total impaired loans | $ | — | $ | — | $ | 2,932 | $ | 2,932 | |||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2013 | |||||||||||||||||
Impaired loans: | |||||||||||||||||
Commercial and Industrial | $ | — | $ | — | $ | 21 | $ | 21 | |||||||||
Commercial Real Estate | — | — | 656 | 656 | |||||||||||||
Residential Real Estate | — | — | 621 | 621 | |||||||||||||
Total impaired loans | $ | — | $ | — | $ | 1,298 | $ | 1,298 | |||||||||
At December 31, 2014 and 2013, foreclosed assets held for resale measured at fair value on a non-recurring basis and the valuation methods used are as follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2014 | |||||||||||||||||
Other foreclosed assets held for resale: | |||||||||||||||||
Commercial Real Estate | $ | — | $ | — | $ | 55 | $ | 55 | |||||||||
Total foreclosed assets held for resale | $ | — | $ | — | $ | 55 | $ | 55 | |||||||||
(Dollars in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets at December 31, 2013 | |||||||||||||||||
Other foreclosed assets held for resale: | |||||||||||||||||
Commercial Real Estate | $ | — | $ | — | $ | — | $ | — | |||||||||
Total foreclosed assets held for resale | $ | — | $ | — | $ | — | $ | — | |||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Bank has utilized Level 3 inputs to determine the fair value: | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
Fair Value | Weighted | ||||||||||||||||
31-Dec-14 | Estimate | Valuation Technique | Unobservable Input | Range | Average | ||||||||||||
Impaired loans | $ | 2,932 | Appraisal of collateral1,3 | Appraisal adjustments2 | (0%) – (63%) | -37% | |||||||||||
Foreclosed assets held for sale | $ | 55 | Appraisal of collateral1,3 | Appraisal adjustments2 | (33%) – (46%) | -37% | |||||||||||
31-Dec-13 | |||||||||||||||||
Impaired loans | $ | 1,298 | Appraisal of collateral1,3 | Appraisal adjustments2 | (0%) – (43%) | -25% | |||||||||||
Foreclosed assets held for sale | $ | — | Appraisal of collateral1,3 | Appraisal adjustments2 | (0%) – (0%) | 0% | |||||||||||
1Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators. | |||||||||||||||||
2Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. | |||||||||||||||||
3Includes qualitative adjustments by management and estimated liquidation expenses. | |||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value of Financial Instruments | ||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value Measurements at December 31, 2014 | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||
Cash and due from banks | $ | 7,543 | $ | 7,543 | $ | — | $ | — | $ | 7,543 | |||||||
Interest-bearing deposits in other banks | 424 | — | 424 | — | 424 | ||||||||||||
Time deposits with other banks | 1,482 | — | 1,482 | — | 1,482 | ||||||||||||
Investment securities available-for-sale | 347,666 | 2,055 | 345,611 | — | 347,666 | ||||||||||||
Investment securities held-to-maturity | 1,056 | — | 1,060 | — | 1,060 | ||||||||||||
Restricted investment in bank stocks | 5,308 | — | 5,308 | — | 5,308 | ||||||||||||
Net loans | 481,071 | — | — | 485,468 | 485,468 | ||||||||||||
Mortgage servicing rights | 481 | — | — | 481 | 481 | ||||||||||||
Accrued interest receivable | 3,313 | — | 3,313 | — | 3,313 | ||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||
Deposits | 661,562 | — | 661,819 | — | 661,819 | ||||||||||||
Short-term borrowings | 73,123 | — | 73,123 | — | 73,123 | ||||||||||||
Long-term borrowings | 65,339 | — | 66,747 | — | 66,747 | ||||||||||||
Accrued interest payable | 399 | — | 399 | — | 399 | ||||||||||||
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | — | — | — | — | — | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Carrying | Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||
Cash and due from banks | $ | 8,257 | $ | 8,257 | $ | — | $ | — | $ | 8,257 | |||||||
Interest-bearing deposits in other banks | 22,366 | — | 22,366 | — | 22,366 | ||||||||||||
Investment securities available-for-sale | 353,698 | 2,535 | 351,163 | — | 353,698 | ||||||||||||
Investment securities held-to-maturity | 1,072 | — | 1,083 | — | 1,083 | ||||||||||||
Restricted investment in bank stocks | 4,761 | — | 4,761 | — | 4,761 | ||||||||||||
Net loans | 439,999 | — | — | 443,844 | 443,844 | ||||||||||||
Mortgage servicing rights | 521 | — | — | 521 | 521 | ||||||||||||
Accrued interest receivable | 3,616 | — | 3,616 | — | 3,616 | ||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||
Deposits | 690,075 | — | 690,771 | — | 690,771 | ||||||||||||
Short-term borrowings | 68,233 | — | 68,233 | — | 68,233 | ||||||||||||
Long-term borrowings | 40,429 | — | 41,288 | — | 41,288 | ||||||||||||
Accrued interest payable | 392 | — | 392 | — | 392 | ||||||||||||
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS | — | — | — | — | — | ||||||||||||
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||
Condensed Balance Sheet [Table Text Block] | BALANCE SHEETS | ||||||||||
(Dollars in thousands) | December 31, | ||||||||||
2014 | 2013 | ||||||||||
ASSETS | |||||||||||
Cash | $ | 4,214 | $ | 2,408 | |||||||
Investment in banking subsidiary | 100,552 | 92,989 | |||||||||
Investment securities available-for-sale | 2,055 | 2,535 | |||||||||
Prepaid expenses and other assets | 49 | 223 | |||||||||
TOTAL ASSETS | $ | 106,870 | $ | 98,155 | |||||||
LIABILITIES | |||||||||||
Advances from banking subsidiary | $ | 218 | $ | 1,536 | |||||||
Accrued expenses and other liabilities | 381 | 268 | |||||||||
TOTAL LIABILITIES | 599 | 1,804 | |||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Common stock | 11,605 | 11,513 | |||||||||
Surplus | 32,674 | 31,626 | |||||||||
Retained earnings | 63,485 | 59,089 | |||||||||
Accumulated other comprehensive income (loss) | 4,330 | -54 | |||||||||
Treasury stock, at cost | -5,823 | -5,823 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 106,271 | 96,351 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 106,870 | $ | 98,155 | |||||||
Condensed Income Statement [Table Text Block] | STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
INCOME | |||||||||||
Dividends from subsidiary bank | $ | 7,041 | $ | 10,416 | $ | 5,867 | |||||
Net investment securities gains (losses) | 187 | — | -97 | ||||||||
Other income | 76 | 64 | 67 | ||||||||
TOTAL INCOME | 7,304 | 10,480 | 5,837 | ||||||||
OPERATING EXPENSES | 136 | 162 | 151 | ||||||||
7,168 | 10,318 | 5,686 | |||||||||
INCOME TAX EXPENSE (BENEFIT) | 43 | -61 | -80 | ||||||||
7,125 | 10,379 | 5,766 | |||||||||
EQUITY IN (EXCESS OF) UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY | 3,086 | -106 | 4,404 | ||||||||
NET INCOME | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
COMPREHENSIVE INCOME (LOSS) | $ | 14,595 | $ | -2,309 | $ | 14,941 | |||||
Condensed Cash Flow Statement [Table Text Block] | STATEMENTS OF CASH FLOWS | ||||||||||
(Dollars in thousands) | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 10,211 | $ | 10,273 | $ | 10,170 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Gains) losses on sales of investment securities | -187 | — | 97 | ||||||||
Deferred income tax expense (benefit) | 41 | — | -31 | ||||||||
(Equity in) excess of undistributed earnings of banking subsidiary | -3,086 | 106 | -4,404 | ||||||||
Decrease (increase) in prepaid expenses and other assets | 327 | 325 | -303 | ||||||||
(Decrease) increase in advances from banking subsidiary | -1,318 | -8,355 | 372 | ||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 5,988 | 2,349 | 5,901 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of investment securities available-for-sale | — | — | -445 | ||||||||
Proceeds from sales of investment securities available-for-sale | 512 | — | 389 | ||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 512 | — | -56 | ||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of common stock | 1,121 | 981 | 693 | ||||||||
Proceeds from issuance of treasury stock | — | 43 | 85 | ||||||||
Dividends paid | -5,815 | -5,716 | -5,510 | ||||||||
NET CASH USED IN FINANCING ACTIVITIES | -4,694 | -4,692 | -4,732 | ||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,806 | -2,343 | 1,113 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING | 2,408 | 4,751 | 3,638 | ||||||||
CASH AND CASH EQUIVALENTS, ENDING | $ | 4,214 | $ | 2,408 | $ | 4,751 | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $10,211 | $10,273 | $10,170 |
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 |
Basic earnings per share | $1.84 | $1.87 | $1.86 |
Weighted-average common shares outstanding | 5,538 | 5,481 | 5,455 |
Common stock equivalents due to effect of stock options | 4 | 5 | 12 |
Total weighted-average common shares and equivalents | 5,542 | 5,486 | 5,467 |
Diluted earnings per share | $1.84 | $1.87 | $1.86 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2008 | |
Available-for-sale Securities, Restricted, Total | $5,308,000 | $4,761,000 | ||
Real Estate Investment Partnership Revenue | 230,000 | 267,000 | 277,000 | |
Real Estate Investment Partnership Cost of Sales | 159,000 | 191,000 | 183,000 | |
Loan Payments Delinquency Period Beyond Which Loans Considered Past Due | 15 days | |||
Loan Payments Delinquency Period Beyond Which Loans Considered Non Accrual | 90 days | |||
Assets Held-in-trust | 111,513,000 | 102,665,000 | ||
Bank Owned Life Insurance [Member] | ||||
Deferred Compensation Arrangement with Individual, Recorded Liability | 60,000 | 57,000 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | 3,000 | 2,000 | 2,000 | |
Pocono Community Bank [Member] | ||||
Goodwill, Purchase Accounting Adjustments | 152,000 | |||
Federal Home Loan Bank of Pittsburgh [Member] | ||||
Available-for-sale Securities, Restricted, Total | 5,273,000 | 4,726,000 | ||
Atlantic Central Bankers Bank [Member] | ||||
Available-for-sale Securities, Restricted, Total | $35,000 | $35,000 | ||
Full Service Offices [Member] | ||||
Number of Stores | 18 | |||
Automated Teller [Member] | ||||
Number of Stores | 20 |
RESTRICTED_CASH_BALANCES_Detai
RESTRICTED CASH BALANCES (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Segregated under Other Regulations | $1,189,000 | $1,296,000 |
Deposits with Other Federal Home Loan Banks | $414,000 | $22,358,000 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-Sale Securities | ||
Amortized Cost | $341,020 | $353,679 |
Gross Unrealized Gains | 8,455 | 6,392 |
Gross Unrealized Losses | -1,809 | -6,373 |
Fair Value | 347,666 | 353,698 |
Held-to-Maturity Securities | ||
Amortized Cost | 1,056 | 1,072 |
Gross Unrealized Gains | 4 | 11 |
Gross Unrealized Losses | 0 | 0 |
Investment securities held-to-maturity, estimated fair value | 1,060 | 1,083 |
US Treasury securities [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 11,356 | 0 |
Gross Unrealized Gains | 24 | 0 |
Gross Unrealized Losses | -2 | 0 |
Fair Value | 11,378 | 0 |
Obligations of U.S. Government Corporations and Agencies Mortgage-backed [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 112,146 | 122,661 |
Gross Unrealized Gains | 1,055 | 598 |
Gross Unrealized Losses | -487 | -2,035 |
Fair Value | 112,714 | 121,224 |
Held-to-Maturity Securities | ||
Amortized Cost | 56 | 72 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Investment securities held-to-maturity, estimated fair value | 58 | 75 |
Other Obligations of U.S. Government Corporations and Agencies [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 26,246 | 32,107 |
Gross Unrealized Gains | 270 | 238 |
Gross Unrealized Losses | -6 | -60 |
Fair Value | 26,510 | 32,285 |
Held-to-Maturity Securities | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 2 | 8 |
Gross Unrealized Losses | 0 | 0 |
Investment securities held-to-maturity, estimated fair value | 1,002 | 1,008 |
Obligations of State and Political Subdivisions [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 151,565 | 147,112 |
Gross Unrealized Gains | 6,127 | 4,136 |
Gross Unrealized Losses | -469 | -2,859 |
Fair Value | 157,223 | 148,389 |
Corporate debt securities [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 38,499 | 50,266 |
Gross Unrealized Gains | 112 | 416 |
Gross Unrealized Losses | -825 | -1,417 |
Fair Value | 37,786 | 49,265 |
Marketable equity securities [Member] | ||
Available-for-Sale Securities | ||
Amortized Cost | 1,208 | 1,533 |
Gross Unrealized Gains | 867 | 1,004 |
Gross Unrealized Losses | -20 | -2 |
Fair Value | $2,055 | $2,535 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-For-Sale - Amortized cost | ||
1 year or less | $3,002 | |
Over 1 year through 5 years | 25,650 | |
Over 5 years through 10 years | 103,919 | |
Over 10 years | 95,095 | |
Total | 341,020 | |
Available-For-Sale - Estimated fair value | ||
1 year or less | 3,037 | |
Over 1 year through 5 years | 26,130 | |
Over 5 years through 10 years | 103,826 | |
Over 10 years | 99,904 | |
Total | 347,666 | |
Held-to-Maturity - Amortized cost | ||
1 year or less | 1,000 | |
Over 1 year through 5 years | 0 | |
Over 5 years through 10 years | 0 | |
Over 10 years | 0 | |
Total | 1,056 | 1,072 |
Held-to-Maturity - Estimated fair value | ||
1 year or less | 1,002 | |
Over 1 year through 5 years | 0 | |
Over 5 years through 10 years | 0 | |
Over 10 years | 0 | |
Total | 1,060 | 1,083 |
Mortgage Backed Securities [Member] | ||
Available-For-Sale - Amortized cost | ||
Total | 112,146 | |
Available-For-Sale - Estimated fair value | ||
Total | 112,714 | |
Held-to-Maturity - Amortized cost | ||
Total | 56 | |
Held-to-Maturity - Estimated fair value | ||
Total | 58 | |
Marketable equity securities [Member] | ||
Available-For-Sale - Amortized cost | ||
Total | 1,208 | |
Available-For-Sale - Estimated fair value | ||
Total | 2,055 | |
Held-to-Maturity - Amortized cost | ||
Total | 0 | |
Held-to-Maturity - Estimated fair value | ||
Total | $0 |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Less Than 12 Months | ||
Fair Value | $76,723 | $178,689 |
Unrealized Loss | -894 | -6,373 |
12 Months or More | ||
Fair Value | 47,438 | 0 |
Unrealized Loss | -915 | 0 |
Total | ||
Fair Value | 124,161 | 178,689 |
Unrealized Loss | -1,809 | -6,373 |
US Treasury Securities [Member] | ||
Less Than 12 Months | ||
Fair Value | 6,030 | 0 |
Unrealized Loss | -2 | 0 |
12 Months or More | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Total | ||
Fair Value | 6,030 | 0 |
Unrealized Loss | -2 | 0 |
Obligations of U.S. Government Corporations and Agencies Mortgage-backed [Member] | ||
Less Than 12 Months | ||
Fair Value | 19,823 | 98,760 |
Unrealized Loss | -230 | -2,035 |
12 Months or More | ||
Fair Value | 17,099 | 0 |
Unrealized Loss | -257 | 0 |
Total | ||
Fair Value | 36,922 | 98,760 |
Unrealized Loss | -487 | -2,035 |
Other Obligations of U.S. Government Corporations and Agencies [Member] | ||
Less Than 12 Months | ||
Fair Value | 7,154 | 4,956 |
Unrealized Loss | -6 | -60 |
12 Months or More | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Total | ||
Fair Value | 7,154 | 4,956 |
Unrealized Loss | -6 | -60 |
Obligations of State and Political Subdivisions [Member] | ||
Less Than 12 Months | ||
Fair Value | 21,459 | 48,853 |
Unrealized Loss | -94 | -2,859 |
12 Months or More | ||
Fair Value | 18,273 | 0 |
Unrealized Loss | -375 | 0 |
Total | ||
Fair Value | 39,732 | 48,853 |
Unrealized Loss | -469 | -2,859 |
Corporate debt securities [Member] | ||
Less Than 12 Months | ||
Fair Value | 22,227 | 26,099 |
Unrealized Loss | -542 | -1,417 |
12 Months or More | ||
Fair Value | 12,066 | 0 |
Unrealized Loss | -283 | 0 |
Total | ||
Fair Value | 34,293 | 26,099 |
Unrealized Loss | -825 | -1,417 |
Marketable equity securities [Member] | ||
Less Than 12 Months | ||
Fair Value | 30 | 21 |
Unrealized Loss | -20 | -2 |
12 Months or More | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Total | ||
Fair Value | 30 | 21 |
Unrealized Loss | ($20) | ($2) |
INVESTMENT_SECURITIES_Details_2
INVESTMENT SECURITIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Available-for-sale Securities Pledged as Collateral | $222,847,000 | $242,839,000 | |
Held-to-maturity Securities Pledged as Collateral | 1,056,000 | 1,072,000 | |
Security Owned and Pledged as Collateral, Associated Liabilities, Fair Value | 155,895,000 | 178,814,000 | |
Proceeds from Sale of Available-for-sale Securities, Total | 195,847,000 | 79,981,000 | 49,235,000 |
Available-for-sale Securities, Gross Realized Gains | 3,354,000 | 3,546,000 | 1,762,000 |
Available-for-sale Securities, Gross Realized Losses | $598,000 | $646,000 | $949,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 39 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 29 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Add (deduct): Unearned discount and | ($40) | ($87) |
Net deferred loan fees and costs | 530 | 464 |
Total loans | 487,461 | 446,518 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 468,233 | 439,443 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,596 | 1,964 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,142 | 4,734 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Add (deduct): Unearned discount and | 0 | 0 |
Net deferred loan fees and costs | 129 | 122 |
Total loans | 64,656 | 60,822 |
Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 64,459 | 60,614 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 47 | 65 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21 | 21 |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Add (deduct): Unearned discount and | 0 | 0 |
Net deferred loan fees and costs | 38 | -19 |
Total loans | 253,922 | 225,405 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 237,404 | 219,925 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,008 | 1,717 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,472 | 3,782 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential Real Estate Including Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Add (deduct): Unearned discount and | 0 | 0 |
Net deferred loan fees and costs | 271 | 272 |
Total loans | 163,553 | 154,675 |
Residential Real Estate Including Home Equity [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 161,122 | 153,292 |
Residential Real Estate Including Home Equity [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 520 | 180 |
Residential Real Estate Including Home Equity [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,640 | 931 |
Residential Real Estate Including Home Equity [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Add (deduct): Unearned discount and | -40 | -87 |
Net deferred loan fees and costs | 92 | 89 |
Total loans | 5,330 | 5,616 |
Consumer Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,248 | 5,612 |
Consumer Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21 | 2 |
Consumer Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9 | 0 |
Consumer Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses, Beginning Balance | $6,519 | $5,772 | $5,929 |
Charge-offs | -691 | -694 | -1,832 |
Recoveries | 129 | 69 | 75 |
Provision | 433 | 1,372 | 1,600 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 6,390 | 6,519 | 5,772 |
Ending balance: individually evaluated for impairment | 119 | 140 | 223 |
Ending balance: collectively evaluated for impairment | 6,271 | 6,379 | 5,549 |
Ending Balance | 487,461 | 446,518 | 432,896 |
Ending balance: individually evaluated for impairment | 7,044 | 5,974 | 2,363 |
Ending balance: collectively evaluated for impairment | 480,417 | 440,544 | 430,533 |
Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses, Beginning Balance | 776 | 573 | 489 |
Charge-offs | -107 | -17 | -264 |
Recoveries | 31 | 24 | 23 |
Provision | -158 | 196 | 325 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 542 | 776 | 573 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 542 | 776 | 573 |
Ending Balance | 64,656 | 60,822 | 54,187 |
Ending balance: individually evaluated for impairment | 399 | 21 | 248 |
Ending balance: collectively evaluated for impairment | 64,257 | 60,801 | 53,939 |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses, Beginning Balance | 3,320 | 2,837 | 3,507 |
Charge-offs | -328 | -290 | -1,077 |
Recoveries | 81 | 31 | 22 |
Provision | 103 | 742 | 385 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 3,176 | 3,320 | 2,837 |
Ending balance: individually evaluated for impairment | 38 | 125 | 111 |
Ending balance: collectively evaluated for impairment | 3,138 | 3,195 | 2,726 |
Ending Balance | 253,922 | 225,405 | 225,156 |
Ending balance: individually evaluated for impairment | 5,350 | 5,022 | 1,312 |
Ending balance: collectively evaluated for impairment | 248,572 | 220,383 | 223,844 |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses, Beginning Balance | 1,565 | 1,524 | 1,228 |
Charge-offs | -209 | -348 | -404 |
Recoveries | 14 | 5 | 1 |
Provision | 558 | 384 | 699 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 1,928 | 1,565 | 1,524 |
Ending balance: individually evaluated for impairment | 81 | 15 | 112 |
Ending balance: collectively evaluated for impairment | 1,847 | 1,550 | 1,412 |
Ending Balance | 163,553 | 154,675 | 147,167 |
Ending balance: individually evaluated for impairment | 1,291 | 931 | 803 |
Ending balance: collectively evaluated for impairment | 162,262 | 153,744 | 146,364 |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses, Beginning Balance | 53 | 80 | 137 |
Charge-offs | -47 | -39 | -87 |
Recoveries | 3 | 9 | 29 |
Provision | 98 | 3 | 1 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 107 | 53 | 80 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 107 | 53 | 80 |
Ending Balance | 5,330 | 5,616 | 6,386 |
Ending balance: individually evaluated for impairment | 4 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 5,326 | 5,616 | 6,386 |
Unallocated Financing Receivables [Member] | |||
Financing Receivable, Allowance for Credit Losses, Beginning Balance | 805 | 758 | 568 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | -168 | 47 | 190 |
Financing Receivable, Allowance for Credit Losses, Ending Balance | 637 | 805 | 758 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 637 | 805 | 758 |
Ending Balance | 0 | 0 | 0 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $0 | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications, Recorded Investment | $4,708 | $3,961 |
Non-accrual TDRs [Member] | ||
Financing Receivable, Modifications, Recorded Investment | 1,638 | 1,538 |
Accruing TDRs [Member] | ||
Financing Receivable, Modifications, Recorded Investment | $3,070 | $2,423 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Number | Number | |
Financing Receivable, Modifications, Number of Contracts | 14 | 13 |
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment | $1,793 | $4,519 |
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment | 1,880 | 4,382 |
Receivables, Change in Method of Calculating Impairment, Recorded Investment | 1,464 | 3,961 |
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 3 | 0 |
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment | 397 | 0 |
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment | 397 | 0 |
Receivables, Change in Method of Calculating Impairment, Recorded Investment | 394 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 10 | 13 |
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment | 1,389 | 4,519 |
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment | 1,476 | 4,382 |
Receivables, Change in Method of Calculating Impairment, Recorded Investment | 1,066 | 3,961 |
Consumer [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 |
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment | 7 | 0 |
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment | 7 | 0 |
Receivables, Change in Method of Calculating Impairment, Recorded Investment | $4 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number | Number | |
Financing Receivable, Modifications, Number of Contracts | 14 | 13 |
Rate Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 4 |
Term Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 4 | 2 |
Payment Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 9 | 7 |
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 3 | 0 |
Commercial and Industrial [Member] | Rate Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 |
Commercial and Industrial [Member] | Term Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 |
Commercial and Industrial [Member] | Payment Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 3 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 10 | 13 |
Commercial Real Estate [Member] | Rate Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 4 |
Commercial Real Estate [Member] | Term Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 4 | 2 |
Commercial Real Estate [Member] | Payment Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 5 | 7 |
Consumer [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 |
Consumer [Member] | Rate Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 |
Consumer [Member] | Term Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 |
Consumer [Member] | Payment Modification [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Recorded Investment | |||
Total | $7,044 | $5,974 | |
Unpaid Principal Balance | |||
Total | 7,810 | 7,121 | |
Related Allowance | |||
Total | 119 | 140 | |
Average Recorded Investment | |||
Total | 5,897 | 4,987 | 3,563 |
Interest Income Recognized | |||
Total | 143 | 133 | 34 |
Commercial and Industrial [Member] | |||
Recorded Investment | |||
With no related allowance recorded | 399 | 21 | |
With an allowance recorded | 0 | 0 | |
Total | 399 | 21 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 545 | 167 | |
With an allowance recorded | 0 | 0 | |
Total | 545 | 167 | |
Related Allowance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 228 | 28 | 174 |
With an allowance recorded | 0 | 0 | 167 |
Total | 228 | 28 | 341 |
Interest Income Recognized | |||
With no related allowance recorded | 8 | 0 | 4 |
With an allowance recorded | 0 | 0 | 0 |
Total | 8 | 0 | 4 |
Commercial Real Estate [Member] | |||
Recorded Investment | |||
With no related allowance recorded | 4,828 | 4,810 | |
With an allowance recorded | 522 | 212 | |
Total | 5,350 | 5,022 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 5,278 | 5,503 | |
With an allowance recorded | 522 | 212 | |
Total | 5,800 | 5,715 | |
Related Allowance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 38 | 125 | |
Total | 38 | 125 | |
Average Recorded Investment | |||
With no related allowance recorded | 4,409 | 3,950 | 1,064 |
With an allowance recorded | 292 | 189 | 1,351 |
Total | 4,701 | 4,139 | 2,415 |
Interest Income Recognized | |||
With no related allowance recorded | 107 | 128 | 7 |
With an allowance recorded | 21 | 1 | 0 |
Total | 128 | 129 | 7 |
Residential Real Estate [Member] | |||
Recorded Investment | |||
With no related allowance recorded | 727 | 868 | |
With an allowance recorded | 564 | 63 | |
Total | 1,291 | 931 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 892 | 1,176 | |
With an allowance recorded | 569 | 63 | |
Total | 1,461 | 1,239 | |
Related Allowance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 81 | 15 | |
Total | 81 | 15 | |
Average Recorded Investment | |||
With no related allowance recorded | 650 | 754 | 275 |
With an allowance recorded | 313 | 66 | 532 |
Total | 963 | 820 | 807 |
Interest Income Recognized | |||
With no related allowance recorded | 2 | 4 | 13 |
With an allowance recorded | 4 | 0 | 10 |
Total | 6 | 4 | 23 |
Consumer [Member] | |||
Recorded Investment | |||
With no related allowance recorded | 4 | 0 | |
With an allowance recorded | 0 | 0 | |
Total | 4 | 0 | |
Unpaid Principal Balance | |||
With no related allowance recorded | 4 | 0 | |
With an allowance recorded | 0 | 0 | |
Total | 4 | 0 | |
Related Allowance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Total | 0 | 0 | |
Average Recorded Investment | |||
With no related allowance recorded | 5 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Total | 5 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded | 1 | 0 | 0 |
With an allowance recorded | 0 | 0 | 0 |
Total | $1 | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total non-accrual loans | $3,974 | $3,551 |
Foreclosed assets held for resale | 55 | 480 |
Loans past-due 90 days or more and still accruing | 10 | 318 |
Total non-performing assets | 4,039 | 4,349 |
Commercial and Industrial [Member] | ||
Total non-accrual loans | 5 | 21 |
Loans past-due 90 days or more and still accruing | 0 | 19 |
Commercial real estate [Member] | ||
Total non-accrual loans | 2,678 | 2,599 |
Loans past-due 90 days or more and still accruing | 0 | 180 |
Residential real estate [Member] | ||
Total non-accrual loans | 1,291 | 931 |
Loans past-due 90 days or more and still accruing | $10 | $119 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
30-59 Days Past Due | $3,754 | $2,663 |
60-89 Days Past Due | 873 | 920 |
90 Days or Greater Past Due | 3,600 | 2,333 |
Total Past Due | 8,227 | 5,916 |
Current | 479,234 | 440,602 |
Total loans | 487,461 | 446,518 |
90 Days or Greater Past Due and Still Accruing | 10 | 318 |
Commercial and Industrial [Member] | ||
30-59 Days Past Due | 72 | 7 |
60-89 Days Past Due | 28 | 7 |
90 Days or Greater Past Due | 5 | 40 |
Total Past Due | 105 | 54 |
Current | 64,551 | 60,768 |
Total loans | 64,656 | 60,822 |
90 Days or Greater Past Due and Still Accruing | 0 | 19 |
Commercial Real Estate [Member] | ||
30-59 Days Past Due | 1,657 | 875 |
60-89 Days Past Due | 613 | 653 |
90 Days or Greater Past Due | 2,375 | 1,367 |
Total Past Due | 4,645 | 2,895 |
Current | 249,277 | 222,510 |
Total loans | 253,922 | 225,405 |
90 Days or Greater Past Due and Still Accruing | 0 | 180 |
Residential Real Estate [Member] | ||
30-59 Days Past Due | 1,998 | 1,751 |
60-89 Days Past Due | 224 | 248 |
90 Days or Greater Past Due | 1,220 | 926 |
Total Past Due | 3,442 | 2,925 |
Current | 160,111 | 151,750 |
Total loans | 163,553 | 154,675 |
90 Days or Greater Past Due and Still Accruing | 10 | 119 |
Consumer [Member] | ||
30-59 Days Past Due | 27 | 30 |
60-89 Days Past Due | 8 | 12 |
90 Days or Greater Past Due | 0 | 0 |
Total Past Due | 35 | 42 |
Current | 5,295 | 5,574 |
Total loans | 5,330 | 5,616 |
90 Days or Greater Past Due and Still Accruing | $0 | $0 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructured loans | $4,708 | $3,961 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,880 | 4,382 | |
Allowance for Credit Losses, Change in Method of Calculating Impairment | 27 | 0 | |
Loans Receivable Held-for-sale, Amount | 2,201 | 0 | |
Interest on non-accrual loans, Estimate of accrual amount | 159 | 140 | 96 |
Thirteen Loans [Member] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 4,382 | ||
Fourteen loans [Member] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,880 | ||
Commercial and Industrial [Member] | |||
Tax free loans | 30,334 | 27,299 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 397 | 0 | |
Commercial Real Estate [Member] | |||
Tax free loans | 3,235 | 3,945 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,476 | 4,382 | |
Commercial Real Estate [Member] | Three Loans [Member] | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 386 | ||
Commercial Real Estate [Member] | Five Loans [Member] | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $2,087 |
MORTGAGE_SERVICING_RIGHTS_Deta
MORTGAGE SERVICING RIGHTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage servicing rights capitalized and amortized: | |||
Balance, January 1 | $521 | $478 | $421 |
Servicing asset additions | 83 | 193 | 230 |
Amortization | -123 | -150 | -173 |
Balance, December 31 | $481 | $521 | $478 |
MORTGAGE_SERVICING_RIGHTS_Deta1
MORTGAGE SERVICING RIGHTS (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Servicing Assets at Fair Value [Line Items] | ||
Servicing Asset at Fair Value, Amount | $481 | $521 |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $92,175 | $89,712 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $30,466 | $30,832 |
Less: Accumulated depreciation | 9,595 | 9,316 |
Total | 20,871 | 21,516 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 3,180 | 3,180 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 19,062 | 19,130 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 286 | 286 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $7,938 | $8,236 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $1,279,000 | $1,151,000 | $1,023,000 |
Capital leased asset, cost | 948,000 | 948,000 | |
Capital leased asset, accumulated depreciation | 810,000 | 762,000 | |
Capital leased asset, amortization | $48,000 | $47,000 | $48,000 |
CORE_DEPOSIT_INTANGIBLES_Detai
CORE DEPOSIT INTANGIBLES (Details) (Core deposit intangibles [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Core deposit intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $2,218 | $2,218 |
Accumulated Amortization | $2,096 | $1,823 |
CORE_DEPOSIT_INTANGIBLES_Detai1
CORE DEPOSIT INTANGIBLES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $273,000 | $273,000 | $283,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $122,000 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-interest bearing demand | $96,530 | $85,156 |
Interest bearing demand | 185,511 | 208,883 |
Savings | 177,865 | 164,138 |
Time certificates of deposits less than $100,000 | 128,419 | 148,155 |
Time certificates of deposits $100,000 or greater | 72,092 | 82,592 |
Other time | 1,145 | 1,151 |
Total deposits | $661,562 | $690,075 |
DEPOSITS_Details_1
DEPOSITS (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
2015 | $91,231 |
2016 | 33,109 |
2017 | 24,389 |
2018 | 14,301 |
2019 | 32,153 |
Thereafter | 6,473 |
Time Deposits | $201,656 |
DEPOSITS_Details_2
DEPOSITS (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits | $661,562 | $690,075 |
Deposits [Member] | ||
Deposits | 83,023,000 | |
School district [Member] | Deposits [Member] | ||
Deposits | 47,123,000 | |
School district 2 [Member] | Deposits [Member] | ||
Deposits | $35,900,000 |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ||
Short-term borrowings, Amount | $73,123 | $68,233 |
Short-term borrowings, Average Rate | 0.28% | 0.35% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings, Amount | 0 | 0 |
Short-term borrowings, Average Rate | 0.76% | 0.00% |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings, Amount | 16,730 | 16,261 |
Short-term borrowings, Average Rate | 0.24% | 0.41% |
Federal Discount Window [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings, Amount | 0 | 0 |
Short-term borrowings, Average Rate | 0.75% | 0.00% |
Federal Home Loan Bank [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings, Amount | $56,393 | $51,972 |
Short-term borrowings, Average Rate | 0.30% | 0.25% |
SHORTTERM_BORROWINGS_Details_1
SHORT-TERM BORROWINGS (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Repurchase agreements | ||||
Gross Amounts of Recognized Liabilities | $16,730 | [1] | $16,261 | [1] |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | [1] | 0 | [1] |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 16,730 | [1] | 16,261 | [1] |
Cash Financial Instruments | -16,730 | [1] | -16,261 | [1] |
Collateral Pledge | 0 | [1] | 0 | [1] |
Net Amount | $0 | [1] | $0 | [1] |
[1] | As of December 31, 2014 and 2013, the fair value of securities pledged in connection with repurchase agreements was $26,094,000 and $26,575,000, respectively. |
SHORTTERM_BORROWINGS_Details_T
SHORT-TERM BORROWINGS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ||
Fair value of securities pledged | $26,094,000 | $26,575,000 |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Maximum Amount Outstanding During Period | 10,000,000 | |
Federal Discount Window [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Maximum Amount Outstanding During Period | $4,193,000 | |
Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Federal funds purchased, securities sold under agreements to repurchase and Federal Home Loan Bank advances, maturity | 30 days |
LONGTERM_BORROWINGS_Details
LONG-TERM BORROWINGS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Due 2014, 1.49% | $0 | $5,000 |
Due 2016, 2.69% | 5,000 | 5,000 |
Due 2017, 1.07% | 10,000 | 0 |
Due 2018, 1.27% to 4.86% | 23,000 | 18,000 |
Due 2019, 1.79% to 2.11% | 20,000 | 5,000 |
Due 2020, 1.95% | 5,000 | 5,000 |
Due 2028, 5.14% | 2,000 | 2,000 |
Long-term Debt and Capital Lease Obligations | $65,000 | $40,000 |
LONGTERM_BORROWINGS_Details_Te
LONG-TERM BORROWINGS (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Due 2016 | $5,000 | $5,000 |
Due 2017 | 10,000 | 0 |
Long-term Debt and Capital Lease Obligations | 65,000 | 40,000 |
Short-term Debt, Total | 73,123 | 68,233 |
Federal Home Loan Bank of Pittsburgh [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt, Total | 260,500,000 | |
Pocono Community Bank [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Capital Lease Obligations | 339,000 | 429,000 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Due 2015 | 107,000 | |
Due 2016 | 116,000 | |
Due 2017 | $116,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal | |||
Current | $2,571 | $2,485 | $2,201 |
Deferred | 46 | -260 | -195 |
Income tax expense | $2,617 | $2,225 | $2,006 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amount | |||
Federal income tax at statutory rate | $4,362 | $4,249 | $4,140 |
Tax-exempt income | -1,162 | -1,563 | -1,738 |
Low-income housing credits | -230 | -266 | -294 |
Bank owned life insurance income | -231 | -234 | -246 |
Other | -122 | 39 | 144 |
Income tax expense | $2,617 | $2,225 | $2,006 |
Rate | |||
Federal income tax at statutory rate | 34.00% | 34.00% | 34.00% |
Tax-exempt income | -9.10% | -12.50% | -14.30% |
Low-income housing credits | -1.80% | -2.10% | -2.40% |
Bank owned life insurance income | -1.80% | -1.90% | -2.00% |
Other | -0.90% | 0.30% | 1.20% |
Income tax expense and rate | 20.40% | 17.80% | 16.50% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets: | ||
Allowance for loan losses | $2,173 | $2,217 |
Deferred compensation | 528 | 514 |
Contributions | 29 | 35 |
Non-accrual interest | 43 | 32 |
Leases | 282 | 342 |
Limited partnership investments | 66 | 60 |
Alternative minimum tax credits | 279 | 279 |
Tax credits from limited partnerships | 7 | 193 |
Impairment loss on investment securities | 0 | 50 |
Capital and net operating loss carry forwards | 143 | 89 |
Total | 3,550 | 3,811 |
Deferred Tax Liabilities: | ||
Net unrealized investment securities gains | 2,316 | 71 |
Loan fees and costs | 180 | 157 |
Accumulated depreciation | 828 | 1,003 |
Accretion | 65 | 62 |
Mortgage servicing rights | 44 | 43 |
Intangible Assets | 328 | 395 |
Total | 3,761 | 1,731 |
Net Deferred Tax (Liability) Asset | ($211) | $2,080 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets, Valuation Allowance | $20,000 | $20,000 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $459,000 | $341,000 |
Operating Loss Carry forwards Expiration Period | The low-income housing credit carryforward will expire between 2017 and 2022, and the alternative minimum tax credit carryforward has no expiration | |
Subsequent Event [Member] | ||
State Net Operating Loss Carryforwards Offset Future State Taxable Income Expiration Term | 2034 |
EMPLOYEE_BENEFIT_PLANS_AND_DEF1
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | ||
Defined Contribution Plan, Cost Recognized | $206,000 | $190,000 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | 431,000 | 558,000 | 488,000 |
Description of Defined Contribution Pension and Other Postretirement Plans | Under the savings feature, the Corporation makes safe harbor matching contributions of 100% of the first 3% of compensation an employee contributes to the Plan and 50% of the next 2% of compensation an employee contributes to the Plan | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 280,000 | ||
Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation Arrangement With Individual, Number of Individuals | 3 | ||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 20 years | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | 1,494,000 | 1,454,000 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | $137,000 | $154,000 | $150,000 |
Retired Officers [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation Arrangement With Individual, Number of Individuals | 4 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 |
Year Ending December 31 | |
2015 | $132,000 |
2016 | 132,000 |
2017 | 120,000 |
Total minimum lease payments | 384,000 |
Less amounts representing interest | 45,000 |
Present value of net minimum lease payments | $339,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Branch Banking Facilities, Land and Operation Centers [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating Leases, Rent Expense, Net | $122,000 | $142,000 | $301,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 124,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 95,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 101,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 101,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 77,000 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 2,648,000 | ||
Land and Bank Building [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 48,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 48,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | $43,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Balance at January 1 | $3,389 | $3,620 |
Additions | 2,700 | 1,348 |
Deductions | -2,431 | -1,579 |
Balance at December 31 | $3,658 | $3,389 |
RELATED_PARTY_TRANSACTIONS_Det1
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Related Party Deposit Liabilities | $9,899,000 | $7,567,000 |
Management [Member] | ||
Related Party Transaction [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $2,921,000 | $2,707,000 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual | $83,813 | $80,577 |
For capital adequacy purposes | 44,490 | 44,901 |
To be well capitalized under prompt corrective action provisions | 55,612 | 56,126 |
Total - Actual | 15.07% | 14.36% |
Total - For capital adequacy purposes | 8.00% | 8.00% |
Total - To be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual | 77,423 | 74,058 |
For capital adequacy purposes | 22,245 | 22,450 |
To be well capitalized under prompt corrective action provisions | 33,367 | 33,676 |
Tier 1 - Actual | 13.92% | 13.19% |
Tier 1 - For capital adequacy purposes | 4.00% | 4.00% |
Tier 1 - To be well capitalized under prompt corrective action provisions | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets) | ||
Actual | 77,423 | 74,058 |
For capital adequacy purposes | 35,897 | 34,589 |
To be well capitalized under prompt corrective action provisions | $44,871 | $43,236 |
Actual | 8.63% | 8.56% |
For capital adequacy purposes | 4.00% | 4.00% |
To be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
REGULATORY_MATTERS_Details_Tex
REGULATORY MATTERS (Details Textual) (USD $) | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | $7,384,000 |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $84,983 | $73,700 |
Financial standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 471 | 418 |
Performance standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $5,851 | $4,449 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Purchase And Dividend Reinvestment Plan Shares Transferred And Held | 46,047 | 39,074 | 29,633 |
Share Purchase And Dividend Reinvestment Plan Number Of Shares Authorized | 165,850 | ||
Share Based Compensation Arrangement By Share Based Payment Award Minimum NumberOfQualifyingShares | 25 | ||
Minimum [Member] | |||
Share Purchase And Dividend Reinvestment Plan Quarterly Voluntary Investment | $100 | ||
Maximum [Member] | |||
Share Purchase And Dividend Reinvestment Plan Quarterly Voluntary Investment | $2,500 |
STOCK_COMPENSATION_PLAN_Detail
STOCK COMPENSATION PLAN (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Balance at January 1 | 4,823 | 11,904 | 20,037 |
Exercised | 0 | -2,034 | -5,334 |
Forfeited/Expired | -500 | -5,047 | -2,799 |
Balance at December 31 | 4,323 | 4,823 | 11,904 |
Exercisable at December 31 | 4,323 | 4,823 | 11,904 |
Weighted Average Exercise Price | |||
Balance at January 1 | $18.12 | $19.90 | $18.18 |
Exercised | $0 | $21.11 | $15.97 |
Forfeited/Expired | $16.75 | $21.11 | $15.08 |
Balance at December 31 | $18.28 | $18.12 | $19.90 |
Exercisable at December 31 | $18.28 | $18.12 | $19.90 |
STOCK_COMPENSATION_PLAN_Detail1
STOCK COMPENSATION PLAN (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number Outstanding | 4,323 | [1] |
Weighted Average Exercise Price | $18.28 | |
Number Exercisable | 4,323 | |
Weighted Average Exercise Price | $18.28 | |
Range One [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number Outstanding | 1,573 | [1] |
Weighted Average Remaining Contractual Life | 9 months | |
Weighted Average Exercise Price | $20.95 | |
Number Exercisable | 1,573 | |
Weighted Average Exercise Price | $20.95 | |
Range Two [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number Outstanding | 2,750 | [1] |
Weighted Average Remaining Contractual Life | 3 years | |
Weighted Average Exercise Price | $16.75 | |
Number Exercisable | 2,750 | |
Weighted Average Exercise Price | $16.75 | |
[1] | As adjusted for stock dividend noted above. |
STOCK_COMPENSATION_PLAN_Detail2
STOCK COMPENSATION PLAN (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 4,323 | 4,823 | 11,904 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $16.75 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $20.95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 2 months 1 day | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $28,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 0 | 10,000 | 41,000 |
Proceeds from Stock Options Exercised | $0 | $43,000 | $85,000 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | $347,666 | $353,698 |
Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 112,714 | 121,224 |
Other Obligations of U.S. Government Corporations and Agencies [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 26,510 | 32,285 |
Obligations of state and political subdivisions [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 157,223 | 148,389 |
Corporate debt securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 37,786 | 49,265 |
Marketable equity securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 2,055 | 2,535 |
US Treasury Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 11,378 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 2,055 | 2,535 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 345,611 | 351,163 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 112,714 | 121,224 |
Fair Value, Measurements, Recurring [Member] | Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Obligations of U.S. Government Corporations and Agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Obligations of U.S. Government Corporations and Agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 26,510 | 32,285 |
Fair Value, Measurements, Recurring [Member] | Other Obligations of U.S. Government Corporations and Agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 157,223 | 148,389 |
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 37,786 | 49,265 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Marketable equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 2,055 | 2,535 |
Fair Value, Measurements, Recurring [Member] | Marketable equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Marketable equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | 11,378 | 0 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities: | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $2,932 | $1,298 |
Other foreclosed assets held for resale | 55 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other foreclosed assets held for resale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other foreclosed assets held for resale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,932 | 1,298 |
Other foreclosed assets held for resale | 55 | 0 |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,073 | 656 |
Other foreclosed assets held for resale | 55 | 0 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other foreclosed assets held for resale | 0 | 0 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other foreclosed assets held for resale | 0 | 0 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,073 | 656 |
Other foreclosed assets held for resale | 55 | 0 |
Residential Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 856 | 621 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 856 | 621 |
Commercial and Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3 | 21 |
Commercial and Industrial [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial and Industrial [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Commercial and Industrial [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $3 | $21 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Impaired loans [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Estimate | $2,932 | $1,298 | ||
Valuation Technique | Appraisal of collateral | [1],[2] | Appraisal of collateral | [1],[2] |
Unobservable Input | Appraisal adjustments | [3] | Appraisal adjustments | [3] |
Impaired loans [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | -63.00% | -43.00% | ||
Impaired loans [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | 0.00% | 0.00% | ||
Impaired loans [Member] | Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | -37.00% | -25.00% | ||
Foreclosed assets held for resale [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Estimate | $55 | $0 | ||
Valuation Technique | Appraisal of collateral | [1],[2] | Appraisal of collateral | [1],[2] |
Unobservable Input | Appraisal adjustments | [3] | Appraisal adjustments | [3] |
Foreclosed assets held for resale [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | -46.00% | 0.00% | ||
Foreclosed assets held for resale [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | -33.00% | 0.00% | ||
Foreclosed assets held for resale [Member] | Weighted Average [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | -37.00% | 0.00% | ||
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators. | |||
[2] | Includes qualitative adjustments by management and estimated liquidation expenses. | |||
[3] | Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
FINANCIAL ASSETS: (Carrying Amount) | ||
Cash and due from banks | $7,543 | $8,257 |
Interest-bearing deposits in other banks | 424 | 22,366 |
Time deposits with other banks | 1,482 | |
Investment securities available-for-sale | 347,666 | 353,698 |
Investment securities held-to-maturity | 1,056 | 1,072 |
Restricted investment in bank stocks | 5,308 | 4,761 |
Net loans | 481,071 | 439,999 |
Mortgage servicing rights | 481 | 521 |
Accrued interest receivable | 3,313 | 3,616 |
FINANCIAL LIABILITIES: (Carrying Amount) | ||
Deposits | 661,562 | 690,075 |
Short-term borrowings | 73,123 | 68,233 |
Long-term borrowings | 65,339 | 40,429 |
Accrued interest payable | 399 | 392 |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Carrying Amount) | 0 | 0 |
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 7,543 | 8,257 |
Interest-bearing deposits in other banks | 424 | 22,366 |
Time deposits with other banks | 1,482 | |
Investment securities available-for-sale | 347,666 | 353,698 |
Investment securities held-to-maturity | 1,060 | 1,083 |
Restricted investment in bank stocks | 5,308 | 4,761 |
Net loans | 485,468 | 443,844 |
Mortgage servicing rights | 481 | 521 |
Accrued interest receivable | 3,313 | 3,616 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Deposits | 661,819 | 690,771 |
Short-term borrowings | 73,123 | 68,233 |
Long-term borrowings | 66,747 | 41,288 |
Accrued interest payable | 399 | 392 |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value) | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 7,543 | 8,257 |
Interest-bearing deposits in other banks | 0 | 0 |
Time deposits with other banks | 0 | |
Investment securities available-for-sale | 2,055 | 2,535 |
Investment securities held-to-maturity | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Net loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 424 | 22,366 |
Time deposits with other banks | 1,482 | |
Investment securities available-for-sale | 345,611 | 351,163 |
Investment securities held-to-maturity | 1,060 | 1,083 |
Restricted investment in bank stocks | 5,308 | 4,761 |
Net loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 3,313 | 3,616 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Deposits | 661,819 | 690,771 |
Short-term borrowings | 73,123 | 68,233 |
Long-term borrowings | 66,747 | 41,288 |
Accrued interest payable | 399 | 392 |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
FINANCIAL ASSETS: (Fair Value) | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Time deposits with other banks | 0 | |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Net loans | 485,468 | 443,844 |
Mortgage servicing rights | 481 | 521 |
Accrued interest receivable | 0 | 0 |
FINANCIAL LIABILITIES: (Fair Value) | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value) | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail4
FAIR VALUE MEASUREMENTS (Details Textual) (USD $) | Dec. 31, 2014 |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Minimum impaired loan balance that requires an appraisal to be obtained and reviewed annually for impaired loan valuation procedure | $250,000 |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Maximum impaired loan balance for which the bank completes a Certificate of Inspection | $250,000 |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION (Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Investment in banking subsidiary | $1,130 | $1,289 | ||
TOTAL ASSETS | 912,353 | 901,514 | ||
LIABILITIES | ||||
TOTAL LIABILITIES | 806,082 | 805,163 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock | 11,605 | 11,513 | ||
Surplus | 32,674 | 31,626 | ||
Retained earnings | 63,485 | 59,089 | ||
Accumulated other comprehensive income (loss) | 4,330 | -54 | ||
Treasury stock, at cost | -5,823 | -5,823 | ||
TOTAL STOCKHOLDERS’ EQUITY | 106,271 | 96,351 | 103,330 | 93,092 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 912,353 | 901,514 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash | 4,214 | 2,408 | 4,751 | 3,638 |
Investment in banking subsidiary | 100,552 | 92,989 | ||
Investment securities available-for-sale | 2,055 | 2,535 | ||
Prepaid expenses and other assets | 49 | 223 | ||
TOTAL ASSETS | 106,870 | 98,155 | ||
LIABILITIES | ||||
Advances from banking subsidiary | 218 | 1,536 | ||
Accrued expenses and other liabilities | 381 | 268 | ||
TOTAL LIABILITIES | 599 | 1,804 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock | 11,605 | 11,513 | ||
Surplus | 32,674 | 31,626 | ||
Retained earnings | 63,485 | 59,089 | ||
Accumulated other comprehensive income (loss) | 4,330 | -54 | ||
Treasury stock, at cost | -5,823 | -5,823 | ||
TOTAL STOCKHOLDERS’ EQUITY | 106,271 | 96,351 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $106,870 | $98,155 |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION (Statements of Income and Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME | |||
Net investment securities gains (losses) | $2,756 | $2,900 | $813 |
Income before income tax expense | 12,828 | 12,498 | 12,176 |
INCOME TAX EXPENSE (BENEFIT) | 2,617 | 2,225 | 2,006 |
NET INCOME | 10,211 | 10,273 | 10,170 |
COMPREHENSIVE INCOME (LOSS) | 14,595 | -2,309 | 14,941 |
Parent Company [Member] | |||
INCOME | |||
Dividends from subsidiary bank | 7,041 | 10,416 | 5,867 |
Net investment securities gains (losses) | 187 | 0 | -97 |
Other income | 76 | 64 | 67 |
TOTAL INCOME | 7,304 | 10,480 | 5,837 |
OPERATING EXPENSES | 136 | 162 | 151 |
Income before income tax expense | 7,168 | 10,318 | 5,686 |
INCOME TAX EXPENSE (BENEFIT) | 43 | -61 | -80 |
Income Before Equity in Undistributed Net Income of Subsidiary | 7,125 | 10,379 | 5,766 |
EQUITY IN (EXCESS OF) UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY | 3,086 | -106 | 4,404 |
NET INCOME | 10,211 | 10,273 | 10,170 |
COMPREHENSIVE INCOME (LOSS) | $14,595 | ($2,309) | $14,941 |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION (Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income | $10,211 | $10,273 | $10,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Gains) losses on sales of investment securities | -2,756 | -2,900 | -813 |
Deferred income tax expense (benefit) | 46 | -260 | -195 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,076 | 12,221 | 7,953 |
INVESTING ACTIVITIES | |||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -26,325 | -88,140 | 18,667 |
FINANCING ACTIVITIES | |||
Proceeds from issuance of common stock | 1,121 | 981 | 693 |
Proceeds from issuance of treasury stock | 0 | 43 | 85 |
Dividends paid | -5,815 | -5,716 | -5,510 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -3,407 | 85,622 | -15,879 |
Parent Company [Member] | |||
OPERATING ACTIVITIES | |||
Net income | 10,211 | 10,273 | 10,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Gains) losses on sales of investment securities | -187 | 0 | 97 |
Deferred income tax expense (benefit) | 41 | 0 | -31 |
(Equity in) excess of undistributed earnings of banking subsidiary | -3,086 | 106 | -4,404 |
Decrease (increase) in prepaid expenses and other assets | 327 | 325 | -303 |
(Decrease) increase in advances from banking subsidiary | -1,318 | -8,355 | 372 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 5,988 | 2,349 | 5,901 |
INVESTING ACTIVITIES | |||
Purchases of investment securities available-for-sale | 0 | 0 | -445 |
Proceeds from sales of investment securities available-for-sale | 512 | 0 | 389 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 512 | 0 | -56 |
FINANCING ACTIVITIES | |||
Proceeds from issuance of common stock | 1,121 | 981 | 693 |
Proceeds from issuance of treasury stock | 0 | 43 | 85 |
Dividends paid | -5,815 | -5,716 | -5,510 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -4,694 | -4,692 | -4,732 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,806 | -2,343 | 1,113 |
CASH AND CASH EQUIVALENTS, BEGINNING | 2,408 | 4,751 | 3,638 |
CASH AND CASH EQUIVALENTS, ENDING | $4,214 | $2,408 | $4,751 |