Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Entity Registrant Name | FIRST UNITED CORP/MD/ | |
Entity Central Index Key | 763,907 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,084,478 | |
Trading Symbol | func | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statement of Finan
Consolidated Statement of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 21,725 | $ 82,273 |
Interest bearing deposits in banks | 1,832 | 1,479 |
Cash and cash equivalents | 23,557 | 83,752 |
Investment securities - available-for-sale (at fair value) | 138,645 | 146,470 |
Investment securities - held to maturity (fair value $91,896 at September 30, 2018 and $95,346 at December 31, 2017) | 93,726 | 93,632 |
Restricted investment in bank stock, at cost | 5,394 | 5,204 |
Loans | 964,060 | 892,518 |
Allowance for loan losses | (10,323) | (9,972) |
Net loans | 953,737 | 882,546 |
Premises and equipment, net | 36,894 | 30,881 |
Goodwill and other intangible assets, net | 11,004 | 11,004 |
Bank owned life insurance | 43,027 | 42,155 |
Deferred tax assets | 9,029 | 9,252 |
Other real estate owned | 7,482 | 10,141 |
Accrued interest receivable and other assets | 25,411 | 21,433 |
Total Assets | 1,347,906 | 1,336,470 |
Liabilities: | ||
Non-interest bearing deposits | 264,317 | 252,049 |
Interest bearing deposits | 760,258 | 787,341 |
Total deposits | 1,024,575 | 1,039,390 |
Short-term borrowings | 86,805 | 48,845 |
Long-term borrowings | 100,929 | 120,929 |
Accrued interest payable and other liabilities | 20,016 | 18,916 |
Total Liabilities | 1,232,325 | 1,228,080 |
Shareholders' Equity: | ||
Common Stock - par value $.01 per share;Authorized 25,000 shares; issued and outstanding 7,084 shares at September 30, 2018 and 7,067 at December 31, 2017 | 71 | 71 |
Surplus | 31,815 | 31,553 |
Retained earnings | 107,733 | 101,359 |
Accumulated other comprehensive loss | (24,038) | (24,593) |
Total Shareholders' Equity | 115,581 | 108,390 |
Total Liabilities and Shareholders' Equity | $ 1,347,906 | $ 1,336,470 |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Consolidated Statements of Financial Condition [Abstract] | ||
Held-to-maturity securities, fair value | $ 91,896 | $ 95,346 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares, Issued | 7,084,000 | 7,067,000 |
Common Stock, Shares, Outstanding | 7,084,000 | 7,067,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income | ||||
Interest and fees on loans | $ 11,487 | $ 9,987 | $ 32,895 | $ 29,504 |
Interest on investment securities: Taxable | 1,459 | 1,410 | 4,380 | 4,153 |
Interest on investment securities: Exempt from federal income tax | 233 | 237 | 706 | 691 |
Total investment income | 1,692 | 1,647 | 5,086 | 4,844 |
Other | 85 | 274 | 369 | 578 |
Total interest income | 13,264 | 11,908 | 38,350 | 34,926 |
Interest expense | ||||
Interest on deposits | 1,072 | 841 | 2,856 | 2,418 |
Interest on short-term borrowings | 129 | 17 | 253 | 51 |
Interest on long-term borrowings | 807 | 948 | 2,535 | 3,057 |
Total interest expense | 2,008 | 1,806 | 5,644 | 5,526 |
Net interest income | 11,256 | 10,102 | 32,706 | 29,400 |
Provision for loan losses | 471 | 901 | 1,187 | 1,809 |
Net interest income after provision for loan losses | 10,785 | 9,201 | 31,519 | 27,591 |
Other operating income | ||||
Net gains - other | 9 | (11) | 190 | 3 |
Net gains | 9 | (11) | 190 | 3 |
Service charges | 814 | 802 | 2,374 | 2,310 |
Trust department | 1,705 | 1,579 | 5,010 | 4,629 |
Debit card income | 617 | 661 | 1,818 | 1,805 |
Bank owned life insurance | 288 | 294 | 872 | 894 |
Brokerage commissions | 277 | 236 | 828 | 662 |
Other | 96 | 100 | 306 | 331 |
Total other income | 3,797 | 3,672 | 11,208 | 10,631 |
Total other operating income | 3,806 | 3,661 | 11,398 | 10,634 |
Other operating expenses | ||||
Salaries and employee benefits | 6,270 | 5,686 | 18,308 | 16,478 |
FDIC premiums | 171 | 183 | 474 | 451 |
Equipment | 810 | 619 | 2,246 | 1,855 |
Occupancy | 657 | 643 | 1,909 | 1,862 |
Data processing | 1,001 | 919 | 2,844 | 2,644 |
Marketing | 153 | 137 | 386 | 407 |
Professional Services | 304 | 307 | 947 | 844 |
Contract labor | 185 | 128 | 522 | 534 |
Telephony Expense | 207 | 199 | 637 | 601 |
Other real estate owned | 189 | 93 | 682 | 305 |
Other | 1,142 | 1,125 | 3,450 | 3,387 |
Total other operating expenses | 11,089 | 10,039 | 32,405 | 29,368 |
Income before income tax expense | 3,502 | 2,823 | 10,512 | 8,857 |
Provision for income tax expense | 739 | 811 | 2,227 | 2,556 |
Net Income | 2,763 | 2,012 | 8,285 | 6,301 |
Accumulated preferred stock dividends | 0 | (225) | 0 | (990) |
Net Income Available to Common Shareholders | $ 2,763 | $ 1,787 | $ 8,285 | $ 5,311 |
Basic and diluted net income per common share | $ 0.39 | $ 0.25 | $ 1.17 | $ 0.77 |
Weighted average number of basic and diluted shares outstanding | 7,084 | 7,067 | 7,076 | 6,887 |
Dividends declared per common share | $ 0.09 | $ 0 | $ 0.27 | $ 0 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 2,763 | $ 2,012 | $ 8,285 | $ 6,301 |
Other comprehensive income, net of tax and reclassification adjustments: | ||||
Net unrealized gains on investments with OTTI | 261 | 212 | 1,851 | 244 |
Net unrealized (losses)/gains on all other AFS securities | (665) | (39) | (1,973) | 1,747 |
Net unrealized gains on HTM securities | 63 | 54 | 146 | 158 |
Net unrealized gains/(losses) on cash flow hedges | 112 | 4 | 663 | (94) |
Net unrealized (losses)/gains on pension | 575 | 184 | (219) | 380 |
Net unrealized gains on SERP | 29 | 22 | 87 | 65 |
Other comprehensive income, net of tax | 375 | 437 | 555 | 2,500 |
Comprehensive income | $ 3,138 | $ 2,449 | $ 8,840 | $ 8,801 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2016 | $ 20,000 | $ 63 | $ 22,178 | $ 92,922 | $ (21,465) | $ 113,698 |
Net income | 1,980 | 1,980 | ||||
Other comprehensive income | 505 | 505 | ||||
Stock based compensation | 37 | 37 | ||||
Common stock issued | 8 | 9,196 | 9,204 | |||
Preferred stock redemption | (10,000) | (10,000) | ||||
Preferred stock dividends paid | (540) | (540) | ||||
Balance at Mar. 31, 2017 | 10,000 | 71 | 31,411 | 94,362 | (20,960) | 114,884 |
Balance at Dec. 31, 2016 | 20,000 | 63 | 22,178 | 92,922 | (21,465) | 113,698 |
Net income | 6,301 | |||||
Other comprehensive income | 2,500 | |||||
Balance at Sep. 30, 2017 | 10,000 | 71 | 31,499 | 98,233 | (18,965) | 120,838 |
Balance at Dec. 31, 2016 | 20,000 | 63 | 22,178 | 92,922 | (21,465) | 113,698 |
Reclassification of certain tax effect | (4,383) | |||||
Balance at Dec. 31, 2017 | 0 | 71 | 31,553 | 101,359 | (24,593) | 108,390 |
Balance at Mar. 31, 2017 | 10,000 | 71 | 31,411 | 94,362 | (20,960) | 114,884 |
Net income | 2,309 | 2,309 | ||||
Other comprehensive income | 1,558 | 1,558 | ||||
Stock based compensation | 48 | 48 | ||||
Common stock issued | (13) | (13) | ||||
Preferred stock dividends paid | (225) | (225) | ||||
Balance at Jun. 30, 2017 | 10,000 | 71 | 31,446 | 96,446 | (19,402) | 118,561 |
Net income | 2,012 | 2,012 | ||||
Other comprehensive income | 437 | 437 | ||||
Stock based compensation | 53 | 53 | ||||
Preferred stock dividends paid | (225) | (225) | ||||
Balance at Sep. 30, 2017 | 10,000 | 71 | 31,499 | 98,233 | (18,965) | 120,838 |
Net income | (1,032) | (1,032) | ||||
Other comprehensive income | (1,245) | (1,245) | ||||
Stock based compensation | 54 | 54 | ||||
Preferred stock redemption | (10,000) | (10,000) | ||||
Reclassification of certain tax effect | 4,383 | (4,383) | ||||
Preferred stock dividends paid | (225) | (225) | ||||
Balance at Dec. 31, 2017 | 0 | 71 | 31,553 | 101,359 | (24,593) | 108,390 |
Net income | 2,506 | 2,506 | ||||
Other comprehensive income | 820 | 820 | ||||
Stock based compensation | 53 | 53 | ||||
Common stock dividend declared | (635) | (635) | ||||
Balance at Mar. 31, 2018 | 0 | 71 | 31,606 | 103,230 | (23,773) | 111,134 |
Balance at Dec. 31, 2017 | 0 | 71 | 31,553 | 101,359 | (24,593) | 108,390 |
Net income | 8,285 | |||||
Other comprehensive income | 555 | |||||
Balance at Sep. 30, 2018 | 0 | 71 | 31,815 | 107,733 | (24,038) | 115,581 |
Balance at Mar. 31, 2018 | 0 | 71 | 31,606 | 103,230 | (23,773) | 111,134 |
Net income | 3,016 | 3,016 | ||||
Other comprehensive income | (640) | (640) | ||||
Stock based compensation | 63 | 63 | ||||
Common stock issued | 40 | 40 | ||||
Common stock dividend declared | (639) | (639) | ||||
Balance at Jun. 30, 2018 | 0 | 71 | 31,709 | 105,607 | (24,413) | 112,974 |
Net income | 2,763 | 2,763 | ||||
Other comprehensive income | 375 | 375 | ||||
Stock based compensation | 67 | 67 | ||||
Common stock issued | 39 | 39 | ||||
Common stock dividend declared | (637) | (637) | ||||
Balance at Sep. 30, 2018 | $ 0 | $ 71 | $ 31,815 | $ 107,733 | $ (24,038) | $ 115,581 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities | ||
Net Income | $ 8,285 | $ 6,301 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,187 | 1,809 |
Depreciation | 1,748 | 1,397 |
Stock compensation | 183 | 138 |
Gains on sales of other real estate owned | (269) | (589) |
Write-downs of other real estate owned | 656 | 551 |
Originations of loans held for sale | (10,028) | (7,321) |
Proceeds from loans held for sale | 9,329 | 6,536 |
Gains from sale of loans held for sale | (74) | (48) |
Losses on disposal of fixed assets | 0 | 1 |
Net amortization of investment securities discounts and premiums- AFS | 36 | 130 |
Net amortization of investment securities discounts and premiums- HTM | 33 | 50 |
(Gains)/losses on sales/calls of investment securities - available-for-sale | (116) | 44 |
Amortization of deferred loan fees | (565) | (427) |
Increase in accrued interest receivable and other assets | (3,251) | (6,848) |
(Increase)/decrease in deferred tax benefit | 223 | 1,657 |
Increase in accrued interest payable and other liabilities | 1,100 | 698 |
Earnings on bank owned life insurance | (872) | (894) |
Net cash provided by operating activities | 7,605 | 3,185 |
Investing activities | ||
Proceeds from maturities/calls of investment securities available-for-sale | 9,118 | 16,034 |
Proceeds from maturities/calls of investment securities held-to-maturity | 4,760 | 5,332 |
Proceeds from sales of investment securities available-for-sale | 2,005 | 18,530 |
Purchases of investment securities available-for-sale | (3,390) | (40,596) |
Purchases of investment securities held-to-maturity | (4,887) | (4,188) |
Proceeds from sales of other real estate owned | 2,815 | 2,466 |
Proceeds from disposal of fixed assets | 0 | 8 |
Net (increase)/decrease in FHLB stock | (190) | 5 |
Net (increase)/decrease in loans | (46,415) | 1,010 |
Purchases of loans | (25,168) | 0 |
Purchases of premises and equipment | (7,761) | (4,509) |
Net cash used in investing activities | (69,113) | (5,908) |
Financing activities | ||
Net (decrease)/increase in deposits | (14,815) | 27,239 |
Preferred stock dividends paid | 0 | (990) |
Preferred stock redemption | 0 | (10,000) |
Proceeds from sale of common stock | 79 | 9,349 |
Rights Offering costs | 0 | (158) |
Cash dividends on common stock | (1,911) | 0 |
Net increase in short-term borrowings | 37,960 | 9,815 |
Net decrease in long-term borrowings | (20,000) | (10,808) |
Net cash provided by financing activities | 1,313 | 24,447 |
(Decrease)/increase in cash and cash equivalents | (60,195) | 21,724 |
Cash and cash equivalents at beginning of the year | 83,752 | 63,310 |
Cash and cash equivalents at end of period | 23,557 | 85,034 |
Supplemental information | ||
Interest paid | 5,549 | 5,474 |
Taxes paid | 445 | 175 |
Non-cash investing activities: | ||
Transfers from loans to other real estate owned | $ 543 | $ 1,299 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying unaudited consolidated financial statements of First United Corporation and its consolidated subsidiaries, including First United Bank & Trust (the “Bank”), have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 270, Interim Reporting , and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required for annual financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring items, have been included. Operating results for the nine- and three-month periods ended September 30, 2018 are not necessarily indicative of the results that may be expected for the full year or for any future interim period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in First United Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017. For purposes of comparability, certain prior period amounts have been reclassified to conform to the 2018 presentation. Such reclassifications had no impact on net income or equity. As used in these notes, the term “the Corporation” refers to First United Corporation and, unless the context clearly requires otherwise, its consolidated subsidiaries. The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2018 for items that should potentially be recognized or disclosed in these financial statements as prescribed by ASC Topic 855, Subsequent Events . |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | Note 2 – Earnings Per Common Share Basic earnings per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents. Diluted earnings per share is derived by dividing net income available to common shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents. No common stock equivalents were outstanding at September 30, 2018 or September 30, 2017. The following tables set forth the calculation of basic and diluted earnings per common share for the nine- and three-month periods ended September 30, 2018 and 2017: Nine months ended September 30, 2018 2017 Average Per Share Average Per Share (in thousands, except for per share amount) Income Shares Amount Income Shares Amount Basic and Diluted Earnings Per Share: Net income $ 8,285 $ 6,301 Preferred stock dividends 0 (990) Net income available to common shareholders $ 8,285 7,076 $ 1.17 $ 5,311 6,887 $ 0.77 Three months ended September 30, 2018 2017 Average Per Share Average Per Share (in thousands, except for per share amount) Income Shares Amount Income Shares Amount Basic and Diluted Earnings Per Share: Net income $ 2,763 $ 2,012 Preferred stock dividends 0 (225) Net income available to common shareholders $ 2,763 7,084 $ 0.39 $ 1,787 7,067 $ 0.25 |
Net Gains_(Losses)
Net Gains/(Losses) | 9 Months Ended |
Sep. 30, 2018 | |
Net Gains/(Losses) [Abstract] | |
Net Gains/(Losses) | Note 3 – Net Gains/(Losses) The following table summarizes the gain/(loss) activity for the nine- and three-month periods ended September 30, 2018 and 2017: Nine months ended Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Net gains/(losses): Available-for-sale securities: Realized gains $ 151 $ 52 $ 6 $ 0 Realized losses (35) (96) (16) (27) Gains on sale of consumer loans 74 48 19 16 Losses on disposal of fixed assets 0 (1) 0 0 Net gains/(losses): $ 190 $ 3 $ 9 $ (11) |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 4 – Cash and Cash Equivalents Cash and due from banks, which represents vault cash in the retail offices and invested cash balances at the Federal Reserve and other correspondent banks, is carried at cost which approximates fair value . September 30, December 31, (in thousands) 2018 2017 Cash and due from banks, weighted average interest rate of 0.67% (at September 30, 2018) $ 21,725 $ 82,273 Interest bearing deposits in banks, which represent funds invested at a correspondent bank, are carried at cost which approximates fair value and, as of September 30, 2018 and December 31, 2017, consisted of daily funds invested at the Federal Home Loan Bank (“FHLB”) of Atlanta and Merchants and Traders Bank (“M&T”). September 30, December 31, (in thousands) 2018 2017 FHLB daily investments, interest rate of 2.08% (at September 30, 2018) $ 816 $ 464 M&T daily investments, interest rate of 0.15% (at September 30, 2018) 1,016 1,015 $ 1,832 $ 1,479 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | Note 5 – Investments The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities . The amortized cost of debt securities classified as available-for-sale is adjusted for the amortization of premiums to the first call date, if applicable, or to maturity, and for the accretion of discounts to maturity, or, in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from investments. Interest and dividends are included in interest income from investments. Gains and losses on the sale of securities are recorded using the specific identification method. The following table shows a comparison of amortized cost and fair values of investment securities at September 30, 2018 and December 31, 2017: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCL September 30, 2018 Available for Sale: U.S. government agencies $ 30,000 $ 0 $ 1,435 $ 28,565 $ 0 Commercial mortgage-backed agencies 39,433 0 1,802 37,631 0 Collateralized mortgage obligations 37,900 0 1,778 36,122 0 Obligations of states and political subdivisions 20,228 118 587 19,759 0 Collateralized debt obligations 18,338 87 1,857 16,568 (853) Total available for sale $ 145,899 $ 205 $ 7,459 $ 138,645 $ (853) Held to Maturity: U.S. government agencies $ 15,982 $ 0 $ 160 $ 15,822 $ 0 Residential mortgage-backed agencies 47,776 7 1,899 45,884 0 Commercial mortgage-backed agencies 16,569 0 340 16,229 0 Collateralized mortgage obligations 3,769 0 260 3,509 0 Obligations of states and political subdivisions 9,630 971 149 10,452 0 Total held to maturity $ 93,726 $ 978 $ 2,808 $ 91,896 $ 0 December 31, 2017 Available for Sale: U.S. government agencies $ 30,000 $ 0 $ 744 $ 29,256 $ 0 Commercial mortgage-backed agencies 41,771 0 880 40,891 0 Collateralized mortgage obligations 41,298 2 916 40,384 0 Obligations of states and political subdivisions 20,772 365 118 21,019 0 Collateralized debt obligations 19,711 0 4,791 14,920 (3,389) Total available for sale $ 153,552 $ 367 $ 7,449 $ 146,470 $ (3,389) Held to Maturity: U.S. government agencies $ 15,876 $ 447 $ 0 $ 16,323 $ 0 Residential mortgage-backed agencies 47,771 94 423 47,442 0 Commercial mortgage-backed agencies 17,288 236 6 17,518 0 Collateralized mortgage obligations 4,187 0 69 4,118 0 Obligations of states and political subdivisions 8,510 1,443 8 9,945 0 Total held to maturity $ 93,632 $ 2,220 $ 506 $ 95,346 $ 0 Proceeds from sales/calls of available for sale securities and the realized gains and losses are as follows: Nine months ended Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Proceeds $ 2,005 $ 18,530 $ 2,005 $ 0 Realized gains 151 52 6 0 Realized losses 35 96 16 27 The following table shows the Corporation’s investment securities with gross unrealized losses and fair values at September 30, 2018 and December 31, 2017, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 Available for Sale: U.S. government agencies $ 0 $ 0 $ 28,565 $ 1,435 Commercial mortgage-backed agencies 0 0 37,631 1,802 Collateralized mortgage obligations 300 1 35,822 1,777 Obligations of states and political subdivisions 10,019 344 4,842 243 Collateralized debt obligations 0 0 10,089 1,857 Total available for sale $ 10,319 $ 345 $ 116,949 $ 7,114 Held to Maturity: U.S. government agencies $ 15,822 $ 160 $ 0 $ 0 Residential mortgage-backed agencies 23,860 741 21,864 1,158 Commercial mortgage-backed agencies 16,229 340 0 0 Collateralized mortgage obligations 0 0 3,509 260 Obligations of states and political subdivisions 2,146 149 0 0 Total held to maturity $ 58,057 $ 1,390 $ 25,373 $ 1,418 December 31, 2017 Available for Sale: U.S. government agencies $ 4,931 $ 69 $ 24,325 $ 675 Commercial mortgage-backed agencies 12,593 169 28,298 711 Collateralized mortgage obligations 27,387 472 12,447 443 Obligations of states and political subdivisions 2,683 44 2,747 75 Collateralized debt obligations 0 0 14,920 4,791 Total available for sale $ 47,594 $ 754 $ 82,737 $ 6,695 Held to Maturity: Residential mortgage-backed agencies $ 15,897 $ 135 $ 10,422 $ 288 Commercial mortgage-backed agencies 9,028 6 0 0 Collateralized mortgage obligations 0 0 4,118 69 Obligations of states and political subdivisions 2,377 8 0 0 Total held to maturity $ 27,302 $ 149 $ 14,540 $ 357 Management systematically evaluates securities for impairment on a quarterly basis. Based upon application of accounting guidance for subsequent measurement in ASC Topic 320 (ASC Section 320-10-35), management assesses whether (a) the Corporation has the intent to sell a security being evaluated and (b) it is more likely than not that the Corporation will be required to sell the security prior to its anticipated recovery. If neither applies, then declines in the fair values of securities below their cost that are considered other-than-temporary declines are split into two components. The first is the loss attributable to declining credit quality. Credit losses are recognized in earnings as realized losses in the period in which the impairment determination is made. The second component consists of all other losses, which are recognized in other comprehensive loss. In estimating other than temporary impairment (“OTTI”) losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) adverse conditions specifically related to the security, an industry, or a geographic area, (3) the historic and implied volatility of the fair value of the security, (4) changes in the rating of the security by a rating agency, (5) recoveries or additional declines in fair value subsequent to the balance sheet date, (6) failure of the issuer of the security to make scheduled interest or principal payments, and (7) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future. Management also monitors cash flow projections for securities that are considered beneficial interests under the guidance of ASC Subtopic 325-40, Investments – Other – Beneficial Interests in Securitized Financial Assets , (ASC Section 325-40-35). Further discussion about the evaluation of securities for impairment can be found in Item 2 of Part I of this report under the heading “ Investment Securities ”. Management believes that the valuation of certain securities is a critical accounting policy that requires significant estimates in preparation of the Corporation’s consolidated financial statements. Management utilizes an independent third party to prepare both the impairment valuations and fair value determinations for the Corporation’s collateralized debt obligation (“CDO”) portfolio consisting of pooled trust preferred securities. Based on management’s review of the assumptions and results of the third-party review, it believes that the valuations are adequate at September 30, 2018. U.S. Government Agencies – Available for Sale – There were no U.S. government agency investments in an unrealized loss position for less than 12 months as of September 30, 2018. There were five U.S. government agency investments in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of investment grade and the Corporation does not intend to sell them, and it is not more than likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Commercial Mortgage-Backed Agencies – Available for Sale – There were no commercial mortgage-backed agencies in an unrealized loss position for less than 12 months as of September 30, 2018. There were eight commercial mortgage-backed agencies in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Collateralized Mortgage Obligations – Available for Sale – There was one collateralized mortgage obligation in an unrealized loss position for less than 12 months as of September 30, 2018. There were eight collateralized mortgage obligations in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Obligations of State and Political Subdivisions – Available for Sale – There were 11 obligations of state and political subdivisions that have been in an unrealized loss position for less than 12 months and three securities that have been in an unrealized loss position for 12 months or more at September 30, 2018. These investments are of investment grade as determined by the major rating agencies and management reviews the ratings of the underlying issuers and performs an in-depth credit analysis on the securities. Management believes that this portfolio is well-diversified throughout the United States, and all bonds continue to perform according to their contractual terms. The Corporation does not intend to sell these investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Collateralized Debt Obligations – Available for Sale - The $ 1.9 million in unrealized losses recorded with respect to the CDOs that had been in an unrealized loss position for 12 months or more as of September 30, 2018 relates to five pooled trust preferred securities. See Note 9 for a discussion of the methodology used by management to determine the fair values of these securities. Based upon a review of credit quality and the cash flow tests performed by the independent third party, management determined that there were no securities that had credit-related non-cash OTTI charges during the first nine months of 2018. At September 30, 2018, four of the CDO securities were in an unrealized gain position. U.S. Government Agencies – Held to Maturity – There were two U.S. government agencies in an unrealized loss position for less than 12 months as of September 30, 2018. There were no U.S. government agency investments in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of investment grade and the Corporation does not intend to sell them, and it is not more than likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Residential Mortgage-Backed Agencies – Held to Maturity – There were thirteen residential mortgage-backed agencies in an unrealized loss position for less than 12 months as of September 30, 2018. There were eighteen residential mortgage-backed agency investments in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. Commercial Mortgage-Backed Agencies – Held to Maturity - There were four commercial mortgage-backed agency investments in an unrealized loss position for less than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. There were no commercial mortgage-backed agencies in a loss position for more than 12 months as of September 30, 2018. Collateralized Mortgage Obligations – Held to Maturity – There were no collateralized mortgage obligations in an unrealized loss position for less than 12 months as of September 30, 2018. There was one collateralized mortgage obligation in a loss position for more than 12 months as of September 30, 2018. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at September 30, 2018. Obligations of State and Political Subdivisions – Held to Maturity –There was one obligation of state and political subdivisions that has been in an unrealized loss for less than 12 months as of September 30, 2018. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at September 30, 2018. There were no obligations of state and political subdivisions securities in an unrealized loss position for more than 12 months as of September 30, 2018. The following tables present a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses which have been recognized in earnings for the trust preferred securities in the CDO portfolio held and not intended to be sold for the nine- and three-month periods ended September 30, 2018 and 2017: Nine months ended September 30, (in thousands) 2018 2017 Balance of credit-related OTTI at January 1 $ 2,958 $ 3,124 Reduction for increases in cash flows expected to be collected (160) (112) Balance of credit-related OTTI at September 30 $ 2,798 $ 3,012 Three months ended September 30, (in thousands) 2018 2017 Balance of credit-related OTTI at July 1 $ 2,851 $ 3,067 Reduction for increases in cash flows expected to be collected (53) (55) Balance of credit-related OTTI at September 30 $ 2,798 $ 3,012 The amortized cost and estimated fair value of securities by contractual maturity at September 30, 2018 are shown in the following table. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 (in thousands) Amortized Cost Fair Value Contractual Maturity Available for sale: Due in one year or less $ 231 $ 234 Due after one year through five years 16,083 15,629 Due after five years through ten years 22,840 21,676 Due after ten years 29,412 27,353 68,566 64,892 Commercial mortgage-backed agencies 39,433 37,631 Collateralized mortgage obligations 37,900 36,122 Total available for sale $ 145,899 $ 138,645 Held to Maturity: Due after five years through ten years $ 15,982 $ 15,822 Due after ten years 9,630 10,452 25,612 26,274 Residential mortgage-backed agencies 47,776 45,884 Commercial mortgage-backed agencies 16,569 16,229 Collateralized mortgage obligations 3,769 3,509 Total held to maturity $ 93,726 $ 91,896 |
Restricted Investment in Bank S
Restricted Investment in Bank Stock | 9 Months Ended |
Sep. 30, 2018 | |
Restricted Investment in Bank Stock [Abstract] | |
Restricted Investment in Bank Stock | Note 6 - Restricted Investment in Bank Stock Restricted stock, which represents required investments in the common stock of the FHLB of Atlanta, Atlantic Community Bankers Bank (“ACBB”) and Community Bankers Bank (“CBB”), is carried at cost and is considered a long-term investment . Management evaluates the restricted stock for impairment in accordance with ASC Topic 942, Financial Services – Depository and Lending- (ASC Section 942-325-35). Management’s evaluation of potential impairment is based on management’s a ssessment of the ultimate recoverability of the cost of the restricted stock rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability is influenced by criteria such as (a) the significance of the decline in net assets of the issuing bank as compared to the capital stock amount for that bank and the length of time this situation has persisted, (b) commitments by the issuing bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of that bank, and (c) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuing bank. Management has evaluated the restricted stock for impairment and believes that no impairment charge is necessary as of September 30, 2018. The Corporation recognizes dividends received on its restricted stock investments on a cash basis. For the nine months ended September 30, 2018, dividends of $207,791 were recognized in earnings. For the comparable period of 2017, dividends of $188,126 were recognized in earnings. For the three months ended September 30, 2018, dividends of $72,448 were recogniz ed in earnings. For the comparable period of 2017, dividends of $61,637 were recognized in earnings. |
Loans and Related Allowance for
Loans and Related Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Loans and Related Allowance for Loan Losses | Note 7 – Loans and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio at September 30, 2018 and December 31, 2017: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Total September 30, 2018 Individually evaluated for impairment $ 5,801 $ 658 $ 17 $ 4,121 $ 21 $ 10,618 Collectively evaluated for impairment $ 286,993 $ 113,031 $ 98,493 $ 421,348 $ 33,577 $ 953,442 Total loans $ 292,794 $ 113,689 $ 98,510 $ 425,469 $ 33,598 $ 964,060 December 31, 2017 Individually evaluated for impairment $ 9,076 $ 976 $ 668 $ 4,201 $ 30 $ 14,951 Collectively evaluated for impairment $ 274,086 $ 109,554 $ 76,055 $ 394,447 $ 23,425 $ 877,567 Total loans $ 283,162 $ 110,530 $ 76,723 $ 398,648 $ 23,455 $ 892,518 The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The commercial real estate (“CRE”) loan segment is then segregated into two classes. Non-owner occupied CRE loans, which include loans secured by non-owner occupied, non-farm, and nonresidential properties, generally have a greater risk profile than all other CRE loans, which include loans secured by farmland, multifamily structures and owner-occupied commercial structures. The acquisition and development (“A&D”) loan segment is segregated into two classes. One-to-four family residential construction loans are generally made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. All other A&D loans are generally made to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures. A&D loans have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the loan is made. The commercial and industrial (“C&I”) loan segment consists of loans made for the purpose of financing the activities of commercial customers. The residential mortgage loan segment is segregated into two classes: amortizing term loans, which are primarily first lien loans and home equity lines of credit, which are generally second liens. The consumer loan segment consists primarily of installment loans (direct and indirect) and overdraft lines of credit connected with customer deposit accounts. Management uses a 10-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. The portion of a specific allocation of the allowance for loan losses that management believes is associated with a pending event that could trigger loss in the short-term will be classified in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in the commercial segments at origination and on an ongoing basis. The Bank’s experienced Credit Quality and Loan Review Departments perform an annual review of all commercial relationships of $500,000 or greater. Confirmation of the appropriate risk grade is included as part of the review process on an ongoing basis. The Credit Quality and Loan Review Departments continually review and assess loans within the portfolio. In addition, the Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews commercial relationships greater than $1,000,000 and/or criticized non-consumer loans greater than $500,000 . Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard within the internal risk rating system at September 30, 2018 and December 31, 2017: (in thousands) Pass Special Mention Substandard Total September 30, 2018 Commercial real estate Non owner-occupied $ 136,244 $ 2,938 $ 2,818 $ 142,000 All other CRE 143,329 1,768 5,697 150,794 Acquisition and development 1-4 family residential construction 21,048 0 0 21,048 All other A&D 84,704 7,378 559 92,641 Commercial and industrial 94,024 3,871 615 98,510 Residential mortgage Residential mortgage - term 348,112 0 4,675 352,787 Residential mortgage - home equity 71,445 144 1,093 72,682 Consumer 33,469 4 125 33,598 Total $ 932,375 $ 16,103 $ 15,582 $ 964,060 December 31, 2017 Commercial real estate Non owner-occupied $ 133,725 $ 0 $ 5,843 $ 139,568 All other CRE 133,905 2,061 7,628 143,594 Acquisition and development 1-4 family residential construction 17,719 0 0 17,719 All other A&D 84,345 7,294 1,172 92,811 Commercial and industrial 75,299 17 1,407 76,723 Residential mortgage Residential mortgage - term 319,059 0 5,326 324,385 Residential mortgage - home equity 73,059 148 1,056 74,263 Consumer 23,391 5 59 23,455 Total $ 860,502 $ 9,525 $ 22,491 $ 892,518 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan is considered to be past due when a payment remains unpaid 30 days past its contractual due date. For all loan segments, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. All non-accrual loans are considered to be impaired. Interest payments received on non-accrual loans are applied as a reduction of the loan principal balance. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at September 30, 2018 and December 31, 2017: (in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days+ Past Due Total Past Due and Accruing Non-Accrual Total Loans September 30, 2018 Commercial real estate Non owner-occupied $ 141,374 $ 17 $ 0 $ 0 $ 17 $ 609 $ 142,000 All other CRE 148,713 31 0 0 31 2,050 150,794 Acquisition and development 1-4 family residential construction 21,048 0 0 0 0 0 21,048 All other A&D 92,450 0 0 151 151 40 92,641 Commercial and industrial 98,380 129 0 1 130 0 98,510 Residential mortgage Residential mortgage - term 348,861 467 1,498 390 2,355 1,571 352,787 Residential mortgage - home equity 71,524 427 197 0 624 534 72,682 Consumer 33,369 150 42 17 209 20 33,598 Total $ 955,719 $ 1,221 $ 1,737 $ 559 $ 3,517 $ 4,824 $ 964,060 December 31, 2017 Commercial real estate Non owner-occupied $ 136,134 $ 186 $ 0 $ 0 $ 186 $ 3,248 $ 139,568 All other CRE 141,680 461 248 0 709 1,205 143,594 Acquisition and development 1-4 family residential construction 17,719 0 0 0 0 0 17,719 All other A&D 92,291 0 165 144 309 211 92,811 Commercial and industrial 76,322 0 17 6 23 378 76,723 Residential mortgage Residential mortgage - term 319,633 322 2,534 430 3,286 1,466 324,385 Residential mortgage - home equity 72,683 600 400 0 1,000 580 74,263 Consumer 23,273 115 22 15 152 30 23,455 Total $ 879,735 $ 1,684 $ 3,386 $ 595 $ 5,665 $ 7,118 $ 892,518 Non-accrual loans totaled $ 4.8 million at September 30, 2018, compared to $ 7.1 million at December 31, 2017. The decrease in non-accrual balances at September 30, 2018 was primarily due to payoffs of two relationships totaling $2.5 million and a charge-off of $.8 million on one relationship, offset by the addition of one large commercial real estate credit of $1.9 million. Non-accrual loans that have been subject to partial charge-offs totaled $.8 million at September 30, 2018, compared to $ 2.1 million at December 31, 2017 . Loans secured by 1-4 family residential real estate properties in the process of foreclosure were $.4 million at September 30, 2018 and December 31, 2017. Accruing loans past due 30 days or more decreased to .36% of the loan portfolio at September 30, 2018, compared to .63 % at December 31, 2017. The decrease for the first nine months of 2018 was due primarily to improvements in the commercial real estate and residential mortgage portfolios. An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35, Receivables-Overall-Subsequent Measurement , for loans individually evaluated for impairment and ASC Subtopic 450-20, Contingencies - Loss Contingencies , for loans collectively evaluated for impairment, as well as the Interagency Policy Statement on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the allocated portion of the Bank’s ALL. In the second quarter of 2015, management determined that it would be prudent to establish an unallocated portion of the ALL to protect the Bank from other risks associated with the loan portfolio that may not be specifically identifiable. The following table summarizes the primary segments of the ALL at September 30, 2018 and December 31, 2017, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total September 30, 2018 Individually evaluated for impairment $ 170 $ 26 $ 0 $ 116 $ 3 $ 0 $ 315 Collectively evaluated for impairment $ 2,643 $ 1,469 $ 1,001 $ 4,102 $ 293 $ 500 $ 10,008 Total ALL $ 2,813 $ 1,495 $ 1,001 $ 4,218 $ 296 $ 500 $ 10,323 December 31, 2017 Individually evaluated for impairment $ 245 $ 40 $ 0 $ 65 $ 12 $ 0 $ 362 Collectively evaluated for impairment $ 3,454 $ 1,217 $ 869 $ 3,379 $ 191 $ 500 $ 9,610 Total ALL $ 3,699 $ 1,257 $ 869 $ 3,444 $ 203 $ 500 $ 9,972 Management uses the following methodology for determining impairment on consumer and commercial loans. All nonaccrual loans and all loans designated as troubled debt restructurings (“TDRs”) are considered to be impaired. Additionally, an impairment evaluation is performed on any account that meets either of the following criteria: (a) commercial loans that (1) are risk-rated substandard and (2) have a balance of at least $500,000; and (b) commercial loans that are (1) part of a relationship having an amount of $750,000 or more and (2) at least 60 days past-due. For those loans that are not classified as nonaccrual or troubled debt restructures, a judgment is made as to the likelihood that contractual principal and interest will be collected. Loans are considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. 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. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. A valuation grid for impaired loans is used to determine when or how collateral values are to be updated based on size and collateral dependency for commercial loans and foreclosure status for consumer loans. If an updated appraisal has not been received and reviewed in time for the determination of estimated fair value at quarter (or year) end, or if the appraisal is found to be deficient following the Corporation’s internal appraisal review process and re-ordered, then the estimated fair value of the collateral is determined by adjusting the existing appraisal by the appropriate percentage from an internally prepared appraisal discount grid. This grid considers the age of a third-party appraisal and the geographic region where the collateral is located. The discount rates in the appraisal discount grid are updated periodically to reflect the most current knowledge that management has available, including the results of current appraisals. A specific allocation of the ALL is recorded if there is any deficiency in collateral value determined by comparing the estimated fair value to the recorded investment of the loan. When updated appraisals are received and reviewed, adjustments are made to the specific allocation as needed. The evaluation of the need and amount of a specific allocation of the ALL and whether a loan can be removed from impairment status is made on a quarterly basis. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at September 30, 2018 and December 31, 2017: Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (in thousands) Recorded Investment Related Allowances Recorded Investment Recorded Investment Unpaid Principal Balance September 30, 2018 Commercial real estate Non owner-occupied $ 685 $ 170 $ 46 $ 731 $ 8,516 All other CRE 0 0 5,070 5,070 5,070 Acquisition and development 1-4 family residential construction 0 0 387 387 387 All other A&D 231 27 40 271 353 Commercial and industrial 0 0 17 17 2,231 Residential mortgage Residential mortgage - term 1,101 115 2,486 3,587 3,820 Residential mortgage – home equity 0 0 534 534 547 Consumer 10 3 11 21 21 Total impaired loans $ 2,027 $ 315 $ 8,591 $ 10,618 $ 20,945 December 31, 2017 Commercial real estate Non owner-occupied $ 1,711 $ 245 $ 1,907 $ 3,618 $ 10,579 All other CRE 0 0 5,458 5,458 5,731 Acquisition and development 1-4 family residential construction 0 0 527 527 527 All other A&D 295 40 154 449 722 Commercial and industrial 0 0 668 668 2,882 Residential mortgage Residential mortgage - term 598 65 3,023 3,621 3,919 Residential mortgage – home equity 0 0 580 580 593 Consumer 30 12 0 30 30 Total impaired loans $ 2,634 $ 362 $ 12,317 $ 14,951 $ 24,983 Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. The classes described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity (full and partial charge-offs, net of full and partial recoveries) at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. Consumer pools currently utilize a rolling 12 quarters, while Commercial pools currently utilize a rolling eight quarters. “Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. “Pass” pools for commercial and residential real estate are further segmented based upon the geographic location of the underlying collateral. There are seven geographic regions utilized – six that represent the Bank’s lending footprint and a seventh for all out-of-market credits. Different economic environments and resultant credit risks exist in each region that are acknowledged in the assignment of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management supplements the historical charge-off factor with a number of additional qualitative factors that are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors, which are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources, are: (a) national and local economic trends and conditions; (b) levels of and trends in delinquency rates and non-accrual loans; (c) trends in volumes and terms of loans; (d) effects of changes in lending policies; (e) experience, ability, and depth of lending staff; (f) value of underlying collateral; and (g) concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Residential mortgage and consumer loans are charged off after they are 120 days contractually past due. All other loans are charged off based on an evaluation of the facts and circumstances of each individual loan. When the Bank believes that its ability to collect is solely dependent on the liquidation of the collateral, a full or partial charge-off is recorded promptly to bring the recorded investment to an amount that the Bank believes is supported by an ability to collect on the collateral. The circumstances that may impact the Bank’s decision to charge-off all or a portion of a loan include default or non-payment by the borrower, scheduled foreclosure actions, and/or prioritization of the Bank’s claim in bankruptcy. There may be circumstances where, due to pending events, the Bank will place a specific allocation of the ALL on a loan for which a partial charge-off has been previously recognized. This specific allocation may be either charged off or removed depending upon the outcome of the pending event. Full or partial charge-offs are not recovered until full principal and interest on the loan have been collected, even if a subsequent appraisal supports a higher value. Loans with partial charge-offs generally remain in non-accrual status. Both full and partial charge-offs reduce the recorded investment of the loan and the ALL and are considered to be charge-offs for purposes of all credit loss metrics and trends, including the historical rolling charge-off rates used in the determination of the ALL. The following tables present the activity in the ALL for the nine- and three-month periods ended September 30, 2018 and 2017: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at January 1, 2018 $ 3,699 $ 1,257 $ 869 $ 3,444 $ 203 $ 500 $ 9,972 Charge-offs (889) (98) (32) (353) (297) 0 (1,669) Recoveries 60 290 44 323 116 0 833 Provision (57) 46 120 804 274 0 1,187 ALL balance at September 30, 2018 $ 2,813 $ 1,495 $ 1,001 $ 4,218 $ 296 $ 500 $ 10,323 ALL balance at January 1, 2017 $ 3,913 $ 871 $ 858 $ 3,588 $ 188 $ 500 $ 9,918 Charge-offs (2,798) (79) (37) (252) (254) 0 (3,420) Recoveries 68 230 1,666 299 185 0 2,448 Provision 3,354 162 (1,683) (101) 77 0 1,809 ALL balance at September 30, 2017 $ 4,537 $ 1,184 $ 804 $ 3,534 $ 196 $ 500 $ 10,755 (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at July 1, 2018 $ 3,303 $ 1,172 $ 786 $ 3,744 $ 264 $ 500 $ 9,769 Charge-offs 0 0 (22) (113) (122) 0 (257) Recoveries 0 32 13 258 37 0 340 Provision (490) 291 224 329 117 0 471 ALL balance at September 30, 2018 $ 2,813 $ 1,495 $ 1,001 $ 4,218 $ 296 $ 500 $ 10,323 ALL balance at July 1, 2017 $ 3,649 $ 1,200 $ 836 $ 3,545 $ 192 $ 500 $ 9,922 Charge-offs (53) (61) (4) (16) (111) 0 (245) Recoveries 5 42 15 46 69 0 177 Provision 936 3 (43) (41) 46 0 901 ALL balance at September 30, 2017 $ 4,537 $ 1,184 $ 804 $ 3,534 $ 196 $ 500 $ 10,755 The ALL is based on estimates, and actual losses may vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. The following table presents the average recorded investment in impaired loans by class and related interest income recognized for the periods indicated: Nine months ended Nine months ended September 30, 2018 September 30, 2017 (in thousands) Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Commercial real estate Non owner-occupied $ 1,716 $ 9 $ 66 $ 6,255 $ 18 $ 0 All other CRE 5,495 153 56 8,314 157 0 Acquisition and development 1-4 family residential construction 475 18 0 582 18 0 All other A&D 350 9 0 1,851 68 0 Commercial and industrial 327 13 0 393 9 0 Residential mortgage Residential mortgage - term 3,566 92 2 3,836 98 8 Residential mortgage – home equity 585 0 7 236 0 0 Consumer 25 0 0 0 0 0 Total $ 12,539 $ 294 $ 131 $ 21,467 $ 368 $ 8 Three months ended Three months ended September 30, 2018 September 30, 2017 (in thousands) Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Commercial real estate Non owner-occupied $ 772 $ 2 $ 0 $ 6,144 $ 6 $ 0 All other CRE 5,848 54 0 7,308 52 0 Acquisition and development 1-4 family residential construction 422 6 0 582 6 0 All other A&D 274 3 0 1,812 23 0 Commercial and industrial 161 3 0 496 3 0 Residential mortgage Residential mortgage - term 3,537 30 2 3,654 32 1 Residential mortgage – home equity 544 0 0 249 0 0 Consumer 22 0 0 0 0 0 Total $ 11,580 $ 98 $ 2 $ 20,245 $ 122 $ 1 The Bank modifies loan terms in the normal course of business. Among other reasons, modifications might be made in an effort to retain the loan relationship, to remain competitive in the current interest rate environment and/or to re-amortize or extend the loan’s term to better match the loan’s payment stream with the borrower’s cash flow. A modified loan is considered to be a TDR when the Bank has determined that the borrower is troubled (i.e., experiencing financial difficulties). The Bank evaluates the probability that the borrower will be in payment default on any of its debt obligations in the foreseeable future without modification. To make this determination, the Bank performs a global financial review of the borrower and loan guarantors to assess their current ability to meet their financial obligations. When the Bank restructures a loan to a troubled borrower, the loan terms (i.e., interest rate, payment amount, amortization period, and/or maturity date) are modified in such a way as to enable the borrower to cover the modified debt service payments based on current financials and cash flow adequacy. If a borrower’s hardship is thought to be temporary, then modified terms are offered only for that time period. Where possible, the Bank obtains additional collateral and/or secondary payment sources at the time the loan is restructured in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms. To date, the Bank has not forgiven any principal as a restructuring concession. The Bank will not offer modified terms if it believes that modifying the loan terms will only delay an inevitable permanent default. All loans designated as TDRs are considered impaired loans and may be in either accruing or non-accruing status. The Bank’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Accordingly, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. If the loan was accruing at the time of the modification, then it continues to be in accruing status subsequent to the modification. Non-accrual TDRs may return to accruing status when there has been sufficient payment performance for a period of at least six months. TDRs are considered to be in payment default if, subsequent to modification, the loans are transferred to non-accrual status or to foreclosure. Loans may be removed from being reported as a TDR in the calendar year following the modification if the interest rate at the time of modification was consistent with the interest rate for a loan with comparable credit risk and the loan has performed according to its modified terms for at least six months. The volume and type of TDR activity is considered in the assessment of the local economic trends’ qualitative factor used in the determination of the ALL for loans that are evaluated collectively for impairment. There were 16 loans totaling $5.0 million and 19 loans totaling $6.0 million that were classified as TDRs at September 30, 2018 and December 31, 2017, respectively. The following tables present the volume and recorded investment at that time of modification of TDRs by class and type of modification that occurred during the periods indicated: Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Nine months ended September 30, 2018 Commercial real estate Non owner-occupied 0 $ 0 0 $ 0 1 $ 126 All other CRE 0 0 1 179 0 0 Acquisition and development 1-4 family residential construction 0 0 1 387 0 0 All other A&D 0 0 0 0 0 0 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 0 0 0 0 0 0 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 0 $ 0 2 $ 566 1 $ 126 Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Nine months ended September 30, 2017 Commercial real estate Non owner-occupied 0 $ 0 0 $ 0 0 $ 0 All other CRE 0 0 0 0 0 0 Acquisition and development 1-4 family residential construction 0 0 0 0 0 0 All other A&D 0 0 1 244 0 0 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 0 0 1 259 1 439 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 0 $ 0 2 $ 503 1 $ 439 During the nine months ended September 30, 2018, there were no new TDRs but three existing TDR s that had reached their original modification maturity dates w ere re-modified. This re-modification did not impact the ALL. During the nine months ended September 30, 2018, there were no payment defaults. During the nine months ended September 30, 2017, there were no new TDRs but three existing TDRs that had reached their original modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the nine months ended September 30, 2017, there were no payment defaults. The following tables present the volume and recorded investment at that time of modification of TDRs by class and type of modification that occurred during the periods indicated: Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Three months ended September 30, 2018 Commercial real estate Non owner-occupied 0 $ 0 0 $ 0 0 $ 0 All other CRE 0 0 0 0 0 0 Acquisition and development 1-4 family residential construction 0 0 1 387 0 0 All other A&D 0 0 0 0 0 0 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 0 0 0 0 0 0 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 0 $ 0 1 $ 387 0 $ 0 Temporary Rate Modification of Payment Modification Extension of Maturity and Other Terms Number of Recorded Number of Recorded Number of Recorded (in thousands) Contracts Investment Contracts Investment Contracts Investment Three Months Ended September 30, 2017 Commercial real estate Non owner-occupied 0 $ 0 0 $ 0 0 $ 0 All other CRE 0 0 0 0 0 0 Acquisition and development 1-4 family residential construction 0 0 0 0 0 0 All other A&D 0 0 0 0 0 0 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 0 0 0 0 1 439 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 0 $ 0 0 $ 0 1 $ 439 During the three months ended September 30, 2018 , there were no new TDRs but one existing TDR that had reached its original modification maturity was remodified. This re-modification did not impact the ALL. During the third quarter of 2018, there were no payment defaults. During the three months ended September 30, 2017, there were no new TDR, but one existing TDR that had reached its original modification maturity date was re-modified. During the three months ended September 30, 2017, there were no payment defaults. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2018 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 8 - Other Real Estate Owned The following table presents the components of other real estate owned (“OREO”) at September 30, 2018 and December 31, 2017: (in thousands) September 30, 2018 December 31, 2017 Commercial real estate $ 2,993 $ 3,605 Acquisition and development 3,620 5,295 Commercial and industrial 24 24 Residential mortgage 845 1,217 Total OREO $ 7,482 $ 10,141 The following table presents the activity in the OREO valuation allowance for the nine- and three-month periods ended September 30, 2018 and 2017: For the Nine months Ended For the Three months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Balance beginning of period $ 2,740 $ 3,535 $ 2,947 $ 3,232 Fair value write-down 656 551 179 458 Sales of OREO (651) (1,005) (381) (609) Balance at end of period $ 2,745 $ 3,081 $ 2,745 $ 3,081 The following table presents the components of OREO expenses, net, for the nine- and three-month periods ended September 30, 2018 and 2017: For the Nine months Ended For the Three months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Gains on real estate, net $ (269) $ (589) $ (86) $ (515) Fair value write-down, net 656 551 179 458 Expenses, net 396 492 123 213 Rental and other income (101) (149) (27) (63) Total OREO expense, net $ 682 $ 305 $ 189 $ 93 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 9 – Fair Value of Financial Instruments The Corporation complies with the guidance of ASC Topic 820, Fair Value Measurements and Disclosures , which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements required under other accounting pronouncements . The Corporation also follows the guidance on matters relating to all financial instruments found in ASC Subtopic 825-10, Financial Instruments – Overall . Fair value is defined as the price to sell an asset or to transfer a liability in an orderly transaction between willing market participants as of the measurement date. Fair value is best determined by values quoted through active trading markets. Active trading markets are characterized by numerous transactions of similar financial instruments between willing buyers and willing sellers. Because no active trading market exists for various types of financial instruments, many of the fair values disclosed were derived using present value discounted cash flows or other valuation techniques described below. As a result, the Corporation’s ability to actually realize these derived values cannot be assumed. T he Corporation measures fair values based on the fair value hierarchy established in ASC Paragraph 820-10-35-37. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs that may be used to measure fair value under the hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. This level is the most reliable source of valuation. Level 2: Quoted prices that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). It also includes inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Several sources are utilized for valuing these assets, including a contracted valuation service, Standard & Poor’s (“S&P”) evaluations and pricing services, and other valuation matrices. Level 3: Prices or valuation techniques that require inputs that are both significant to the valuation assumptions and not readily observable in the market (i.e. supported with little or no market activity). Level 3 instruments are valued based on the best available data, some of which is internally developed, and consider risk premiums that a market participant would require. The level established within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers in and out of Level 1, 2 or 3 are recorded at fair value at the beginning of the reporting period. Management believes that the Corporation’s valuation techniques are appropriate and consistent with the techniques used by other market participants. However, the use of different methodologies and assumptions could result in a different estimate of fair values at the reporting date. T he valuation techniques used by the Corporation to measure, on a recurring and non-recurring basis, the fair value of assets as of September 30, 2018 are discussed in the paragraphs that follow. Investments – The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities . The fair value of investments is determined using a market approach. As of September 30, 2018, the U.S. Government agencies, residential and commercial mortgage-backed securities, collateralized mortgage obligations, and state and political subdivisions bonds, excluding the TIF bonds, segments are classified as Level 2 within the valuation hierarchy. Their fair values were determined based upon market-corroborated inputs and valuation matrices, which were obtained through third party data service providers or securities brokers through which the Corporation has historically transacted both purchases and sales of investment securities. The TIF bonds are classified as Level 3 within the valuation hierarchy as they are not openly traded. The CDO segment, which consists of pooled trust preferred securities issued by banks, thrifts and insurance companies, is classified as Level 3 within the valuation hierarchy. At September 30, 2018, the Corporation owned nine pooled trust preferred securities with an amortized cost of $18.3 million and a fair value of $16.6 million. As of September 30, 2018, the market for these securities is not active and the markets for similar securities are also not active. The inactivity was evidenced first by a significant widening of the bid-ask spread in the brokered markets in which these securities trade and then by a significant decrease in the volume of trades relative to historical levels. The new issue market is also inactive, as few CDOs have been issued since 2007. There are currently very few market participants who are willing to effect transactions in these securities. The market values for these securities or any securities other than those issued or guaranteed by the U.S. Department of the Treasury (the “Treasury”) are depressed relative to historical levels. Therefore, in the current market, a low market price for a particular bond may only provide evidence of stress in the credit markets in general rather than being an indicator of credit problems with a particular issue. Given the conditions in the current debt markets and the absence of observable transactions in the secondary and new issue markets, management has determined that (a) the few observable transactions and market quotations that are available are not reliable for the purpose of obtaining fair value at September 30, 2018, (b) an income valuation approach technique (i.e. present value) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than a market approach, and (c) the CDO segment is appropriately classified within Level 3 of the valuation hierarchy because management determined that significant adjustments were required to determine fair value at the measurement date. Management relies on an independent third party to prepare both the evaluations of OTTI as well as the fair value determinations for its CDO portfolio. Management believes that the valuations are adequately reflected at September 30, 2018. The approach used by the third party to determine fair value involved several steps, which included detailed credit and structural evaluation of each piece of collateral in each bond, projection of default, recovery and prepayment/amortization probabilities for each piece of collateral in the bond, and discounted cash flow modeling. The discount rate methodology used by the third party combines a baseline current market yield for comparable corporate and structured credit products with adjustments based on evaluations of the differences found in structure and risks associated with actual and projected credit performance of each CDO being valued. Currently, the only active and liquid trading market that exists is for stand-alone trust preferred securities, with a limited market for highly-rated CDO securities that are more senior in the capital structure than the securities in the CDO portfolio. Therefore, adjustments to the baseline discount rate are also made to reflect the additional leverage found in structured instruments. Derivative financial instruments (Cash flow hedge) – The Corporation’s open derivative positions are interest rate swap agreements. Those classified as Level 2 open derivative positions are valued using externally developed pricing models based on observable market inputs provided by a third party and validated by management. The Corporation has considered counterparty credit risk in the valuation of its interest rate swap assets. Impaired loans – Loans included in the table below are those that are considered impaired with a specific allocation or with a partial charge-off, based upon the guidance of the loan impairment subsection of the Receivables Topic, ASC Section 310-10-35, under which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value consists of the loan balance less its valuation allowance and is generally determined based on independent third-party appraisals of the collateral or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned – OREO included in the table below are considered impaired with specific write-downs. Fair value of other real estate owned is based on independent third-party appraisals of the properties. These values were determined based on the sales prices of similar properties in the approximate geographic area. These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements . For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 16,568 Discounted Cash Flow Discount Rate LIBOR+ 3.75% Non-recurring: Impaired Loans $ 1,525 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 11.4% ) Other Real Estate Owned $ 1,279 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 13.7% ) (in thousands) Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 14,920 Discounted Cash Flow Discount Rate Range of LIBOR+ 4.5% to 5.5% Non-recurring: Impaired Loans $ 2,507 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 10.9% ) Other Real Estate Owned $ 1,841 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 13.3% ) NOTE: (1) Range would include discounts taken since appraisal and estimated values For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2018 and December 31, 2017 are as follows: Fair Value Measurements at September 30, 2018 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 09/30/2018 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 28,565 $ 28,565 Commercial mortgage-backed agencies $ 37,631 $ 37,631 Collateralized mortgage obligations $ 36,122 $ 36,122 Obligations of states and political subdivisions $ 19,759 $ 19,759 Collateralized debt obligations $ 16,568 $ 16,568 Financial Derivatives $ 1,689 $ 1,689 Non-recurring: Impaired loans $ 1,525 $ 1,525 Other real estate owned $ 1,279 $ 1,279 Fair Value Measurements at December 31, 2017 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 12/31/2017 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 29,256 $ 29,256 Commercial mortgage-backed agencies $ 40,891 $ 40,891 Collateralized mortgage obligations $ 40,384 $ 40,384 Obligations of states and political subdivisions $ 21,019 $ 21,019 Collateralized debt obligations $ 14,920 $ 14,920 Financial Derivative $ 781 $ 781 Non-recurring: Impaired loans $ 2,507 $ 2,507 Other real estate owned $ 1,841 $ 1,841 There were no transfers of assets between any of the fair value hierarchy for the nine-month periods ended September 30, 2018 or 2017. The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured on a recurring basis using Level 3 significant unobservable inputs for the nine- and three-month periods ended September 30, 2018 and 2017: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In thousands) Investment Securities Available for Sale Beginning balance January 1, 2018 $ 14,920 Total gains realized/unrealized: Included in other comprehensive income 1,648 Ending balance September 30, 2018 $ 16,568 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance January 1, 2017 $ 20,254 Total losses realized/unrealized: Included in other comprehensive income (5,536) Ending balance September 30, 2017 $ 14,718 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance July 1, 2018 $ 16,147 Total gains realized/unrealized: Included in other comprehensive income 421 Ending balance September 30, 2018 $ 16,568 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance July 1, 2017 $ 14,347 Total gains realized/unrealized: Included in other comprehensive income 371 Ending balance September 30, 2017 $ 14,718 Gains (realized and unrealized) included in earnings for the periods identified above are reported in the Consolidated Statement of Operations in Other Operating Income. There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the nine - and three- month periods ended September 30, 2018 and 2017. The disclosed fair values may vary significantly between institutions based on the estimates and assumptions used in the various valuation methodologies. The derived fair values are subjective in nature and involve uncertainties and significant judgment. Therefore, they cannot be determined with precision. Changes in the assumptions could significantly impact the derived estimates of fair value. Disclosure of non-financial assets such as buildings as well as certain financial instruments such as leases is not required. Accordingly, the aggregate fair values presented do not represent the underlying value of the Corporation. The following tables present fair value information about financial instruments, whether or not recognized in the Consolidated Statement of Financial Condition, for which it is practicable to estimate that value. The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the Consolidated Statement of Financial Condition are as follows: September 30, 2018 Fair Value Measurements Carrying Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 21,725 $ 21,725 $ 21,725 Interest bearing deposits in banks 1,832 1,832 1,832 Investment securities - AFS 138,645 138,645 $ 122,077 $ 16,568 Investment securities - HTM 93,726 91,896 81,444 10,452 Restricted bank stock 5,394 5,394 5,394 Loans, net 1 953,737 938,110 938,110 Financial derivatives 1,689 1,689 1,689 Accrued interest receivable 4,069 4,069 4,069 Financial Liabilities: Deposits – non-maturity 801,017 801,017 801,017 Deposits – time deposits 223,558 224,295 224,295 Short-term borrowed funds 86,805 86,805 86,805 Long-term borrowed funds 100,929 97,622 97,622 Accrued interest payable 358 358 358 Off balance sheet financial instruments 0 0 0 December 31, 2017 Fair Value Measurements Carrying Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 82,273 $ 82,273 $ 82,273 Interest bearing deposits in banks 1,479 1,479 1,479 Investment securities - AFS 146,470 146,470 $ 131,550 $ 14,920 Investment securities - HTM 93,632 95,346 86,836 8,510 Restricted bank stock 5,204 5,204 5,204 Loans, net 1 882,546 883,936 883,936 Financial derivative 781 781 781 Accrued interest receivable 3,814 3,814 3,814 Financial Liabilities: Deposits- non-maturity 805,263 805,263 805,263 Deposits- time deposits 234,127 235,489 235,489 Short-term borrowed funds 48,845 48,845 48,845 Long-term borrowed funds 120,929 123,906 123,906 Accrued interest payable 453 453 453 Off balance sheet financial instruments 0 0 0 1 In accordance with the prospective adoption of Accounting Standards Update (“ASU”) 2016-01, the fair value of loans at September 30, 2018 was measured using an exit price notion. The fair value of loans at December 31, 2017 was measured using an entry price notion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 10 – Accumulated Other Comprehensive Loss The following table presents the changes in each component of accumulated other comprehensive loss for the 12 months ended December 31, 2017 and the three-month periods ended March 31, 2018, June 30, 2018 and September 30, 2018: (in thousands) Investment securities- with OTTI AFS Investment securities- all other AFS Investment securities- HTM Cash Flow Hedge Pension Plan SERP Total Accumulated OCL, net: Balance - January 1, 2017 $ (2,368) $ (3,218) $ (1,354) $ 422 $ (14,232) $ (715) $ (21,465) Other comprehensive income/(loss) before reclassifications 31 638 0 59 (445) (82) 201 Amounts reclassified from accumulated other comprehensive loss (121) 36 253 0 781 105 1,054 Reclassification of certain tax effects (481) (435) (246) 101 (3,170) (152) (4,383) Balance – December 31, 2017 $ (2,939) $ (2,979) $ (1,347) $ 582 $ (17,066) $ (844) $ (24,593) Other comprehensive income/(loss) before reclassifications 685 (1,085) 0 443 516 0 559 Amounts reclassified from accumulated other comprehensive loss (40) 7 45 0 220 29 261 Balance – March 31, 2018 $ (2,294) $ (4,057) $ (1,302) $ 1,025 $ (16,330) $ (815) $ (23,773) Other comprehensive income/(loss) before reclassifications 1,089 (237) 0 108 (1,750) 0 (790) Amounts reclassified from accumulated other comprehensive loss (144) 7 38 0 220 29 150 Balance - June 30, 2018 $ (1,349) $ (4,287) $ (1,264) $ 1,133 $ (17,860) $ (786) $ (24,413) Other comprehensive income/(loss) before reclassifications 300 (672) 0 112 355 0 95 Amounts reclassified from accumulated other comprehensive loss (39) 7 63 0 220 29 280 Balance - September 30, 2018 $ (1,088) $ (4,952) $ (1,201) $ 1,245 $ (17,285) $ (757) $ (24,038) The following tables present the components of other comprehensive income/(loss) for the nine- and three-month periods ended September 30, 2018 and 2017: Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the nine months ended September 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 2,842 $ (768) $ 2,074 Less: gains recognized in income 145 (39) 106 Less: accretable yield recognized in income 160 (43) 117 Net unrealized gains on investments with OTTI 2,537 (686) 1,851 Available for sale securities – all other: Unrealized holding losses (2,733) 739 (1,994) Less: losses recognized in income (29) 8 (21) Net unrealized losses on all other AFS securities (2,704) 731 (1,973) Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (200) 54 (146) Net unrealized gains on HTM securities 200 (54) 146 Cash flow hedges: Unrealized holding gains 908 (245) 663 Pension Plan: Unrealized net actuarial loss (1,206) 326 (880) Less: amortization of unrecognized loss (900) 244 (656) Less: amortization of prior service costs (6) 2 (4) Net pension plan liability adjustment (300) 80 (220) SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (121) 33 (88) Less: amortization of prior service costs 2 (1) 1 Net SERP liability adjustment 119 (32) 87 Other comprehensive income $ 760 $ (206) $ 554 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the nine months ended September 30, 2017 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 517 $ (204) $ 313 Less: accretable yield recognized in income 112 (43) 69 Net unrealized gains on investments with OTTI 405 (161) 244 Available for sale securities – all other: Unrealized holding gains 2,859 (1,139) 1,720 Less: losses recognized in income (44) 17 (27) Net unrealized gains on all other AFS securities 2,903 (1,156) 1,747 Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (262) 104 (158) Net unrealized gains on HTM securities 262 (104) 158 Cash flow hedges: Unrealized holding losses (156) 62 (94) Pension Plan: Unrealized net actuarial loss (170) 68 (102) Less: amortization of unrecognized loss (792) 315 (477) Less: amortization of prior service costs (9) 4 (5) Net pension plan liability adjustment 613 (251) 380 SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (110) 44 (66) Less: amortization of prior service costs 2 (1) 1 Net SERP liability adjustment 108 (43) 65 Other comprehensive income $ 4,135 $ (1,653) $ 2,500 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the three months ended September 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 410 $ (110) $ 300 Less: accretable yield recognized in income 53 (14) 39 Net unrealized gains on investments with OTTI 357 (96) 261 Available for sale securities – all other: Unrealized holding losses (921) 249 (672) Less: Losses recognized in income (10) 3 (7) Net unrealized losses on all other AFS securities (911) 246 (665) Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (86) 23 (63) Net unrealized gains on HTM securities 86 (23) 63 Cash flow hedges: Unrealized holding gains 153 (41) 112 Pension Plan: Unrealized net actuarial gain 486 (132) 354 Less: amortization of unrecognized loss (300) 82 (218) Less: amortization of prior service costs (2) 0 (2) Net pension plan liability adjustment 788 (214) 574 SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (40) 11 (29) Less: amortization of prior service costs 1 (1) 0 Net SERP liability adjustment 39 (10) 29 Other comprehensive income $ 512 $ (138) $ 374 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the three months ended September 30, 2017 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 407 $ (162) $ 245 Less: accretable yield recognized in income 55 (22) 33 Net unrealized gains on investments with OTTI 352 (140) 212 Available for sale securities – all other: Unrealized holding losses (95) 44 (51) Less: losses recognized in income (27) 15 (12) Net unrealized losses on all other AFS securities (68) 29 (39) Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (90) 36 (54) Net unrealized gains on HTM securities 90 (36) 54 Cash flow hedges: Unrealized holding gains 7 (3) 4 Pension Plan: Unrealized net actuarial gain 38 (14) 24 Less: amortization of unrecognized loss (264) 105 (159) Less: amortization of prior service costs (3) 2 (1) Net pension plan liability adjustment 305 (121) 184 SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (37) 14 (23) Less: amortization of prior service costs 1 0 1 Net SERP liability adjustment 36 (14) 22 Other comprehensive income $ 722 $ (285) $ 437 The following table presents the details of amount reclassified from accumulated other comprehensive loss for the nine- and three-month periods ended September 30, 2018 and 2017: Amounts Reclassified from Accumulated Other Comprehensive Loss (in thousands) For the Nine months ended September 30, 2018 For the Nine months ended September 30, 2017 Affected Line Item in the Statement Where Net Income is Presented Net unrealized gains on investment securities with OTTI: Gain on calls $ 145 $ 0 Net gains Accretable yield 160 112 Interest income on taxable investment securities Taxes (82) (43) Provision for Income Tax Expense $ 223 $ 69 Net of tax Net unrealized losses on available for sale investment securities - all others: Losses on sales $ (29) $ (44) Net gains Taxes 8 17 Provision for Income Tax Expense $ (21) $ (27) Net of tax Net unrealized losses on held to maturity securities: Amortization $ (200) $ (262) Interest income on taxable investment securities Taxes 54 104 Provision for Income Tax Expense $ (146) $ (158) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (900) $ (792) Other Expense Amortization of prior service costs (6) (9) Salaries and employee benefits Taxes 246 319 Provision for Income Tax Expense $ (660) $ (482) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (121) $ (110) Other Expense Amortization of prior service costs 2 2 Salaries and employee benefits Taxes 32 43 Provision for Income Tax Expense $ (87) $ (65) Net of tax Total reclassifications for the period $ (691) $ (663) Net of tax Amounts Reclassified from Accumulated Other Comprehensive Loss (in thousands) For the Three months ended September 30, 2018 For the Three months ended September 30, 2017 Affected Line Item in the Statement Where Net Income is Presented Unrealized gains on investment securities with OTTI: Accretable Yield $ 53 $ 55 Interest income on taxable investment securities Taxes (14) (22) Provision for Income Tax Expense $ 39 $ 33 Net of tax Unrealized losses on available for sale investment securities - all others: Losses on sales $ (10) $ (27) Net gains/(losses) Taxes 3 15 Provision for Income Tax Expense $ (7) $ (12) Net of tax Unrealized losses on held to maturity securities: Amortization $ (86) $ (90) Interest income on taxable investment securities Taxes 23 36 Provision for Income Tax Expense $ (63) $ (54) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (300) $ (264) Salaries and employee benefits Amortization of prior service costs (2) (3) Salaries and employee benefits Taxes 82 107 Provision for Income Tax Expense $ (220) $ (160) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (40) $ (37) Salaries and employee benefits Amortization of prior service costs 1 1 Salaries and employee benefits Taxes 10 14 Provision for Income Tax Expense $ (29) $ (22) Net of tax Total reclassifications for the period $ (280) $ (215) Net of tax |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax [Abstract] | |
Income Taxes | Note 11 – Income Taxes The reconciliation between the statutory federal income tax rate and effective income tax rate for the nine-month periods ending September 30, 2018 and 2017 is as follows: September 30, 2018 September 30, 2017 Federal statutory rate 21.0% 35.0% Tax-exempt income on securities and loans (1.5) (3.1) Tax-exempt BOLI income (1.7) (3.5) State income tax, net of federal tax benefit 5.2 4.5 Tax credits (2.0) (3.5) Other 0.2 (0.5) 21.2% 28.9% |
Junior Subordinated Debentures
Junior Subordinated Debentures and Restrictions on Dividends | 9 Months Ended |
Sep. 30, 2018 | |
Junior Subordinated Debentures and Restrictions on Dividends [Abstract] | |
Junior Subordinated Debentures and Restrictions on Dividends | Note 12 – Junior Subordinated Debentures and Restrictions on Dividends First United Corporation is the parent company to two statutory trust subsidiaries - First United Statutory Trust I and First United Statutory Trust II, both of which are Connecticut statutory trusts (“Trust I” and “Trust II”, respectively). Until September 14, 2018 when it was canceled, First United Corporation was also the parent company to First United Statutory Trust III, a Delaware statutory trust (“Trust III” and, together with Trust I and Trust II, the “Trusts”). The Trusts were formed for the purposes of selling preferred securities to investors and using the proceeds to purchase junior subordinated debentures from First United Corporation (“TPS Debentures”) that would qualify as regulatory capital. In March 2004 , Trust I and Trust II issued preferred securities with an aggregate liquidation amount of $ 30.0 million to third-party investors and issued common equity with an aggregate liquidation amount of $ .9 million to First United Corporation. Trust I and Trust II used the proceeds of these offerings to purchase an equal amount of TPS Debentures, as follows: $ 20.6 million —floating rate payable quarterly based on three-month LIBOR plus 275 basis points ( 5.08 % at September 30, 2018), maturing in 2034 , became redeemable five years after issuance at First United Corporation’s option. $ 10.3 million --floating rate payable quarterly based on three-month LIBOR plus 275 basis points ( 5.08 % at September 30, 2018) maturing in 2034 , became redeemable five years after issuance at First United Corporation’s option. In December 2009 , Trust III issued 9.875 % fixed-rate preferred securities with an aggregate liquidation amount of approximately $ 7.0 million to private investors and issued common securities to First United Corporation with an aggregate liquidation amount of approximately $ .2 million. Trust III used the proceeds of the offering to purchase approximately $ 7.2 million of 9.875% fixed-rate TPS Debentures. Interest on these TPS Debentures was payable quarterly, and the TPS Debentures were scheduled to mature in 2040 but were redeemable five years after issuance at First United Corporation’s option. In January 2010 , Trust III issued an additional $ 3.5 million of 9.875 % fixed-rate preferred securities to private investors and issued common securities to First United Corporation with an aggregate liquidation amount of $ .1 million. Trust III used the proceeds of the offering to purchase $ 3.6 million of 9.875% fixed-rate TPS Debentures. Interest on these TPS Debentures was payable quarterly, and the TPS Debentures were scheduled to mature in 2040 but were redeemable five years after issuance at First United Corporation’s option. In March 2017, the Corporation repaid all of the outstanding TPS Debentures issued to and held by Trust III, and Trust III in turn redeemed all of its outstanding securities from its security holders. The $10.8 million repayment was consummated following the Corporation’s common stock rights offering that closed on March 20, 2017. The TPS Debentures issued to each of the Trusts represent the sole assets of that Trust, and payments of the TPS Debentures by First United Corporation are the only sources of cash flow for the Trust. First United Corporation has the right, without triggering a default, to defer interest on all of the TPS Debentures for up to 20 quarterly periods , in which case distributions on the preferred securities will also be deferred. Should this occur, First United Corporation may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2018 | |
Preferred Stock [Abstract] | |
Preferred Stock | Note 13 – Preferred Stock On January 30, 2009, pursuant to the Troubled Asset Relief program Capital Purchase Program adopted by the U.S. Department of the Treasury (the “Treasury”), First United Corporation issued to the Treasury 30,000 shares of its Series A Preferred Stock and a Warrant to purchase 326,323 shares of common stock at an exercise price of $13.79 per share, for an aggregate consideration of $30.0 million. The proceeds from this transaction qualified as Tier 1 capital and the Warrant qualified as tangible common equity. On December 4, 2014, the Treasury sold all of its shares of Series A Preferred stock to third-party investors. On May 26, 2015, the Corporation repurchased the warrant from the Treasury for $120,786 . The warrant was canceled and as a result of the repurchase, the Treasury has no remaining equity investment in the Corporation. First United Corporation redeemed all outstanding shares of Series A Preferred Stock as follows: (i) 10,000 shares, having an aggregate liquidation amount of $10.0 million, on February 14, 2016, (ii) 10,000 shares, having an aggregate liquidation amount of $10.0 million, on March 21, 2017; and (iii) 10,000 shares, having an aggregate liquidation amount of $10.0 million, on November 15, 2017. The holders of the Series A Preferred Stock were entitled to receive, if and when declared by the Board of Directors, out of assets legally available for payment, cumulative cash dividends at a rate per annum of 5% per share on a liquidation amount of $1,000 per share of Series A Preferred Stock with respect to each dividend period from January 30, 2009 to, but excluding, February 15, 2014. From and after February 15, 2014, holders of Series A Preferred Stock were entitled to receive cumulative cash dividends at a rate per annum of 9% per share on a liquidation amount of $1,000 per share with respect to each dividend period thereafter. |
Borrowed Funds
Borrowed Funds | 9 Months Ended |
Sep. 30, 2018 | |
Borrowed Funds [Abstract] | |
Borrowed Funds | Note 14 – Borrowed Funds The following is a summary of short-term borrowings with original maturities of less than one year: (Dollars in thousands) Nine months ended September 30, 2018 Year ended December 31, 2017 Short-term Correspondent Bank Advance: Overnight borrowings, weighted average interest rate of 2.42% at September 30, 2018 $ 39,000 $ 0 Securities sold under agreements to repurchase: Outstanding at end of period $ 47,805 $ 48,845 Weighted average interest rate at end of period 0.17% 0.15% Maximum amount outstanding as of any month end $ 54,595 $ 58,438 Average amount outstanding $ 42,584 $ 37,326 Approximate weighted average rate during the period 0.19% 0.19% At September 30, 2018, the repurchase agreements were secured by $52.8 million in investment securities issued by government related agencies. A minimum of 102% of fair value is pledged against account balances. The following is a summary of long-term borrowings with original maturities exceeding one year: September 30, December 31, (in thousands) 2018 2017 FHLB advances, bearing fixed interest at rates ranging from 1.54% to 3.02% at September 30, 2018 $ 70,000 $ 90,000 Junior subordinated debt, bearing variable interest rate of 5.08% at September 30, 2018 30,929 30,929 Total long-term debt $ 100,929 $ 120,929 At September 30, 2018, the long-term FHLB advances were secured by $193.0 million in loans. The contractual maturities of all long-term borrowings are as follows: September 30, 2018 December 31, 2017 (in thousands) Fixed Rate Floating Rate Total Total Due in 2018 $ 0 $ 0 $ 0 $ 20,000 Due in 2019 20,000 0 20,000 20,000 Due in 2020 30,000 0 30,000 30,000 Due in 2021 20,000 0 20,000 20,000 Thereafter 0 30,929 30,929 30,929 Total long-term debt $ 70,000 $ 30,929 $ 100,929 $ 120,929 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 15 – Employee Benefit Plans The following tables present the components of the net periodic pension plan cost for First United Corporation’s Defined Benefit Pension Plan (the “Pension Plan”) and the Bank’s Supplemental Executive Retirement Plan (“SERP”) for the periods indicated: Pension For the Nine months ended For the Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Service cost $ 243 $ 210 $ 81 $ 70 Interest cost 1,190 1,237 397 412 Expected return on assets (2,430) (2,253) (810) (751) Amortization of net actuarial loss 900 792 300 264 Amortization of prior service cost 6 9 2 3 Net pension credit included in employee benefits and other expense $ (91) $ (5) $ (30) $ (2) SERP For the Nine months ended For the Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Service cost $ 84 $ 78 $ 28 $ 26 Interest cost 226 216 76 72 Amortization of recognized loss 121 110 40 37 Amortization of prior service cost (2) (2) (1) (1) Net SERP expense included in employee benefits and other expense $ 429 $ 402 $ 143 $ 134 The service cost component of net periodic benefit cost is included in salaries and benefits and all other components of net periodic benefit cost are included in other noninterest expense in the Consolidated Statement of Operations for the Company’s pension and SERP plans. The Pension Plan is a noncontributory defined benefit pension plan that covers our employees who were hired prior to the freeze and others who were grandfathered into the plan. The benefits are based on years of service and the employees’ compensation during the last five years of employment. Effective April 30, 2010, the Pension Plan was amended, resulting in a “soft freeze”, the effect of which prohibits new entrants into the plan and ceases crediting of additional years of service after that date. Effective January 1, 2013, the Pension Plan was amended to unfreeze it for those employees for whom the sum of (a) their ages, at their closest birthday, plus (b) years of service for vesting purposes equals 80 or greater. The “soft freeze” continues to apply to all other plan participants. Pension benefits for these participants are managed through discretionary contributions to the First United Corporation 401(k) Profit Sharing Plan (the “401(k) Plan”). The Bank established the SERP in 2001 as an unfunded supplemental executive retirement plan. The SERP is available only to a select group of management or highly compensated employees to provide supplemental retirement benefits in excess of limits imposed on qualified plans by federal tax law. Concurrent with the establishment of the SERP, the Bank acquired Bank Owned Life Insurance (“BOLI”) policies on the senior management personnel and officers of the Bank. The benefits resulting from the favorable tax treatment accorded the earnings on the BOLI policies are intended to provide a source of funds for the future payment of the SERP benefits as well as other employee benefit costs. The benefit obligation activity for both the Pension Plan and SERP was calculated using an actuarial measurement date of January 1. Plan assets and the benefit obligations were calculated using an actuarial measurement date of December 31. The Corporation will assess the need for future annual contributions to the pension plan based upon its funded status and an evaluation of the future benefits to be provided thereunder. No contributions were made to the pension plan during the first nine months of 2018. The Corporation expects to fund the annual projected benefit payments for the SERP from operations. On January 9, 2015, the Corporation and members of management who do not participate in the SERP entered into participation agreements under the Deferred Compensation Plan, each styled as a SERP Alternative Participation Agreement (the “Participation Agreement”). Pursuant to each Participation Agreement, the Corporation agreed, for each Plan Year (as defined in the Deferred Compensation Plan) in which it determines that it has been Profitable (as defined in the Participation Agreement), to make a discretionary contribution to the participant’s Employer Account in an amount equal to 15% of the participant’s base salary level for such Plan Year, with the first Plan Year being the year ending December 31, 2015. The Participation Agreement provides that the participant will become 100% vested in the amount maintained in his or her Employer Account upon the earliest to occur of the following events: (a) Normal Retirement (as defined in the Participation Agreement); (b) Separation from Service (as defined in the Participation Agreement) following a Change of Control (as defined in the Deferred Compensation Plan) and subsequent Triggering Event (as defined in the Participation Agreement); (c) Separation from Service due to a Disability (as defined in the Participation Agreement); (d) with respect to a particular award of Employer Contribution Credits, the participant’s completion of two consecutive Years of Service (as defined in the Participation Agreement) immediately following the Plan Year for which such award was made; or (e) death. Notwithstanding the foregoing, however, a participant will lose entitlement to the amount maintained in his or her Employer Account in the event employment is terminated for Cause (as defined in the Participation Agreement). In addition, the Participation Agreement conditions entitlement to the amounts held in the Employer Account on the participant (1) refraining from engaging in Competitive Employment (as defined in the Participation Agreement) for three years following his or her Separation from Service, (2) refraining from injurious disclosure of confidential information concerning the Corporation, and (3) remaining available, at the Corporation’s reasonable request, to provide at least six hours of transition services per month for 12 months following his or her Separation from Service (except in the case of death or Disability), except that only item (2) will apply in the event of a Separation from Service following a Change of Control and subsequent Triggering Event. In January 2016, the Board of Directors of First United Corporation approved discretionary contributions to two Employer Accounts totaling $63,500 . Each of the contributions had a two-year vesting period that ended at December 31, 2017. In January 2017, the Board approved discretionary contributions to four Employer Accounts totaling $112,780 . Each of the contributions has a two-year vesting period. SERP Alternative expense of $42,266 was recorded in each of the nine-month periods ended September 30, 2018 and 2017. SERP Alternative expense of $14,089 was recorded in each of the three-month periods ended September 30, 2018 and 2017. In January 2018, the Board approved discretionary contributions to four Employer Accounts totaling $119,252 . Each of the contributions has a two-year vesting period. The Corporation recorded SERP Alternative expense of $44,719 for the first nine months of 2018 and $14,906 for the third quarter of 2018. |
Equity Compensation Plan Inform
Equity Compensation Plan Information | 9 Months Ended |
Sep. 30, 2018 | |
Equity Compensation Plan Information [Abstract] | |
Equity Compensation Plan Information | Note 16 - Equity Compensation Plan Information At the 2018 Annual Meeting of Shareholders, First United Corporation’s shareholders approved the F irst United Corporation 2018 Equity Co mpensation Plan which authorizes the issuance of up to 325,000 shares of common stock to employees, directors and qualifying consultants pursuant to stock options, stock app reciation rights, stock awards , dividend equivalents, and other stock-based awards. The Corporation complies with the provisions of ASC Topic 718, Compensation - Stock Compensation , in measuring and disclosing stock compensation cost. The measurement objective in ASC Paragraph 718-10-30-6 requires public companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The cost is recognized in expense over the period in which an employee is required to provide service in exchange for the award (the vesting period). Stock-based awards were made to non-employee directors in May 2018 pursuant to First United Corporation’s director compensation policy. Each director receives an annual retainer of 1,000 shares of First United Corporation common stock, plus $10,000 to be paid, at the director’s election, in cash or additional shares of common stock. In 2018, a total of 12,936 fully-vested shares of common stock were issued to directors, which had a grant date fair market value of $20.63 per share . Director stock compensation expense was $182,606 for the nine months ended September 30, 2018 and $138,840 for the nine months ended September 30, 2017. Director stock compensation expense was $66,717 for the third quarter of 2018 and $53,558 f or the same period of 2017. |
Letters of Credit and Off Balan
Letters of Credit and Off Balance Sheet Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Letters of Credit and Off Balance Sheet Liabilities [Abstract] | |
Letters of Credit and Off Balance Sheet Liabilities | Note 17 – Letters of Credit and Off Balance Sheet Liabilities The Corporation does not issue any guarantees that would require liability recognition or disclosure other than the standby letters of credit issued by the Bank. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, the Bank’s letters of credit are issued with expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting these commitments. The Bank had $2.7 million of outstand ing standby letters of credit at September 30, 2018 and $2.6 million at December 31, 2017. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payment required by the letters of credit. Management does not believe that the amount of the liability associated with guarantees under standby letters of credit outstanding at September 30, 2018 and December 31, 2017 is material. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 18 – Derivative Financial Instruments As a part of managing interest rate risk, the Bank entered into interest rate swap agreements to modify the re-pricing characteristics of certain interest-bearing liabilities. The Corporation has designated these interest rate swap agreements as cash flow hedges under the guidance of ASC Subtopic 815-30, Derivatives and Hedging – Cash Flow Hedges . Cash flow hedges have the effective portion of changes in the fair value of the derivative, net of taxes, recorded in net accumulated other comprehensive loss. In July 2009, the Corporation entered into three interest rate swap contracts totaling $20.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt. The final contract matured on June 17, 2016, ending the agreement. In March 2016, the Corporation entered into four new interest rate swap contracts totaling $30.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt. These contracts are a three-year $5.0 million contract that matures on June 17, 2019 , a five-year $5.0 million contract that matures on March 17, 2021 , a seven-year $5.0 million contract that matures on March 17, 2023 and a 10-year $15.0 million contract maturing March 17, 2026 . The fair value of the interest rate swap contracts was $1.7 m illion and $.8 million at September 30, 2018 and December 31, 2017, respectively. For the nine months ended September 30, 2018, the Corporation recorded an increase in the value of the derivatives of $908 thousand and the related deferred tax of $245 thousand in net accumulated other comprehensive loss to reflect the effective portion of cash flow hedges. ASC Subtopic 815-30 requires this amount to be reclassified to earnings if the hedge becomes ineffective or is terminated. There was no hedge ineffectiveness recorded for the nine months ending September 30, 2018. The Corporation does not expect any losses relating to these hedges to be reclassified into earnings within the next 12 months. Interest rate swap agreements are entered into with counterparties that meet established credit standards and the Corporation believes that the credit risk inherent in these contracts is not significant as of September 30, 2018. The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the nine- and three- months ended September 30, 2018 and 2017. Derivative in Cash Flow Hedging Relationships (in thousands) Amount of gain or (loss) recognized in OCI on derivative (effective portion) Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) (a) Amount of gain or (loss) recognized in income or derivative (ineffective portion and amount excluded from effectiveness testing) (b) Interest rate contracts: Nine months ended: September 30, 2018 $ 663 $ 0 $ 0 September 30, 2017 (94) 0 0 Three months ended: September 30, 2018 $ 112 $ 0 $ 0 September 30, 2017 (4) 0 0 Notes: (a) Reported as interest expense (b) Reported as other income |
Variable Interest Entities (VIE
Variable Interest Entities (VIE) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities (VIE) [Abstract] | |
Variable Interest Entities (VIE) | Note 19 – Variable Interest Entities (VIE) As noted in Note 12, First United Corporation created the Trusts for the purposes of raising regulatory capital through the sale of mandatorily redeemable preferred capital securities to third party investors and common equity interests to First United Corporation. The Trusts are considered Variable Interest Entities (“VIEs”), but are not consolidated because First United Corporation is not the primary beneficiary of the Trusts. At September 30, 2018, the Corporation reported all of the $ 30.9 million of TPS Debentures issued to Trust I and Trust II as long-term borrowings and it reported its $ .9 million equity interest in those Trusts as “Other Assets”. In November 2009, the Bank became a 99.99 % limited partner in Liberty Mews Limited Partnership (“Liberty Mews”), a Maryland limited partnership formed for the purpose of acquiring, developing and operating low-income housing units in Garrett County, Maryland. The Partnership was financed with a total of $ 10.6 million of funding, including a $ 6.1 million equity contribution from the Bank as the limited partner. Liberty Mews used the proceeds from these sources to purchase the land and construct a 36-unit low income housing rental complex at a total cost of $ 10.6 million. The total assets of Liberty Mews were approximately $8.3 million at September 30, 2018 and $8.6 million at December 31, 2017. As of December 31, 2011, the Bank had made contributions to Liberty Mews totaling $ 6.1 million. The project was completed in June 2011, and the Bank is entitled to $ 8.4 million in federal investment tax credits over a 10 -year period as long as certain qualifying hurdles are maintained. The Bank will also receive the benefit of tax operating losses from Liberty Mews to the extent of its capital contribution. The investment in Liberty Mews assists the Bank in achieving its community reinvestment initiatives. Because Liberty Mews is considered to be a VIE, management performed an analysis to determine whether its involvement with the Partnership would lead it to determine that it must consolidate Liberty Mews. In performing its analysis, management evaluated the risks creating the variability in the Partnership and identified which activities most significantly impact the VIE’s economic performance. Finally, it examined each of the variable interest holders to determine which, if any, of the holders was the primary beneficiary based on their power to direct the most significant activities and their obligation to absorb potentially significant losses of Liberty Mews. The Bank, as a limited partner, generally has no voting rights. The Bank is not in any way involved in the daily management of Liberty Mews and has no other rights that provide it with the power to direct the activities that most significantly impact Liberty Mews’s economic performance, which are to develop and operate the housing project in such a manner that complies with specific tax credit guidelines. As a limited partner, there is no recourse to the Bank by the creditors of Liberty Mews. The tax credits that result from the Bank’s investment in Liberty Mews are generally subject to recapture should the partnership fail to comply with the applicable government regulations. The Bank has not provided any financial or other support to Liberty Mews beyond its required capital contributions and does not anticipate providing such support in the future. Management currently believes that no material losses are probable as a result of the Bank’s investment in Liberty Mews. On the basis of management’s analysis, the general partner is deemed to be the primary beneficiary of Liberty Mews. Because the Bank is not the primary beneficiary, Liberty Mews has not been included in the Corporation’s consolidated financial statements. The Corporation accounts for the Bank’s investment in Liberty Mews utilizing the effective yield method under guidance that applies specifically to investments in limited partnerships that operate qualified affordable housing projects. Under the effective yield method, the investor 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 tax credits are allocated to the investor. The effective yield is the internal rate of return on the investment, based on the cost of the investment and the guaranteed tax credits allocated to the investor. The tax credit allocated, net of the amortization of the investment in the limited partnership, is recognized in the income statement as a component of income taxes attributable to continuing operations. The Corporation’s tax expense for the nine months ended September 30, 2018 was approximately $.6 million lower as a result of the impact of the tax credits and the tax losses relating to the partnership. At September 30, 2018 and December 31, 2017, the Corporation included its total investment in Liberty Mews in “Other Assets” in its Consolidated Statement of Financial Condition. As of September 30, 2018, the Bank’s commitment in Liberty Mews was fully funded. The following table presents details of the Bank’s involvement with Liberty Mews at the dates indicated: September 30, December 31, (in thousands) 2018 2017 Investment in LIHTC Partnership Carrying amount on Balance Sheet of: Investment (Other Assets) $ 2,040 $ 2,562 Maximum exposure to loss 2,040 2,562 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 20 – Revenue Recognition On January 1, 2018, the Corporation adopted ASU 2014-09 Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 22 below, the implementation of the new standard did not have an impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as wealth management, including trust and brokerage services, service charges on deposit accounts, interchange fee income – debit card income and gains/losses on OREO sales. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams in-scope of Topic 606 are discussed below. Wealth Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Corporation’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Corporation’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Corporation’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Corporation’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Interchange Fees – Debit Card Income Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Corporation’s debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Corporation cardholder uses a non-Corporation ATM or a non-Corporation cardholder uses a Corporation ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Corporation’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gains/(Losses) on Sale of OREO The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. The amount of the gain will be the difference between the carrying value of the OREO asset (which is the lower of cost or market) and the transaction price (formerly referred to as “sales price”) considering the impact of variable consideration at the time of the sale. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO assets are derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determine the gain or loss on the sale, the Corporation adjusts the transaction prices and related gain/(loss) on sale if a significant financing component is present. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the nine and three months ended September 30, 2018 and 2017. |
Assets and Liabilities Subject
Assets and Liabilities Subject to Enforceable Master Netting Arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements [Abstract] | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements | Note 21 – Assets and Liabilities Subject to Enforceable Master Netting Arrangements Interest Rate Swap Agreements (“Swap Agreements”) The Corporation has entered into interest rate swap agreements to modify the re-pricing characteristics of certain interest-bearing liabilities as a part of managing interest rate risk. The swap agreements have been designated as cash flow hedges, and accordingly, the fair value of the interest rate swap contracts is reported in Other Assets on the Consolidated Statement of Financial Condition. The swap agreements were entered into with a third-party financial institution. The Corporation is party to master netting arrangements with its financial institution counterparty; however, the Corporation does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, in the form of cash and investment securities, are pledged by the Corporation as the counterparty with net liability positions in accordance with contract thresholds. See Note 18 to the Consolidated Financial Statements for more information. Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Bank enters into agreements under which it sells interests in U.S. securities to certain customers subject to an obligation to repurchase, and on the part of the customers to resell, such interests. Under these arrangements, the Bank may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Bank to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Consolidated Statement of Condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. There is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Bank does not enter into reverse repurchase agreements, there is no such offsetting to be done with 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 Bank be in default (i.e. fails to repurchase the U.S. securities on the maturity date of the agreement). The investment security collateral, maintained at 102% of the borrowing, is held by a third party financial institution in the counterparty’s custodial account. The following table presents the assets and liabilities subject to an enforceable master netting arrangement or repurchase agreements at September 30, 2018 and December 31, 2017. Gross Amounts Not Offset in the Statement of Condition (In thousands) Gross Amounts of Recognized (Assets)/ Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of (Assets)/ Liabilities Presented in the Statement of Condition Financial Instruments Cash Collateral Pledged Net Amount September 30, 2018 Interest Rate Swap Agreements $ (1,689) $ 0 $ (1,689) $ 1,689 $ 0 $ 0 Repurchase Agreements $ 47,805 $ 0 $ 47,805 $ (47,805) $ 0 $ 0 December 31, 2017 Interest Rate Swap Agreements $ (781) $ 0 $ (781) $ 781 $ 0 $ 0 Repurchase Agreements $ 48,845 $ 0 $ 48,845 $ (48,845) $ 0 $ 0 |
Adoption of New Accounting Stan
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements [Abstract] | |
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements | Note 22 – Adoption of New Accounting Standards and Effects of New Accounting Pronouncements In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842). This update is to provide improvements of transparency and comparability by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing transactions. This update also provides an optional practical expedient that affects entities with land easements that existed or expired before an entity’s adoption of Topic 842, provided that the entity does not account for those land easements as leases under Topic 840. ASU 2018-01 amendments affect the amendments in ASU 2016-02, which are not yet effective. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. The Corporation is evaluating the provisions of ASU 2018-01 but believes that its adoption will not have a material impact on the Corporation’s financial condition or results of operations. In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842). ASU 2017-13 amends guidance on ASU 2014-09, Revenue from Contracts with Customers. ASU 2017-13 is effective for public business entities that are SEC filers for annual periods beginning after December 15, 2017, and interim periods within those annual periods, and for all other entities for annual periods beginning after December 15, 2018 and interim reporting periods within annual reporting periods within annual reporting periods beginning after December 15, 2019. The Corporation adopted ASU 2017-13 effective January 1, 2018 and the adoption did not have an impact on the Corporation’s financial condition or results of operations. See Note 20 – Revenue Recognition for more details. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 is intended to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. For public business entities, ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the update is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Corporation is evaluating the provisions of ASU 2017-12 but believes that its adoption will not have a material impact on the Corporation’s financial condition or results of operations. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Corporation adopted ASU 2017-07 on January 1, 2018. The adoption did not have a material impact on the Corporation’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles- Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if “the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.” The ASU does not change the qualitative assessment, however, it removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. ASU 2017-04 is effective for public business entities that are SEC filers for annual periods beginning after December 15, 2019, and interim periods within those annual periods, for public entities that are not SEC filers for annual periods beginning after December 15, 2020 and for all other entities for annual periods beginning after December 15, 2021 with early adoption permitted. The Corporation is evaluating the provisions of ASU 2017-04 but believes that its adoption will not have a material impact on the Corporation’s financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 addresses the following eight specific cash flow issues: (a) debt prepayment or debt extinguishment costs; (b) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (c) contingent consideration payments made after a business combination; (d) proceeds from the settlement of insurance claims; (e) proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); (f) distributions received from equity method investees; (g) beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this Update apply to all entities, including both business entities and not-for-profit entities that are required to present a statement of cash flows under Topic 230. ASU 2016-15 is effective for public business entities for annual periods beginning after December 15, 2017, and interim periods within those annual periods, and for all other entities for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019 with early adoption permitted. The Corporation adopted ASU 2016-15 on January 1, 2018. The adoption did not have an impact on the Corporation’s statement of cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchases financial assets with credit deterioration since their origination. The new model referred to as current expected credit losses model, will apply to: (a) financial assets subject to credit losses and measured at amortized cost, and (b) certain off-balance sheet credit exposures. This includes loans, held to maturity debt securities, loan commitments, financial guarantees and net investments in leases as well as reinsurance and trade receivables. The estimate of expected credit losses should consider historical information, current information, and supportable forecasts, including estimates of prepayments. ASU 2016-13 is effective for public business entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods, and for all other entities for annual periods beginning after December 15, 2020 and interim periods within annual periods beginning after December 15, 2018 with early adoption permitted. Management currently intends to adopt the guidance on January 1, 2020 and is assessing the impact of this guidance on the Corporation’s financial condition and results of operations. Management has formed a focus group consisting of multiple members from areas including credit, finance, and information systems. The focus group is evaluating the requirements of the new standard and the impact it will have on our processes. The Corporation is in the process of determining the impact on the Corporation’s financial condition or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 is intended to improve financial reporting about leasing transactions by requiring organizations that lease assets – referred to as “lessees” – to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. From the lessee’s perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for lessees. The guidance also eliminates the current real estate-specific provision and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs. With respect to lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. All entities will classify leases to determine how to recognize lease-related revenue and expense. In applying this guidance , entities will also need to determine whether an arrangement contains a lease or service agreement. Disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The amendments will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 applies to all public business entities for annual and interim periods after December 15, 2018, and for all other entities for annual periods beginning after December 15, 2019 and interim periods beginning after December 15, 2020 with early adoption permitted. The Company assessed this guidance and collected relevant terms for each of its lease agreements. The Company is in process of quantifying the impact on the Company’s financial position, results of operations and cash flows. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10). This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (a) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (b) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (c) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (g) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (h) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Corporation’s financial condition or results of operations. In accordance with item (e) above, the Corporation measured the fair value of its loan portfolio as of September 30, 2018 using an exit price notion (see Note 9, Fair Value of Financial Instruments). In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. ASU 2014-09 specifies that an entity shall recognize revenue when, or as, the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when, or as, the customer obtains control of the asset. Entities are required to disclose qualitative and quantitative information on the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for us on January 1, 2018. The Corporation has elected to implement ASU 2014-09 using the modified retrospective application, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. There was no cumulative effect adjustment required upon adoption. Financial instruments which are the sources of the majority of our operating revenue are excluded from the scope of this amended guidance, which includes interest income and securities gains/losses. The following revenue streams were identified to be in scope of ASC Topic 606: Wealth Management, includes trust and brokerage services, service charges on deposit accounts, interchange fee income – debit card income and gains/losses on sale of OREO. The Corporation adopted ASU 2014-09 on January 1, 2018 and did not identify any significant changes in the timing of revenue recognition when considering the amended accounting guidance. |
Earnings Per Common Share (Poli
Earnings Per Common Share (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share Policy | Basic earnings per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents. Diluted earnings per share is derived by dividing net income available to common shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents. No common stock equivalents were outstanding at September 30, 2018 or September 30, 2017. |
Cash and Cash Equivalents (Poli
Cash and Cash Equivalents (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and due from banks, which represents vault cash in the retail offices and invested cash balances at the Federal Reserve and other correspondent banks, is carried at cost which approximates fair value . |
Investments (Policy)
Investments (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | Management systematically evaluates securities for impairment on a quarterly basis. Based upon application of accounting guidance for subsequent measurement in ASC Topic 320 (ASC Section 320-10-35), management assesses whether (a) the Corporation has the intent to sell a security being evaluated and (b) it is more likely than not that the Corporation will be required to sell the security prior to its anticipated recovery. If neither applies, then declines in the fair values of securities below their cost that are considered other-than-temporary declines are split into two components. The first is the loss attributable to declining credit quality. Credit losses are recognized in earnings as realized losses in the period in which the impairment determination is made. The second component consists of all other losses, which are recognized in other comprehensive loss. In estimating other than temporary impairment (“OTTI”) losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) adverse conditions specifically related to the security, an industry, or a geographic area, (3) the historic and implied volatility of the fair value of the security, (4) changes in the rating of the security by a rating agency, (5) recoveries or additional declines in fair value subsequent to the balance sheet date, (6) failure of the issuer of the security to make scheduled interest or principal payments, and (7) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future. Management also monitors cash flow projections for securities that are considered beneficial interests under the guidance of ASC Subtopic 325-40, Investments – Other – Beneficial Interests in Securitized Financial Assets , (ASC Section 325-40-35). Further discussion about the evaluation of securities for impairment can be found in Item 2 of Part I of this report under the heading “ Investment Securities ”. |
Restricted Investment in Bank_2
Restricted Investment in Bank Stock (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Restricted Investment in Bank Stock [Abstract] | |
Restricted Investment in Bank Stock | Management evaluates the restricted stock for impairment in accordance with ASC Topic 942, Financial Services – Depository and Lending- (ASC Section 942-325-35). Management’s evaluation of potential impairment is based on management’s a ssessment of the ultimate recoverability of the cost of the restricted stock rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability is influenced by criteria such as (a) the significance of the decline in net assets of the issuing bank as compared to the capital stock amount for that bank and the length of time this situation has persisted, (b) commitments by the issuing bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of that bank, and (c) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the issuing bank. Management has evaluated the restricted stock for impairment and believes that no impairment charge is necessary as of September 30, 2018. |
Loans and Related Allowance f_2
Loans and Related Allowance for Loan Losses (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Loan Status | Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan is considered to be past due when a payment remains unpaid 30 days past its contractual due date. For all loan segments, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. All non-accrual loans are considered to be impaired. Interest payments received on non-accrual loans are applied as a reduction of the loan principal balance. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Corporation’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. |
Impaired Loans Receivable | Management uses the following methodology for determining impairment on consumer and commercial loans. All nonaccrual loans and all loans designated as troubled debt restructurings (“TDRs”) are considered to be impaired. Additionally, an impairment evaluation is performed on any account that meets either of the following criteria: (a) commercial loans that (1) are risk-rated substandard and (2) have a balance of at least $500,000; and (b) commercial loans that are (1) part of a relationship having an amount of $750,000 or more and (2) at least 60 days past-due. For those loans that are not classified as nonaccrual or troubled debt restructures, a judgment is made as to the likelihood that contractual principal and interest will be collected. Loans are considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. 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. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. A valuation grid for impaired loans is used to determine when or how collateral values are to be updated based on size and collateral dependency for commercial loans and foreclosure status for consumer loans. If an updated appraisal has not been received and reviewed in time for the determination of estimated fair value at quarter (or year) end, or if the appraisal is found to be deficient following the Corporation’s internal appraisal review process and re-ordered, then the estimated fair value of the collateral is determined by adjusting the existing appraisal by the appropriate percentage from an internally prepared appraisal discount grid. This grid considers the age of a third-party appraisal and the geographic region where the collateral is located. The discount rates in the appraisal discount grid are updated periodically to reflect the most current knowledge that management has available, including the results of current appraisals. A specific allocation of the ALL is recorded if there is any deficiency in collateral value determined by comparing the estimated fair value to the recorded investment of the loan. When updated appraisals are received and reviewed, adjustments are made to the specific allocation as needed. The evaluation of the need and amount of a specific allocation of the ALL and whether a loan can be removed from impairment status is made on a quarterly basis. |
Allowance for Loan Losses | The classes described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity (full and partial charge-offs, net of full and partial recoveries) at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. Consumer pools currently utilize a rolling 12 quarters, while Commercial pools currently utilize a rolling eight quarters. “Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. “Pass” pools for commercial and residential real estate are further segmented based upon the geographic location of the underlying collateral. There are seven geographic regions utilized – six that represent the Bank’s lending footprint and a seventh for all out-of-market credits. Different economic environments and resultant credit risks exist in each region that are acknowledged in the assignment of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management supplements the historical charge-off factor with a number of additional qualitative factors that are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors, which are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources, are: (a) national and local economic trends and conditions; (b) levels of and trends in delinquency rates and non-accrual loans; (c) trends in volumes and terms of loans; (d) effects of changes in lending policies; (e) experience, ability, and depth of lending staff; (f) value of underlying collateral; and (g) concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Residential mortgage and consumer loans are charged off after they are 120 days contractually past due. All other loans are charged off based on an evaluation of the facts and circumstances of each individual loan. When the Bank believes that its ability to collect is solely dependent on the liquidation of the collateral, a full or partial charge-off is recorded promptly to bring the recorded investment to an amount that the Bank believes is supported by an ability to collect on the collateral. The circumstances that may impact the Bank’s decision to charge-off all or a portion of a loan include default or non-payment by the borrower, scheduled foreclosure actions, and/or prioritization of the Bank’s claim in bankruptcy. There may be circumstances where, due to pending events, the Bank will place a specific allocation of the ALL on a loan for which a partial charge-off has been previously recognized. This specific allocation may be either charged off or removed depending upon the outcome of the pending event. Full or partial charge-offs are not recovered until full principal and interest on the loan have been collected, even if a subsequent appraisal supports a higher value. Loans with partial charge-offs generally remain in non-accrual status. Both full and partial charge-offs reduce the recorded investment of the loan and the ALL and are considered to be charge-offs for purposes of all credit loss metrics and trends, including the historical rolling charge-off rates used in the determination of the ALL. |
Troubled Debt Restructure | A modified loan is considered to be a TDR when the Bank has determined that the borrower is troubled (i.e., experiencing financial difficulties). The Bank evaluates the probability that the borrower will be in payment default on any of its debt obligations in the foreseeable future without modification. To make this determination, the Bank performs a global financial review of the borrower and loan guarantors to assess their current ability to meet their financial obligations. When the Bank restructures a loan to a troubled borrower, the loan terms (i.e., interest rate, payment amount, amortization period, and/or maturity date) are modified in such a way as to enable the borrower to cover the modified debt service payments based on current financials and cash flow adequacy. If a borrower’s hardship is thought to be temporary, then modified terms are offered only for that time period. Where possible, the Bank obtains additional collateral and/or secondary payment sources at the time the loan is restructured in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms. To date, the Bank has not forgiven any principal as a restructuring concession. The Bank will not offer modified terms if it believes that modifying the loan terms will only delay an inevitable permanent default. All loans designated as TDRs are considered impaired loans and may be in either accruing or non-accruing status. The Bank’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. Accordingly, the accrual of interest is discontinued when principal or interest is delinquent for 90 days or more unless the loan is well-secured and in the process of collection. If the loan was accruing at the time of the modification, then it continues to be in accruing status subsequent to the modification. Non-accrual TDRs may return to accruing status when there has been sufficient payment performance for a period of at least six months. TDRs are considered to be in payment default if, subsequent to modification, the loans are transferred to non-accrual status or to foreclosure. Loans may be removed from being reported as a TDR in the calendar year following the modification if the interest rate at the time of modification was consistent with the interest rate for a loan with comparable credit risk and the loan has performed according to its modified terms for at least six months. The volume and type of TDR activity is considered in the assessment of the local economic trends’ qualitative factor used in the determination of the ALL for loans that are evaluated collectively for impairment. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following tables set forth the calculation of basic and diluted earnings per common share for the nine- and three-month periods ended September 30, 2018 and 2017: Nine months ended September 30, 2018 2017 Average Per Share Average Per Share (in thousands, except for per share amount) Income Shares Amount Income Shares Amount Basic and Diluted Earnings Per Share: Net income $ 8,285 $ 6,301 Preferred stock dividends 0 (990) Net income available to common shareholders $ 8,285 7,076 $ 1.17 $ 5,311 6,887 $ 0.77 Three months ended September 30, 2018 2017 Average Per Share Average Per Share (in thousands, except for per share amount) Income Shares Amount Income Shares Amount Basic and Diluted Earnings Per Share: Net income $ 2,763 $ 2,012 Preferred stock dividends 0 (225) Net income available to common shareholders $ 2,763 7,084 $ 0.39 $ 1,787 7,067 $ 0.25 |
Net Gains_(Losses) (Tables)
Net Gains/(Losses) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Net Gains/(Losses) [Abstract] | |
Net Gains/(Losses) | The following table summarizes the gain/(loss) activity for the nine- and three-month periods ended September 30, 2018 and 2017: Nine months ended Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Net gains/(losses): Available-for-sale securities: Realized gains $ 151 $ 52 $ 6 $ 0 Realized losses (35) (96) (16) (27) Gains on sale of consumer loans 74 48 19 16 Losses on disposal of fixed assets 0 (1) 0 0 Net gains/(losses): $ 190 $ 3 $ 9 $ (11) |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | September 30, December 31, (in thousands) 2018 2017 Cash and due from banks, weighted average interest rate of 0.67% (at September 30, 2018) $ 21,725 $ 82,273 Interest bearing deposits in banks, which represent funds invested at a correspondent bank, are carried at cost which approximates fair value and, as of September 30, 2018 and December 31, 2017, consisted of daily funds invested at the Federal Home Loan Bank (“FHLB”) of Atlanta and Merchants and Traders Bank (“M&T”). September 30, December 31, (in thousands) 2018 2017 FHLB daily investments, interest rate of 2.08% (at September 30, 2018) $ 816 $ 464 M&T daily investments, interest rate of 0.15% (at September 30, 2018) 1,016 1,015 $ 1,832 $ 1,479 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Unrealized Gain (Loss) on Investments | The following table shows a comparison of amortized cost and fair values of investment securities at September 30, 2018 and December 31, 2017: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCL September 30, 2018 Available for Sale: U.S. government agencies $ 30,000 $ 0 $ 1,435 $ 28,565 $ 0 Commercial mortgage-backed agencies 39,433 0 1,802 37,631 0 Collateralized mortgage obligations 37,900 0 1,778 36,122 0 Obligations of states and political subdivisions 20,228 118 587 19,759 0 Collateralized debt obligations 18,338 87 1,857 16,568 (853) Total available for sale $ 145,899 $ 205 $ 7,459 $ 138,645 $ (853) Held to Maturity: U.S. government agencies $ 15,982 $ 0 $ 160 $ 15,822 $ 0 Residential mortgage-backed agencies 47,776 7 1,899 45,884 0 Commercial mortgage-backed agencies 16,569 0 340 16,229 0 Collateralized mortgage obligations 3,769 0 260 3,509 0 Obligations of states and political subdivisions 9,630 971 149 10,452 0 Total held to maturity $ 93,726 $ 978 $ 2,808 $ 91,896 $ 0 December 31, 2017 Available for Sale: U.S. government agencies $ 30,000 $ 0 $ 744 $ 29,256 $ 0 Commercial mortgage-backed agencies 41,771 0 880 40,891 0 Collateralized mortgage obligations 41,298 2 916 40,384 0 Obligations of states and political subdivisions 20,772 365 118 21,019 0 Collateralized debt obligations 19,711 0 4,791 14,920 (3,389) Total available for sale $ 153,552 $ 367 $ 7,449 $ 146,470 $ (3,389) Held to Maturity: U.S. government agencies $ 15,876 $ 447 $ 0 $ 16,323 $ 0 Residential mortgage-backed agencies 47,771 94 423 47,442 0 Commercial mortgage-backed agencies 17,288 236 6 17,518 0 Collateralized mortgage obligations 4,187 0 69 4,118 0 Obligations of states and political subdivisions 8,510 1,443 8 9,945 0 Total held to maturity $ 93,632 $ 2,220 $ 506 $ 95,346 $ 0 |
Proceeds from Sales and Realized Gains and Losses | Proceeds from sales/calls of available for sale securities and the realized gains and losses are as follows: Nine months ended Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Proceeds $ 2,005 $ 18,530 $ 2,005 $ 0 Realized gains 151 52 6 0 Realized losses 35 96 16 27 |
Gross Unrealized Losses and Fair Values of Securities | The following table shows the Corporation’s investment securities with gross unrealized losses and fair values at September 30, 2018 and December 31, 2017, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 Available for Sale: U.S. government agencies $ 0 $ 0 $ 28,565 $ 1,435 Commercial mortgage-backed agencies 0 0 37,631 1,802 Collateralized mortgage obligations 300 1 35,822 1,777 Obligations of states and political subdivisions 10,019 344 4,842 243 Collateralized debt obligations 0 0 10,089 1,857 Total available for sale $ 10,319 $ 345 $ 116,949 $ 7,114 Held to Maturity: U.S. government agencies $ 15,822 $ 160 $ 0 $ 0 Residential mortgage-backed agencies 23,860 741 21,864 1,158 Commercial mortgage-backed agencies 16,229 340 0 0 Collateralized mortgage obligations 0 0 3,509 260 Obligations of states and political subdivisions 2,146 149 0 0 Total held to maturity $ 58,057 $ 1,390 $ 25,373 $ 1,418 December 31, 2017 Available for Sale: U.S. government agencies $ 4,931 $ 69 $ 24,325 $ 675 Commercial mortgage-backed agencies 12,593 169 28,298 711 Collateralized mortgage obligations 27,387 472 12,447 443 Obligations of states and political subdivisions 2,683 44 2,747 75 Collateralized debt obligations 0 0 14,920 4,791 Total available for sale $ 47,594 $ 754 $ 82,737 $ 6,695 Held to Maturity: Residential mortgage-backed agencies $ 15,897 $ 135 $ 10,422 $ 288 Commercial mortgage-backed agencies 9,028 6 0 0 Collateralized mortgage obligations 0 0 4,118 69 Obligations of states and political subdivisions 2,377 8 0 0 Total held to maturity $ 27,302 $ 149 $ 14,540 $ 357 |
Non-Cash OTTI Credit Losses Recognized in Earnings | The following tables present a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses which have been recognized in earnings for the trust preferred securities in the CDO portfolio held and not intended to be sold for the nine- and three-month periods ended September 30, 2018 and 2017: Nine months ended September 30, (in thousands) 2018 2017 Balance of credit-related OTTI at January 1 $ 2,958 $ 3,124 Reduction for increases in cash flows expected to be collected (160) (112) Balance of credit-related OTTI at September 30 $ 2,798 $ 3,012 Three months ended September 30, (in thousands) 2018 2017 Balance of credit-related OTTI at July 1 $ 2,851 $ 3,067 Reduction for increases in cash flows expected to be collected (53) (55) Balance of credit-related OTTI at September 30 $ 2,798 $ 3,012 |
Amortized Cost and Fair Values Classified by Contractual Maturity Date | September 30, 2018 (in thousands) Amortized Cost Fair Value Contractual Maturity Available for sale: Due in one year or less $ 231 $ 234 Due after one year through five years 16,083 15,629 Due after five years through ten years 22,840 21,676 Due after ten years 29,412 27,353 68,566 64,892 Commercial mortgage-backed agencies 39,433 37,631 Collateralized mortgage obligations 37,900 36,122 Total available for sale $ 145,899 $ 138,645 Held to Maturity: Due after five years through ten years $ 15,982 $ 15,822 Due after ten years 9,630 10,452 25,612 26,274 Residential mortgage-backed agencies 47,776 45,884 Commercial mortgage-backed agencies 16,569 16,229 Collateralized mortgage obligations 3,769 3,509 Total held to maturity $ 93,726 $ 91,896 |
Loans and Related Allowance f_3
Loans and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Primary Segments of the Loan Portfolio | The following table summarizes the primary segments of the loan portfolio at September 30, 2018 and December 31, 2017: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Total September 30, 2018 Individually evaluated for impairment $ 5,801 $ 658 $ 17 $ 4,121 $ 21 $ 10,618 Collectively evaluated for impairment $ 286,993 $ 113,031 $ 98,493 $ 421,348 $ 33,577 $ 953,442 Total loans $ 292,794 $ 113,689 $ 98,510 $ 425,469 $ 33,598 $ 964,060 December 31, 2017 Individually evaluated for impairment $ 9,076 $ 976 $ 668 $ 4,201 $ 30 $ 14,951 Collectively evaluated for impairment $ 274,086 $ 109,554 $ 76,055 $ 394,447 $ 23,425 $ 877,567 Total loans $ 283,162 $ 110,530 $ 76,723 $ 398,648 $ 23,455 $ 892,518 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard within the internal risk rating system at September 30, 2018 and December 31, 2017: (in thousands) Pass Special Mention Substandard Total September 30, 2018 Commercial real estate Non owner-occupied $ 136,244 $ 2,938 $ 2,818 $ 142,000 All other CRE 143,329 1,768 5,697 150,794 Acquisition and development 1-4 family residential construction 21,048 0 0 21,048 All other A&D 84,704 7,378 559 92,641 Commercial and industrial 94,024 3,871 615 98,510 Residential mortgage Residential mortgage - term 348,112 0 4,675 352,787 Residential mortgage - home equity 71,445 144 1,093 72,682 Consumer 33,469 4 125 33,598 Total $ 932,375 $ 16,103 $ 15,582 $ 964,060 December 31, 2017 Commercial real estate Non owner-occupied $ 133,725 $ 0 $ 5,843 $ 139,568 All other CRE 133,905 2,061 7,628 143,594 Acquisition and development 1-4 family residential construction 17,719 0 0 17,719 All other A&D 84,345 7,294 1,172 92,811 Commercial and industrial 75,299 17 1,407 76,723 Residential mortgage Residential mortgage - term 319,059 0 5,326 324,385 Residential mortgage - home equity 73,059 148 1,056 74,263 Consumer 23,391 5 59 23,455 Total $ 860,502 $ 9,525 $ 22,491 $ 892,518 |
Loan Portfolio Summarized by the Past Due Status | The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at September 30, 2018 and December 31, 2017: (in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days+ Past Due Total Past Due and Accruing Non-Accrual Total Loans September 30, 2018 Commercial real estate Non owner-occupied $ 141,374 $ 17 $ 0 $ 0 $ 17 $ 609 $ 142,000 All other CRE 148,713 31 0 0 31 2,050 150,794 Acquisition and development 1-4 family residential construction 21,048 0 0 0 0 0 21,048 All other A&D 92,450 0 0 151 151 40 92,641 Commercial and industrial 98,380 129 0 1 130 0 98,510 Residential mortgage Residential mortgage - term 348,861 467 1,498 390 2,355 1,571 352,787 Residential mortgage - home equity 71,524 427 197 0 624 534 72,682 Consumer 33,369 150 42 17 209 20 33,598 Total $ 955,719 $ 1,221 $ 1,737 $ 559 $ 3,517 $ 4,824 $ 964,060 December 31, 2017 Commercial real estate Non owner-occupied $ 136,134 $ 186 $ 0 $ 0 $ 186 $ 3,248 $ 139,568 All other CRE 141,680 461 248 0 709 1,205 143,594 Acquisition and development 1-4 family residential construction 17,719 0 0 0 0 0 17,719 All other A&D 92,291 0 165 144 309 211 92,811 Commercial and industrial 76,322 0 17 6 23 378 76,723 Residential mortgage Residential mortgage - term 319,633 322 2,534 430 3,286 1,466 324,385 Residential mortgage - home equity 72,683 600 400 0 1,000 580 74,263 Consumer 23,273 115 22 15 152 30 23,455 Total $ 879,735 $ 1,684 $ 3,386 $ 595 $ 5,665 $ 7,118 $ 892,518 |
Primary Segments of the Allowance for Loan Loss | The following table summarizes the primary segments of the ALL at September 30, 2018 and December 31, 2017, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total September 30, 2018 Individually evaluated for impairment $ 170 $ 26 $ 0 $ 116 $ 3 $ 0 $ 315 Collectively evaluated for impairment $ 2,643 $ 1,469 $ 1,001 $ 4,102 $ 293 $ 500 $ 10,008 Total ALL $ 2,813 $ 1,495 $ 1,001 $ 4,218 $ 296 $ 500 $ 10,323 December 31, 2017 Individually evaluated for impairment $ 245 $ 40 $ 0 $ 65 $ 12 $ 0 $ 362 Collectively evaluated for impairment $ 3,454 $ 1,217 $ 869 $ 3,379 $ 191 $ 500 $ 9,610 Total ALL $ 3,699 $ 1,257 $ 869 $ 3,444 $ 203 $ 500 $ 9,972 |
Impaired Loans and Related Interest Income by Loan Portfolio Class | The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at September 30, 2018 and December 31, 2017: Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans (in thousands) Recorded Investment Related Allowances Recorded Investment Recorded Investment Unpaid Principal Balance September 30, 2018 Commercial real estate Non owner-occupied $ 685 $ 170 $ 46 $ 731 $ 8,516 All other CRE 0 0 5,070 5,070 5,070 Acquisition and development 1-4 family residential construction 0 0 387 387 387 All other A&D 231 27 40 271 353 Commercial and industrial 0 0 17 17 2,231 Residential mortgage Residential mortgage - term 1,101 115 2,486 3,587 3,820 Residential mortgage – home equity 0 0 534 534 547 Consumer 10 3 11 21 21 Total impaired loans $ 2,027 $ 315 $ 8,591 $ 10,618 $ 20,945 December 31, 2017 Commercial real estate Non owner-occupied $ 1,711 $ 245 $ 1,907 $ 3,618 $ 10,579 All other CRE 0 0 5,458 5,458 5,731 Acquisition and development 1-4 family residential construction 0 0 527 527 527 All other A&D 295 40 154 449 722 Commercial and industrial 0 0 668 668 2,882 Residential mortgage Residential mortgage - term 598 65 3,023 3,621 3,919 Residential mortgage – home equity 0 0 580 580 593 Consumer 30 12 0 30 30 Total impaired loans $ 2,634 $ 362 $ 12,317 $ 14,951 $ 24,983 |
Allowance for Loan Losses Summarized by Loan Portfolio Segments | The following tables present the activity in the ALL for the nine- and three-month periods ended September 30, 2018 and 2017: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at January 1, 2018 $ 3,699 $ 1,257 $ 869 $ 3,444 $ 203 $ 500 $ 9,972 Charge-offs (889) (98) (32) (353) (297) 0 (1,669) Recoveries 60 290 44 323 116 0 833 Provision (57) 46 120 804 274 0 1,187 ALL balance at September 30, 2018 $ 2,813 $ 1,495 $ 1,001 $ 4,218 $ 296 $ 500 $ 10,323 ALL balance at January 1, 2017 $ 3,913 $ 871 $ 858 $ 3,588 $ 188 $ 500 $ 9,918 Charge-offs (2,798) (79) (37) (252) (254) 0 (3,420) Recoveries 68 230 1,666 299 185 0 2,448 Provision 3,354 162 (1,683) (101) 77 0 1,809 ALL balance at September 30, 2017 $ 4,537 $ 1,184 $ 804 $ 3,534 $ 196 $ 500 $ 10,755 |
Average of Impaired Loans and Related Interest Income by Loan Portfolio Class | The following table presents the average recorded investment in impaired loans by class and related interest income recognized for the periods indicated: Nine months ended Nine months ended September 30, 2018 September 30, 2017 (in thousands) Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Average investment Interest income recognized on an accrual basis Interest income recognized on a cash basis Commercial real estate Non owner-occupied $ 1,716 $ 9 $ 66 $ 6,255 $ 18 $ 0 All other CRE 5,495 153 56 8,314 157 0 Acquisition and development 1-4 family residential construction 475 18 0 582 18 0 All other A&D 350 9 0 1,851 68 0 Commercial and industrial 327 13 0 393 9 0 Residential mortgage Residential mortgage - term 3,566 92 2 3,836 98 8 Residential mortgage – home equity 585 0 7 236 0 0 Consumer 25 0 0 0 0 0 Total $ 12,539 $ 294 $ 131 $ 21,467 $ 368 $ 8 |
Modification of Troubled Debt Restructuring by Class | There were 16 loans totaling $5.0 million and 19 loans totaling $6.0 million that were classified as TDRs at September 30, 2018 and December 31, 2017, respectively. The following tables present the volume and recorded investment at that time of modification of TDRs by class and type of modification that occurred during the periods indicated: Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Nine months ended September 30, 2018 Commercial real estate Non owner-occupied 0 $ 0 0 $ 0 1 $ 126 All other CRE 0 0 1 179 0 0 Acquisition and development 1-4 family residential construction 0 0 1 387 0 0 All other A&D 0 0 0 0 0 0 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 0 0 0 0 0 0 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 0 $ 0 2 $ 566 1 $ 126 Temporary Rate Modification Extension of Maturity Modification of Payment and Other Terms (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Nine months ended September 30, 2017 Commercial real estate Non owner-occupied 0 $ 0 0 $ 0 0 $ 0 All other CRE 0 0 0 0 0 0 Acquisition and development 1-4 family residential construction 0 0 0 0 0 0 All other A&D 0 0 1 244 0 0 Commercial and industrial 0 0 0 0 0 0 Residential mortgage Residential mortgage – term 0 0 1 259 1 439 Residential mortgage – home equity 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Total 0 $ 0 2 $ 503 1 $ 439 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Real Estate Owned [Abstract] | |
Schedule of Real Estate Properties Comprising OREO | The following table presents the components of other real estate owned (“OREO”) at September 30, 2018 and December 31, 2017: (in thousands) September 30, 2018 December 31, 2017 Commercial real estate $ 2,993 $ 3,605 Acquisition and development 3,620 5,295 Commercial and industrial 24 24 Residential mortgage 845 1,217 Total OREO $ 7,482 $ 10,141 |
Other Real Estate, Roll Forward | The following table presents the activity in the OREO valuation allowance for the nine- and three-month periods ended September 30, 2018 and 2017: For the Nine months Ended For the Three months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Balance beginning of period $ 2,740 $ 3,535 $ 2,947 $ 3,232 Fair value write-down 656 551 179 458 Sales of OREO (651) (1,005) (381) (609) Balance at end of period $ 2,745 $ 3,081 $ 2,745 $ 3,081 |
Schedule of Components of Other Real Estate Owned Expense | The following table presents the components of OREO expenses, net, for the nine- and three-month periods ended September 30, 2018 and 2017: For the Nine months Ended For the Three months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Gains on real estate, net $ (269) $ (589) $ (86) $ (515) Fair value write-down, net 656 551 179 458 Expenses, net 396 492 123 213 Rental and other income (101) (149) (27) (63) Total OREO expense, net $ 682 $ 305 $ 189 $ 93 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 16,568 Discounted Cash Flow Discount Rate LIBOR+ 3.75% Non-recurring: Impaired Loans $ 1,525 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 11.4% ) Other Real Estate Owned $ 1,279 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 13.7% ) (in thousands) Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 14,920 Discounted Cash Flow Discount Rate Range of LIBOR+ 4.5% to 5.5% Non-recurring: Impaired Loans $ 2,507 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 10.9% ) Other Real Estate Owned $ 1,841 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 13.3% ) NOTE: Range would include discounts taken since appraisal and estimated values |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2018 and December 31, 2017 are as follows: Fair Value Measurements at September 30, 2018 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 09/30/2018 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 28,565 $ 28,565 Commercial mortgage-backed agencies $ 37,631 $ 37,631 Collateralized mortgage obligations $ 36,122 $ 36,122 Obligations of states and political subdivisions $ 19,759 $ 19,759 Collateralized debt obligations $ 16,568 $ 16,568 Financial Derivatives $ 1,689 $ 1,689 Non-recurring: Impaired loans $ 1,525 $ 1,525 Other real estate owned $ 1,279 $ 1,279 Fair Value Measurements at December 31, 2017 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 12/31/2017 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 29,256 $ 29,256 Commercial mortgage-backed agencies $ 40,891 $ 40,891 Collateralized mortgage obligations $ 40,384 $ 40,384 Obligations of states and political subdivisions $ 21,019 $ 21,019 Collateralized debt obligations $ 14,920 $ 14,920 Financial Derivative $ 781 $ 781 Non-recurring: Impaired loans $ 2,507 $ 2,507 Other real estate owned $ 1,841 $ 1,841 |
Reconciliation of Fair Valued Assets Measured on a Recurring Basis | The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured on a recurring basis using Level 3 significant unobservable inputs for the nine- and three-month periods ended September 30, 2018 and 2017: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (In thousands) Investment Securities Available for Sale Beginning balance January 1, 2018 $ 14,920 Total gains realized/unrealized: Included in other comprehensive income 1,648 Ending balance September 30, 2018 $ 16,568 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance January 1, 2017 $ 20,254 Total losses realized/unrealized: Included in other comprehensive income (5,536) Ending balance September 30, 2017 $ 14,718 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance July 1, 2018 $ 16,147 Total gains realized/unrealized: Included in other comprehensive income 421 Ending balance September 30, 2018 $ 16,568 |
Fair Value by Balance Sheet Grouping | The following tables present fair value information about financial instruments, whether or not recognized in the Consolidated Statement of Financial Condition, for which it is practicable to estimate that value. The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the Consolidated Statement of Financial Condition are as follows: September 30, 2018 Fair Value Measurements Carrying Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 21,725 $ 21,725 $ 21,725 Interest bearing deposits in banks 1,832 1,832 1,832 Investment securities - AFS 138,645 138,645 $ 122,077 $ 16,568 Investment securities - HTM 93,726 91,896 81,444 10,452 Restricted bank stock 5,394 5,394 5,394 Loans, net 1 953,737 938,110 938,110 Financial derivatives 1,689 1,689 1,689 Accrued interest receivable 4,069 4,069 4,069 Financial Liabilities: Deposits – non-maturity 801,017 801,017 801,017 Deposits – time deposits 223,558 224,295 224,295 Short-term borrowed funds 86,805 86,805 86,805 Long-term borrowed funds 100,929 97,622 97,622 Accrued interest payable 358 358 358 Off balance sheet financial instruments 0 0 0 December 31, 2017 Fair Value Measurements Carrying Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets: Cash and due from banks $ 82,273 $ 82,273 $ 82,273 Interest bearing deposits in banks 1,479 1,479 1,479 Investment securities - AFS 146,470 146,470 $ 131,550 $ 14,920 Investment securities - HTM 93,632 95,346 86,836 8,510 Restricted bank stock 5,204 5,204 5,204 Loans, net 1 882,546 883,936 883,936 Financial derivative 781 781 781 Accrued interest receivable 3,814 3,814 3,814 Financial Liabilities: Deposits- non-maturity 805,263 805,263 805,263 Deposits- time deposits 234,127 235,489 235,489 Short-term borrowed funds 48,845 48,845 48,845 Long-term borrowed funds 120,929 123,906 123,906 Accrued interest payable 453 453 453 Off balance sheet financial instruments 0 0 0 1 In accordance with the prospective adoption of Accounting Standards Update (“ASU”) 2016-01, the fair value of loans at September 30, 2018 was measured using an exit price notion. The fair value of loans at December 31, 2017 was measured using an entry price notion. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in each component of accumulated other comprehensive loss for the 12 months ended December 31, 2017 and the three-month periods ended March 31, 2018, June 30, 2018 and September 30, 2018: (in thousands) Investment securities- with OTTI AFS Investment securities- all other AFS Investment securities- HTM Cash Flow Hedge Pension Plan SERP Total Accumulated OCL, net: Balance - January 1, 2017 $ (2,368) $ (3,218) $ (1,354) $ 422 $ (14,232) $ (715) $ (21,465) Other comprehensive income/(loss) before reclassifications 31 638 0 59 (445) (82) 201 Amounts reclassified from accumulated other comprehensive loss (121) 36 253 0 781 105 1,054 Reclassification of certain tax effects (481) (435) (246) 101 (3,170) (152) (4,383) Balance – December 31, 2017 $ (2,939) $ (2,979) $ (1,347) $ 582 $ (17,066) $ (844) $ (24,593) Other comprehensive income/(loss) before reclassifications 685 (1,085) 0 443 516 0 559 Amounts reclassified from accumulated other comprehensive loss (40) 7 45 0 220 29 261 Balance – March 31, 2018 $ (2,294) $ (4,057) $ (1,302) $ 1,025 $ (16,330) $ (815) $ (23,773) Other comprehensive income/(loss) before reclassifications 1,089 (237) 0 108 (1,750) 0 (790) Amounts reclassified from accumulated other comprehensive loss (144) 7 38 0 220 29 150 Balance - June 30, 2018 $ (1,349) $ (4,287) $ (1,264) $ 1,133 $ (17,860) $ (786) $ (24,413) Other comprehensive income/(loss) before reclassifications 300 (672) 0 112 355 0 95 Amounts reclassified from accumulated other comprehensive loss (39) 7 63 0 220 29 280 Balance - September 30, 2018 $ (1,088) $ (4,952) $ (1,201) $ 1,245 $ (17,285) $ (757) $ (24,038) |
Components of Comprehensive Income | The following tables present the components of other comprehensive income/(loss) for the nine- and three-month periods ended September 30, 2018 and 2017: Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the nine months ended September 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 2,842 $ (768) $ 2,074 Less: gains recognized in income 145 (39) 106 Less: accretable yield recognized in income 160 (43) 117 Net unrealized gains on investments with OTTI 2,537 (686) 1,851 Available for sale securities – all other: Unrealized holding losses (2,733) 739 (1,994) Less: losses recognized in income (29) 8 (21) Net unrealized losses on all other AFS securities (2,704) 731 (1,973) Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (200) 54 (146) Net unrealized gains on HTM securities 200 (54) 146 Cash flow hedges: Unrealized holding gains 908 (245) 663 Pension Plan: Unrealized net actuarial loss (1,206) 326 (880) Less: amortization of unrecognized loss (900) 244 (656) Less: amortization of prior service costs (6) 2 (4) Net pension plan liability adjustment (300) 80 (220) SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (121) 33 (88) Less: amortization of prior service costs 2 (1) 1 Net SERP liability adjustment 119 (32) 87 Other comprehensive income $ 760 $ (206) $ 554 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the nine months ended September 30, 2017 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 517 $ (204) $ 313 Less: accretable yield recognized in income 112 (43) 69 Net unrealized gains on investments with OTTI 405 (161) 244 Available for sale securities – all other: Unrealized holding gains 2,859 (1,139) 1,720 Less: losses recognized in income (44) 17 (27) Net unrealized gains on all other AFS securities 2,903 (1,156) 1,747 Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (262) 104 (158) Net unrealized gains on HTM securities 262 (104) 158 Cash flow hedges: Unrealized holding losses (156) 62 (94) Pension Plan: Unrealized net actuarial loss (170) 68 (102) Less: amortization of unrecognized loss (792) 315 (477) Less: amortization of prior service costs (9) 4 (5) Net pension plan liability adjustment 613 (251) 380 SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (110) 44 (66) Less: amortization of prior service costs 2 (1) 1 Net SERP liability adjustment 108 (43) 65 Other comprehensive income $ 4,135 $ (1,653) $ 2,500 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the three months ended September 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 410 $ (110) $ 300 Less: accretable yield recognized in income 53 (14) 39 Net unrealized gains on investments with OTTI 357 (96) 261 Available for sale securities – all other: Unrealized holding losses (921) 249 (672) Less: Losses recognized in income (10) 3 (7) Net unrealized losses on all other AFS securities (911) 246 (665) Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (86) 23 (63) Net unrealized gains on HTM securities 86 (23) 63 Cash flow hedges: Unrealized holding gains 153 (41) 112 Pension Plan: Unrealized net actuarial gain 486 (132) 354 Less: amortization of unrecognized loss (300) 82 (218) Less: amortization of prior service costs (2) 0 (2) Net pension plan liability adjustment 788 (214) 574 SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (40) 11 (29) Less: amortization of prior service costs 1 (1) 0 Net SERP liability adjustment 39 (10) 29 Other comprehensive income $ 512 $ (138) $ 374 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the three months ended September 30, 2017 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 407 $ (162) $ 245 Less: accretable yield recognized in income 55 (22) 33 Net unrealized gains on investments with OTTI 352 (140) 212 Available for sale securities – all other: Unrealized holding losses (95) 44 (51) Less: losses recognized in income (27) 15 (12) Net unrealized losses on all other AFS securities (68) 29 (39) Held to maturity securities: Unrealized holding gains 0 0 0 Less: amortization recognized in income (90) 36 (54) Net unrealized gains on HTM securities 90 (36) 54 Cash flow hedges: Unrealized holding gains 7 (3) 4 Pension Plan: Unrealized net actuarial gain 38 (14) 24 Less: amortization of unrecognized loss (264) 105 (159) Less: amortization of prior service costs (3) 2 (1) Net pension plan liability adjustment 305 (121) 184 SERP: Unrealized net actuarial loss 0 0 0 Less: amortization of unrecognized loss (37) 14 (23) Less: amortization of prior service costs 1 0 1 Net SERP liability adjustment 36 (14) 22 Other comprehensive income $ 722 $ (285) $ 437 |
Reclassification Out of Accumulated Other Comprehensive Income | The following table presents the details of amount reclassified from accumulated other comprehensive loss for the nine- and three-month periods ended September 30, 2018 and 2017: Amounts Reclassified from Accumulated Other Comprehensive Loss (in thousands) For the Nine months ended September 30, 2018 For the Nine months ended September 30, 2017 Affected Line Item in the Statement Where Net Income is Presented Net unrealized gains on investment securities with OTTI: Gain on calls $ 145 $ 0 Net gains Accretable yield 160 112 Interest income on taxable investment securities Taxes (82) (43) Provision for Income Tax Expense $ 223 $ 69 Net of tax Net unrealized losses on available for sale investment securities - all others: Losses on sales $ (29) $ (44) Net gains Taxes 8 17 Provision for Income Tax Expense $ (21) $ (27) Net of tax Net unrealized losses on held to maturity securities: Amortization $ (200) $ (262) Interest income on taxable investment securities Taxes 54 104 Provision for Income Tax Expense $ (146) $ (158) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (900) $ (792) Other Expense Amortization of prior service costs (6) (9) Salaries and employee benefits Taxes 246 319 Provision for Income Tax Expense $ (660) $ (482) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (121) $ (110) Other Expense Amortization of prior service costs 2 2 Salaries and employee benefits Taxes 32 43 Provision for Income Tax Expense $ (87) $ (65) Net of tax Total reclassifications for the period $ (691) $ (663) Net of tax Amounts Reclassified from Accumulated Other Comprehensive Loss (in thousands) For the Three months ended September 30, 2018 For the Three months ended September 30, 2017 Affected Line Item in the Statement Where Net Income is Presented Unrealized gains on investment securities with OTTI: Accretable Yield $ 53 $ 55 Interest income on taxable investment securities Taxes (14) (22) Provision for Income Tax Expense $ 39 $ 33 Net of tax Unrealized losses on available for sale investment securities - all others: Losses on sales $ (10) $ (27) Net gains/(losses) Taxes 3 15 Provision for Income Tax Expense $ (7) $ (12) Net of tax Unrealized losses on held to maturity securities: Amortization $ (86) $ (90) Interest income on taxable investment securities Taxes 23 36 Provision for Income Tax Expense $ (63) $ (54) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (300) $ (264) Salaries and employee benefits Amortization of prior service costs (2) (3) Salaries and employee benefits Taxes 82 107 Provision for Income Tax Expense $ (220) $ (160) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (40) $ (37) Salaries and employee benefits Amortization of prior service costs 1 1 Salaries and employee benefits Taxes 10 14 Provision for Income Tax Expense $ (29) $ (22) Net of tax Total reclassifications for the period $ (280) $ (215) Net of tax |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax [Abstract] | |
Reconciliation of Statutory to Effective Income Tax Rates | The reconciliation between the statutory federal income tax rate and effective income tax rate for the nine-month periods ending September 30, 2018 and 2017 is as follows: September 30, 2018 September 30, 2017 Federal statutory rate 21.0% 35.0% Tax-exempt income on securities and loans (1.5) (3.1) Tax-exempt BOLI income (1.7) (3.5) State income tax, net of federal tax benefit 5.2 4.5 Tax credits (2.0) (3.5) Other 0.2 (0.5) 21.2% 28.9% |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Borrowed Funds [Abstract] | |
Summary of Short Term Borrowings | The following is a summary of short-term borrowings with original maturities of less than one year: (Dollars in thousands) Nine months ended September 30, 2018 Year ended December 31, 2017 Short-term Correspondent Bank Advance: Overnight borrowings, weighted average interest rate of 2.42% at September 30, 2018 $ 39,000 $ 0 Securities sold under agreements to repurchase: Outstanding at end of period $ 47,805 $ 48,845 Weighted average interest rate at end of period 0.17% 0.15% Maximum amount outstanding as of any month end $ 54,595 $ 58,438 Average amount outstanding $ 42,584 $ 37,326 Approximate weighted average rate during the period 0.19% 0.19% |
Summary of Long Term Borrowings | The following is a summary of long-term borrowings with original maturities exceeding one year: September 30, December 31, (in thousands) 2018 2017 FHLB advances, bearing fixed interest at rates ranging from 1.54% to 3.02% at September 30, 2018 $ 70,000 $ 90,000 Junior subordinated debt, bearing variable interest rate of 5.08% at September 30, 2018 30,929 30,929 Total long-term debt $ 100,929 $ 120,929 |
Contractual Maturities Of All Long Term Borrowings | The contractual maturities of all long-term borrowings are as follows: September 30, 2018 December 31, 2017 (in thousands) Fixed Rate Floating Rate Total Total Due in 2018 $ 0 $ 0 $ 0 $ 20,000 Due in 2019 20,000 0 20,000 20,000 Due in 2020 30,000 0 30,000 30,000 Due in 2021 20,000 0 20,000 20,000 Thereafter 0 30,929 30,929 30,929 Total long-term debt $ 70,000 $ 30,929 $ 100,929 $ 120,929 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Employee Benefit Plans [Abstract] | |
Components of the Net Periodic Pension Plan Cost | The following tables present the components of the net periodic pension plan cost for First United Corporation’s Defined Benefit Pension Plan (the “Pension Plan”) and the Bank’s Supplemental Executive Retirement Plan (“SERP”) for the periods indicated: Pension For the Nine months ended For the Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Service cost $ 243 $ 210 $ 81 $ 70 Interest cost 1,190 1,237 397 412 Expected return on assets (2,430) (2,253) (810) (751) Amortization of net actuarial loss 900 792 300 264 Amortization of prior service cost 6 9 2 3 Net pension credit included in employee benefits and other expense $ (91) $ (5) $ (30) $ (2) SERP For the Nine months ended For the Three months ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Service cost $ 84 $ 78 $ 28 $ 26 Interest cost 226 216 76 72 Amortization of recognized loss 121 110 40 37 Amortization of prior service cost (2) (2) (1) (1) Net SERP expense included in employee benefits and other expense $ 429 $ 402 $ 143 $ 134 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments [Abstract] | |
Impact of Derivative Financial Instruments | The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the nine- and three- months ended September 30, 2018 and 2017. Derivative in Cash Flow Hedging Relationships (in thousands) Amount of gain or (loss) recognized in OCI on derivative (effective portion) Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) (a) Amount of gain or (loss) recognized in income or derivative (ineffective portion and amount excluded from effectiveness testing) (b) Interest rate contracts: Nine months ended: September 30, 2018 $ 663 $ 0 $ 0 September 30, 2017 (94) 0 0 Three months ended: September 30, 2018 $ 112 $ 0 $ 0 September 30, 2017 (4) 0 0 Notes: (a) Reported as interest expense (b) Reported as other income |
Variable Interest Entities (V_2
Variable Interest Entities (VIE) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities (VIE) [Abstract] | |
Investment in LIHTC Partnership | The following table presents details of the Bank’s involvement with Liberty Mews at the dates indicated: September 30, December 31, (in thousands) 2018 2017 Investment in LIHTC Partnership Carrying amount on Balance Sheet of: Investment (Other Assets) $ 2,040 $ 2,562 Maximum exposure to loss 2,040 2,562 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Noninterest income segregated by revenue streams in and out of scope of Topic 606 | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the nine and three months ended September 30, 2018 and 2017. Nine months ended Three months ended September 30, September 30, September 30, September 30, (in thousands) 2018 2017 2018 2017 Noninterest income In-scope of Topic 660: Service charges $ 2,374 $ 2,310 $ 814 $ 802 Trust department 5,010 4,629 1,705 1,579 Debit card income 1,818 1,805 617 661 Brokerage commissions 828 662 277 236 Noninterest income (in-scope of Topic 660) 10,030 9,406 3,413 3,278 Noninterest income (out-of-scope of Topic 660) 1,178 1,225 384 394 Total Noninterest Income $ 11,208 $ 10,631 $ 3,797 $ 3,672 |
Assets and Liabilities Subjec_2
Assets and Liabilities Subject to Enforceable Master Netting Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements [Abstract] | |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement or Repurchase Agreements | The following table presents the assets and liabilities subject to an enforceable master netting arrangement or repurchase agreements at September 30, 2018 and December 31, 2017. Gross Amounts Not Offset in the Statement of Condition (In thousands) Gross Amounts of Recognized (Assets)/ Liabilities Gross Amounts Offset in the Statement of Condition Net Amounts of (Assets)/ Liabilities Presented in the Statement of Condition Financial Instruments Cash Collateral Pledged Net Amount September 30, 2018 Interest Rate Swap Agreements $ (1,689) $ 0 $ (1,689) $ 1,689 $ 0 $ 0 Repurchase Agreements $ 47,805 $ 0 $ 47,805 $ (47,805) $ 0 $ 0 December 31, 2017 Interest Rate Swap Agreements $ (781) $ 0 $ (781) $ 781 $ 0 $ 0 Repurchase Agreements $ 48,845 $ 0 $ 48,845 $ (48,845) $ 0 $ 0 |
Earnings Per Common Share (Basi
Earnings Per Common Share (Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Common Share [Abstract] | |||||||||
Net Income | $ 2,763 | $ 3,016 | $ 2,506 | $ (1,032) | $ 2,012 | $ 2,309 | $ 1,980 | $ 8,285 | $ 6,301 |
Preferred stock dividends | 0 | (225) | (225) | 0 | (990) | ||||
Net income available to common shareholders | $ 2,763 | $ 1,787 | $ 1,787 | $ 8,285 | $ 5,311 | ||||
Weighted average number of basic and diluted shares outstanding | 7,084 | 7,067 | 7,067 | 7,076 | 6,887 | ||||
Basic and diluted net income per common share | $ 0.39 | $ 0.25 | $ 0.25 | $ 1.17 | $ 0.77 |
Net Gains_(Losses) (Schedule of
Net Gains/(Losses) (Schedule of Net Gains) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Gains/(Losses) [Abstract] | ||||
Realized gains | $ 6 | $ 0 | $ 151 | $ 52 |
Realized losses | (16) | (27) | (35) | (96) |
Gains on sale of consumer loans | 19 | 16 | 74 | 48 |
Losses on disposal of fixed assets | 0 | 0 | 0 | (1) |
Net gains/(losses) | $ 9 | $ (11) | $ 190 | $ 3 |
Cash and Cash Equivalents (Cash
Cash and Cash Equivalents (Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||
Cash and due from banks | $ 21,725 | $ 82,273 |
Interest bearing deposits in banks | 1,832 | 1,479 |
FHLB [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest bearing deposits in banks | $ 816 | 464 |
Interest Rate | 2.08% | |
M&T Fed Funds sold [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest bearing deposits in banks | $ 1,016 | $ 1,015 |
Interest Rate | 0.15% | |
Weighted Average [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Interest Rate | 0.67% |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ | $ 7,114 | $ 6,695 |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, nature | U.S. Government Agencies – Available for Sale – There were no U.S. government agency investments in an unrealized loss position for less than 12 months as of September 30, 2018. There were five U.S. government agency investments in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of investment grade and the Corporation does not intend to sell them, and it is not more than likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | 0 | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 5 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ | $ 1,435 | 675 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | U.S. Government Agencies – Held to Maturity – There were two U.S. government agencies in an unrealized loss position for less than 12 months as of September 30, 2018. There were no U.S. government agency investments in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of investment grade and the Corporation does not intend to sell them, and it is not more than likely than not that the Corporation will be required to sell them before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. | |
Held-to-maturity, securities in unrealized loss positions less than twelve months, qualitative disclosure, number of positions | 2 | |
Held-to-maturity, securities in unrealized loss positions greater than twelve months, qualitative disclosure, number of positions | 0 | |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Residential Mortgage-Backed Agencies – Held to Maturity – There were thirteen residential mortgage-backed agencies in an unrealized loss position for less than 12 months as of September 30, 2018. There were eighteen residential mortgage-backed agency investments in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. | |
Held-to-maturity, securities in unrealized loss positions less than twelve months, qualitative disclosure, number of positions | 13 | |
Held-to-maturity, securities in unrealized loss positions greater than twelve months, qualitative disclosure, number of positions | 18 | |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, nature | Commercial Mortgage-Backed Agencies – Available for Sale – There were no commercial mortgage-backed agencies in an unrealized loss position for less than 12 months as of September 30, 2018. There were eight commercial mortgage-backed agencies in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | 0 | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 8 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ | $ 1,802 | 711 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Commercial Mortgage-Backed Agencies – Held to Maturity - There were four commercial mortgage-backed agency investments in an unrealized loss position for less than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. There were no commercial mortgage-backed agencies in a loss position for more than 12 months as of September 30, 2018. | |
Held-to-maturity, securities in unrealized loss positions less than twelve months, qualitative disclosure, number of positions | 4 | |
Held-to-maturity, securities in unrealized loss positions greater than twelve months, qualitative disclosure, number of positions | 0 | |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, nature | Collateralized Mortgage Obligations – Available for Sale – There was one collateralized mortgage obligation in an unrealized loss position for less than 12 months as of September 30, 2018. There were eight collateralized mortgage obligations in an unrealized loss position for more than 12 months as of September 30, 2018. The securities are of the highest investment grade and the Corporation has the intent and ability to hold the investments to maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | 1 | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 8 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ | $ 1,777 | 443 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Collateralized Mortgage Obligations – Held to Maturity – There were no collateralized mortgage obligations in an unrealized loss position for less than 12 months as of September 30, 2018. There was one collateralized mortgage obligation in a loss position for more than 12 months as of September 30, 2018. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at September 30, 2018. | |
Held-to-maturity, securities in unrealized loss positions less than twelve months, qualitative disclosure, number of positions | 0 | |
Held-to-maturity, securities in unrealized loss positions greater than twelve months, qualitative disclosure, number of positions | 1 | |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, nature | Obligations of State and Political Subdivisions – Available for Sale – There were 11 obligations of state and political subdivisions that have been in an unrealized loss position for less than 12 months and three securities that have been in an unrealized loss position for 12 months or more at September 30, 2018. These investments are of investment grade as determined by the major rating agencies and management reviews the ratings of the underlying issuers and performs an in-depth credit analysis on the securities. Management believes that this portfolio is well-diversified throughout the United States, and all bonds continue to perform according to their contractual terms. The Corporation does not intend to sell these investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. Accordingly, management does not consider these investments to be other-than-temporarily impaired at September 30, 2018. | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | 11 | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 3 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ | $ 243 | 75 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Nature | Obligations of State and Political Subdivisions – Held to Maturity –There was one obligation of state and political subdivisions that has been in an unrealized loss for less than 12 months as of September 30, 2018. The security is of the highest investment grade and the Corporation has the intent and ability to hold the investment to maturity. Accordingly, management does not consider this investment to be other-than-temporarily impaired at September 30, 2018. There were no obligations of state and political subdivisions securities in an unrealized loss position for more than 12 months as of September 30, 2018. | |
Held-to-maturity, securities in unrealized loss positions less than twelve months, qualitative disclosure, number of positions | 1 | |
Held-to-maturity, securities in unrealized loss positions greater than twelve months, qualitative disclosure, number of positions | 0 | |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, nature | Collateralized Debt Obligations – Available for Sale - The $1.9 million in unrealized losses recorded with respect to the CDOs that had been in an unrealized loss position for 12 months or more as of September 30, 2018 relates to five pooled trust preferred securities. See Note 9 for a discussion of the methodology used by management to determine the fair values of these securities. Based upon a review of credit quality and the cash flow tests performed by the independent third party, management determined that there were no securities that had credit-related non-cash OTTI charges during the first nine months of 2018. At September 30, 2018, four of the CDO securities were in an unrealized gain position. | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | 5 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ | $ 1,857 | $ 4,791 |
Available-for-sale securities, unrealized gain position, number of securities | 4 |
Investments (Unrealized Gain (L
Investments (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 145,899 | $ 153,552 |
Gross Unrealized Gains | 205 | 367 |
Gross Unrealized Losses | 7,459 | 7,449 |
Investment securities - available-for-sale (at fair value) | 138,645 | 146,470 |
OTTI in AOCI | (853) | (3,389) |
Held-to-maturity amortized cost | 93,726 | 93,632 |
Held-to-maturity Gross Unrealized Gains | 978 | 2,220 |
Held-to-maturity gross unrealized losses | 2,808 | 506 |
Investment securities - HTM | 91,896 | 95,346 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 30,000 | 30,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,435 | 744 |
Investment securities - available-for-sale (at fair value) | 28,565 | 29,256 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity amortized cost | 15,982 | 15,876 |
Held-to-maturity Gross Unrealized Gains | 0 | 447 |
Held-to-maturity gross unrealized losses | 160 | 0 |
Investment securities - HTM | 15,822 | 16,323 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity amortized cost | 47,776 | 47,771 |
Held-to-maturity Gross Unrealized Gains | 7 | 94 |
Held-to-maturity gross unrealized losses | 1,899 | 423 |
Investment securities - HTM | 45,884 | 47,442 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 39,433 | 41,771 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,802 | 880 |
Investment securities - available-for-sale (at fair value) | 37,631 | 40,891 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity amortized cost | 16,569 | 17,288 |
Held-to-maturity Gross Unrealized Gains | 0 | 236 |
Held-to-maturity gross unrealized losses | 340 | 6 |
Investment securities - HTM | 16,229 | 17,518 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 37,900 | 41,298 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | 1,778 | 916 |
Investment securities - available-for-sale (at fair value) | 36,122 | 40,384 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity amortized cost | 3,769 | 4,187 |
Held-to-maturity Gross Unrealized Gains | 0 | 0 |
Held-to-maturity gross unrealized losses | 260 | 69 |
Investment securities - HTM | 3,509 | 4,118 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 20,228 | 20,772 |
Gross Unrealized Gains | 118 | 365 |
Gross Unrealized Losses | 587 | 118 |
Investment securities - available-for-sale (at fair value) | 19,759 | 21,019 |
OTTI in AOCI | 0 | 0 |
Held-to-maturity amortized cost | 9,630 | 8,510 |
Held-to-maturity Gross Unrealized Gains | 971 | 1,443 |
Held-to-maturity gross unrealized losses | 149 | 8 |
Investment securities - HTM | 10,452 | 9,945 |
Held-to-maturity OTTI in AOCI | 0 | 0 |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 18,338 | 19,711 |
Gross Unrealized Gains | 87 | 0 |
Gross Unrealized Losses | 1,857 | 4,791 |
Investment securities - available-for-sale (at fair value) | 16,568 | 14,920 |
OTTI in AOCI | $ (853) | $ (3,389) |
Investments (Proceeds from Sale
Investments (Proceeds from Sales of Securities and Realized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments [Abstract] | ||||
Proceeds | $ 2,005 | $ 0 | $ 2,005 | $ 18,530 |
Realized gains | 6 | 0 | 151 | 52 |
Realized losses | $ 16 | $ 27 | $ 35 | $ 96 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses and Fair Values of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 10,319 | $ 47,594 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | 345 | 754 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 116,949 | 82,737 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | 7,114 | 6,695 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 58,057 | 27,302 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | 1,390 | 149 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 25,373 | 14,540 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | 1,418 | 357 |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 4,931 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | 0 | 69 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 28,565 | 24,325 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | 1,435 | 675 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 15,822 | |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | 160 | |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 23,860 | 15,897 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | 741 | 135 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 21,864 | 10,422 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | 1,158 | 288 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 12,593 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | 0 | 169 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 37,631 | 28,298 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | 1,802 | 711 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 16,229 | 9,028 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | 340 | 6 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | 0 | 0 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 300 | 27,387 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | 1 | 472 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 35,822 | 12,447 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | 1,777 | 443 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 3,509 | 4,118 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | 260 | 69 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 10,019 | 2,683 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | 344 | 44 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 4,842 | 2,747 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | 243 | 75 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 2,146 | 2,377 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | 149 | 8 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | 0 | 0 |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | 0 | 0 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | 10,089 | 14,920 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 1,857 | $ 4,791 |
Investments (Non-Cash OTTI Cred
Investments (Non-Cash OTTI Credit Losses Recognized in Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments [Abstract] | ||||
Balance of credit-related OTTI, beginning | $ 2,851 | $ 3,067 | $ 2,958 | $ 3,124 |
Reduction for increases in cash flows expected to be collected | (53) | (55) | (160) | (112) |
Balance of credit-related OTTI, ending | $ 2,798 | $ 3,012 | $ 2,798 | $ 3,012 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Values Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Amortized Cost: Due in one year or less | $ 231 | |
Amortized Cost: Due after one year through five years | 16,083 | |
Amortized Cost: Due after five years through ten years | 22,840 | |
Amortized Cost: Due after ten years | 29,412 | |
Amortized Cost: Sub Total | 68,566 | |
Fair Value: Due in one year or less | 234 | |
Fair Value: Due after one year through five years | 15,629 | |
Fair Value: Due after five years through ten years | 21,676 | |
Fair Value: Due after ten years | 27,353 | |
Available For Sale Debt Maturities Fair Value Sub Total | 64,892 | |
Available-for-sale Securities, Amortized Cost Basis | 145,899 | $ 153,552 |
Available-for-sale Securities | 138,645 | 146,470 |
Amortized Cost: Due after five years through ten years, Held to maturity | 15,982 | |
Amortized Cost: Due after ten years, Held to maturity | 9,630 | |
Amortized Cost: Total, Held to maturity | 25,612 | |
Fair Value: Due after five years through ten years, Held to maturity | 15,822 | |
Fair Value: Due after ten years, Held to maturity | 10,452 | |
Fair Value: Total, Held to maturity | 26,274 | |
Held-to-maturity securities | 93,726 | 93,632 |
Held-to-maturity securities, fair value | 91,896 | 95,346 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities | 47,776 | 47,771 |
Held-to-maturity securities, fair value | 45,884 | 47,442 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 39,433 | 41,771 |
Available-for-sale Securities | 37,631 | 40,891 |
Held-to-maturity securities | 16,569 | 17,288 |
Held-to-maturity securities, fair value | 16,229 | 17,518 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 37,900 | 41,298 |
Available-for-sale Securities | 36,122 | 40,384 |
Held-to-maturity securities | 3,769 | 4,187 |
Held-to-maturity securities, fair value | $ 3,509 | $ 4,118 |
Restricted Investment in Bank_3
Restricted Investment in Bank Stock (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Investment in Bank Stock [Abstract] | ||||
Cash Dividends | $ 72,448 | $ 61,637 | $ 207,791 | $ 188,126 |
Loans and Related Allowance f_4
Loans and Related Allowance for Loan Losses (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017contract | Dec. 31, 2017USD ($) | |
Financing Receivable, Modifications [Line Items] | ||||
Commercial amount benchmark minimum for internal annual review | $ 500,000 | |||
Commercial amount benchmark minimum for annual review by independent reviewer | 1,000,000 | |||
Commercial amount benchmark minimum criticized relationships for annual review by independent reviewer | 500,000 | |||
Commerical amount benchmark internal impairment review minimum relationship amount | 750,000 | |||
Nonaccrual loans | 4,824,000 | $ 7,118,000 | ||
Decrease in non-accrual balance due to charge-offs | 800,000 | |||
Loan recovery | 2,500,000 | |||
Loans in process of foreclosure | $ 400,000 | |||
Accruing loans past due 30 days or greater as percent of loan portfolio | 0.36% | 0.63% | ||
Partial Charge Off [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans | $ 800,000 | $ 2,100,000 | ||
New TDR [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 | |
Pre Existing TDR Loans Remodified After Maturity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Financing receivable, modifications, number of contracts | contract | 1 | 3 | ||
One Large Commercial Real Estate Relationship [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Additional nonaccrual credit added | $ 1,900,000 | |||
Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans | 609,000 | 3,248,000 | ||
Commercial and industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual loans | $ 0 | $ 378,000 |
Loans and Related Allowance f_5
Loans and Related Allowance for Loan Losses (Primary Segments of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 10,618 | $ 14,951 |
Collectively evaluated for impairment | 953,442 | 877,567 |
Total Loans | 964,060 | 892,518 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 17 | 668 |
Collectively evaluated for impairment | 98,493 | 76,055 |
Total Loans | 98,510 | 76,723 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 5,801 | 9,076 |
Collectively evaluated for impairment | 286,993 | 274,086 |
Total Loans | 292,794 | 283,162 |
Acquisition and Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 658 | 976 |
Collectively evaluated for impairment | 113,031 | 109,554 |
Total Loans | 113,689 | 110,530 |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,121 | 4,201 |
Collectively evaluated for impairment | 421,348 | 394,447 |
Total Loans | 425,469 | 398,648 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 21 | 30 |
Collectively evaluated for impairment | 33,577 | 23,425 |
Total Loans | $ 33,598 | $ 23,455 |
Loans and Related Allowance f_6
Loans and Related Allowance for Loan Losses (Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 964,060 | $ 892,518 |
Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 142,000 | 139,568 |
Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 150,794 | 143,594 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 21,048 | 17,719 |
Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 92,641 | 92,811 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 98,510 | 76,723 |
Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 352,787 | 324,385 |
Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 72,682 | 74,263 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 33,598 | 23,455 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 932,375 | 860,502 |
Pass [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 136,244 | 133,725 |
Pass [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 143,329 | 133,905 |
Pass [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 21,048 | 17,719 |
Pass [Member] | Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 84,704 | 84,345 |
Pass [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 94,024 | 75,299 |
Pass [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 348,112 | 319,059 |
Pass [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 71,445 | 73,059 |
Pass [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 33,469 | 23,391 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,103 | 9,525 |
Special Mention [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,938 | 0 |
Special Mention [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,768 | 2,061 |
Special Mention [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Special Mention [Member] | Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,378 | 7,294 |
Special Mention [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,871 | 17 |
Special Mention [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Special Mention [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 144 | 148 |
Special Mention [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4 | 5 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,582 | 22,491 |
Substandard [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,818 | 5,843 |
Substandard [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,697 | 7,628 |
Substandard [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Substandard [Member] | Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 559 | 1,172 |
Substandard [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 615 | 1,407 |
Substandard [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,675 | 5,326 |
Substandard [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,093 | 1,056 |
Substandard [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 125 | $ 59 |
Loans and Related Allowance f_7
Loans and Related Allowance for Loan Losses (Loan Portfolio Summarized by the Past Due Status) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 955,719 | $ 879,735 |
Total Past Due and Still Accruing | 3,517 | 5,665 |
Non-Accrual | 4,824 | 7,118 |
Total Loans | 964,060 | 892,518 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 1,221 | 1,684 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 1,737 | 3,386 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 559 | 595 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 141,374 | 136,134 |
Total Past Due and Still Accruing | 17 | 186 |
Non-Accrual | 609 | 3,248 |
Total Loans | 142,000 | 139,568 |
Commercial real estate- non owner-occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 17 | 186 |
Commercial real estate- non owner-occupied [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Commercial real estate- non owner-occupied [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 148,713 | 141,680 |
Total Past Due and Still Accruing | 31 | 709 |
Non-Accrual | 2,050 | 1,205 |
Total Loans | 150,794 | 143,594 |
Commercial real estate- all other CRE [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 31 | 461 |
Commercial real estate- all other CRE [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 248 |
Commercial real estate- all other CRE [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 21,048 | 17,719 |
Total Past Due and Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Loans | 21,048 | 17,719 |
Acquisition and development- 1-4 family residential construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Acquisition and development- All other A&D [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 92,450 | 92,291 |
Total Past Due and Still Accruing | 151 | 309 |
Non-Accrual | 40 | 211 |
Total Loans | 92,641 | 92,811 |
Acquisition and development- All other A&D [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Acquisition and development- All other A&D [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 165 |
Acquisition and development- All other A&D [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 151 | 144 |
Commercial and industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 98,380 | 76,322 |
Total Past Due and Still Accruing | 130 | 23 |
Non-Accrual | 0 | 378 |
Total Loans | 98,510 | 76,723 |
Commercial and industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 129 | 0 |
Commercial and industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 17 |
Commercial and industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 1 | 6 |
Residential mortgage- term [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 348,861 | 319,633 |
Total Past Due and Still Accruing | 2,355 | 3,286 |
Non-Accrual | 1,571 | 1,466 |
Total Loans | 352,787 | 324,385 |
Residential mortgage- term [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 467 | 322 |
Residential mortgage- term [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 1,498 | 2,534 |
Residential mortgage- term [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 390 | 430 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 71,524 | 72,683 |
Total Past Due and Still Accruing | 624 | 1,000 |
Non-Accrual | 534 | 580 |
Total Loans | 72,682 | 74,263 |
Residential mortgage- home equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 427 | 600 |
Residential mortgage- home equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 197 | 400 |
Residential mortgage- home equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 33,369 | 23,273 |
Total Past Due and Still Accruing | 209 | 152 |
Non-Accrual | 20 | 30 |
Total Loans | 33,598 | 23,455 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 150 | 115 |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 42 | 22 |
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | $ 17 | $ 15 |
Loans and Related Allowance f_8
Loans and Related Allowance for Loan Losses (Primary Segments of the Allowance for Loan Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 315 | $ 362 | ||||
Collectively evaluated for impairment | 10,008 | 9,610 | ||||
Total allowance for loan losses | 10,323 | $ 9,769 | 9,972 | $ 10,755 | $ 9,922 | $ 9,918 |
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 170 | 245 | ||||
Collectively evaluated for impairment | 2,643 | 3,454 | ||||
Total allowance for loan losses | 2,813 | 3,303 | 3,699 | 4,537 | 3,649 | 3,913 |
Acquisition and Development [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 26 | 40 | ||||
Collectively evaluated for impairment | 1,469 | 1,217 | ||||
Total allowance for loan losses | 1,495 | 1,172 | 1,257 | 1,184 | 1,200 | 871 |
Commercial and industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,001 | 869 | ||||
Total allowance for loan losses | 1,001 | 786 | 869 | 804 | 836 | 858 |
Residential Mortgage [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 116 | 65 | ||||
Collectively evaluated for impairment | 4,102 | 3,379 | ||||
Total allowance for loan losses | 4,218 | 3,744 | 3,444 | 3,534 | 3,545 | 3,588 |
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 3 | 12 | ||||
Collectively evaluated for impairment | 293 | 191 | ||||
Total allowance for loan losses | 296 | 264 | 203 | 196 | 192 | 188 |
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 500 | 500 | ||||
Total allowance for loan losses | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 | $ 500 |
Loans and Related Allowance f_9
Loans and Related Allowance for Loan Losses (Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | $ 2,027 | $ 2,634 |
Impaired Loans with Specific Allowance: Related Allowance | 315 | 362 |
Impaired Loans with No Specific Allowance: Recorded Investment | 8,591 | 12,317 |
Total Impaired Loans: Recorded Investment | 10,618 | 14,951 |
Total Impaired Loans: Unpaid Principal Balance | 20,945 | 24,983 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 685 | 1,711 |
Impaired Loans with Specific Allowance: Related Allowance | 170 | 245 |
Impaired Loans with No Specific Allowance: Recorded Investment | 46 | 1,907 |
Total Impaired Loans: Recorded Investment | 731 | 3,618 |
Total Impaired Loans: Unpaid Principal Balance | 8,516 | 10,579 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 5,070 | 5,458 |
Total Impaired Loans: Recorded Investment | 5,070 | 5,458 |
Total Impaired Loans: Unpaid Principal Balance | 5,070 | 5,731 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 387 | 527 |
Total Impaired Loans: Recorded Investment | 387 | 527 |
Total Impaired Loans: Unpaid Principal Balance | 387 | 527 |
Acquisition and development- All other A&D [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 231 | 295 |
Impaired Loans with Specific Allowance: Related Allowance | 27 | 40 |
Impaired Loans with No Specific Allowance: Recorded Investment | 40 | 154 |
Total Impaired Loans: Recorded Investment | 271 | 449 |
Total Impaired Loans: Unpaid Principal Balance | 353 | 722 |
Commercial and industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 17 | 668 |
Total Impaired Loans: Recorded Investment | 17 | 668 |
Total Impaired Loans: Unpaid Principal Balance | 2,231 | 2,882 |
Residential mortgage- term [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 1,101 | 598 |
Impaired Loans with Specific Allowance: Related Allowance | 115 | 65 |
Impaired Loans with No Specific Allowance: Recorded Investment | 2,486 | 3,023 |
Total Impaired Loans: Recorded Investment | 3,587 | 3,621 |
Total Impaired Loans: Unpaid Principal Balance | 3,820 | 3,919 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance: Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance: Recorded Investment | 534 | 580 |
Total Impaired Loans: Recorded Investment | 534 | 580 |
Total Impaired Loans: Unpaid Principal Balance | 547 | 593 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 10 | 30 |
Impaired Loans with Specific Allowance: Related Allowance | 3 | 12 |
Impaired Loans with No Specific Allowance: Recorded Investment | 11 | 0 |
Total Impaired Loans: Recorded Investment | 21 | 30 |
Total Impaired Loans: Unpaid Principal Balance | $ 21 | $ 30 |
Loans and Related Allowance _10
Loans and Related Allowance for Loan Losses (Allowance for Loan Losses Summarized by Loan Portfolio Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | $ 9,769 | $ 9,922 | $ 9,972 | $ 9,918 |
Charge-offs | (257) | (245) | (1,669) | (3,420) |
Recoveries | 340 | 177 | 833 | 2,448 |
Provision for loan losses | 471 | 901 | 1,187 | 1,809 |
ALL Ending Balance | 10,323 | 10,755 | 10,323 | 10,755 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 3,303 | 3,649 | 3,699 | 3,913 |
Charge-offs | 0 | (53) | (889) | (2,798) |
Recoveries | 0 | 5 | 60 | 68 |
Provision for loan losses | (490) | 936 | (57) | 3,354 |
ALL Ending Balance | 2,813 | 4,537 | 2,813 | 4,537 |
Acquisition and Development [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 1,172 | 1,200 | 1,257 | 871 |
Charge-offs | 0 | (61) | (98) | (79) |
Recoveries | 32 | 42 | 290 | 230 |
Provision for loan losses | 291 | 3 | 46 | 162 |
ALL Ending Balance | 1,495 | 1,184 | 1,495 | 1,184 |
Commercial and industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 786 | 836 | 869 | 858 |
Charge-offs | (22) | (4) | (32) | (37) |
Recoveries | 13 | 15 | 44 | 1,666 |
Provision for loan losses | 224 | (43) | 120 | (1,683) |
ALL Ending Balance | 1,001 | 804 | 1,001 | 804 |
Residential Mortgage [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 3,744 | 3,545 | 3,444 | 3,588 |
Charge-offs | (113) | (16) | (353) | (252) |
Recoveries | 258 | 46 | 323 | 299 |
Provision for loan losses | 329 | (41) | 804 | (101) |
ALL Ending Balance | 4,218 | 3,534 | 4,218 | 3,534 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 264 | 192 | 203 | 188 |
Charge-offs | (122) | (111) | (297) | (254) |
Recoveries | 37 | 69 | 116 | 185 |
Provision for loan losses | 117 | 46 | 274 | 77 |
ALL Ending Balance | 296 | 196 | 296 | 196 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 500 | 500 | 500 | 500 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 0 |
ALL Ending Balance | $ 500 | $ 500 | $ 500 | $ 500 |
Loans and Related Allowance _11
Loans and Related Allowance for Loan Losses (Average of Impaired Loans and Related Interest Income by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | $ 11,580 | $ 20,245 | $ 12,539 | $ 21,467 |
Interest income recognized on an accrual basis | 98 | 122 | 294 | 368 |
Interest income recognized on a cash basis | 2 | 1 | 131 | 8 |
Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 772 | 6,144 | 1,716 | 6,255 |
Interest income recognized on an accrual basis | 2 | 6 | 9 | 18 |
Interest income recognized on a cash basis | 0 | 0 | 66 | 0 |
Commercial real estate- all other CRE [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 5,848 | 7,308 | 5,495 | 8,314 |
Interest income recognized on an accrual basis | 54 | 52 | 153 | 157 |
Interest income recognized on a cash basis | 0 | 0 | 56 | 0 |
Acquisition and development- 1-4 family residential construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 422 | 582 | 475 | 582 |
Interest income recognized on an accrual basis | 6 | 6 | 18 | 18 |
Interest income recognized on a cash basis | 0 | 0 | 0 | 0 |
Acquisition and development- All other A&D [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 274 | 1,812 | 350 | 1,851 |
Interest income recognized on an accrual basis | 3 | 23 | 9 | 68 |
Interest income recognized on a cash basis | 0 | 0 | 0 | 0 |
Commercial and industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 161 | 496 | 327 | 393 |
Interest income recognized on an accrual basis | 3 | 3 | 13 | 9 |
Interest income recognized on a cash basis | 0 | 0 | 0 | 0 |
Residential mortgage- term [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 3,537 | 3,654 | 3,566 | 3,836 |
Interest income recognized on an accrual basis | 30 | 32 | 92 | 98 |
Interest income recognized on a cash basis | 2 | 1 | 2 | 8 |
Residential mortgage- home equity [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 544 | 249 | 585 | 236 |
Interest income recognized on an accrual basis | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis | 0 | 0 | 7 | 0 |
Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 22 | 0 | 25 | 0 |
Interest income recognized on an accrual basis | 0 | 0 | 0 | 0 |
Interest income recognized on a cash basis | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Related Allowance _12
Loans and Related Allowance for Loan Losses (Modification of Troubled Debt Restructuring by Class) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | |
Temporary Rate Modification [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Commercial real estate- all other CRE [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Acquisition and development- All other A&D [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Commercial and industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Residential mortgage- term [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Residential mortgage- home equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Temporary Rate Modification [Member] | Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Extended Maturity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 2 | 2 |
Recorded Investment | $ | $ 387 | $ 0 | $ 566 | $ 503 |
Extended Maturity [Member] | Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Extended Maturity [Member] | Commercial real estate- all other CRE [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 1 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 179 | $ 0 |
Extended Maturity [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 1 | 0 |
Recorded Investment | $ | $ 387 | $ 0 | $ 387 | $ 0 |
Extended Maturity [Member] | Acquisition and development- All other A&D [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 244 |
Extended Maturity [Member] | Commercial and industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Extended Maturity [Member] | Residential mortgage- term [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 259 |
Extended Maturity [Member] | Residential mortgage- home equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Extended Maturity [Member] | Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 439 | $ 126 | $ 439 |
Modification Of Payment And Other Terms [Member] | Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 1 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 126 | $ 0 |
Modification Of Payment And Other Terms [Member] | Commercial real estate- all other CRE [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Acquisition and development- All other A&D [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Commercial and industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Residential mortgage- term [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 439 | $ 0 | $ 439 |
Modification Of Payment And Other Terms [Member] | Residential mortgage- home equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Modification Of Payment And Other Terms [Member] | Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Other Real Estate Owned (Schedu
Other Real Estate Owned (Schedule of Real Estate Properties Comprising OREO) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total OREO | $ 7,482 | $ 10,141 |
Commercial Real Estate OREO [Member] | ||
Total OREO | 2,993 | 3,605 |
Acquisition and Development [Member] | ||
Total OREO | 3,620 | 5,295 |
Commercial and Industrial [Member] | ||
Total OREO | 24 | 24 |
Residential Mortgage [Member] | ||
Total OREO | $ 845 | $ 1,217 |
Other Real Estate Owned (Other
Other Real Estate Owned (Other Real Estate, Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Real Estate Owned [Abstract] | ||||
Beginning Balance | $ 2,947 | $ 3,232 | $ 2,740 | $ 3,535 |
Fair value write-down | 179 | 458 | 656 | 551 |
Sales of OREO | (381) | (609) | (651) | (1,005) |
Ending Balance | $ 2,745 | $ 3,081 | $ 2,745 | $ 3,081 |
Other Real Estate Owned (Sche_2
Other Real Estate Owned (Schedule of Components of OREO) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Real Estate Owned [Abstract] | ||||
Gains on sales of other real estate owned | $ (86) | $ (515) | $ (269) | $ (589) |
Fair value write-down, net | 179 | 458 | 656 | 551 |
Expenses, net | 123 | 213 | 396 | 492 |
Rental and other income | (27) | (63) | (101) | (149) |
Total OREO expense, net | $ 189 | $ 93 | $ 682 | $ 305 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amortized Cost | $ 145,899 | $ 153,552 |
Available-for-sale Securities | $ 138,645 | 146,470 |
Collateralized debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Acquired Trust Preferred Securities, Number of Securities | security | 9 | |
Amortized Cost | $ 18,338 | 19,711 |
Available-for-sale Securities | $ 16,568 | $ 14,920 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | |||
Investment Securities - available for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 16,568 | $ 14,920 | ||
Fair Value Measurements, Significant Assumptions | Discount Rate | |||
Valuation Technique | Discounted Cash Flow | |||
Fair Value Input, Unobservable Input Value, Description | LIBOR+ 3.75% | |||
Investment Securities - available for sale [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Discount Rate | 3.75% | |||
Impaired Loans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,525 | $ 2,507 | ||
Fair Value Measurements, Significant Assumptions | Marketability Discount | |||
Valuation Technique | Market Comparable Properties | |||
Fair Value Inputs, Comparability Adjustments, Weighted Average | 11.40% | 10.90% | ||
Other Real Estate Owned [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,279 | $ 1,841 | ||
Fair Value Measurements, Significant Assumptions | Marketability Discount | |||
Valuation Technique | Market Comparable Properties | |||
Fair Value Inputs, Comparability Adjustments, Weighted Average | 13.70% | 13.30% | ||
Minimum [Member] | Investment Securities - available for sale [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Discount Rate | 4.50% | |||
Minimum [Member] | Impaired Loans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | [1] | 10.00% | 10.00% | |
Minimum [Member] | Other Real Estate Owned [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | [1] | 10.00% | 10.00% | |
Maximum [Member] | Investment Securities - available for sale [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Discount Rate | 5.50% | |||
Maximum [Member] | Impaired Loans [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | [1] | 15.00% | 15.00% | |
Maximum [Member] | Other Real Estate Owned [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments | 15.00% | [1] | 15.00% | |
[1] | Range would include discounts taken since appraisal and estimated values |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 138,645 | $ 146,470 |
Financial Derivative | 1,689 | 781 |
Impaired Financing Receivable, Recorded Investment | 10,618 | 14,951 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 1,525 | 2,507 |
Other Real Estate | 1,279 | 1,841 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | 1,689 | 781 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 1,525 | 2,507 |
Other Real Estate | 1,279 | 1,841 |
US government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,565 | 29,256 |
US government agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,565 | 29,256 |
US government agencies [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,565 | 29,256 |
Commercial mortgage-backed agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 37,631 | 40,891 |
Commercial mortgage-backed agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 37,631 | 40,891 |
Commercial mortgage-backed agencies [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 37,631 | 40,891 |
Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 36,122 | 40,384 |
Collateralized mortgage obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 36,122 | 40,384 |
Collateralized mortgage obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 36,122 | 40,384 |
Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 19,759 | 21,019 |
Obligations of states and political subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 19,759 | 21,019 |
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 19,759 | 21,019 |
Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,568 | 14,920 |
Collateralized debt obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,568 | 14,920 |
Collateralized debt obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,568 | 14,920 |
Financial Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | 1,689 | 781 |
Financial Derivatives [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | $ 1,689 | $ 781 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Reconciliation of Fair Valued Assets Measured on a Recurring Basis) (Details) - Collateralized debt obligations [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 16,147 | $ 14,347 | $ 14,920 | $ 20,254 |
Included in other comprehensive income | 421 | 371 | 1,648 | (5,536) |
Ending Balance | $ 16,568 | $ 14,718 | $ 16,568 | $ 14,718 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and due from banks | $ 21,725 | $ 82,273 | |
Interest bearing deposits in banks | 1,832 | 1,479 | |
Investment securities - AFS | 138,645 | 146,470 | |
Investment securities - HTM | 91,896 | 95,346 | |
Restricted bank stock | 5,394 | 5,204 | |
Loans, net | 938,110 | 883,936 | [1] |
Financial derivatives | 1,689 | 781 | |
Accrued interest receivable | 4,069 | 3,814 | |
Deposits - non-maturity | 801,017 | 805,263 | |
Deposits - time deposits | 224,295 | 235,489 | |
Short-term borrowed funds | 86,805 | 48,845 | |
Long-term borrowed funds | 97,622 | 123,906 | |
Accrued interest payable | 358 | 453 | |
Off balance sheet financial instruments | 0 | 0 | |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and due from banks | 21,725 | 82,273 | |
Interest bearing deposits in banks | 1,832 | 1,479 | |
Investment securities - AFS | 138,645 | 146,470 | |
Investment securities - HTM | 93,726 | 93,632 | |
Restricted bank stock | 5,394 | 5,204 | |
Loans, net | 953,737 | 882,546 | [1] |
Financial derivatives | 1,689 | 781 | |
Accrued interest receivable | 4,069 | 3,814 | |
Deposits - non-maturity | 801,017 | 805,263 | |
Deposits - time deposits | 223,558 | 234,127 | |
Short-term borrowed funds | 86,805 | 48,845 | |
Long-term borrowed funds | 100,929 | 120,929 | |
Accrued interest payable | 358 | 453 | |
Off balance sheet financial instruments | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and due from banks | 21,725 | 82,273 | |
Interest bearing deposits in banks | 1,832 | 1,479 | |
Off balance sheet financial instruments | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities - AFS | 122,077 | 131,550 | |
Investment securities - HTM | 81,444 | 86,836 | |
Restricted bank stock | 5,394 | 5,204 | |
Financial derivatives | 1,689 | 781 | |
Accrued interest receivable | 4,069 | 3,814 | |
Deposits - non-maturity | 801,017 | 805,263 | |
Deposits - time deposits | 224,295 | 235,489 | |
Short-term borrowed funds | 86,805 | 48,845 | |
Long-term borrowed funds | 97,622 | 123,906 | |
Accrued interest payable | 358 | 453 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities - AFS | 16,568 | 14,920 | |
Investment securities - HTM | 10,452 | 8,510 | |
Loans, net | $ 938,110 | $ 883,936 | [1] |
[1] | In accordance with the prospective adoption of Accounting Standards Update ("ASU") 2016-01, the fair value of loans at September 30, 2018 was measured using an exit price notion. The fair value of loans at December 31, 2017 was measured using an entry price notion. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | |
Beginning balance | $ (24,593) | ||||
Balance | $ 112,974 | $ 111,134 | 108,390 | $ 120,838 | $ 113,698 |
Ending balance | (24,038) | (24,593) | (24,593) | ||
Balance | 115,581 | 112,974 | 111,134 | 108,390 | 108,390 |
Investment securities- with OTTI [Member] | |||||
Balance | (1,349) | (2,294) | (2,939) | (2,368) | |
Other comprehensive income/(loss) before reclassifications | 300 | 1,089 | 685 | 31 | |
Reclassification of certain tax effect | (481) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (39) | (144) | (40) | (121) | |
Balance | (1,088) | (1,349) | (2,294) | (2,939) | (2,939) |
Investment Securities -All Other AFS [Member] | |||||
Balance | (4,287) | (4,057) | (2,979) | (3,218) | |
Other comprehensive income/(loss) before reclassifications | (672) | (237) | (1,085) | 638 | |
Reclassification of certain tax effect | (435) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | 7 | 7 | 36 | |
Balance | (4,952) | (4,287) | (4,057) | (2,979) | (2,979) |
Investment Securities HTM [Member] | |||||
Balance | (1,264) | (1,302) | (1,347) | (1,354) | |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | 0 | 0 | |
Reclassification of certain tax effect | (246) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 63 | 38 | 45 | 253 | |
Balance | (1,201) | (1,264) | (1,302) | (1,347) | (1,347) |
Cash Flow Hedge (OCI) [Member] | |||||
Balance | 1,133 | 1,025 | 582 | 422 | |
Other comprehensive income/(loss) before reclassifications | 112 | 108 | 443 | 59 | |
Reclassification of certain tax effect | 101 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Balance | 1,245 | 1,133 | 1,025 | 582 | 582 |
Pension Plan [Member] | |||||
Balance | (17,860) | (16,330) | (17,066) | (14,232) | |
Other comprehensive income/(loss) before reclassifications | 355 | (1,750) | 516 | (445) | |
Reclassification of certain tax effect | (3,170) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 220 | 220 | 220 | 781 | |
Balance | (17,285) | (17,860) | (16,330) | (17,066) | (17,066) |
SERP [Member] | |||||
Balance | (786) | (815) | (844) | (715) | |
Other comprehensive income/(loss) before reclassifications | 0 | 0 | 0 | (82) | |
Reclassification of certain tax effect | (152) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 29 | 29 | 29 | 105 | |
Balance | (757) | (786) | (815) | (844) | (844) |
Accumulated Other Comprehensive Loss [Member] | |||||
Balance | (24,413) | (23,773) | (24,593) | (18,965) | (21,465) |
Other comprehensive income/(loss) before reclassifications | 95 | (790) | 559 | 201 | |
Reclassification of certain tax effect | (4,383) | (4,383) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 280 | 150 | 261 | 1,054 | |
Balance | $ (24,038) | $ (24,413) | $ (23,773) | $ (24,593) | $ (24,593) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Components of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | $ (665) | $ (39) | $ (1,973) | $ 1,747 |
Cash flow hedges: Unrealized holding gains, Before Tax | 153 | 7 | 908 | (156) |
Cash flow hedges: Unrealized holding gains, Tax Effect | (41) | (3) | (245) | 62 |
Cash flow hedges: Unrealized holding gains, Net of Tax | 112 | 4 | 663 | (94) |
Unrealized net actuarial gain (loss), Net of Tax | 575 | 184 | (219) | 380 |
Less: amortization of unrecognized net gain (loss), Before Tax | (37) | |||
Less: amortization of unrecognized net gain (loss), Tax Effect | 14 | |||
Less: amortization of unrecognized net gain (loss), Net of Tax | (23) | |||
Other comprehensive income, Before tax amount | 760 | 4,135 | ||
Other comprehensive income, Tax (expense) benefit | (206) | (1,653) | ||
Other comprehensive income, Net | 554 | 2,500 | ||
Investment securities- with OTTI [Member] | ||||
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Before tax amount | 410 | 407 | 2,842 | 517 |
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Tax effect | (110) | (162) | (768) | (204) |
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Net of tax | 300 | 245 | 2,074 | 313 |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income | 53 | 55 | 160 | 112 |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income, Tax effect | (14) | (22) | (43) | (43) |
Other than temporary impairment losses, investments, reclassification adjustment of noncredit portion included in net income, Available for sale securities, Net of tax | 39 | 33 | 117 | 69 |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Before tax amount | 357 | 352 | 2,537 | 405 |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Tax effect | (96) | (140) | (686) | (161) |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Net of tax | 261 | 212 | 1,851 | 244 |
Investment Securities -All Other AFS [Member] | ||||
Securities: Unrealized holding losses, Before tax | (921) | (95) | (2,733) | 2,859 |
Securities: Unrealized holding losses, Tax effect | 249 | 44 | 739 | (1,139) |
Securities: Unrealized holding losses, Net of tax | (672) | (51) | (1,994) | 1,720 |
Securities: Less: gains recognized in income, Before tax | (10) | (27) | (29) | (44) |
Securities: Less: gains recognized in income, Tax effect | 3 | 15 | 8 | 17 |
Securities: gains recognized in income, Net of tax | (7) | (12) | (21) | (27) |
Available for sale securities: Net unrealized losses on all other AFS securities, Before Tax | (911) | (68) | (2,704) | 2,903 |
Available for sale securities: Net unrealized losses on all other AFS securities, Tax effect | 246 | 29 | 731 | (1,156) |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | (665) | (39) | (1,973) | 1,747 |
Investment Securities HTM [Member] | ||||
Securities: Unrealized holding losses, Before tax | 0 | 0 | 0 | 0 |
Securities: Unrealized holding losses, Tax effect | 0 | 0 | 0 | 0 |
Securities: Unrealized holding losses, Net of tax | 0 | 0 | 0 | 0 |
Securities: Less: gains recognized in income, Before tax | (86) | (90) | (200) | (262) |
Securities: Less: gains recognized in income, Tax effect | 23 | 36 | 54 | 104 |
Securities: gains recognized in income, Net of tax | (63) | (54) | (146) | (158) |
Held to maturity securities: Net unrealized losses on all HTM securities, Before tax | 86 | 90 | 200 | 262 |
Held to maturity securities: Net unrealized losses on all HTM securities, Tax | (23) | (36) | (54) | (104) |
Held to maturity securities: Net unrealized losses on all HTM securities, After tax | 63 | 54 | 146 | 158 |
Pension Plan [Member] | ||||
Unrealized net actuarial gain (loss), Before Tax | 486 | 38 | (1,206) | (170) |
Unrealized net actuarial gain (loss), Tax Effect | (132) | (14) | 326 | 68 |
Unrealized net actuarial gain (loss), Net of Tax | 354 | 24 | (880) | (102) |
Less: amortization of unrecognized net gain (loss), Before Tax | (300) | (264) | ||
Less: amortization of unrecognized net gain (loss), Tax Effect | 82 | 105 | ||
Less: amortization of unrecognized net gain (loss), Net of Tax | (218) | (159) | ||
Less: amortization of prior service costs, Before Tax | (2) | (3) | ||
Less: amortization of prior service costs, Tax Effect | 0 | 2 | ||
Less: amortization of prior service costs, Net of Tax | (2) | (1) | ||
Net plan liability adjustment, Before Tax | 788 | 305 | (300) | 613 |
Net plan liability adjustment, Tax Effect | (214) | (121) | 80 | (251) |
Net plan liability adjustment, Net of Tax | 574 | 184 | (220) | 380 |
SERP [Member] | ||||
Unrealized net actuarial gain (loss), Before Tax | 0 | 0 | 0 | 0 |
Unrealized net actuarial gain (loss), Tax Effect | 0 | 0 | 0 | 0 |
Unrealized net actuarial gain (loss), Net of Tax | 0 | 0 | 0 | 0 |
Less: amortization of unrecognized net gain (loss), Before Tax | (40) | |||
Less: amortization of unrecognized net gain (loss), Tax Effect | 11 | |||
Less: amortization of unrecognized net gain (loss), Net of Tax | (29) | |||
Less: amortization of prior service costs, Before Tax | 1 | 1 | ||
Less: amortization of prior service costs, Tax Effect | (1) | 0 | ||
Less: amortization of prior service costs, Net of Tax | 0 | 1 | ||
Net plan liability adjustment, Before Tax | 39 | 36 | 119 | 108 |
Net plan liability adjustment, Tax Effect | (10) | (14) | (32) | (43) |
Net plan liability adjustment, Net of Tax | 29 | 22 | 87 | 65 |
Other comprehensive income, Before tax amount | 512 | 722 | ||
Other comprehensive income, Tax (expense) benefit | (138) | (285) | ||
Other comprehensive income, Net | $ 374 | $ 437 | ||
Amortization of unrecognized loss [Member] | Pension Plan [Member] | ||||
Less: amortization of unrecognized net gain (loss), Before Tax | (900) | (792) | ||
Less: amortization of unrecognized net gain (loss), Tax Effect | 244 | 315 | ||
Less: amortization of unrecognized net gain (loss), Net of Tax | (656) | (477) | ||
Amortization of Unrecognized Gain [Member] | SERP [Member] | ||||
Less: amortization of unrecognized net gain (loss), Before Tax | (121) | (110) | ||
Less: amortization of unrecognized net gain (loss), Tax Effect | 33 | 44 | ||
Less: amortization of unrecognized net gain (loss), Net of Tax | (88) | (66) | ||
Amortization of prior service costs [Member] | Pension Plan [Member] | ||||
Less: amortization of prior service costs, Before Tax | (6) | (9) | ||
Less: amortization of prior service costs, Tax Effect | 2 | 4 | ||
Less: amortization of prior service costs, Net of Tax | (4) | (5) | ||
Amortization of prior service costs [Member] | SERP [Member] | ||||
Less: amortization of prior service costs, Before Tax | 2 | 2 | ||
Less: amortization of prior service costs, Tax Effect | (1) | (1) | ||
Less: amortization of prior service costs, Net of Tax | $ 1 | $ 1 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Schedule of Reclassifications From Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net gains/(losses) - other | $ 9 | $ (11) | $ 190 | $ 3 | |||||
Tax (expense) benefit | (739) | (811) | (2,227) | (2,556) | |||||
Net income | 2,763 | $ 3,016 | $ 2,506 | $ (1,032) | 2,012 | $ 2,309 | $ 1,980 | 8,285 | 6,301 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net income | (280) | (215) | (691) | (663) | |||||
Investment securities- with OTTI [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Gain on calls of securities | 145 | 0 | |||||||
Interest income (expense) on investment securities: taxable | 53 | 55 | 160 | 112 | |||||
Tax (expense) benefit | (14) | (22) | (82) | (43) | |||||
Net income | 39 | 33 | 223 | 69 | |||||
Investment Securities -All Other AFS [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net gains/(losses) - other | (10) | (27) | (29) | (44) | |||||
Tax (expense) benefit | 3 | 15 | 8 | 17 | |||||
Net income | (7) | (12) | (21) | (27) | |||||
Investment Securities HTM [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Interest income (expense) on investment securities: taxable | (86) | (90) | (200) | (262) | |||||
Tax (expense) benefit | 23 | 36 | 54 | 104 | |||||
Net income | (63) | (54) | (146) | (158) | |||||
Pension Plan [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Tax (expense) benefit | 82 | 107 | 246 | 319 | |||||
Net income | (220) | (160) | (660) | (482) | |||||
Pension Plan [Member] | Amortization of unrecognized loss [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Salaries and employee benefits | (300) | (264) | (900) | (792) | |||||
Pension Plan [Member] | Amortization of prior service costs [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Salaries and employee benefits | (2) | (3) | (6) | (9) | |||||
SERP [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Tax (expense) benefit | 10 | 14 | 32 | 43 | |||||
Net income | (29) | (22) | (87) | (65) | |||||
SERP [Member] | Amortization of unrecognized loss [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Salaries and employee benefits | (40) | (37) | (121) | (110) | |||||
SERP [Member] | Amortization of prior service costs [Member] | |||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Salaries and employee benefits | $ 1 | $ 1 | $ 2 | $ 2 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax [Abstract] | ||
Federal statutory rate | 21.00% | 35.00% |
Tax-exempt income on securities and loans | (1.50%) | (3.10%) |
Tax-exempt BOLI income | (1.70%) | (3.50%) |
State income tax, net of federal tax benefit | 5.20% | 4.50% |
Tax credits | (2.00%) | (3.50%) |
Other | 0.20% | (0.50%) |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.20% | 28.90% |
Junior Subordinated Debenture_2
Junior Subordinated Debentures and Restrictions on Dividends (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Trust common equity | $ 71 | $ 71 |
Repayment of outstanding TPS debentures | 10,800 | |
First United Statutory Trust I And II Member | ||
Trust preferred securities | 30,000 | |
Trust common equity | $ 900 | |
Debenture issue date | 2004-03 | |
Junior Subordinated Debt [Member] | ||
Maximum allowable period of interest deferment | 5 years | |
Junior Subordinated Debt [Member] | First United Statutory Trust I Member | ||
Debenture issued to unconsolidated subsidiary | $ 20,600 | |
Variable interest rate | three-month LIBOR plus 275 basis points | |
Debt instrument, interest rate, effective percentage | 5.08% | |
Maturity date | 2,034 | |
Earliest availability for redemption | 5 years | |
Junior Subordinated Debt [Member] | First United Statutory Trust II Member | ||
Debenture issued to unconsolidated subsidiary | $ 10,300 | |
Variable interest rate | three-month LIBOR plus 275 basis points | |
Debt instrument, interest rate, effective percentage | 5.08% | |
Maturity date | 2,034 | |
Earliest availability for redemption | 5 years | |
Junior Subordinated Debt [Member] | December 2009 First United Statutory Trust III Member | ||
Trust preferred securities | $ 7,000 | |
Trust common equity | $ 200 | |
Debenture issue date | 2009-12 | |
Debenture issued to unconsolidated subsidiary | $ 7,200 | |
Maturity date | 2,040 | |
Earliest availability for redemption | 5 years | |
Fixed interest rate | 9.875% | |
Junior Subordinated Debt [Member] | January 2010 First United Statutory Trust III Member | ||
Trust preferred securities | $ 3,500 | |
Trust common equity | $ 100 | |
Debenture issue date | 2010-01 | |
Debenture issued to unconsolidated subsidiary | $ 3,600 | |
Maturity date | 2,040 | |
Earliest availability for redemption | 5 years | |
Fixed interest rate | 9.875% | |
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | First United Statutory Trust I Member | ||
Basis points spread on LIBOR | 2.75% | |
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | First United Statutory Trust II Member | ||
Basis points spread on LIBOR | 2.75% |
Preferred Stock (Narrative) (De
Preferred Stock (Narrative) (Details) - USD ($) | Nov. 15, 2017 | Mar. 21, 2017 | Feb. 14, 2016 | May 26, 2015 | Dec. 31, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Feb. 28, 2014 | Jan. 30, 2009 |
Number of shares called by Warrant | 326,323 | ||||||||
Exercise price of shares called by Warrant | $ 13.79 | ||||||||
Shares redeemed (value) | $ 10,000,000 | $ 10,000,000 | |||||||
Series A Preferred Stock [Member] | |||||||||
Preferred stock, shares issued | 30,000 | ||||||||
Preferred stock, value | $ 30,000,000 | ||||||||
Payment for repurchase of warrant | $ 120,786 | ||||||||
Preferred stock dividend rate | 9.00% | 5.00% | |||||||
Preferred stock liquidation preference per share | $ 1,000 | $ 1,000 | |||||||
Shares redeemed (in shares) | 10,000 | 10,000 | 10,000 | ||||||
Shares redeemed (value) | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Borrowed Funds [Abstract] | |
Repurchase agreements secured by available for sale securities | $ 52.8 |
FHLB advances secured by loans receivable | $ 193 |
Minimum fair value percentage pledged against account balances | 102.00% |
Borrowed Funds (Summary of Shor
Borrowed Funds (Summary of Short Term Borrowings) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Overnight borrowings, interest rate | 2.42% | |
Outstanding at end of period | $ 86,805 | $ 48,845 |
Short-term FHLB Advance [Member] | ||
Overnight borrowings | 39,000 | 0 |
Securities Sold under Agreements to Repurchase [Member] | ||
Outstanding at end of period | $ 47,805 | $ 48,845 |
Weighted average interest rate | 0.17% | 0.15% |
Maximum amount outstanding as of any month end | $ 54,595 | $ 58,438 |
Average amount outstanding | $ 42,584 | $ 37,326 |
Approximate weighted average rate during the period | 0.19% | 0.19% |
Borrowed Funds (Summary of Long
Borrowed Funds (Summary of Long Term Borrowings) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
FHLB advances | $ 70,000 | $ 90,000 |
Junior subordinated debt, bearing variable interest rates | 30,929 | 30,929 |
Total long-term debt | $ 100,929 | $ 120,929 |
Junior Subordinated Debt [Member] | Variable Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 5.08% | |
Federal Home Loan Bank Advances [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 1.54% | |
Federal Home Loan Bank Advances [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 3.02% |
Borrowed Funds (Contractual Mat
Borrowed Funds (Contractual Maturities of All Long Term Borrowings) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Due in 2018 | $ 0 | $ 20,000 |
Due in 2019 | 20,000 | 20,000 |
Due in 2020 | 30,000 | 30,000 |
Due in 2021 | 20,000 | 20,000 |
Thereafter | 30,929 | 30,929 |
Total long-term debt | 100,929 | $ 120,929 |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Due in 2018 | 0 | |
Due in 2019 | 20,000 | |
Due in 2020 | 30,000 | |
Due in 2021 | 20,000 | |
Thereafter | 0 | |
Total long-term debt | 70,000 | |
Floating Rate [Member] | ||
Debt Instrument [Line Items] | ||
Due in 2018 | 0 | |
Due in 2019 | 0 | |
Due in 2020 | 0 | |
Due in 2021 | 0 | |
Thereafter | 30,929 | |
Total long-term debt | $ 30,929 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Discretionary contribution, percent of participant's base salary | 15.00% | ||||||||
Two Employees [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employer discretionary contribution | $ 63,500 | ||||||||
Four Employees [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Employer discretionary contribution | $ 119,252 | $ 112,780 | |||||||
Pension [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Plan modification description | Effective April 30, 2010, the Pension Plan was amended, resulting in a "soft freeze", the effect of which prohibits new entrants into the plan and ceases crediting of additional years of service after that date. Effective January 1, 2013, the Pension Plan was amended to unfreeze it for those employees for whom the sum of (a) their ages, at their closest birthday, plus (b) years of service for vesting purposes equals 80 or greater. The "soft freeze" continues to apply to all other plan participants. Pension benefits for these participants are managed through discretionary contributions to the First United Corporation 401(k) Profit Sharing Plan (the "401(k) Plan"). | ||||||||
SERP [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan participation expense | $ 14,906 | $ 44,719 | |||||||
SERP Alternative [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined benefit plan participation expense | $ 14,089 | $ 14,089 | $ 42,266 | $ 42,266 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of the Net Periodic Pension Plan Cost) (Pension) (Details) - Pension [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 81 | $ 70 | $ 243 | $ 210 |
Interest cost | 397 | 412 | 1,190 | 1,237 |
Expected return on assets | (810) | (751) | (2,430) | (2,253) |
Amortization of net actuarial loss | 300 | 264 | 900 | 792 |
Amortization of prior service cost | 2 | 3 | 6 | 9 |
Net pension expense/(credit) included in employee benefits | $ (30) | $ (2) | $ (91) | $ (5) |
Employee Benefit Plans (Compo_2
Employee Benefit Plans (Components of the Net Periodic Pension Plan Cost) (SERP) (Details) - SERP [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 28 | $ 26 | $ 84 | $ 78 |
Interest cost | 76 | 72 | 226 | 216 |
Amortization of recognized (gain)/ loss | 40 | 37 | 121 | 110 |
Amortization of prior service cost | (1) | (1) | (2) | (2) |
Net pension expense/(credit) included in employee benefits | $ 143 | $ 134 | $ 429 | $ 402 |
Equity Compensation Plan Info_2
Equity Compensation Plan Information (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Deferred compensation arrangement with individual, description | Stock-based awards were made to non-employee directors in May 2018 pursuant to First United Corporation's director compensation policy. Each director receives an annual retainer of 1,000 shares of First United Corporation common stock, plus $10,000 to be paid, at the director's election, in cash or additional shares of common stock. | ||||
Director [Member] | |||||
Issued fully-vested common stock shares | 12,936 | ||||
Per share fair market value of issued fully vested common stock shares | $ 20.63 | ||||
Shares issued to Director | 1,000 | ||||
Cash paid to Director | $ 10,000 | ||||
Director stock compensation expense | $ 66,717 | $ 53,558 | $ 182,606 | $ 138,840 | |
Maximum [Member] | |||||
Maximum issuance of common stock options | 325,000 | 325,000 |
Letters of Credit and Off Bal_2
Letters of Credit and Off Balance Sheet Liabilities (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Letters of Credit and Off Balance Sheet Liabilities [Abstract] | ||
Outstanding standby letters of credit | $ 2.7 | $ 2.6 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2016USD ($)contract | Jul. 31, 2009USD ($)contract | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||||
Gain on derivative | $ 908 | |||
Increase in fair value of derivatives | 908 | |||
Deferred tax asset on gain on derivative | $ 245 | |||
Cash flow hedge ineffectiveness | 0 | |||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 30,000 | $ 20,000 | ||
Number of interest rate swap contracts | contract | 4 | 3 | ||
Interest rate swap fair value | $ 1,700 | $ 800 | ||
Swap Contract - 3-Year $5 million [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 5,000 | |||
Derivative, maturity date | Jun. 17, 2019 | |||
Swap Contract - 5-Year $5 million [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 5,000 | |||
Derivative, maturity date | Mar. 17, 2021 | |||
Swap Contract - 10-Year $15 million [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 15,000 | |||
Derivative, maturity date | Mar. 17, 2026 | |||
Swap Contract- 7 year $5 Million [Member] | ||||
Derivative [Line Items] | ||||
Interest rate swap notional amount | $ 5,000 | |||
Derivative, maturity date | Mar. 17, 2023 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Impact Of Derivative Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Derivative Financial Instruments [Abstract] | |||||
Amount of gain or (loss) recognized in OCI on derivative (effective portion) | $ 112 | $ (4) | $ 663 | $ (94) | |
Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion) | [1] | 0 | 0 | 0 | 0 |
Amount of gain or (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Reported as interest expense | ||||
[2] | Reported as other income |
Variable Interest Entities (V_3
Variable Interest Entities (VIE) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2009 | Sep. 30, 2018 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||
Long-term Debt | $ 100,929 | $ 120,929 | |||
Payments to Acquire Businesses and Interest in Affiliates | $ 6,100 | $ 6,100 | |||
VIE purpose | purchase the land and construct a 36-unit low income housing rental complex | ||||
Federal investment tax credits | $ 8,400 | ||||
Change in federal investment tax credits | $ (600) | ||||
Federal investment tax credit duration | 10 years | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Long-term Debt | 30,900 | ||||
Equity Method Investments | 900 | ||||
VIE financing | 10,600 | ||||
Construction and Development Costs | $ 10,600 | ||||
Partnership total assets | $ 8,300 | $ 8,600 | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | Liberty Mews Limited Partnership [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership in Liberty Mews Limited Partnership | 99.99% |
Variable Interest Entities (V_4
Variable Interest Entities (VIE) (Investment in LIHTC Partnership) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entities (VIE) [Abstract] | ||
Investment (Other Assets) | $ 2,040 | $ 2,562 |
Maximum exposure to loss | $ 2,040 | $ 2,562 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noninterest income | $ 3,797 | $ 3,672 | $ 11,208 | $ 10,631 |
In-Scope of Topic 606 [Member] | ||||
Noninterest income | 3,413 | 3,278 | 10,030 | 9,406 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Noninterest income | 384 | 394 | 1,178 | 1,225 |
Service Charges [Member] | ||||
Noninterest income | 814 | 802 | 2,374 | 2,310 |
Trust Department [Member] | ||||
Noninterest income | 1,705 | 1,579 | 5,010 | 4,629 |
Debit Card Income [Member] | ||||
Noninterest income | 617 | 661 | 1,818 | 1,805 |
Brokerage Commissions [Member] | ||||
Noninterest income | $ 277 | $ 236 | $ 828 | $ 662 |
Assets and Liabilities Subjec_3
Assets and Liabilities Subject to Enforceable Master Netting Agreements (Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement or Repurchase Agreements) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment security collateral as a percentage of borrowing | 102.00% | |
Interest Rate Swap [Member] | ||
Gross Amounts of Recognized (Assets)/Liabilities | $ (1,689) | $ (781) |
Gross Amounts Offset in the Statement of Condition | 0 | 0 |
Net Amounts of (Assets)/Liabilities Presented in the Statement of Condition | (1,689) | (781) |
Gross Amounts Not Offset in the Statement of Condition: Financial Instruments | 1,689 | 781 |
Gross Amounts Not Offset in the Statement of Condition: Cash Collateral Pledged | 0 | 0 |
Net amount | 0 | 0 |
Repurchase Agreements [Member] | ||
Gross Amounts of Recognized (Assets)/Liabilities | 47,805 | 48,845 |
Gross Amounts Offset in the Statement of Condition | 0 | 0 |
Net Amounts of (Assets)/Liabilities Presented in the Statement of Condition | 47,805 | 48,845 |
Gross Amounts Not Offset in the Statement of Condition: Financial Instruments | (47,805) | (48,845) |
Gross Amounts Not Offset in the Statement of Condition: Cash Collateral Pledged | 0 | 0 |
Net amount | $ 0 | $ 0 |