Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | FIRST UNITED CORP/MD/ | |
Entity Central Index Key | 0000763907 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,105,775 |
Consolidated Statement of Finan
Consolidated Statement of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 38,584 | $ 22,187 |
Interest bearing deposits in banks | 405 | 1,354 |
Cash and cash equivalents | 38,989 | 23,541 |
Investment securities - available-for-sale (at fair value) | 135,809 | 137,641 |
Investment securities – held to maturity (fair value $102,503 at June 30, 2019 and $93,760 at December 31, 2018) | 97,499 | 94,010 |
Restricted investment in bank stock, at cost | 4,415 | 5,394 |
Loans | 1,003,616 | 1,007,714 |
Allowance for loan losses | (11,976) | (11,047) |
Net loans | 991,640 | 996,667 |
Premises and equipment, net | 38,138 | 37,855 |
Goodwill and other intangible assets, net | 11,004 | 11,004 |
Bank owned life insurance | 43,908 | 43,317 |
Deferred tax assets | 6,208 | 7,844 |
Other real estate owned | 5,531 | 6,598 |
Operating lease right-of-use asset | 2,594 | |
Accrued interest receivable and other assets | 29,894 | 20,645 |
Total Assets | 1,405,629 | 1,384,516 |
Liabilities: | ||
Non-interest bearing deposits | 281,307 | 262,250 |
Interest bearing deposits | 841,774 | 805,277 |
Total deposits | 1,123,081 | 1,067,527 |
Short-term borrowings | 31,155 | 77,707 |
Long-term borrowings | 100,929 | 100,929 |
Operating lease liability | 3,177 | |
Accrued interest payable and other liabilities | 20,492 | 20,649 |
Dividends payable | 640 | 638 |
Total Liabilities | 1,279,474 | 1,267,450 |
Shareholders' Equity: | ||
Common Stock – par value $.01 per share; Authorized 25,000 shares; issued and outstanding 7,106 shares at June 30, 2019 and 7,087 at December 31, 2018 | 71 | 71 |
Surplus | 32,133 | 31,921 |
Retained earnings | 113,951 | 109,477 |
Accumulated other comprehensive loss | (20,000) | (24,403) |
Total Shareholders' Equity | 126,155 | 117,066 |
Total Liabilities and Shareholders' Equity | $ 1,405,629 | $ 1,384,516 |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consolidated Statement of Financial Condition [Abstract] | ||
Held-to-maturity securities, fair value | $ 102,503 | $ 93,760 |
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 | 7,106,000 | 7,087,000 |
Common Stock, Shares, Outstanding | 7,106,000 | 7,087,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income | ||||
Interest and fees on loans | $ 12,496 | $ 10,927 | $ 24,686 | $ 21,408 |
Interest on investment securities: Taxable | 1,450 | 1,474 | 2,917 | 2,921 |
Interest on investment securities: Exempt from federal income tax | 242 | 235 | 522 | 473 |
Total investment income | 1,692 | 1,709 | 3,439 | 3,394 |
Other | 223 | 88 | 358 | 284 |
Total interest income | 14,411 | 12,724 | 28,483 | 25,086 |
Interest expense | ||||
Interest on deposits | 1,965 | 928 | 3,736 | 1,784 |
Interest on short-term borrowings | 28 | 94 | 131 | 124 |
Interest on long-term borrowings | 891 | 834 | 1,743 | 1,728 |
Total interest expense | 2,884 | 1,856 | 5,610 | 3,636 |
Net interest income | 11,527 | 10,868 | 22,873 | 21,450 |
Provision for loan losses | 333 | 269 | 682 | 716 |
Net interest income after provision for loan losses | 11,194 | 10,599 | 22,191 | 20,734 |
Other operating income | ||||
Net gains | 30 | 147 | 44 | 181 |
Total other income | 3,909 | 3,735 | 7,616 | 7,411 |
Total other operating income | 3,939 | 3,882 | 7,660 | 7,592 |
Other operating expenses | ||||
Salaries and employee benefits | 6,146 | 6,119 | 12,364 | 12,038 |
FDIC premiums | 183 | 170 | 294 | 303 |
Equipment | 936 | 753 | 1,819 | 1,436 |
Occupancy | 706 | 614 | 1,418 | 1,252 |
Data processing | 1,054 | 911 | 1,995 | 1,843 |
Professional Services | 318 | 307 | 522 | 643 |
Contract Labor | 175 | 161 | 331 | 337 |
Line rentals | 198 | 219 | 415 | 430 |
Other real estate owned | 786 | 108 | 929 | 493 |
Other | 1,239 | 1,263 | 2,344 | 2,541 |
Total other operating expenses | 11,741 | 10,625 | 22,431 | 21,316 |
Income before income tax expense | 3,392 | 3,856 | 7,420 | 7,010 |
Provision for income tax expense | 790 | 840 | 1,667 | 1,488 |
Net Income | $ 2,602 | $ 3,016 | $ 5,753 | $ 5,522 |
Basic and diluted net income per common share | $ 0.37 | $ 0.43 | $ 0.81 | $ 0.78 |
Weighted average number of basic and diluted shares outstanding | 7,100,000 | 7,077,000 | 7,094,000 | 7,072,000 |
Dividends declared per common share | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Service Charges on Deposit Accounts [Member] | ||||
Other operating income | ||||
Total other income | $ 555 | $ 557 | $ 1,074 | $ 1,120 |
Other Service Charges [Member] | ||||
Other operating income | ||||
Total other income | 225 | 211 | 433 | 440 |
Trust Department [Member] | ||||
Other operating income | ||||
Total other income | 1,832 | 1,641 | 3,547 | 3,305 |
Debit Card Income [Member] | ||||
Other operating income | ||||
Total other income | 676 | 648 | 1,276 | 1,201 |
Bank Owned Life Insurance [Member] | ||||
Other operating income | ||||
Total other income | 288 | 285 | 591 | 584 |
Brokerage Commissions [Member] | ||||
Other operating income | ||||
Total other income | 203 | 306 | 441 | 551 |
Other [Member] | ||||
Other operating income | ||||
Total other income | $ 130 | $ 87 | $ 254 | $ 210 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 2,602 | $ 3,016 | $ 5,753 | $ 5,522 |
Other comprehensive income, net of tax and reclassification adjustments: | ||||
Net unrealized (losses)/gains on investments with OTTI | (194) | 945 | (274) | 1,590 |
Net unrealized gains/(losses) on all other AFS securities | 1,577 | (230) | 2,482 | (1,308) |
Net unrealized gains on HTM securities | 63 | 38 | 118 | 83 |
Net unrealized (losses)/gains on cash flow hedges | (486) | 108 | (801) | 551 |
Net unrealized gains/(losses) on pension | 707 | (1,530) | 2,836 | (794) |
Net unrealized gains on SERP | 21 | 29 | 42 | 58 |
Other comprehensive income/(loss), net of tax | 1,688 | (640) | 4,403 | 180 |
Comprehensive income | $ 4,290 | $ 2,376 | $ 10,156 | $ 5,702 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2017 | $ 71 | $ 31,553 | $ 101,359 | $ (24,593) | $ 108,390 |
Net income | 2,506 | 2,506 | |||
Other comprehensive income (loss) | 820 | 820 | |||
Stock based compensation | 53 | 53 | |||
Common stock dividend declared | (635) | (635) | |||
Balance at Mar. 31, 2018 | 71 | 31,606 | 103,230 | (23,773) | 111,134 |
Balance at Dec. 31, 2017 | 71 | 31,553 | 101,359 | (24,593) | 108,390 |
Net income | 5,522 | ||||
Other comprehensive income (loss) | 180 | ||||
Balance at Jun. 30, 2018 | 71 | 31,709 | 105,607 | (24,413) | 112,974 |
Balance at Mar. 31, 2018 | 71 | 31,606 | 103,230 | (23,773) | 111,134 |
Net income | 3,016 | 3,016 | |||
Other comprehensive income (loss) | (640) | (640) | |||
Stock based compensation | 63 | 63 | |||
Common stock issued | 40 | 40 | |||
Common stock dividend declared | (639) | (639) | |||
Balance at Jun. 30, 2018 | 71 | 31,709 | 105,607 | (24,413) | 112,974 |
Balance at Dec. 31, 2018 | 71 | 31,921 | 109,477 | (24,403) | 117,066 |
Net income | 3,151 | 3,151 | |||
Other comprehensive income (loss) | 2,715 | 2,715 | |||
Stock based compensation | 67 | 67 | |||
Common stock issued | 39 | 39 | |||
Common stock dividend declared | (639) | (639) | |||
Balance at Mar. 31, 2019 | 71 | 32,027 | 111,989 | (21,688) | 122,399 |
Balance at Dec. 31, 2018 | 71 | 31,921 | 109,477 | (24,403) | 117,066 |
Net income | 5,753 | ||||
Other comprehensive income (loss) | 4,403 | ||||
Balance at Jun. 30, 2019 | 71 | 32,133 | 113,951 | (20,000) | 126,155 |
Balance at Mar. 31, 2019 | 71 | 32,027 | 111,989 | (21,688) | 122,399 |
Net income | 2,602 | 2,602 | |||
Other comprehensive income (loss) | 1,688 | 1,688 | |||
Stock based compensation | 67 | 67 | |||
Common stock issued | 39 | 39 | |||
Common stock dividend declared | (640) | (640) | |||
Balance at Jun. 30, 2019 | $ 71 | $ 32,133 | $ 113,951 | $ (20,000) | $ 126,155 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statement of Changes in Shareholders' Equity [Abstract] | ||||||
Common stock dividend declared per share (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net income | $ 5,753 | $ 5,522 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 682 | 716 |
Depreciation | 1,529 | 1,117 |
Stock compensation | 134 | 116 |
Gains on sales of other real estate owned | (11) | (183) |
Write-downs of other real estate owned | 828 | 478 |
Originations of loans held for sale | (6,122) | (7,166) |
Proceeds from sale of loans held for sale | 5,861 | 6,820 |
Gains from sale of loans held for sale | (45) | (55) |
Losses on disposal of fixed assets | 1 | |
Net (accretion)/amortization of investment securities discounts and premiums- AFS | (2) | 27 |
Net amortization of investment securities discounts and premiums- HTM | 20 | 40 |
Gains on sales/calls of investment securities – available-for-sale | (126) | |
Earnings on bank owned life insurance | (591) | (584) |
Amortization of deferred loan fees | (336) | (358) |
Amortization of operating lease right-of-use asset | 136 | |
Increase in accrued interest receivable and other assets | (5,138) | (1,673) |
Increase in deferred tax benefit | (2) | (744) |
Decrease in operating lease liability | (140) | |
(Decrease)/increase in accrued interest payable and other liabilities | (666) | 2,203 |
Net cash provided by operating activities | 1,891 | 6,150 |
Investing activities | ||
Proceeds from maturities/calls of investment securities available-for-sale | 4,228 | 6,058 |
Proceeds from maturities/calls of investment securities held-to-maturity | 3,323 | 3,297 |
Proceeds from sales of investment securities available-for-sale | 5,378 | |
Purchases of investment securities available-for-sale | (4,744) | (1,405) |
Purchases of investment securities held-to-maturity | (6,832) | |
Proceeds from sales of other real estate owned | 870 | 1,637 |
Net decrease in FHLB stock | 979 | 872 |
Net decrease/(increase) in loans | 4,367 | (23,969) |
Purchase of loans | (25,168) | |
Purchases of premises and equipment | (1,813) | (5,413) |
Net cash provided by/(used in) investing activities | 5,756 | (44,091) |
Financing activities | ||
Net increase in deposits | 55,554 | 1,730 |
Proceeds from sale of common stock | 78 | 40 |
Cash dividends on common stock | (1,279) | (1,274) |
Net decrease in short-term borrowings | (46,552) | (916) |
Payments on long-term borrowings | (20,000) | |
Net cash provided by/(used in) financing activities | 7,801 | (20,420) |
Increase/(decrease) in cash and cash equivalents | 15,448 | (58,361) |
Cash and cash equivalents at beginning of the year | 23,541 | 83,752 |
Cash and cash equivalents at end of period | 38,989 | 25,391 |
Supplemental information | ||
Interest paid | 5,562 | 3,506 |
Taxes paid | 671 | |
Non-cash investing activities: | ||
Transfers from loans to other real estate owned | 620 | $ 294 |
Initial recognition of operating lease right-of-use assets | 2,730 | |
Initial recognition of operating lease liabilities | $ 3,317 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 8-03 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 six and three-month periods ended June 30, 2019 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, 2018. For purposes of comparability, certain prior period amounts have been reclassified to conform to the 2019 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 June 30, 2019 for items that should potentially be recognized or disclosed in these financial statements. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019. The following tables set forth the calculation of basic and diluted earnings per common share for the six - and three-month periods ended June 30, 2019 and 2018: Six months ended June 30, 2019 2018 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 $ 5,753 7,094 $ 0.81 $ 5,522 7,072 $ 0.78 Three months ended June 30, 2019 2018 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 $ 2,602 7,100 $ 0.37 $ 3,016 7,077 $ 0.43 |
Net Gains
Net Gains | 6 Months Ended |
Jun. 30, 2019 | |
Net Gains [Abstract] | |
Net Gains | Note 3 – Net Gains The following table summarizes the gain/(loss) activity for the six - and three-month periods ended June 30, 2019 and 2018: Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Net gains/(losses): Available-for-sale securities: Realized gains $ 73 $ 145 $ 73 $ 145 Realized losses (73) (19) (67) (10) Gains on sale of consumer loans 45 55 25 12 Losses on disposal of fixed assets (1) — (1) — Net gains $ 44 $ 181 $ 30 $ 147 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | Note 4 – 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 June 30, 2019 and December 31, 2018: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCL June 30, 2019 Available for Sale: U.S. government agencies $ 30,000 $ — $ 167 $ 29,833 $ — Commercial mortgage-backed agencies 42,487 143 284 42,346 — Collateralized mortgage obligations 34,010 179 62 34,127 — Obligations of states and political subdivisions 14,379 252 — 14,631 — Collateralized debt obligations 18,387 — 3,515 14,872 (2,341) Total available for sale $ 139,263 $ 574 $ 4,028 $ 135,809 $ (2,341) Held to Maturity: U.S. government agencies $ 16,090 $ 624 $ — $ 16,714 $ — Residential mortgage-backed agencies 47,320 237 345 47,212 — Commercial mortgage-backed agencies 15,672 429 — 16,101 — Collateralized mortgage obligations 3,577 5 — 3,582 — Obligations of states and political subdivisions 14,840 4,054 — 18,894 — Total held to maturity $ 97,499 $ 5,349 $ 345 $ 102,503 $ — December 31, 2018 Available for Sale: U.S. government agencies $ 30,000 $ — $ 974 $ 29,026 $ — Commercial mortgage-backed agencies 39,013 — 1,261 37,752 — Collateralized mortgage obligations 36,669 — 965 35,704 — Obligations of states and political subdivisions 20,083 132 333 19,882 — Collateralized debt obligations 18,358 — 3,081 15,277 (1,966) Total available for sale $ 144,123 $ 132 $ 6,614 $ 137,641 $ (1,966) Held to Maturity: U.S. government agencies $ 16,017 $ 120 $ — $ 16,137 $ — Residential mortgage-backed agencies 46,491 6 1,287 45,210 — Commercial mortgage-backed agencies 15,821 75 68 15,828 — Collateralized mortgage obligations 3,761 — 156 3,605 — Obligations of states and political subdivisions 11,920 1,156 96 12,980 — Total held to maturity $ 94,010 $ 1,357 $ 1,607 $ 93,760 $ — Proceeds from sales/calls of available for sale securities and the realized gains and losses are as follows: Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Proceeds $ 5,668 $ 500 $ 5,408 $ 265 Realized gains 73 145 73 145 Realized losses 73 19 67 10 The following table shows the Corporation’s investment securities with gross unrealized losses and fair values at June 30, 2019 and December 31, 2018, 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 Number of Investments Fair Value Unrealized Losses Number of Investments June 30, 2019 Available for Sale: U.S. government agencies $ — $ — — $ 29,833 $ 167 5 Commercial mortgage-backed agencies — — — 18,918 284 5 Collateralized mortgage obligations — — — 8,250 62 2 Collateralized debt obligations 5,848 612 4 9,024 2,903 5 Total available for sale $ 5,848 $ 612 4 $ 66,025 $ 3,416 17 Held to Maturity: Residential mortgage-backed agencies $ 5,287 $ 16 2 $ 19,088 $ 329 20 Total held to maturity $ 5,287 $ 16 2 $ 19,088 $ 329 20 December 31, 2018 Available for Sale: U.S. government agencies $ — $ — — $ 29,026 $ 974 5 Commercial mortgage-backed agencies — — — 37,752 1,261 8 Collateralized mortgage obligations 232 1 1 35,472 964 8 Obligations of states and political subdivisions 3,310 48 5 11,068 285 8 Collateralized debt obligations 5,987 438 4 9,290 2,643 5 Total available for sale $ 9,529 $ 487 10 $ 122,608 $ 6,127 34 Held to Maturity: Residential mortgage-backed agencies $ 3,605 $ 51 2 $ 41,448 $ 1,236 29 Commercial mortgage-backed agencies — — — 7,656 68 1 Collateralized mortgage obligations — — — 3,605 156 1 Obligations of states and political subdivisions — — — 2,199 96 1 Total held to maturity $ 3,605 $ 51 2 $ 54,908 $ 1,556 32 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 component 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. See Note 7 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 six months of 2019. The Corporation does not believe that the investment securities that were in an unrealized loss position at June 30, 2019 represent an other-than-temporary impairment. The Corporation does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. 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 six - and three-month periods ended June 30, 2019 and 2018: Six Months Ended June 30, (in thousands) 2019 2018 Balance of credit-related OTTI at January 1 $ 2,646 $ 2,958 Reduction for increases in cash flows expected to be collected (99) (207) Balance of credit-related OTTI at June 30 $ 2,547 $ 2,751 Three Months Ended June 30, (in thousands) 2019 2018 Balance of credit-related OTTI at April 1 $ 2,597 $ 2,903 Reduction for increases in cash flows expected to be collected (50) (152) Balance of credit-related OTTI at June 30 $ 2,547 $ 2,751 The amortized cost and estimated fair value of securities by contractual maturity at June 30, 2019 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. June 30, 2019 (in thousands) Amortized Cost Fair Value Contractual Maturity Available for Sale: Due in one year or less $ 225 $ 225 Due after one year through five years 16,763 16,718 Due after five years through ten years 17,968 17,876 Due after ten years 27,810 24,517 62,766 59,336 Commercial mortgage-backed agencies 42,487 42,346 Collateralized mortgage obligations 34,010 34,127 Total available for sale $ 139,263 $ 135,809 Held to Maturity: Due after one year through five years $ 16,090 $ 16,714 Due after ten years 14,840 18,894 30,930 35,608 Residential mortgage-backed agencies 47,320 47,212 Commercial mortgage-backed agencies 15,672 16,101 Collateralized mortgage obligations 3,577 3,582 Total held to maturity $ 97,499 $ 102,503 |
Loans and Related Allowance for
Loans and Related Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Loans and Related Allowance for Loan Losses | Note 5 – Loans and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio at June 30, 2019 and December 31, 2018: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Total June 30, 2019 Individually evaluated for impairment $ 5,778 $ 8,144 $ 27 $ 3,787 $ 7 $ 17,743 Collectively evaluated for impairment $ 294,054 $ 110,582 $ 108,244 $ 438,482 $ 34,511 $ 985,873 Total loans $ 299,832 $ 118,726 $ 108,271 $ 442,269 $ 34,518 $ 1,003,616 December 31, 2018 Individually evaluated for impairment $ 5,239 $ 693 $ 17 $ 4,616 $ 10 $ 10,575 Collectively evaluated for impairment $ 301,682 $ 117,667 $ 111,449 $ 432,291 $ 34,050 $ 997,139 Total loans $ 306,921 $ 118,360 $ 111,466 $ 436,907 $ 34,060 $ 1,007,714 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 Portfolio Risk 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 Portfolio Risk Management 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 June 30, 2019 and December 31, 2018: (in thousands) Pass Special Mention Substandard Total June 30, 2019 Commercial real estate Non owner-occupied $ 137,348 $ 7,457 $ 2,012 $ 146,817 All other CRE 145,127 1,721 6,167 153,015 Acquisition and development 1-4 family residential construction 10,301 — — 10,301 All other A&D 100,490 — 7,935 108,425 Commercial and industrial 104,496 — 3,775 108,271 Residential mortgage Residential mortgage - term 367,344 — 4,250 371,594 Residential mortgage - home equity 69,142 141 1,392 70,675 Consumer 34,413 4 101 34,518 Total $ 968,661 $ 9,323 $ 25,632 $ 1,003,616 December 31, 2018 Commercial real estate Non owner-occupied $ 145,260 $ 2,904 $ 2,348 $ 150,512 All other CRE 149,076 1,752 5,581 156,409 Acquisition and development 1-4 family residential construction 16,003 — — 16,003 All other A&D 94,428 7,378 551 102,357 Commercial and industrial 107,174 3,703 589 111,466 Residential mortgage Residential mortgage - term 359,305 — 4,703 364,008 Residential mortgage - home equity 71,666 143 1,090 72,899 Consumer 33,952 4 104 34,060 Total $ 976,864 $ 15,884 $ 14,966 $ 1,007,714 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 June 30, 2019 and December 31, 2018: (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 June 30, 2019 Commercial real estate Non owner-occupied $ 146,684 $ — $ — $ — $ — $ 133 $ 146,817 All other CRE 147,818 2,116 — — 2,116 3,081 153,015 Acquisition and development 1-4 family residential construction 10,301 — — — — — 10,301 All other A&D 100,702 — 74 34 108 7,615 108,425 Commercial and industrial 108,158 — 86 — 86 27 108,271 Residential mortgage Residential mortgage - term 368,467 138 1,464 197 1,799 1,328 371,594 Residential mortgage - home equity 69,403 241 25 79 345 927 70,675 Consumer 34,375 94 35 7 136 7 34,518 Total $ 985,908 $ 2,589 $ 1,684 $ 317 $ 4,590 $ 13,118 $ 1,003,616 December 31, 2018 Commercial real estate Non owner-occupied $ 150,339 $ — $ — $ — $ — $ 173 $ 150,512 All other CRE 153,977 464 — — 464 1,968 156,409 Acquisition and development 1-4 family residential construction 16,003 — — — — — 16,003 All other A&D 94,540 197 7,411 62 7,670 147 102,357 Commercial and industrial 111,436 29 1 — 30 — 111,466 Residential mortgage Residential mortgage - term 360,073 302 1,359 363 2,024 1,911 364,008 Residential mortgage - home equity 71,611 461 114 — 575 713 72,899 Consumer 33,832 140 73 5 218 10 34,060 Total $ 991,811 $ 1,593 $ 8,958 $ 430 $ 10,981 $ 4,922 $ 1,007,714 Non-accrual loans totaled $13.1 million at June 30, 2019, compared to $4.9 million at December 31, 2018. The increase in non-accrual balances at June 30, 2019 was primarily due to entering a forbearance agreement with one large A&D loan totaling $7.0 million during the first quarter 2019. At December 31, 2018, it was expected that this loan would be paid off by a prospective buyer. In the first quarter of 2019, the buyer declined to pursue the transaction and, subsequently, the Corporation entered into a forbearance agreement and placed the loan on non-accrual. During the second quarter of 2019, two additional CRE credits were added to non-accrual. Non-accrual loans that have been subject to partial charge-offs totaled $.2 million at June 30, 2019, compared to $.3 million at December 31, 2018. For the six months ended June 30, 2019, $1.7 million in specific allocations have been made related to the A&D portfolio. Loans secured by 1-4 family residential real estate properties in the process of foreclosure were $.2 million at June 30, 2019 and $.3 million at December 31, 2018. Accruing loans past due 30 days or more decreased to .46% of the loan portfolio at June 30, 2019, compared to 1.09% at December 31, 2018. The decrease for the first six months of 2019 was primarily related to one large relationship in the commercial A&D portfolio that moved to non-accrual status in the first quarter of 2019. 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 June 30, 2019 and December 31, 2018, 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 June 30, 2019 Individually evaluated for impairment $ 11 $ 1,728 $ — $ 65 $ — $ — $ 1,804 Collectively evaluated for impairment $ 2,724 $ 1,566 $ 1,147 $ 3,916 $ 319 $ 500 $ 10,172 Total ALL $ 2,735 $ 3,294 $ 1,147 $ 3,981 $ 319 $ 500 $ 11,976 December 31, 2018 Individually evaluated for impairment $ 13 $ 25 $ — $ 106 $ — $ — $ 144 Collectively evaluated for impairment $ 2,767 $ 1,696 $ 1,187 $ 4,438 $ 315 $ 500 $ 10,903 Total ALL $ 2,780 $ 1,721 $ 1,187 $ 4,544 $ 315 $ 500 $ 11,047 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 June 30, 2019 and December 31, 2018: 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 June 30, 2019 Commercial real estate Non owner-occupied $ 119 $ 11 $ 133 $ 252 $ 8,445 All other CRE — — 5,526 5,526 5,526 Acquisition and development 1-4 family residential construction — — 304 304 304 All other A&D 7,805 1,728 35 7,840 7,907 Commercial and industrial — — 27 27 2,241 Residential mortgage Residential mortgage – term 1,205 56 1,655 2,860 3,063 Residential mortgage – home equity 171 9 756 927 941 Consumer — — 7 7 7 Total impaired loans $ 9,300 $ 1,804 $ 8,443 $ 17,743 $ 28,434 December 31, 2018 Commercial real estate Non owner-occupied $ 121 $ 13 $ 173 $ 294 $ 8,488 All other CRE — — 4,945 4,945 4,945 Acquisition and development 1-4 family residential construction — — 316 316 316 All other A&D 230 25 147 377 525 Commercial and industrial — — 17 17 2,231 Residential mortgage Residential mortgage – term 993 106 2,910 3,903 4,130 Residential mortgage – home equity — — 713 713 726 Consumer — — 10 10 10 Total impaired loans $ 1,344 $ 144 $ 9,231 $ 10,575 $ 21,371 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. Most “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 six- and three-month periods ended June 30, 2019 and 2018: (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at January 1, 2019 $ 2,780 $ 1,721 $ 1,187 $ 4,544 $ 315 $ 500 $ 11,047 Charge-offs — (29) (5) (86) (136) — (256) Recoveries 30 111 76 195 91 — 503 Provision (75) 1,491 (111) (672) 49 — 682 ALL balance at June 30, 2019 $ 2,735 $ 3,294 $ 1,147 $ 3,981 $ 319 $ 500 $ 11,976 ALL balance at January 1, 2018 $ 3,699 $ 1,257 $ 869 $ 3,444 $ 203 $ 500 $ 9,972 Charge-offs (889) (98) (10) (240) (175) — (1,412) Recoveries 60 258 31 65 79 — 493 Provision 433 (245) (104) 475 157 — 716 ALL balance at June 30, 2018 $ 3,303 $ 1,172 $ 786 $ 3,744 $ 264 $ 500 $ 9,769 (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at April 1, 2019 $ 2,775 $ 2,338 $ 1,125 $ 4,497 $ 313 $ 500 $ 11,548 Charge-offs — — (5) (74) (68) — (147) Recoveries 1 99 25 87 30 — 242 Provision (41) 857 2 (529) 44 — 333 ALL balance at June 30, 2019 $ 2,735 $ 3,294 $ 1,147 $ 3,981 $ 319 $ 500 $ 11,976 ALL balance at April 1, 2018 $ 3,976 $ 1,160 $ 860 $ 3,678 $ 296 $ 500 $ 10,470 Charge-offs (889) (7) (10) (86) (107) — (1,099) Recoveries 1 44 13 27 44 — 129 Provision 215 (25) (77) 125 31 — 269 ALL balance at June 30, 2018 $ 3,303 $ 1,172 $ 786 $ 3,744 $ 264 $ 500 $ 9,769 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: Six months ended Six months ended June 30, 2019 June 30, 2018 (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 $ 270 $ 6 $ — $ 813 $ 7 $ 66 All other CRE 4,853 76 — 6,625 99 56 Acquisition and development 1-4 family residential construction 310 9 — 457 12 — All other A&D 5,306 6 — 276 6 — Commercial and industrial 24 — — 305 10 — Residential mortgage Residential mortgage – term 3,261 53 10 3,487 62 — Residential mortgage – home equity 854 — 2 553 — 7 Consumer 14 — — 23 — — Total $ 14,892 $ 150 $ 12 $ 12,539 $ 196 $ 129 Three months ended Three months ended June 30, 2019 June 30, 2018 (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 $ 258 $ 3 $ — $ 1,258 $ 3 $ — All other CRE 4,807 38 — 5,726 50 — Acquisition and development 1-4 family residential construction 307 4 — 492 6 — All other A&D 7,772 3 — 340 3 — Commercial and industrial 27 — — 311 5 — Residential mortgage Residential mortgage – term 2,941 25 2 3,529 30 — Residential mortgage – home equity 925 — 2 614 — — Consumer 16 — — 24 — — Total $ 17,053 $ 73 $ 4 $ 12,294 $ 97 $ — 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 troubled debt restructuring (“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 13 loans totaling $4.0 million and 16 loans totaling $4.9 million that were classified as TDRs at June 30, 2019 and December 31, 2018, 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 Six months ended June 30, 2019 Commercial real estate Non owner-occupied — $ — — $ — — $ — All other CRE — — — — — — Acquisition and development 1-4 family residential construction — — — — — — All other A&D — — — — 1 227 Commercial and industrial — — — — — — Residential mortgage Residential mortgage – term — — — — 1 243 Residential mortgage – home equity — — — — — — Consumer — — — — — — Total — $ — — $ — 2 $ 470 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 Six months ended June 30, 2018 Commercial real estate Non owner-occupied — $ — — $ — 1 $ 126 All other CRE — — 1 179 — — Acquisition and development 1-4 family residential construction — — — — — — All other A&D — — — — — — Commercial and industrial — — — — — — Residential mortgage Residential mortgage – term — — — — — — Residential mortgage – home equity — — — — — — Consumer — — — — — — Total — $ — 1 $ 179 1 $ 126 During the six months ended June 30, 2019, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2019, there were no payment defaults. During the six months ended June 30, 2018, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2018, there were no payment defaults. 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 June 30, 2018 Commercial real estate Non owner-occupied — $ — — $ — 1 $ 126 All other CRE — — 1 179 — — Acquisition and development 1-4 family residential construction — — — — — — All other A&D — — — — — — Commercial and industrial — — — — — — Residential mortgage Residential mortgage – term — — — — — — Residential mortgage – home equity — — — — — — Consumer — — — — — — Total — $ — 1 $ 179 1 $ 126 During the three months ended June 30, 2019, there were no new TDRs, no modifications on existing TDRs and no payment defaults. During the three months ended June 30, 2018, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the second quarter of 2018, there were no payment defaults. |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2019 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 6 - Other Real Estate Owned The following table presents the components of other real estate owned (“OREO”) at June 30, 2019 and December 31, 2018: (in thousands) June 30, 2019 December 31, 2018 Commercial real estate $ 1,902 $ 2,599 Acquisition and development 2,598 3,218 Commercial and industrial — 24 Residential mortgage 1,031 757 Total OREO $ 5,531 $ 6,598 The following table presents the activity in the OREO valuation allowance for the six - and three-month periods ended June 30, 2019 and 2018: Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance beginning of period $ 1,988 $ 2,740 $ 1,366 $ 2,911 Fair value write-down 828 478 711 183 Sales of OREO (803) (271) (64) (147) Balance at end of period $ 2,013 $ 2,947 $ 2,013 $ 2,947 The following table presents the components of OREO expenses, net, for the six - and three-month periods ended June 30, 2019 and 2018: Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 (Gains)/losses on real estate, net $ (11) $ (183) $ 19 $ (163) Fair value write-down, net 828 478 711 183 Expenses, net 166 272 91 124 Rental and other income (54) (74) (35) (36) Total OREO expense, net $ 929 $ 493 $ 786 $ 108 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 7 – 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 June 30, 2019 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 June 30, 2019, 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 June 30, 2019, the Corporation owned nine pooled trust preferred securities with an amortized cost of $18.4 million and a fair value of $14.9 million. As of June 30, 2019, 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 June 30, 2019, (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 June 30, 2019. 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 June 30, 2019 and December 31, 2018, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 14,872 Discounted Cash Flow Discount Rate Range of LIBOR+ 4.50% Non-recurring: Impaired Loans $ 7,234 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 12.8% ) Other Real Estate Owned $ 2,949 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 12.4% ) (in thousands) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 15,277 Discounted Cash Flow Discount Rate Range of LIBOR+ 4.50% Non-recurring: Impaired Loans $ 1,316 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 12.8% ) Other Real Estate Owned $ 2,707 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 13.5% ) 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 June 30, 2019 and December 31, 2018 are as follows: Fair Value Measurements at June 30, 2019 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 06/30/2019 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 29,833 $ 29,833 Commercial mortgage-backed agencies $ 42,346 $ 42,346 Collateralized mortgage obligations $ 34,127 $ 34,127 Obligations of states and political subdivisions $ 14,631 $ 14,631 Collateralized debt obligations $ 14,872 $ 14,872 Financial Derivatives $ (55) $ (55) Non-recurring: Impaired loans $ 7,234 $ 7,234 Other real estate owned $ 2,949 $ 2,949 Fair Value Measurements at December 31, 2018 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 12/31/2018 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 29,026 $ 29,026 Commercial mortgage-backed agencies $ 37,752 $ 37,752 Collateralized mortgage obligations $ 35,704 $ 35,704 Obligations of states and political subdivisions $ 19,882 $ 19,882 Collateralized debt obligations $ 15,277 $ 15,277 Financial Derivative $ 1,043 $ 1,043 Non-recurring: Impaired loans $ 1,316 $ 1,316 Other real estate owned $ 2,707 $ 2,707 There were no transfers of assets between any of the fair value hierarchy for the six-month periods ended June 30, 2019 or 2018. 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 six and three-month periods ended June 30, 2019 and 2018: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance January 1, 2019 $ 15,277 Total losses realized/unrealized: Included in other comprehensive income (405) Ending balance June 30, 2019 $ 14,872 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 1,227 Ending balance June 30, 2018 $ 16,147 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance April 1, 2019 $ 15,152 Total losses realized/unrealized: Included in other comprehensive income (280) Ending balance June 30, 2019 $ 14,872 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance April 1, 2018 $ 15,977 Total gains realized/unrealized: Included in other comprehensive income 170 Ending balance June 30, 2018 $ 16,147 Gains/losses (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 six - and three-month periods ended June 30, 2019 and 2018. 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: June 30, 2019 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 $ 38,584 $ 38,584 $ 38,584 Interest bearing deposits in banks 405 405 405 Investment securities - AFS 135,809 135,809 $ 120,937 $ 14,872 Investment securities - HTM 97,499 102,503 83,609 18,894 Restricted bank stock 4,415 4,415 4,415 Loans, net 991,640 976,051 976,051 Accrued interest receivable 4,083 4,083 4,083 Financial Liabilities: Deposits - non-maturity 861,832 861,832 861,832 Deposits - time deposits 261,249 262,533 262,533 Financial derivatives 55 55 55 Short-term borrowed funds 31,155 31,155 31,155 Long-term borrowed funds 100,929 103,214 103,214 Accrued interest payable 503 503 503 December 31, 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 $ 22,187 $ 22,187 $ 22,187 Interest bearing deposits in banks 1,354 1,354 1,354 Investment securities - AFS 137,641 137,641 $ 122,364 $ 15,277 Investment securities - HTM 94,010 93,760 80,780 12,980 Restricted bank stock 5,394 5,394 5,394 Loans, net 996,667 967,198 967,198 Financial derivative 1,043 1,043 1,043 Accrued interest receivable 4,175 4,175 4,175 Financial Liabilities: Deposits - non-maturity 815,858 815,858 815,858 Deposits - time deposits 251,669 252,146 252,146 Short-term borrowed funds 77,707 77,707 77,707 Long-term borrowed funds 100,929 102,590 102,590 Accrued interest payable 455 455 455 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 8 – 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, 2018 and the three-month periods ended March 31, 2019 and June 30, 2019: (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, 2018 $ (2,939) $ (2,979) $ (1,347) $ 582 $ (17,066) $ (844) $ (24,593) Other comprehensive income/(loss) before reclassifications 1,194 (540) — 191 (1,833) 202 (786) Amounts reclassified from accumulated other comprehensive loss (154) (82) 216 — 882 114 976 Balance – December 31, 2018 $ (1,899) $ (3,601) $ (1,131) $ 773 $ (18,017) $ (528) $ (24,403) Other comprehensive income/(loss) before reclassifications (44) 901 — (315) 1,933 — 2,475 Amounts reclassified from accumulated other comprehensive loss (36) 4 55 — 196 21 240 Balance - March 31, 2019 $ (1,979) $ (2,696) $ (1,076) $ 458 $ (15,888) $ (507) $ (21,688) Other comprehensive income/(loss) before reclassifications (157) 1,581 — (486) 511 — 1,449 Amounts reclassified from accumulated other comprehensive loss (37) (4) 63 — 196 21 239 Balance - June 30, 2019 $ (2,173) $ (1,119) $ (1,013) $ (28) $ (15,181) $ (486) $ (20,000) The following tables present the components of other comprehensive income/(loss) for the six - and three-month periods ended June 30, 2019 and 2018: Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Six months ended June 30, 2019 Available for sale (AFS) securities with OTTI: Unrealized holding losses $ (276) $ 75 $ (201) Less: accretable yield recognized in income 99 (26) 73 Net unrealized losses on investments with OTTI (375) 101 (274) Available for sale securities – all other: Unrealized holding gains 3,405 (923) 2,482 Net unrealized gains on all other AFS securities 3,405 (923) 2,482 Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (161) 43 (118) Net unrealized gains on HTM securities 161 (43) 118 Cash flow hedges: Unrealized holding losses (1,098) 297 (801) Pension Plan: Unrealized net actuarial gain 3,353 (909) 2,444 Less: amortization of unrecognized loss (538) 146 (392) Net pension plan liability adjustment 3,891 (1,055) 2,836 SERP: Unrealized net actuarial loss — — — Less: amortization of unrecognized loss (58) 15 (43) Less: amortization of prior service costs 1 — 1 Net SERP liability adjustment 57 (15) 42 Other comprehensive income $ 6,041 $ (1,638) $ 4,403 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Six months ended June 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 2,432 $ (658) $ 1,774 Less: gains recognized in income 145 (39) 106 Less: accretable yield recognized in income 107 (29) 78 Net unrealized gains on investments with OTTI 2,180 (590) 1,590 Available for sale securities – all other: Unrealized holding losses (1,812) 490 (1,322) Less: losses recognized in income (19) 5 (14) Net unrealized losses on all other AFS securities (1,793) 485 (1,308) Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (114) 31 (83) Net unrealized gains on HTM securities 114 (31) 83 Cash flow hedges: Unrealized holding gains 755 (204) 551 Pension Plan: Unrealized net actuarial loss (1,692) 457 (1,235) Less: amortization of unrecognized loss (600) 162 (438) Less: amortization of prior service costs (4) 1 (3) Net pension plan liability adjustment (1,088) 294 (794) SERP: Less: amortization of unrecognized loss (81) 22 (59) Less: amortization of prior service costs 1 — 1 Net SERP liability adjustment 80 (22) 58 Other comprehensive income $ 248 $ (68) $ 180 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Three months ended June 30, 2019 Available for sale (AFS) securities with OTTI: Unrealized holding losses $ (216) $ 59 $ (157) Less: accretable yield recognized in income 50 (13) 37 Net unrealized losses on investments with OTTI (266) 72 (194) Available for sale securities – all other: Unrealized holding gains 2,169 (588) 1,581 Less: gains recognized in income 6 (2) 4 Net unrealized gains on all other AFS securities 2,163 (586) 1,577 Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (86) 23 (63) Net unrealized gains on HTM securities 86 (23) 63 Cash flow hedges: Unrealized holding losses (666) 180 (486) Pension Plan: Unrealized net actuarial gain 701 (190) 511 Less: amortization of unrecognized loss (269) 73 (196) Net pension plan liability adjustment 970 (263) 707 SERP: Unrealized net actuarial loss — — — Less: amortization of unrecognized loss (29) 8 (21) Net SERP liability adjustment 29 (8) 21 Other comprehensive income $ 2,316 $ (628) $ 1,688 Components of Other Comprehensive Loss (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Three months ended June 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 1,493 $ (404) $ 1,089 Less: gains recognized in income 145 (39) 106 Less: accretable yield recognized in income 52 (14) 38 Net unrealized gains on investments with OTTI 1,296 (351) 945 Available for sale securities – all other: Unrealized holding losses (325) 88 (237) Less: losses recognized in income (10) 3 (7) Net unrealized losses on all other AFS securities (315) 85 (230) Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (52) 14 (38) Net unrealized gains on HTM securities 52 (14) 38 Cash flow hedges: Unrealized holding gains 148 (40) 108 Pension Plan: Unrealized net actuarial loss (2,399) 648 (1,751) Less: amortization of unrecognized loss (300) 81 (219) Less: amortization of prior service costs (2) — (2) Net pension plan liability adjustment (2,097) 567 (1,530) SERP: Unrealized net actuarial loss — — — Less: amortization of unrecognized loss (40) 11 (29) Net SERP liability adjustment 40 (11) 29 Other comprehensive loss $ (876) $ 236 $ (640) The following table presents the details of amount reclassified from accumulated other comprehensive loss for the six - and three-month periods ended June 30, 2019 and 2018: Amounts Reclassified from Six Months Ended Accumulated Other Comprehensive Loss June 30, Affected Line Item in the Statement (in thousands) 2019 2018 Where Net Income is Presented Net unrealized gains on available for sale investment securities with OTTI: Gains on calls $ — $ 145 Net gains Accretable yield 99 107 Interest income on taxable investment securities Taxes (26) (68) Provision for income tax expense $ 73 $ 184 Net of tax Net unrealized losses on available for sale investment securities - all others: Losses on sales $ — $ (19) Net gains Taxes — 5 Provision for income tax expense $ — $ (14) Net of tax Net unrealized losses on held to maturity securities: Amortization $ (161) $ (114) Interest income on taxable investment securities Taxes 43 31 Provision for income tax expense $ (118) $ (83) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (538) $ (600) Other Expense Amortization of prior service costs — (4) Salaries and employee benefits Taxes 146 163 Provision for income tax expense $ (392) $ (441) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (58) $ (81) Other Expense Amortization of prior service costs 1 1 Salaries and employee benefits Taxes 15 22 Provision for income tax expense $ (42) $ (58) Net of tax Total reclassifications for the period $ (479) $ (412) Net of tax Amounts Reclassified from Three Months Ended Accumulated Other Comprehensive Loss June 30, Affected Line Item in the Statement (in thousands) 2019 2018 Where Net Income is Presented Net unrealized gains on available for sale investment securities with OTTI: Gains on calls $ — $ 145 Net gains Accretable Yield $ 50 $ 52 Interest income on taxable investment securities Taxes (13) (53) Provision for Income Tax Expense $ 37 $ 144 Net of tax Net unrealized gains/(losses) on available for sale investment securities - all others: Gains/(losses) on sales $ 6 $ (10) Net gains Taxes (2) 3 Provision for Income Tax Expense $ 4 $ (7) Net of tax Net unrealized losses on held to maturity securities: Amortization $ (86) $ (52) Interest income on taxable investment securities Taxes 23 14 Provision for Income Tax Expense $ (63) $ (38) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (269) $ (300) Salaries and employee benefits Amortization of prior service costs — (2) Salaries and employee benefits Taxes 73 81 Provision for Income Tax Expense $ (196) $ (221) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (29) $ (41) Salaries and employee benefits Taxes 8 11 Provision for Income Tax Expense $ (21) $ (30) Net of tax Total reclassifications for the period $ (239) $ (152) Net of tax |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 9 – Leases On January 1, 2019, the Corporation adopted Accounting Standards Update (“ASU”) 2016-02, “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. The adoption of Topic 842 affected the accounting treatment for operating lease agreements in which the Corporation is the lessee. Lessee Accounting Substantially all of the leases in which the Corporation is the lessee are comprised of real estate property for branches, ATM locations, and office equipment with terms extending through 2030. All of the Corporation’s leases are now classified as operating leases and, therefore, were previously not recognized on the Corporation’s Consolidated Statement of Financial Condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Statement of Financial Condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The following table represents the Consolidated Statement of Financial Condition classification of the Corporation’s ROU assets and lease liabilities. The Corporation elected not to include short-term leases (i.e., leases with remaining terms of 12 months or less), or equipment leases that were deemed immaterial on the Consolidated Statement of Financial Condition. (in thousands) June 30, 2019 Lease Right-of Use Assets Operating lease right-of-use assets $ 2,594 Lease Liabilities Operating lease liabilities $ 3,177 In calculating the present value of the lease payments, the Corporation has utilized its incremental borrowing rate based on electing the original lease term to account for each lease component. The following table presents the weighted-average lease term and discount rate for operating leases at June 30, 2019: June 30, 2019 Weighted-average remaining lease term Operating leases 8.81 years Weighted-average discount rate Operating leases 5.09% The Corporation elected, for all classes of underlying assets, to separate lease and non-lease components. Total operating lease expense for the six months ended June 30, 2019 was $.2 million. Short-term lease expense was $37 thousand for the six months ended June 30, 2019. Total operating lease expense for the second quarter of 2019 was $.1 million. Short-term lease expense was $13 thousand for the second quarter of 2019. Future minimum payments for operating leases with initial or remaining terms of one year or more at June 30, 2019 were as follows: (in thousands) Operating Leases 2019 (remainder of year) $ 229 2020 467 2021 466 2022 459 2023 393 Thereafter 1,983 Total future minimum lease payments 3,997 Amounts representing interest (820) Present value of net future minimum lease payments $ 3,177 |
Borrowed Funds
Borrowed Funds | 6 Months Ended |
Jun. 30, 2019 | |
Borrowed Funds [Abstract] | |
Borrowed Funds | Note 10 –Borrowed Funds The following is a summary of short-term borrowings with original maturities of less than one year: (Dollars in thousands) Six Months Ended June 30, 2019 Year Ended December 31, 2018 Short-term Correspondent Bank Advance: Overnight borrowings, weighted average interest rate of 2.70% at December 31, 2018 $ — $ 40,000 Securities sold under agreements to repurchase: Outstanding at end of period $ 31,155 $ 37,707 Weighted average interest rate at end of period 0.35% 0.24% Maximum amount outstanding as of any month end $ 40,579 $ 55,648 Average amount outstanding $ 37,218 $ 44,045 Approximate weighted average rate during the period 0.29% 0.20% At June 30, 2019, the repurchase agreements were secured by $45.0 million in investment securities issued by government related agencies. A minimum of 102% of fair value is pledged against account balances. At June 30, 2019, the long-term FHLB advances were secured by $214.0 million in loans. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 11 – Employee Benefit Plans The following tables present the components of the net periodic pension plan cost for First United Corporation’s noncontributory Defined Benefit Pension Plan (the “Pension Plan”) and the Bank’s Defined Benefit Supplemental Executive Retirement Plan (“Defined Benefit SERP”) for the periods indicated: Pension Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Service cost $ 133 $ 162 $ 66 $ 81 Interest cost 874 793 437 396 Expected return on assets (1,528) (1,620) (764) (810) Amortization of net actuarial loss 538 600 269 300 Amortization of prior service cost — 4 — 2 Net pension expense/(credit) included in employee benefits and other expense $ 17 $ (61) $ 8 $ (31) Defined Benefit SERP Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Service cost $ 47 $ 56 $ 23 $ 28 Interest cost 165 150 83 75 Amortization of recognized loss 58 81 29 41 Amortization of prior service cost (1) (1) — — Net Defined Benefit SERP expense included in employee benefits and other expense $ 269 $ 286 $ 135 $ 144 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 Corporation’s Pension and Defined Benefit 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 their (a) 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 Defined Benefit SERP in 2001 as an unfunded supplemental executive retirement plan. The Defined Benefit 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 Defined Benefit 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 Defined Benefit SERP benefits as well as other employee benefit costs. The benefit obligation activity for both the Pension Plan and Defined Benefit 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. A contribution of $2.0 million was made to the pension plan during the first six months of 2019. The Corporation expects to fund the annual projected benefit payments for the Defined Benefit SERP from operations. On January 9, 2015, First United Corporation and members of management who do not participate in the Defined Benefit SERP entered into participation agreements under the Deferred Compensation Plan, each styled as a Defined Contribution SERP Agreement (the “Contribution Agreement”). Pursuant to each Contribution Agreement, First United 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 Contribution 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 Contribution 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 Contribution Agreement); (b) Separation from Service (as defined in the Contribution Agreement) following a Change of Control (as defined in the Deferred Compensation Plan) and subsequent Triggering Event (as defined in the Contribution Agreement); (c) Separation from Service due to a Disability (as defined in the Contribution 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 Contribution 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 Contribution Agreement). In addition, the Contribution 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 Contribution 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 First United 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 2017, the Board of Directors approved discretionary contributions to four participants totaling $112,780 . The contributions had a two -year vesting period that ended on December 31, 2018. In January 2018, the Board approved discretionary contributions to four participants totaling $119,252 . The contributions have a two -year vesting period. The Corporation recorded $29,812 of the related compensation for the first six months of 2019 and 2018. The Corporation recorded $14,906 of the related compensation for the second quarter s of 2019 and 2018. In January 2019, the Board of Directors of First United Corporation approved discretionary contributions to four participants totaling $123,179 . The contributions also have a two -year vesting period. The Corporation recorded $37,576 of related compensation expense for the first six months of 2019. The Corporation recorded $18,788 of related compensation for the second quarter of 2019. |
Equity Compensation Plan Inform
Equity Compensation Plan Information | 6 Months Ended |
Jun. 30, 2019 | |
Equity Compensation Plan Information [Abstract] | |
Equity Compensation Plan Information | Note 12 - Equity Compensation Plan Information At the 2018 Annual Meeting of Shareholders, First United Corporation’s shareholders approved the First United Corporation 2018 Equity Compensation 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 appreciation 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 2019 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 2019, a total of 14,641 fully-vested shares of common stock were issued to directors, which had a grant date fair market value of $18.30 per share . Director stock compensation expense was $133,612 for the six months ended June 30, 2019 and $115,889 for the six months ended June 30, 2018. Director stock compensation expense was $66,894 for the second quarter of 2019 and $62,331 for the same period of 2018. |
Letters of Credit and Off Balan
Letters of Credit and Off Balance Sheet Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Letters of Credit and Off Balance Sheet Liabilities [Abstract] | |
Letters of Credit and Off Balance Sheet Liabilities | Note 13 – 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 $8.6 million of outstanding standby letters of credit at June 30, 2019 and $3.4 million at December 31, 2018. 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 June 30, 2019 and December 31, 2018 is material. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 14 – 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 March 2016, the Corporation entered into four interest rate swap contracts totaling $30.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt. These contracts include a three -year $5.0 million contract that matured 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 that matures on March 17, 2026 . The fair value of the interest rate swap contracts was $(55) thousand and $1.0 million at June 30, 2019 and December 31, 2018, respectively. For the six months ended June 30, 2019, the Corporation recorded a decrease in the value of the derivatives of $1.1 million and the related deferred tax of $298 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 six months ended June 30, 2019. 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 June 30, 2019. The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the six - and three-months ended June 30, 2019 and 2018. 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: Six months ended: June 30, 2019 $ 801 $ — $ — June 30, 2018 551 — — Three months ended: June 30, 2019 $ 486 $ — $ — June 30, 2018 108 — — Notes: (a) Reported as interest expense (b) Reported as other income |
Assets and Liabilities Subject
Assets and Liabilities Subject to Enforceable Master Netting Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements [Abstract] | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements | Note 15 – Assets and Liabilities Subject to Enforceable Master Netting Arrangements Interest Rate 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 or Other Liabilities 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 14 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 June 30, 2019 and December 31, 2018. 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 June 30, 2019 Interest Rate Swap Agreements $ 55 $ — $ 55 $ (55) $ — $ — Repurchase Agreements $ 31,155 $ — $ 31,155 $ (31,155) $ — $ — December 31, 2018 Interest Rate Swap Agreements $ (1,043) $ — $ (1,043) $ 1,043 $ — $ — Repurchase Agreements $ 37,707 $ — $ 37,707 $ (37,707) $ — $ — |
Adoption of New Accounting Stan
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements [Abstract] | |
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements | Note 16 – Adoption of New Accounting Standards and Effects of New Accounting Pronouncements 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 is effective for the Corporation for annual and interim periods after December 15, 2018. The Corporation adopted ASU 2016-02 effective January 1, 2019. See Note 9 for additional details. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842): Targeted Improvements. ASU 2018-10 provides improvements related to ASU 2016-02 to increase stakeholders’ awareness of the amendments and to expedite the improvements. The amendments affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows entities adopting ASU 2016-02 to choose an additional (and optional) transition method, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Corporation elected the optional transition method permitted by ASU 2018-11. Under this method, an entity shall recognize and measure leases that exist at the application date and prior comparative periods are not adjusted. In addition, the Corporation elected the package of practical expedients to leases that commenced before the effective date: 1. An entity need not reassess whether any expired or existing contracts contain leases. 2. An entity need not reassess the lease classification for any expired or existing leases. 3. An entity need not reassess initial direct costs for any existing leases. The Corporation also elected the practical expedient, which must be applied consistently to all leases, to use hindsight in determining the lease term and in assessing impairment of our right-of-use assets. The Corporation recorded a ROU asset in the amount of approximately $2.7 million and a lease liability in the amount of approximately $3.3 million on the Consolidated Statement of Financial Condition upon adoption on January 1, 2019. The adoption did not have a material impact to the Consolidated Statements of Operations or Cash Flows. 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. ASU 2017-12 is effective for the Corporation for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Corporation adopted ASU 2017-12 effective January 1, 2019. The adoption did not have a material impact on the Corporation’s Consolidated Financial Statements. 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 (“CECL”) 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 the Corporation for annual periods beginning after December 15, 2019, and interim periods within those annual periods. 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, loan servicing, reporting, and information systems. The Corporation is planning to complete its data and model validation analyses during the first half of 2019, with parallel processing of our existing allowance for loan losses model with the CECL model for two to three quarters prior to implementation. Currently, the focus group has identified 11 loan segments for all data which has been populated and internally validated within the model. During 2019, the Corporation is focused on testing methodologies and refining assumptions. Concurrent with this, the Corporation is also focused on researching and resolving interpretive accounting issues in the ASU, contemplating various related accounting policies, developing processes and related controls, and considering various reporting disclosures. In December 2018, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (the “FDIC”) approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. On July 17, 2019, FASB agreed to issue a proposal to delay CECL implementation deadlines for, among others, smaller reporting companies. First United Corporation currently qualifies as a small reporting company. The proposed delayed effective date is January 1, 2023 as opposed to January 1, 2020. The proposal is subject to a 30 -d ay comment period which will begin once the proposal is officially released. 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 the Corporation for annual periods beginning after December 15, 2019, and interim periods within those annual periods. 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. |
Earnings Per Common Share (Poli
Earnings Per Common Share (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019. |
Investments (Policy)
Investments (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
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 component 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 ”. |
Loans and Related Allowance f_2
Loans and Related Allowance for Loan Losses (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
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. |
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. Most “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 troubled debt restructuring (“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) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Common Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | Six months ended June 30, 2019 2018 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 $ 5,753 7,094 $ 0.81 $ 5,522 7,072 $ 0.78 Three months ended June 30, 2019 2018 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 $ 2,602 7,100 $ 0.37 $ 3,016 7,077 $ 0.43 |
Net Gains (Tables)
Net Gains (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Gains [Abstract] | |
Summary of Net Gain/ (loss) Activity | Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Net gains/(losses): Available-for-sale securities: Realized gains $ 73 $ 145 $ 73 $ 145 Realized losses (73) (19) (67) (10) Gains on sale of consumer loans 45 55 25 12 Losses on disposal of fixed assets (1) — (1) — Net gains $ 44 $ 181 $ 30 $ 147 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Unrealized Gain (Loss) on Investments | (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCL June 30, 2019 Available for Sale: U.S. government agencies $ 30,000 $ — $ 167 $ 29,833 $ — Commercial mortgage-backed agencies 42,487 143 284 42,346 — Collateralized mortgage obligations 34,010 179 62 34,127 — Obligations of states and political subdivisions 14,379 252 — 14,631 — Collateralized debt obligations 18,387 — 3,515 14,872 (2,341) Total available for sale $ 139,263 $ 574 $ 4,028 $ 135,809 $ (2,341) Held to Maturity: U.S. government agencies $ 16,090 $ 624 $ — $ 16,714 $ — Residential mortgage-backed agencies 47,320 237 345 47,212 — Commercial mortgage-backed agencies 15,672 429 — 16,101 — Collateralized mortgage obligations 3,577 5 — 3,582 — Obligations of states and political subdivisions 14,840 4,054 — 18,894 — Total held to maturity $ 97,499 $ 5,349 $ 345 $ 102,503 $ — December 31, 2018 Available for Sale: U.S. government agencies $ 30,000 $ — $ 974 $ 29,026 $ — Commercial mortgage-backed agencies 39,013 — 1,261 37,752 — Collateralized mortgage obligations 36,669 — 965 35,704 — Obligations of states and political subdivisions 20,083 132 333 19,882 — Collateralized debt obligations 18,358 — 3,081 15,277 (1,966) Total available for sale $ 144,123 $ 132 $ 6,614 $ 137,641 $ (1,966) Held to Maturity: U.S. government agencies $ 16,017 $ 120 $ — $ 16,137 $ — Residential mortgage-backed agencies 46,491 6 1,287 45,210 — Commercial mortgage-backed agencies 15,821 75 68 15,828 — Collateralized mortgage obligations 3,761 — 156 3,605 — Obligations of states and political subdivisions 11,920 1,156 96 12,980 — Total held to maturity $ 94,010 $ 1,357 $ 1,607 $ 93,760 $ — |
Proceeds from Sales/Calls of Available for Sale Securities and Realized Gains and Losses | Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Proceeds $ 5,668 $ 500 $ 5,408 $ 265 Realized gains 73 145 73 145 Realized losses 73 19 67 10 |
Gross Unrealized Losses and Fair Values of Securities | Less than 12 months 12 months or more (in thousands) Fair Value Unrealized Losses Number of Investments Fair Value Unrealized Losses Number of Investments June 30, 2019 Available for Sale: U.S. government agencies $ — $ — — $ 29,833 $ 167 5 Commercial mortgage-backed agencies — — — 18,918 284 5 Collateralized mortgage obligations — — — 8,250 62 2 Collateralized debt obligations 5,848 612 4 9,024 2,903 5 Total available for sale $ 5,848 $ 612 4 $ 66,025 $ 3,416 17 Held to Maturity: Residential mortgage-backed agencies $ 5,287 $ 16 2 $ 19,088 $ 329 20 Total held to maturity $ 5,287 $ 16 2 $ 19,088 $ 329 20 December 31, 2018 Available for Sale: U.S. government agencies $ — $ — — $ 29,026 $ 974 5 Commercial mortgage-backed agencies — — — 37,752 1,261 8 Collateralized mortgage obligations 232 1 1 35,472 964 8 Obligations of states and political subdivisions 3,310 48 5 11,068 285 8 Collateralized debt obligations 5,987 438 4 9,290 2,643 5 Total available for sale $ 9,529 $ 487 10 $ 122,608 $ 6,127 34 Held to Maturity: Residential mortgage-backed agencies $ 3,605 $ 51 2 $ 41,448 $ 1,236 29 Commercial mortgage-backed agencies — — — 7,656 68 1 Collateralized mortgage obligations — — — 3,605 156 1 Obligations of states and political subdivisions — — — 2,199 96 1 Total held to maturity $ 3,605 $ 51 2 $ 54,908 $ 1,556 32 |
Non-Cash OTTI Credit Losses Recognized in Earnings | Six Months Ended June 30, (in thousands) 2019 2018 Balance of credit-related OTTI at January 1 $ 2,646 $ 2,958 Reduction for increases in cash flows expected to be collected (99) (207) Balance of credit-related OTTI at June 30 $ 2,547 $ 2,751 Three Months Ended June 30, (in thousands) 2019 2018 Balance of credit-related OTTI at April 1 $ 2,597 $ 2,903 Reduction for increases in cash flows expected to be collected (50) (152) Balance of credit-related OTTI at June 30 $ 2,547 $ 2,751 |
Amortized Cost and Fair Values Classified by Contractual Maturity Date | June 30, 2019 (in thousands) Amortized Cost Fair Value Contractual Maturity Available for Sale: Due in one year or less $ 225 $ 225 Due after one year through five years 16,763 16,718 Due after five years through ten years 17,968 17,876 Due after ten years 27,810 24,517 62,766 59,336 Commercial mortgage-backed agencies 42,487 42,346 Collateralized mortgage obligations 34,010 34,127 Total available for sale $ 139,263 $ 135,809 Held to Maturity: Due after one year through five years $ 16,090 $ 16,714 Due after ten years 14,840 18,894 30,930 35,608 Residential mortgage-backed agencies 47,320 47,212 Commercial mortgage-backed agencies 15,672 16,101 Collateralized mortgage obligations 3,577 3,582 Total held to maturity $ 97,499 $ 102,503 |
Loans and Related Allowance f_3
Loans and Related Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Related Allowance for Loan Losses [Abstract] | |
Primary Segments of the Loan Portfolio | (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Total June 30, 2019 Individually evaluated for impairment $ 5,778 $ 8,144 $ 27 $ 3,787 $ 7 $ 17,743 Collectively evaluated for impairment $ 294,054 $ 110,582 $ 108,244 $ 438,482 $ 34,511 $ 985,873 Total loans $ 299,832 $ 118,726 $ 108,271 $ 442,269 $ 34,518 $ 1,003,616 December 31, 2018 Individually evaluated for impairment $ 5,239 $ 693 $ 17 $ 4,616 $ 10 $ 10,575 Collectively evaluated for impairment $ 301,682 $ 117,667 $ 111,449 $ 432,291 $ 34,050 $ 997,139 Total loans $ 306,921 $ 118,360 $ 111,466 $ 436,907 $ 34,060 $ 1,007,714 |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | (in thousands) Pass Special Mention Substandard Total June 30, 2019 Commercial real estate Non owner-occupied $ 137,348 $ 7,457 $ 2,012 $ 146,817 All other CRE 145,127 1,721 6,167 153,015 Acquisition and development 1-4 family residential construction 10,301 — — 10,301 All other A&D 100,490 — 7,935 108,425 Commercial and industrial 104,496 — 3,775 108,271 Residential mortgage Residential mortgage - term 367,344 — 4,250 371,594 Residential mortgage - home equity 69,142 141 1,392 70,675 Consumer 34,413 4 101 34,518 Total $ 968,661 $ 9,323 $ 25,632 $ 1,003,616 December 31, 2018 Commercial real estate Non owner-occupied $ 145,260 $ 2,904 $ 2,348 $ 150,512 All other CRE 149,076 1,752 5,581 156,409 Acquisition and development 1-4 family residential construction 16,003 — — 16,003 All other A&D 94,428 7,378 551 102,357 Commercial and industrial 107,174 3,703 589 111,466 Residential mortgage Residential mortgage - term 359,305 — 4,703 364,008 Residential mortgage - home equity 71,666 143 1,090 72,899 Consumer 33,952 4 104 34,060 Total $ 976,864 $ 15,884 $ 14,966 $ 1,007,714 |
Loan Portfolio Summarized by the Past Due Status | (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 June 30, 2019 Commercial real estate Non owner-occupied $ 146,684 $ — $ — $ — $ — $ 133 $ 146,817 All other CRE 147,818 2,116 — — 2,116 3,081 153,015 Acquisition and development 1-4 family residential construction 10,301 — — — — — 10,301 All other A&D 100,702 — 74 34 108 7,615 108,425 Commercial and industrial 108,158 — 86 — 86 27 108,271 Residential mortgage Residential mortgage - term 368,467 138 1,464 197 1,799 1,328 371,594 Residential mortgage - home equity 69,403 241 25 79 345 927 70,675 Consumer 34,375 94 35 7 136 7 34,518 Total $ 985,908 $ 2,589 $ 1,684 $ 317 $ 4,590 $ 13,118 $ 1,003,616 December 31, 2018 Commercial real estate Non owner-occupied $ 150,339 $ — $ — $ — $ — $ 173 $ 150,512 All other CRE 153,977 464 — — 464 1,968 156,409 Acquisition and development 1-4 family residential construction 16,003 — — — — — 16,003 All other A&D 94,540 197 7,411 62 7,670 147 102,357 Commercial and industrial 111,436 29 1 — 30 — 111,466 Residential mortgage Residential mortgage - term 360,073 302 1,359 363 2,024 1,911 364,008 Residential mortgage - home equity 71,611 461 114 — 575 713 72,899 Consumer 33,832 140 73 5 218 10 34,060 Total $ 991,811 $ 1,593 $ 8,958 $ 430 $ 10,981 $ 4,922 $ 1,007,714 |
Primary Segments of the Allowance for Loan Loss | (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total June 30, 2019 Individually evaluated for impairment $ 11 $ 1,728 $ — $ 65 $ — $ — $ 1,804 Collectively evaluated for impairment $ 2,724 $ 1,566 $ 1,147 $ 3,916 $ 319 $ 500 $ 10,172 Total ALL $ 2,735 $ 3,294 $ 1,147 $ 3,981 $ 319 $ 500 $ 11,976 December 31, 2018 Individually evaluated for impairment $ 13 $ 25 $ — $ 106 $ — $ — $ 144 Collectively evaluated for impairment $ 2,767 $ 1,696 $ 1,187 $ 4,438 $ 315 $ 500 $ 10,903 Total ALL $ 2,780 $ 1,721 $ 1,187 $ 4,544 $ 315 $ 500 $ 11,047 |
Impaired Loans and Related Interest Income by Loan Portfolio Class | 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 June 30, 2019 Commercial real estate Non owner-occupied $ 119 $ 11 $ 133 $ 252 $ 8,445 All other CRE — — 5,526 5,526 5,526 Acquisition and development 1-4 family residential construction — — 304 304 304 All other A&D 7,805 1,728 35 7,840 7,907 Commercial and industrial — — 27 27 2,241 Residential mortgage Residential mortgage – term 1,205 56 1,655 2,860 3,063 Residential mortgage – home equity 171 9 756 927 941 Consumer — — 7 7 7 Total impaired loans $ 9,300 $ 1,804 $ 8,443 $ 17,743 $ 28,434 December 31, 2018 Commercial real estate Non owner-occupied $ 121 $ 13 $ 173 $ 294 $ 8,488 All other CRE — — 4,945 4,945 4,945 Acquisition and development 1-4 family residential construction — — 316 316 316 All other A&D 230 25 147 377 525 Commercial and industrial — — 17 17 2,231 Residential mortgage Residential mortgage – term 993 106 2,910 3,903 4,130 Residential mortgage – home equity — — 713 713 726 Consumer — — 10 10 10 Total impaired loans $ 1,344 $ 144 $ 9,231 $ 10,575 $ 21,371 |
Allowance for Loan Losses Summarized by Loan Portfolio Segments | (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at January 1, 2019 $ 2,780 $ 1,721 $ 1,187 $ 4,544 $ 315 $ 500 $ 11,047 Charge-offs — (29) (5) (86) (136) — (256) Recoveries 30 111 76 195 91 — 503 Provision (75) 1,491 (111) (672) 49 — 682 ALL balance at June 30, 2019 $ 2,735 $ 3,294 $ 1,147 $ 3,981 $ 319 $ 500 $ 11,976 ALL balance at January 1, 2018 $ 3,699 $ 1,257 $ 869 $ 3,444 $ 203 $ 500 $ 9,972 Charge-offs (889) (98) (10) (240) (175) — (1,412) Recoveries 60 258 31 65 79 — 493 Provision 433 (245) (104) 475 157 — 716 ALL balance at June 30, 2018 $ 3,303 $ 1,172 $ 786 $ 3,744 $ 264 $ 500 $ 9,769 (in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Residential Mortgage Consumer Unallocated Total ALL balance at April 1, 2019 $ 2,775 $ 2,338 $ 1,125 $ 4,497 $ 313 $ 500 $ 11,548 Charge-offs — — (5) (74) (68) — (147) Recoveries 1 99 25 87 30 — 242 Provision (41) 857 2 (529) 44 — 333 ALL balance at June 30, 2019 $ 2,735 $ 3,294 $ 1,147 $ 3,981 $ 319 $ 500 $ 11,976 ALL balance at April 1, 2018 $ 3,976 $ 1,160 $ 860 $ 3,678 $ 296 $ 500 $ 10,470 Charge-offs (889) (7) (10) (86) (107) — (1,099) Recoveries 1 44 13 27 44 — 129 Provision 215 (25) (77) 125 31 — 269 ALL balance at June 30, 2018 $ 3,303 $ 1,172 $ 786 $ 3,744 $ 264 $ 500 $ 9,769 |
Average of Impaired Loans and Related Interest Income by Loan Portfolio Class | Six months ended Six months ended June 30, 2019 June 30, 2018 (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 $ 270 $ 6 $ — $ 813 $ 7 $ 66 All other CRE 4,853 76 — 6,625 99 56 Acquisition and development 1-4 family residential construction 310 9 — 457 12 — All other A&D 5,306 6 — 276 6 — Commercial and industrial 24 — — 305 10 — Residential mortgage Residential mortgage – term 3,261 53 10 3,487 62 — Residential mortgage – home equity 854 — 2 553 — 7 Consumer 14 — — 23 — — Total $ 14,892 $ 150 $ 12 $ 12,539 $ 196 $ 129 Three months ended Three months ended June 30, 2019 June 30, 2018 (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 $ 258 $ 3 $ — $ 1,258 $ 3 $ — All other CRE 4,807 38 — 5,726 50 — Acquisition and development 1-4 family residential construction 307 4 — 492 6 — All other A&D 7,772 3 — 340 3 — Commercial and industrial 27 — — 311 5 — Residential mortgage Residential mortgage – term 2,941 25 2 3,529 30 — Residential mortgage – home equity 925 — 2 614 — — Consumer 16 — — 24 — — Total $ 17,053 $ 73 $ 4 $ 12,294 $ 97 $ — |
Modification of Troubled Debt Restructuring by Class | 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 Six months ended June 30, 2019 Commercial real estate Non owner-occupied — $ — — $ — — $ — All other CRE — — — — — — Acquisition and development 1-4 family residential construction — — — — — — All other A&D — — — — 1 227 Commercial and industrial — — — — — — Residential mortgage Residential mortgage – term — — — — 1 243 Residential mortgage – home equity — — — — — — Consumer — — — — — — Total — $ — — $ — 2 $ 470 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 Six months ended June 30, 2018 Commercial real estate Non owner-occupied — $ — — $ — 1 $ 126 All other CRE — — 1 179 — — Acquisition and development 1-4 family residential construction — — — — — — All other A&D — — — — — — Commercial and industrial — — — — — — Residential mortgage Residential mortgage – term — — — — — — Residential mortgage – home equity — — — — — — Consumer — — — — — — Total — $ — 1 $ 179 1 $ 126 During the six months ended June 30, 2019, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2019, there were no payment defaults. During the six months ended June 30, 2018, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2018, there were no payment defaults. 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 June 30, 2018 Commercial real estate Non owner-occupied — $ — — $ — 1 $ 126 All other CRE — — 1 179 — — Acquisition and development 1-4 family residential construction — — — — — — All other A&D — — — — — — Commercial and industrial — — — — — — Residential mortgage Residential mortgage – term — — — — — — Residential mortgage – home equity — — — — — — Consumer — — — — — — Total — $ — 1 $ 179 1 $ 126 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Real Estate Owned [Abstract] | |
Schedule of Real Estate Properties Comprising OREO | (in thousands) June 30, 2019 December 31, 2018 Commercial real estate $ 1,902 $ 2,599 Acquisition and development 2,598 3,218 Commercial and industrial — 24 Residential mortgage 1,031 757 Total OREO $ 5,531 $ 6,598 |
Other Real Estate, Roll Forward | Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance beginning of period $ 1,988 $ 2,740 $ 1,366 $ 2,911 Fair value write-down 828 478 711 183 Sales of OREO (803) (271) (64) (147) Balance at end of period $ 2,013 $ 2,947 $ 2,013 $ 2,947 |
Schedule of Components of Other Real Estate Owned Expense | Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 (Gains)/losses on real estate, net $ (11) $ (183) $ 19 $ (163) Fair value write-down, net 828 478 711 183 Expenses, net 166 272 91 124 Rental and other income (54) (74) (35) (36) Total OREO expense, net $ 929 $ 493 $ 786 $ 108 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | (in thousands) Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 14,872 Discounted Cash Flow Discount Rate Range of LIBOR+ 4.50% Non-recurring: Impaired Loans $ 7,234 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 12.8% ) Other Real Estate Owned $ 2,949 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 12.4% ) (in thousands) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Value Recurring: Investment Securities – available for sale $ 15,277 Discounted Cash Flow Discount Rate Range of LIBOR+ 4.50% Non-recurring: Impaired Loans $ 1,316 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 12.8% ) Other Real Estate Owned $ 2,707 Market Comparable Properties Marketability Discount 10.0% - 15.0% (1) (weighted avg 13.5% ) NOTE: Range would include discounts taken since appraisal and estimated values |
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | Fair Value Measurements at June 30, 2019 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 06/30/2019 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 29,833 $ 29,833 Commercial mortgage-backed agencies $ 42,346 $ 42,346 Collateralized mortgage obligations $ 34,127 $ 34,127 Obligations of states and political subdivisions $ 14,631 $ 14,631 Collateralized debt obligations $ 14,872 $ 14,872 Financial Derivatives $ (55) $ (55) Non-recurring: Impaired loans $ 7,234 $ 7,234 Other real estate owned $ 2,949 $ 2,949 Fair Value Measurements at December 31, 2018 Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) 12/31/2018 (Level 1) (Level 2) (Level 3) Recurring: Investment securities available-for-sale: U.S. government agencies $ 29,026 $ 29,026 Commercial mortgage-backed agencies $ 37,752 $ 37,752 Collateralized mortgage obligations $ 35,704 $ 35,704 Obligations of states and political subdivisions $ 19,882 $ 19,882 Collateralized debt obligations $ 15,277 $ 15,277 Financial Derivative $ 1,043 $ 1,043 Non-recurring: Impaired loans $ 1,316 $ 1,316 Other real estate owned $ 2,707 $ 2,707 |
Reconciliation of Fair Valued Assets Measured on a Recurring Basis | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance January 1, 2019 $ 15,277 Total losses realized/unrealized: Included in other comprehensive income (405) Ending balance June 30, 2019 $ 14,872 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 1,227 Ending balance June 30, 2018 $ 16,147 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance April 1, 2019 $ 15,152 Total losses realized/unrealized: Included in other comprehensive income (280) Ending balance June 30, 2019 $ 14,872 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (in thousands) Investment Securities Available for Sale Beginning balance April 1, 2018 $ 15,977 Total gains realized/unrealized: Included in other comprehensive income 170 Ending balance June 30, 2018 $ 16,147 |
Fair Value by Balance Sheet Grouping | June 30, 2019 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 $ 38,584 $ 38,584 $ 38,584 Interest bearing deposits in banks 405 405 405 Investment securities - AFS 135,809 135,809 $ 120,937 $ 14,872 Investment securities - HTM 97,499 102,503 83,609 18,894 Restricted bank stock 4,415 4,415 4,415 Loans, net 991,640 976,051 976,051 Accrued interest receivable 4,083 4,083 4,083 Financial Liabilities: Deposits - non-maturity 861,832 861,832 861,832 Deposits - time deposits 261,249 262,533 262,533 Financial derivatives 55 55 55 Short-term borrowed funds 31,155 31,155 31,155 Long-term borrowed funds 100,929 103,214 103,214 Accrued interest payable 503 503 503 December 31, 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 $ 22,187 $ 22,187 $ 22,187 Interest bearing deposits in banks 1,354 1,354 1,354 Investment securities - AFS 137,641 137,641 $ 122,364 $ 15,277 Investment securities - HTM 94,010 93,760 80,780 12,980 Restricted bank stock 5,394 5,394 5,394 Loans, net 996,667 967,198 967,198 Financial derivative 1,043 1,043 1,043 Accrued interest receivable 4,175 4,175 4,175 Financial Liabilities: Deposits - non-maturity 815,858 815,858 815,858 Deposits - time deposits 251,669 252,146 252,146 Short-term borrowed funds 77,707 77,707 77,707 Long-term borrowed funds 100,929 102,590 102,590 Accrued interest payable 455 455 455 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | (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, 2018 $ (2,939) $ (2,979) $ (1,347) $ 582 $ (17,066) $ (844) $ (24,593) Other comprehensive income/(loss) before reclassifications 1,194 (540) — 191 (1,833) 202 (786) Amounts reclassified from accumulated other comprehensive loss (154) (82) 216 — 882 114 976 Balance – December 31, 2018 $ (1,899) $ (3,601) $ (1,131) $ 773 $ (18,017) $ (528) $ (24,403) Other comprehensive income/(loss) before reclassifications (44) 901 — (315) 1,933 — 2,475 Amounts reclassified from accumulated other comprehensive loss (36) 4 55 — 196 21 240 Balance - March 31, 2019 $ (1,979) $ (2,696) $ (1,076) $ 458 $ (15,888) $ (507) $ (21,688) Other comprehensive income/(loss) before reclassifications (157) 1,581 — (486) 511 — 1,449 Amounts reclassified from accumulated other comprehensive loss (37) (4) 63 — 196 21 239 Balance - June 30, 2019 $ (2,173) $ (1,119) $ (1,013) $ (28) $ (15,181) $ (486) $ (20,000) |
Components of Comprehensive Income | Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Six months ended June 30, 2019 Available for sale (AFS) securities with OTTI: Unrealized holding losses $ (276) $ 75 $ (201) Less: accretable yield recognized in income 99 (26) 73 Net unrealized losses on investments with OTTI (375) 101 (274) Available for sale securities – all other: Unrealized holding gains 3,405 (923) 2,482 Net unrealized gains on all other AFS securities 3,405 (923) 2,482 Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (161) 43 (118) Net unrealized gains on HTM securities 161 (43) 118 Cash flow hedges: Unrealized holding losses (1,098) 297 (801) Pension Plan: Unrealized net actuarial gain 3,353 (909) 2,444 Less: amortization of unrecognized loss (538) 146 (392) Net pension plan liability adjustment 3,891 (1,055) 2,836 SERP: Unrealized net actuarial loss — — — Less: amortization of unrecognized loss (58) 15 (43) Less: amortization of prior service costs 1 — 1 Net SERP liability adjustment 57 (15) 42 Other comprehensive income $ 6,041 $ (1,638) $ 4,403 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Six months ended June 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 2,432 $ (658) $ 1,774 Less: gains recognized in income 145 (39) 106 Less: accretable yield recognized in income 107 (29) 78 Net unrealized gains on investments with OTTI 2,180 (590) 1,590 Available for sale securities – all other: Unrealized holding losses (1,812) 490 (1,322) Less: losses recognized in income (19) 5 (14) Net unrealized losses on all other AFS securities (1,793) 485 (1,308) Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (114) 31 (83) Net unrealized gains on HTM securities 114 (31) 83 Cash flow hedges: Unrealized holding gains 755 (204) 551 Pension Plan: Unrealized net actuarial loss (1,692) 457 (1,235) Less: amortization of unrecognized loss (600) 162 (438) Less: amortization of prior service costs (4) 1 (3) Net pension plan liability adjustment (1,088) 294 (794) SERP: Less: amortization of unrecognized loss (81) 22 (59) Less: amortization of prior service costs 1 — 1 Net SERP liability adjustment 80 (22) 58 Other comprehensive income $ 248 $ (68) $ 180 Components of Other Comprehensive Income (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Three months ended June 30, 2019 Available for sale (AFS) securities with OTTI: Unrealized holding losses $ (216) $ 59 $ (157) Less: accretable yield recognized in income 50 (13) 37 Net unrealized losses on investments with OTTI (266) 72 (194) Available for sale securities – all other: Unrealized holding gains 2,169 (588) 1,581 Less: gains recognized in income 6 (2) 4 Net unrealized gains on all other AFS securities 2,163 (586) 1,577 Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (86) 23 (63) Net unrealized gains on HTM securities 86 (23) 63 Cash flow hedges: Unrealized holding losses (666) 180 (486) Pension Plan: Unrealized net actuarial gain 701 (190) 511 Less: amortization of unrecognized loss (269) 73 (196) Net pension plan liability adjustment 970 (263) 707 SERP: Unrealized net actuarial loss — — — Less: amortization of unrecognized loss (29) 8 (21) Net SERP liability adjustment 29 (8) 21 Other comprehensive income $ 2,316 $ (628) $ 1,688 Components of Other Comprehensive Loss (in thousands) Before Tax Amount Tax (Expense) Benefit Net For the Three months ended June 30, 2018 Available for sale (AFS) securities with OTTI: Unrealized holding gains $ 1,493 $ (404) $ 1,089 Less: gains recognized in income 145 (39) 106 Less: accretable yield recognized in income 52 (14) 38 Net unrealized gains on investments with OTTI 1,296 (351) 945 Available for sale securities – all other: Unrealized holding losses (325) 88 (237) Less: losses recognized in income (10) 3 (7) Net unrealized losses on all other AFS securities (315) 85 (230) Held to maturity securities: Unrealized holding gains — — — Less: amortization recognized in income (52) 14 (38) Net unrealized gains on HTM securities 52 (14) 38 Cash flow hedges: Unrealized holding gains 148 (40) 108 Pension Plan: Unrealized net actuarial loss (2,399) 648 (1,751) Less: amortization of unrecognized loss (300) 81 (219) Less: amortization of prior service costs (2) — (2) Net pension plan liability adjustment (2,097) 567 (1,530) SERP: Unrealized net actuarial loss — — — Less: amortization of unrecognized loss (40) 11 (29) Net SERP liability adjustment 40 (11) 29 Other comprehensive loss $ (876) $ 236 $ (640) |
Schedule of Reclassifications from Accumulated Other Comprehensive Loss | Amounts Reclassified from Six Months Ended Accumulated Other Comprehensive Loss June 30, Affected Line Item in the Statement (in thousands) 2019 2018 Where Net Income is Presented Net unrealized gains on available for sale investment securities with OTTI: Gains on calls $ — $ 145 Net gains Accretable yield 99 107 Interest income on taxable investment securities Taxes (26) (68) Provision for income tax expense $ 73 $ 184 Net of tax Net unrealized losses on available for sale investment securities - all others: Losses on sales $ — $ (19) Net gains Taxes — 5 Provision for income tax expense $ — $ (14) Net of tax Net unrealized losses on held to maturity securities: Amortization $ (161) $ (114) Interest income on taxable investment securities Taxes 43 31 Provision for income tax expense $ (118) $ (83) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (538) $ (600) Other Expense Amortization of prior service costs — (4) Salaries and employee benefits Taxes 146 163 Provision for income tax expense $ (392) $ (441) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (58) $ (81) Other Expense Amortization of prior service costs 1 1 Salaries and employee benefits Taxes 15 22 Provision for income tax expense $ (42) $ (58) Net of tax Total reclassifications for the period $ (479) $ (412) Net of tax Amounts Reclassified from Three Months Ended Accumulated Other Comprehensive Loss June 30, Affected Line Item in the Statement (in thousands) 2019 2018 Where Net Income is Presented Net unrealized gains on available for sale investment securities with OTTI: Gains on calls $ — $ 145 Net gains Accretable Yield $ 50 $ 52 Interest income on taxable investment securities Taxes (13) (53) Provision for Income Tax Expense $ 37 $ 144 Net of tax Net unrealized gains/(losses) on available for sale investment securities - all others: Gains/(losses) on sales $ 6 $ (10) Net gains Taxes (2) 3 Provision for Income Tax Expense $ 4 $ (7) Net of tax Net unrealized losses on held to maturity securities: Amortization $ (86) $ (52) Interest income on taxable investment securities Taxes 23 14 Provision for Income Tax Expense $ (63) $ (38) Net of tax Net pension plan liability adjustment: Amortization of unrecognized loss $ (269) $ (300) Salaries and employee benefits Amortization of prior service costs — (2) Salaries and employee benefits Taxes 73 81 Provision for Income Tax Expense $ (196) $ (221) Net of tax Net SERP liability adjustment: Amortization of unrecognized loss $ (29) $ (41) Salaries and employee benefits Taxes 8 11 Provision for Income Tax Expense $ (21) $ (30) Net of tax Total reclassifications for the period $ (239) $ (152) Net of tax |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Classification of ROU Assets and Lease Liabilities | (in thousands) June 30, 2019 Lease Right-of Use Assets Operating lease right-of-use assets $ 2,594 Lease Liabilities Operating lease liabilities $ 3,177 |
Weighted-Average Lease Term and Discount Rate for Operating Leases | June 30, 2019 Weighted-average remaining lease term Operating leases 8.81 years Weighted-average discount rate Operating leases 5.09% |
Future Minimum Payments for Operating Leases | (in thousands) Operating Leases 2019 (remainder of year) $ 229 2020 467 2021 466 2022 459 2023 393 Thereafter 1,983 Total future minimum lease payments 3,997 Amounts representing interest (820) Present value of net future minimum lease payments $ 3,177 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Borrowed Funds [Abstract] | |
Summary of Short Term Borrowings | (Dollars in thousands) Six Months Ended June 30, 2019 Year Ended December 31, 2018 Short-term Correspondent Bank Advance: Overnight borrowings, weighted average interest rate of 2.70% at December 31, 2018 $ — $ 40,000 Securities sold under agreements to repurchase: Outstanding at end of period $ 31,155 $ 37,707 Weighted average interest rate at end of period 0.35% 0.24% Maximum amount outstanding as of any month end $ 40,579 $ 55,648 Average amount outstanding $ 37,218 $ 44,045 Approximate weighted average rate during the period 0.29% 0.20% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Pension [Member] | |
Components of the Net Periodic Pension Plan Cost | Pension Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Service cost $ 133 $ 162 $ 66 $ 81 Interest cost 874 793 437 396 Expected return on assets (1,528) (1,620) (764) (810) Amortization of net actuarial loss 538 600 269 300 Amortization of prior service cost — 4 — 2 Net pension expense/(credit) included in employee benefits and other expense $ 17 $ (61) $ 8 $ (31) |
SERP [Member] | |
Components of the Net Periodic Pension Plan Cost | Defined Benefit SERP Six Months Ended Three Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Service cost $ 47 $ 56 $ 23 $ 28 Interest cost 165 150 83 75 Amortization of recognized loss 58 81 29 41 Amortization of prior service cost (1) (1) — — Net Defined Benefit SERP expense included in employee benefits and other expense $ 269 $ 286 $ 135 $ 144 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Financial Instruments [Abstract] | |
Impact of Derivative Financial Instruments | 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: Six months ended: June 30, 2019 $ 801 $ — $ — June 30, 2018 551 — — Three months ended: June 30, 2019 $ 486 $ — $ — June 30, 2018 108 — — Notes: (a) Reported as interest expense (b) Reported as other income |
Assets and Liabilities Subjec_2
Assets and Liabilities Subject to Enforceable Master Netting Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Assets and Liabilities Subject to Enforceable Master Netting Arrangements [Abstract] | |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement or Repurchase Agreements | 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 June 30, 2019 Interest Rate Swap Agreements $ 55 $ — $ 55 $ (55) $ — $ — Repurchase Agreements $ 31,155 $ — $ 31,155 $ (31,155) $ — $ — December 31, 2018 Interest Rate Swap Agreements $ (1,043) $ — $ (1,043) $ 1,043 $ — $ — Repurchase Agreements $ 37,707 $ — $ 37,707 $ (37,707) $ — $ — |
Earnings Per Common Share (Basi
Earnings Per Common Share (Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Common Share [Abstract] | ||||||
Net Income | $ 2,602 | $ 3,151 | $ 3,016 | $ 2,506 | $ 5,753 | $ 5,522 |
Weighted average number of basic and diluted shares outstanding | 7,100,000 | 7,077,000 | 7,094,000 | 7,072,000 | ||
Basic and diluted net income per common share | $ 0.37 | $ 0.43 | $ 0.81 | $ 0.78 |
Net Gains (Summary of Net Gain_
Net Gains (Summary of Net Gain/ (loss) Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Gains [Abstract] | ||||
Realized gains | $ 73 | $ 145 | $ 73 | $ 145 |
Realized losses | (67) | (10) | (73) | (19) |
Gains on sale of consumer loans | 25 | 12 | 45 | 55 |
Losses on disposal of fixed assets | (1) | (1) | ||
Net gains | $ 30 | $ 147 | $ 44 | $ 181 |
Investments (Unrealized Gain (L
Investments (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 139,263 | $ 144,123 |
Gross Unrealized Gains | 574 | 132 |
Gross Unrealized Losses | 4,028 | 6,614 |
Investment securities - available-for-sale (at fair value) | 135,809 | 137,641 |
OTTI in AOCI | (2,341) | (1,966) |
Held-to-maturity amortized cost | 97,499 | 94,010 |
Held-to-maturity Gross Unrealized Gains | 5,349 | 1,357 |
Held-to-maturity gross unrealized losses | 345 | 1,607 |
Investment securities - HTM | 102,503 | 93,760 |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 30,000 | 30,000 |
Gross Unrealized Losses | 167 | 974 |
Investment securities - available-for-sale (at fair value) | 29,833 | 29,026 |
Held-to-maturity amortized cost | 16,090 | 16,017 |
Held-to-maturity Gross Unrealized Gains | 624 | 120 |
Investment securities - HTM | 16,714 | 16,137 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity amortized cost | 47,320 | 46,491 |
Held-to-maturity Gross Unrealized Gains | 237 | 6 |
Held-to-maturity gross unrealized losses | 345 | 1,287 |
Investment securities - HTM | 47,212 | 45,210 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 42,487 | 39,013 |
Gross Unrealized Gains | 143 | |
Gross Unrealized Losses | 284 | 1,261 |
Investment securities - available-for-sale (at fair value) | 42,346 | 37,752 |
Held-to-maturity amortized cost | 15,672 | 15,821 |
Held-to-maturity Gross Unrealized Gains | 429 | 75 |
Held-to-maturity gross unrealized losses | 68 | |
Investment securities - HTM | 16,101 | 15,828 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 34,010 | 36,669 |
Gross Unrealized Gains | 179 | |
Gross Unrealized Losses | 62 | 965 |
Investment securities - available-for-sale (at fair value) | 34,127 | 35,704 |
Held-to-maturity amortized cost | 3,577 | 3,761 |
Held-to-maturity Gross Unrealized Gains | 5 | |
Held-to-maturity gross unrealized losses | 156 | |
Investment securities - HTM | 3,582 | 3,605 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 14,379 | 20,083 |
Gross Unrealized Gains | 252 | 132 |
Gross Unrealized Losses | 333 | |
Investment securities - available-for-sale (at fair value) | 14,631 | 19,882 |
Held-to-maturity amortized cost | 14,840 | 11,920 |
Held-to-maturity Gross Unrealized Gains | 4,054 | 1,156 |
Held-to-maturity gross unrealized losses | 96 | |
Investment securities - HTM | 18,894 | 12,980 |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 18,387 | 18,358 |
Gross Unrealized Losses | 3,515 | 3,081 |
Investment securities - available-for-sale (at fair value) | 14,872 | 15,277 |
OTTI in AOCI | $ (2,341) | $ (1,966) |
Investments (Proceeds from Sale
Investments (Proceeds from Sales/Calls of Available for Sale Securities and Realized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments [Abstract] | ||||
Proceeds | $ 5,408 | $ 265 | $ 5,668 | $ 500 |
Realized gains | 73 | 145 | 73 | 145 |
Realized losses | $ 67 | $ 10 | $ 73 | $ 19 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses and Fair Values of Securities) (Details) $ in Thousands | Jun. 30, 2019USD ($)item | Dec. 31, 2018USD ($)item |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 5,848 | $ 9,529 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | $ 612 | $ 487 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, Number of Investments | item | 4 | 10 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 66,025 | $ 122,608 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 3,416 | $ 6,127 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 17 | 34 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 5,287 | $ 3,605 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | $ 16 | $ 51 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, Number of Investments | item | 2 | 2 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 19,088 | $ 54,908 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | $ 329 | $ 1,556 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 20 | 32 |
US government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 29,833 | $ 29,026 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 167 | $ 974 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 5 | 5 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | $ 5,287 | $ 3,605 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, unrealized loss | $ 16 | $ 51 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 months, Number of Investments | item | 2 | 2 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 19,088 | $ 41,448 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | $ 329 | $ 1,236 |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 20 | 29 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 18,918 | $ 37,752 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 284 | $ 1,261 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 5 | 8 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 7,656 | |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | $ 68 | |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 1 | |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 232 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | $ 1 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, Number of Investments | item | 1 | |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 8,250 | $ 35,472 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 62 | $ 964 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 2 | 8 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 3,605 | |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | $ 156 | |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 1 | |
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 | $ 3,310 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | $ 48 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, Number of Investments | item | 5 | |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 11,068 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 285 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 8 | |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | $ 2,199 | |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, unrealized loss | $ 96 | |
Held-to-maturity securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 1 | |
Collateralized debt obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $ 5,848 | $ 5,987 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, unrealized losses | $ 612 | $ 438 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, Number of Investments | item | 4 | 4 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 9,024 | $ 9,290 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, unrealized losses | $ 2,903 | $ 2,643 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, Number of Investments | item | 5 | 5 |
Investments (Non-Cash OTTI Cred
Investments (Non-Cash OTTI Credit Losses Recognized in Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments [Abstract] | ||||
Balance of credit-related OTTI, beginning | $ 2,597 | $ 2,903 | $ 2,646 | $ 2,958 |
Reduction for increases in cash flows expected to be collected | (50) | (152) | (99) | (207) |
Balance of credit-related OTTI, ending | $ 2,547 | $ 2,751 | $ 2,547 | $ 2,751 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Values Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Amortized Cost: Due in one year or less | $ 225 | |
Amortized Cost: Due after one year through five years | 16,763 | |
Amortized Cost: Due after five years through ten years | 17,968 | |
Amortized Cost: Due after ten years | 27,810 | |
Amortized Cost: Sub Total | 62,766 | |
Fair Value: Due in one year or less | 225 | |
Fair Value: Due after one year through five years | 16,718 | |
Fair Value: Due after five years through ten years | 17,876 | |
Fair Value: Due after ten years | 24,517 | |
Available For Sale Debt Maturities Fair Value Sub Total | 59,336 | |
Available-for-sale Securities, Amortized Cost Basis | 139,263 | $ 144,123 |
Available-for-sale Securities | 135,809 | 137,641 |
Amortized Cost: Due after one year through five years, Held to maturity | 16,090 | |
Amortized Cost: Due after ten years, Held to maturity | 14,840 | |
Amortized Cost: Total, Held to maturity | 30,930 | |
Fair Value: Due after one year through five years, Held to maturity | 16,714 | |
Fair Value: Due after ten years, Held to maturity | 18,894 | |
Fair Value: Total, Held to maturity | 35,608 | |
Held-to-maturity securities | 97,499 | 94,010 |
Held-to-maturity securities, fair value | 102,503 | 93,760 |
Residential mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities | 47,320 | 46,491 |
Held-to-maturity securities, fair value | 47,212 | 45,210 |
Commercial mortgage-backed agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 42,487 | 39,013 |
Available-for-sale Securities | 42,346 | 37,752 |
Held-to-maturity securities | 15,672 | 15,821 |
Held-to-maturity securities, fair value | 16,101 | 15,828 |
Collateralized mortgage obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 34,010 | 36,669 |
Available-for-sale Securities | 34,127 | 35,704 |
Held-to-maturity securities | 3,577 | 3,761 |
Held-to-maturity securities, fair value | $ 3,582 | $ 3,605 |
Loans and Related Allowance f_4
Loans and Related Allowance for Loan Losses (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)loancontract | Jun. 30, 2018USD ($)contract | Dec. 31, 2018USD ($)loan | |
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 | ||||
Nonaccrual loans | $ 13,118,000 | $ 13,118,000 | $ 4,922,000 | ||
Financing receivable, modifications, number of contracts | loan | 13 | 16 | |||
Financing receivable, modifications, recorded investment | 4,000,000 | $ 4,000,000 | $ 4,900,000 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Decrease in percentage of accruing loans past due 30 days or more | 0.46% | 1.09% | |||
Partial Charge Off [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Nonaccrual loans | $ 200,000 | $ 200,000 | $ 300,000 | ||
New TDR [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 0 | 0 | |
Foreclosure 1-4 Family Real Estate Properties [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Loans secured by real estate properties in process of foreclosure | $ 200,000 | $ 200,000 | 300,000 | ||
Pre Existing TDR [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing receivable, modifications, number of contracts | contract | 0 | 2 | 2 | 2 | |
Financing receivable, modifications, recorded investment | $ 0 | $ 0 | |||
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 | |||
Acquisition and Development (A&D) TDR [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Nonaccrual loans | 1,700,000 | 1,700,000 | |||
Increase in non-accrual status | 7,000,000 | ||||
Commercial real estate- non owner-occupied [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Nonaccrual loans | 133,000 | 133,000 | $ 173,000 | ||
Commercial and industrial [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Nonaccrual loans | $ 27,000 | $ 27,000 |
Loans and Related Allowance f_5
Loans and Related Allowance for Loan Losses (Primary Segments of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 17,743 | $ 10,575 |
Collectively evaluated for impairment | 985,873 | 997,139 |
Total Loans | 1,003,616 | 1,007,714 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 27 | 17 |
Collectively evaluated for impairment | 108,244 | 111,449 |
Total Loans | 108,271 | 111,466 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 5,778 | 5,239 |
Collectively evaluated for impairment | 294,054 | 301,682 |
Total Loans | 299,832 | 306,921 |
Acquisition and Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 8,144 | 693 |
Collectively evaluated for impairment | 110,582 | 117,667 |
Total Loans | 118,726 | 118,360 |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 3,787 | 4,616 |
Collectively evaluated for impairment | 438,482 | 432,291 |
Total Loans | 442,269 | 436,907 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 7 | 10 |
Collectively evaluated for impairment | 34,511 | 34,050 |
Total Loans | $ 34,518 | $ 34,060 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,003,616 | $ 1,007,714 |
Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 146,817 | 150,512 |
Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 153,015 | 156,409 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,301 | 16,003 |
Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 108,425 | 102,357 |
Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 108,271 | 111,466 |
Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 371,594 | 364,008 |
Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 70,675 | 72,899 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 34,518 | 34,060 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 968,661 | 976,864 |
Pass [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 137,348 | 145,260 |
Pass [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 145,127 | 149,076 |
Pass [Member] | Acquisition and development- 1-4 family residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,301 | 16,003 |
Pass [Member] | Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 100,490 | 94,428 |
Pass [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 104,496 | 107,174 |
Pass [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 367,344 | 359,305 |
Pass [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 69,142 | 71,666 |
Pass [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 34,413 | 33,952 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 9,323 | 15,884 |
Special Mention [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,457 | 2,904 |
Special Mention [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,721 | 1,752 |
Special Mention [Member] | Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,378 | |
Special Mention [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,703 | |
Special Mention [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 141 | 143 |
Special Mention [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4 | 4 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 25,632 | 14,966 |
Substandard [Member] | Commercial real estate- non owner-occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,012 | 2,348 |
Substandard [Member] | Commercial real estate- all other CRE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,167 | 5,581 |
Substandard [Member] | Acquisition and development- All other A&D [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,935 | 551 |
Substandard [Member] | Commercial and industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,775 | 589 |
Substandard [Member] | Residential mortgage- term [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,250 | 4,703 |
Substandard [Member] | Residential mortgage- home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,392 | 1,090 |
Substandard [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 101 | $ 104 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 985,908 | $ 991,811 |
Total Past Due and Still Accruing | 4,590 | 10,981 |
Non-Accrual | 13,118 | 4,922 |
Total Loans | 1,003,616 | 1,007,714 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 2,589 | 1,593 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable Recorded Investment Past Due | 1,684 | 8,958 |
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 | 317 | 430 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 146,684 | 150,339 |
Non-Accrual | 133 | 173 |
Total Loans | 146,817 | 150,512 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 147,818 | 153,977 |
Total Past Due and Still Accruing | 2,116 | 464 |
Non-Accrual | 3,081 | 1,968 |
Total Loans | 153,015 | 156,409 |
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 | 2,116 | 464 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 10,301 | 16,003 |
Total Loans | 10,301 | 16,003 |
Acquisition and development- All other A&D [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 100,702 | 94,540 |
Total Past Due and Still Accruing | 108 | 7,670 |
Non-Accrual | 7,615 | 147 |
Total Loans | 108,425 | 102,357 |
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 | 197 | |
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 | 74 | 7,411 |
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 | 34 | 62 |
Commercial and industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 108,158 | 111,436 |
Total Past Due and Still Accruing | 86 | 30 |
Non-Accrual | 27 | |
Total Loans | 108,271 | 111,466 |
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 | 29 | |
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 | 86 | 1 |
Residential mortgage- term [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 368,467 | 360,073 |
Total Past Due and Still Accruing | 1,799 | 2,024 |
Non-Accrual | 1,328 | 1,911 |
Total Loans | 371,594 | 364,008 |
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 | 138 | 302 |
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 | 1,464 | 1,359 |
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 | 197 | 363 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 69,403 | 71,611 |
Total Past Due and Still Accruing | 345 | 575 |
Non-Accrual | 927 | 713 |
Total Loans | 70,675 | 72,899 |
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 | 241 | 461 |
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 | 25 | 114 |
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 | 79 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 34,375 | 33,832 |
Total Past Due and Still Accruing | 136 | 218 |
Non-Accrual | 7 | 10 |
Total Loans | 34,518 | 34,060 |
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 | 94 | 140 |
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 | 35 | 73 |
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 | $ 7 | $ 5 |
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 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 1,804 | $ 144 | ||||
Collectively evaluated for impairment | 10,172 | 10,903 | ||||
Total allowance for loan losses | 11,976 | $ 11,548 | 11,047 | $ 9,769 | $ 10,470 | $ 9,972 |
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 11 | 13 | ||||
Collectively evaluated for impairment | 2,724 | 2,767 | ||||
Total allowance for loan losses | 2,735 | 2,775 | 2,780 | 3,303 | 3,976 | 3,699 |
Acquisition and Development [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 1,728 | 25 | ||||
Collectively evaluated for impairment | 1,566 | 1,696 | ||||
Total allowance for loan losses | 3,294 | 2,338 | 1,721 | 1,172 | 1,160 | 1,257 |
Commercial and industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 1,147 | 1,187 | ||||
Total allowance for loan losses | 1,147 | 1,125 | 1,187 | 786 | 860 | 869 |
Residential Mortgage [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 65 | 106 | ||||
Collectively evaluated for impairment | 3,916 | 4,438 | ||||
Total allowance for loan losses | 3,981 | 4,497 | 4,544 | 3,744 | 3,678 | 3,444 |
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 319 | 315 | ||||
Total allowance for loan losses | 319 | 313 | 315 | 264 | 296 | 203 |
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | $ 9,300 | $ 1,344 |
Impaired Loans with Specific Allowance: Related Allowance | 1,804 | 144 |
Impaired Loans with No Specific Allowance: Recorded Investment | 8,443 | 9,231 |
Total Impaired Loans: Recorded Investment | 17,743 | 10,575 |
Total Impaired Loans: Unpaid Principal Balance | 28,434 | 21,371 |
Commercial real estate- non owner-occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 119 | 121 |
Impaired Loans with Specific Allowance: Related Allowance | 11 | 13 |
Impaired Loans with No Specific Allowance: Recorded Investment | 133 | 173 |
Total Impaired Loans: Recorded Investment | 252 | 294 |
Total Impaired Loans: Unpaid Principal Balance | 8,445 | 8,488 |
Commercial real estate- all other CRE [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Specific Allowance: Recorded Investment | 5,526 | 4,945 |
Total Impaired Loans: Recorded Investment | 5,526 | 4,945 |
Total Impaired Loans: Unpaid Principal Balance | 5,526 | 4,945 |
Acquisition and development- 1-4 family residential construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Specific Allowance: Recorded Investment | 304 | 316 |
Total Impaired Loans: Recorded Investment | 304 | 316 |
Total Impaired Loans: Unpaid Principal Balance | 304 | 316 |
Acquisition and development- All other A&D [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 7,805 | 230 |
Impaired Loans with Specific Allowance: Related Allowance | 1,728 | 25 |
Impaired Loans with No Specific Allowance: Recorded Investment | 35 | 147 |
Total Impaired Loans: Recorded Investment | 7,840 | 377 |
Total Impaired Loans: Unpaid Principal Balance | 7,907 | 525 |
Commercial and industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Specific Allowance: Recorded Investment | 27 | 17 |
Total Impaired Loans: Recorded Investment | 27 | 17 |
Total Impaired Loans: Unpaid Principal Balance | 2,241 | 2,231 |
Residential mortgage- term [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 1,205 | 993 |
Impaired Loans with Specific Allowance: Related Allowance | 56 | 106 |
Impaired Loans with No Specific Allowance: Recorded Investment | 1,655 | 2,910 |
Total Impaired Loans: Recorded Investment | 2,860 | 3,903 |
Total Impaired Loans: Unpaid Principal Balance | 3,063 | 4,130 |
Residential mortgage- home equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance: Recorded Investment | 171 | |
Impaired Loans with Specific Allowance: Related Allowance | 9 | |
Impaired Loans with No Specific Allowance: Recorded Investment | 756 | 713 |
Total Impaired Loans: Recorded Investment | 927 | 713 |
Total Impaired Loans: Unpaid Principal Balance | 941 | 726 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Specific Allowance: Recorded Investment | 7 | 10 |
Total Impaired Loans: Recorded Investment | 7 | 10 |
Total Impaired Loans: Unpaid Principal Balance | $ 7 | $ 10 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | $ 11,548 | $ 10,470 | $ 11,047 | $ 9,972 |
Charge-offs | (147) | (1,099) | (256) | (1,412) |
Recoveries | 242 | 129 | 503 | 493 |
Provision for loan losses | 333 | 269 | 682 | 716 |
ALL Ending Balance | 11,976 | 9,769 | 11,976 | 9,769 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 2,775 | 3,976 | 2,780 | 3,699 |
Charge-offs | (889) | (889) | ||
Recoveries | 1 | 1 | 30 | 60 |
Provision for loan losses | (41) | 215 | (75) | 433 |
ALL Ending Balance | 2,735 | 3,303 | 2,735 | 3,303 |
Acquisition and Development [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 2,338 | 1,160 | 1,721 | 1,257 |
Charge-offs | (7) | (29) | (98) | |
Recoveries | 99 | 44 | 111 | 258 |
Provision for loan losses | 857 | (25) | 1,491 | (245) |
ALL Ending Balance | 3,294 | 1,172 | 3,294 | 1,172 |
Commercial and industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 1,125 | 860 | 1,187 | 869 |
Charge-offs | (5) | (10) | (5) | (10) |
Recoveries | 25 | 13 | 76 | 31 |
Provision for loan losses | 2 | (77) | (111) | (104) |
ALL Ending Balance | 1,147 | 786 | 1,147 | 786 |
Residential Mortgage [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 4,497 | 3,678 | 4,544 | 3,444 |
Charge-offs | (74) | (86) | (86) | (240) |
Recoveries | 87 | 27 | 195 | 65 |
Provision for loan losses | (529) | 125 | (672) | 475 |
ALL Ending Balance | 3,981 | 3,744 | 3,981 | 3,744 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 313 | 296 | 315 | 203 |
Charge-offs | (68) | (107) | (136) | (175) |
Recoveries | 30 | 44 | 91 | 79 |
Provision for loan losses | 44 | 31 | 49 | 157 |
ALL Ending Balance | 319 | 264 | 319 | 264 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
ALL Beginning Balance | 500 | 500 | 500 | 500 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | $ 17,053 | $ 12,294 | $ 14,892 | $ 12,539 |
Interest income recognized on an accrual basis | 73 | 97 | 150 | 196 |
Interest income recognized on a cash basis | 4 | 12 | 129 | |
Commercial real estate- non owner-occupied [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 258 | 1,258 | 270 | 813 |
Interest income recognized on an accrual basis | 3 | 3 | 6 | 7 |
Interest income recognized on a cash basis | 66 | |||
Commercial real estate- all other CRE [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 4,807 | 5,726 | 4,853 | 6,625 |
Interest income recognized on an accrual basis | 38 | 50 | 76 | 99 |
Interest income recognized on a cash basis | 56 | |||
Acquisition and development- 1-4 family residential construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 307 | 492 | 310 | 457 |
Interest income recognized on an accrual basis | 4 | 6 | 9 | 12 |
Acquisition and development- All other A&D [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 7,772 | 340 | 5,306 | 276 |
Interest income recognized on an accrual basis | 3 | 3 | 6 | 6 |
Commercial and industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 27 | 311 | 24 | 305 |
Interest income recognized on an accrual basis | 5 | 10 | ||
Residential mortgage- term [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 2,941 | 3,529 | 3,261 | 3,487 |
Interest income recognized on an accrual basis | 25 | 30 | 53 | 62 |
Interest income recognized on a cash basis | 2 | 10 | ||
Residential mortgage- home equity [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | 925 | 614 | 854 | 553 |
Interest income recognized on a cash basis | 2 | 2 | 7 | |
Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Investment | $ 16 | $ 24 | $ 14 | $ 23 |
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 | 6 Months Ended | |
Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Extended Maturity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 1 | |
Recorded Investment | $ | $ 179 | $ 179 | |
Extended Maturity [Member] | Commercial real estate- all other CRE [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 1 | |
Recorded Investment | $ | $ 179 | $ 179 | |
Modification Of Payment And Other Terms [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 2 | 1 |
Recorded Investment | $ | $ 126 | $ 470 | $ 126 |
Modification Of Payment And Other Terms [Member] | Commercial real estate- non owner-occupied [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 1 | |
Recorded Investment | $ | $ 126 | $ 126 | |
Modification Of Payment And Other Terms [Member] | Acquisition and development- All other A&D [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Recorded Investment | $ | $ 227 | ||
Modification Of Payment And Other Terms [Member] | Residential mortgage- term [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Recorded Investment | $ | $ 243 |
Other Real Estate Owned (Schedu
Other Real Estate Owned (Schedule of Real Estate Properties Comprising OREO) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total OREO | $ 5,531 | $ 6,598 |
Commercial Real Estate OREO [Member] | ||
Total OREO | 1,902 | 2,599 |
Acquisition and Development [Member] | ||
Total OREO | 2,598 | 3,218 |
Commercial and Industrial [Member] | ||
Total OREO | 24 | |
Residential Mortgage [Member] | ||
Total OREO | $ 1,031 | $ 757 |
Other Real Estate Owned (Other
Other Real Estate Owned (Other Real Estate, Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Real Estate Owned [Abstract] | ||||
Beginning Balance | $ 1,366 | $ 2,911 | $ 1,988 | $ 2,740 |
Fair value write-down | 711 | 183 | 828 | 478 |
Sales of OREO | (64) | (147) | (803) | (271) |
Ending Balance | $ 2,013 | $ 2,947 | $ 2,013 | $ 2,947 |
Other Real Estate Owned (Sche_2
Other Real Estate Owned (Schedule of Components of OREO) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Real Estate Owned [Abstract] | ||||
Gains on sales of other real estate owned | $ 19 | $ (163) | $ (11) | $ (183) |
Fair value write-down, net | 711 | 183 | 828 | 478 |
Expenses, net | 91 | 124 | 166 | 272 |
Rental and other income | (35) | (36) | (54) | (74) |
Total OREO expense, net | $ 786 | $ 108 | $ 929 | $ 493 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Amortized Cost | $ 139,263,000 | $ 139,263,000 | $ 144,123,000 | ||
Available-for-sale Securities | 135,809,000 | 135,809,000 | 137,641,000 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | $ 0 | |||
Gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets | 0 | $ 0 | 0 | 0 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | $ 0 | $ 0 | $ 0 | |
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 | 18,387,000 | $ 18,387,000 | 18,358,000 | ||
Available-for-sale Securities | $ 14,872,000 | $ 14,872,000 | $ 15,277,000 |
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | |||
Investment Securities - available for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Input, Unobservable Input Value, Description | Range of LIBOR+ 4.50% | |||
Investment Securities - available for sale [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $ 14,872 | $ 15,277 | ||
Fair Value Measurements, Significant Assumptions | Discount Rate | DiscountRate | ||
Valuation Technique | DiscountedCash Flow | DiscountedCash Flow | ||
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $ 7,234 | $ 1,316 | ||
Fair Value Measurements, Significant Assumptions | MarketabilityDiscount | MarketabilityDiscount | ||
Valuation Technique | Market ComparableProperties | Market ComparableProperties | ||
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure | $ 2,949 | $ 2,707 | ||
Fair Value Measurements, Significant Assumptions | MarketabilityDiscount | MarketabilityDiscount | ||
Valuation Technique | Market ComparableProperties | Market ComparableProperties | ||
Minimum [Member] | Investment Securities - available for sale [Member] | London Interbank Offered Rate (LIBOR) [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value input discount rate | 4.50% | 4.50% | ||
Minimum [Member] | Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments, Weighted Average | [1] | 10.00% | 10.00% | |
Minimum [Member] | Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments, Weighted Average | [1] | 10.00% | 10.00% | |
Maximum [Member] | Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments, Weighted Average | [1] | 15.00% | 15.00% | |
Maximum [Member] | Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments, Weighted Average | 15.00% | [1] | 15.00% | |
Weighted Average [Member] | Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments, Weighted Average | 12.80% | 12.80% | ||
Weighted Average [Member] | Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Inputs, Comparability Adjustments, Weighted Average | 12.40% | 13.50% | ||
[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 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 135,809 | $ 137,641 |
Financial Derivative | (1,043) | |
Impaired Financing Receivable, Recorded Investment | 17,743 | 10,575 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 7,234 | 1,316 |
Other Real Estate | 2,949 | 2,707 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | (1,043) | |
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 | 7,234 | 1,316 |
Other Real Estate | 2,949 | 2,707 |
US government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,833 | 29,026 |
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 | 29,833 | 29,026 |
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 | 29,833 | 29,026 |
Commercial mortgage-backed agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 42,346 | 37,752 |
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 | 42,346 | 37,752 |
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 | 42,346 | 37,752 |
Collateralized mortgage obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 34,127 | 35,704 |
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 | 34,127 | 35,704 |
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 | 34,127 | 35,704 |
Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 14,631 | 19,882 |
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 | 14,631 | 19,882 |
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 | 14,631 | 19,882 |
Collateralized debt obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 14,872 | 15,277 |
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 | 14,872 | 15,277 |
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 | 14,872 | 15,277 |
Financial Derivatives [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Derivative | (55) | (1,043) |
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 | $ (55) | $ (1,043) |
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] - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 15,152 | $ 15,977 | $ 15,277 | $ 14,920 |
Total gains (losses) realized/unrealized: Included in other comprehensive income | (280) | 170 | (405) | 1,227 |
Ending Balance | $ 14,872 | $ 16,147 | $ 14,872 | $ 16,147 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Fair Value by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | $ 38,584 | $ 22,187 |
Interest bearing deposits in banks | 405 | 1,354 |
Investment securities - AFS | 135,809 | 137,641 |
Investment securities - HTM | 102,503 | 93,760 |
Restricted bank stock | 4,415 | 5,394 |
Loans, net | 976,051 | 967,198 |
Financial derivatives | 1,043 | |
Accrued interest receivable | 4,083 | 4,175 |
Deposits - non-maturity | 861,832 | 815,858 |
Deposits - time deposits | 262,533 | 252,146 |
Financial derivatives | 55 | |
Short-term borrowed funds | 31,155 | 77,707 |
Long-term borrowed funds | 103,214 | 102,590 |
Accrued interest payable | 503 | 455 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 38,584 | 22,187 |
Interest bearing deposits in banks | 405 | 1,354 |
Investment securities - AFS | 135,809 | 137,641 |
Investment securities - HTM | 97,499 | 94,010 |
Restricted bank stock | 4,415 | 5,394 |
Loans, net | 991,640 | 996,667 |
Financial derivatives | 1,043 | |
Accrued interest receivable | 4,083 | 4,175 |
Deposits - non-maturity | 861,832 | 815,858 |
Deposits - time deposits | 261,249 | 251,669 |
Financial derivatives | 55 | |
Short-term borrowed funds | 31,155 | 77,707 |
Long-term borrowed funds | 100,929 | 100,929 |
Accrued interest payable | 503 | 455 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 38,584 | 22,187 |
Interest bearing deposits in banks | 405 | 1,354 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - AFS | 120,937 | 122,364 |
Investment securities - HTM | 83,609 | 80,780 |
Restricted bank stock | 4,415 | 5,394 |
Financial derivatives | 1,043 | |
Accrued interest receivable | 4,083 | 4,175 |
Deposits - non-maturity | 861,832 | 815,858 |
Deposits - time deposits | 262,533 | 252,146 |
Financial derivatives | 55 | |
Short-term borrowed funds | 31,155 | 77,707 |
Long-term borrowed funds | 103,214 | 102,590 |
Accrued interest payable | 503 | 455 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - AFS | 14,872 | 15,277 |
Investment securities - HTM | 18,894 | 12,980 |
Loans, net | $ 976,051 | $ 967,198 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Beginning balance | $ (24,403) | ||
Balance | $ 122,399 | 117,066 | $ 108,390 |
Ending balance | (20,000) | (24,403) | |
Balance | 126,155 | 122,399 | 117,066 |
Investment securities- with OTTI AFS [Member] | |||
Balance | (1,979) | (1,899) | (2,939) |
Other comprehensive income/(loss) before reclassifications | (157) | (44) | 1,194 |
Amounts reclassified from accumulated other comprehensive loss | (37) | (36) | (154) |
Balance | (2,173) | (1,979) | (1,899) |
Investment Securities -All Other AFS [Member] | |||
Balance | (2,696) | (3,601) | (2,979) |
Other comprehensive income/(loss) before reclassifications | 1,581 | 901 | (540) |
Amounts reclassified from accumulated other comprehensive loss | (4) | 4 | (82) |
Balance | (1,119) | (2,696) | (3,601) |
Investment Securities HTM [Member] | |||
Balance | (1,076) | (1,131) | (1,347) |
Amounts reclassified from accumulated other comprehensive loss | 63 | 55 | 216 |
Balance | (1,013) | (1,076) | (1,131) |
Cash Flow Hedge [Member] | |||
Balance | 458 | 773 | 582 |
Other comprehensive income/(loss) before reclassifications | (486) | (315) | 191 |
Balance | (28) | 458 | 773 |
Pension Plan [Member] | |||
Balance | (15,888) | (18,017) | (17,066) |
Other comprehensive income/(loss) before reclassifications | 511 | 1,933 | (1,833) |
Amounts reclassified from accumulated other comprehensive loss | 196 | 196 | 882 |
Balance | (15,181) | (15,888) | (18,017) |
SERP [Member] | |||
Balance | (507) | (528) | (844) |
Other comprehensive income/(loss) before reclassifications | 202 | ||
Amounts reclassified from accumulated other comprehensive loss | 21 | 21 | 114 |
Balance | (486) | (507) | (528) |
Accumulated Other Comprehensive Loss [Member] | |||
Balance | (21,688) | (24,403) | (24,593) |
Other comprehensive income/(loss) before reclassifications | 1,449 | 2,475 | (786) |
Amounts reclassified from accumulated other comprehensive loss | 239 | 240 | 976 |
Balance | $ (20,000) | $ (21,688) | $ (24,403) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Components of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | $ 1,577 | $ (230) | $ 2,482 | $ (1,308) |
Cash flow hedges: Unrealized holding gains, Before Tax | (666) | 148 | (1,098) | 755 |
Cash flow hedges: Unrealized holding gains, Tax Effect | 180 | (40) | 297 | (204) |
Cash flow hedges: Unrealized holding gains, Net of Tax | (486) | 108 | (801) | 551 |
Unrealized net actuarial loss, Net of Tax | 707 | (1,530) | 2,836 | (794) |
Other comprehensive income, Before tax amount | 2,316 | (876) | 6,041 | 248 |
Other comprehensive income, Tax (expense) benefit | (628) | 236 | (1,638) | (68) |
Other comprehensive income, Net | 1,688 | (640) | 4,403 | 180 |
Investment securities- with OTTI AFS [Member] | ||||
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Before tax amount | (216) | 1,493 | (276) | 2,432 |
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Tax effect | 59 | (404) | 75 | (658) |
Available for sale (AFS) securities with OTTI: Unrealized holding gains, Net of tax | (157) | 1,089 | (201) | 1,774 |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income, Before tax amount | 50 | 52 | 99 | 107 |
Available for sale (AFS) securities with OTTI: Less: accretable yield recognized in income, Tax effect | (13) | (14) | (26) | (29) |
Other than temporary impairment losses, investments, reclassification adjustment of noncredit portion included in net income, Available for sale securities, Net of tax | 37 | 38 | 73 | 78 |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Before tax amount | (266) | 1,296 | (375) | 2,180 |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Tax effect | 72 | (351) | 101 | (590) |
Available for sale (AFS) securities with OTTI: Net unrealized gains on investments with OTTI, Net of tax | (194) | 945 | (274) | 1,590 |
Securities: Less: gain (losses) recognized in income, Before tax | 145 | 145 | ||
Securities: Less: gain (losses) recognized in income, Tax effect | (39) | (39) | ||
Securities: gains (losses) recognized in income, Net of tax | 106 | 106 | ||
Investment Securities -All Other AFS [Member] | ||||
Securities: Unrealized holding losses, Before tax | 2,169 | (325) | 3,405 | (1,812) |
Securities: Unrealized holding losses, Tax effect | (588) | 88 | (923) | 490 |
Securities: Unrealized holding losses, Net of tax | 1,581 | (237) | 2,482 | (1,322) |
Securities: Less: gain (losses) recognized in income, Before tax | 6 | (10) | (19) | |
Securities: Less: gain (losses) recognized in income, Tax effect | (2) | 3 | 5 | |
Securities: gains (losses) recognized in income, Net of tax | 4 | (7) | (14) | |
Available for sale securities: Net unrealized losses on all other AFS securities, Before Tax | 2,163 | (315) | 3,405 | (1,793) |
Available for sale securities: Net unrealized losses on all other AFS securities, Tax effect | (586) | 85 | (923) | 485 |
Available for sale securities - all other: Net unrealized losses on all other AFS securities, Net of tax | 1,577 | (230) | 2,482 | (1,308) |
Investment Securities HTM [Member] | ||||
Securities: Less: gain (losses) recognized in income, Before tax | (86) | (52) | (161) | (114) |
Securities: Less: gain (losses) recognized in income, Tax effect | 23 | 14 | 43 | 31 |
Securities: gains (losses) recognized in income, Net of tax | (63) | (38) | (118) | (83) |
Held to maturity securities: Net unrealized losses on all HTM securities, Before tax | 86 | 52 | 161 | 114 |
Held to maturity securities: Net unrealized losses on all HTM securities, Tax | (23) | (14) | (43) | (31) |
Held to maturity securities: Net unrealized losses on all HTM securities, After tax | 63 | 38 | 118 | 83 |
Pension Plan [Member] | ||||
Unrealized net actuarial loss, Before Tax | 701 | (2,399) | 3,353 | (1,692) |
Unrealized net actuarial loss, Tax Effect | (190) | 648 | (909) | 457 |
Unrealized net actuarial loss, Net of Tax | 511 | (1,751) | 2,444 | (1,235) |
Net plan liability adjustment, Before Tax | 970 | (2,097) | 3,891 | (1,088) |
Net plan liability adjustment, Tax Effect | (263) | 567 | (1,055) | 294 |
Net plan liability adjustment, Net of Tax | 707 | (1,530) | 2,836 | (794) |
SERP [Member] | ||||
Net plan liability adjustment, Before Tax | 29 | 40 | 57 | 80 |
Net plan liability adjustment, Tax Effect | (8) | (11) | (15) | (22) |
Net plan liability adjustment, Net of Tax | 21 | 29 | 42 | 58 |
Amortization of unrecognized loss [Member] | Pension Plan [Member] | ||||
Less: amortization of unrecognized net gain (loss), Before Tax | (269) | (300) | (538) | (600) |
Less: amortization of unrecognized net gain (loss), Tax Effect | 73 | 81 | 146 | 162 |
Less: amortization of unrecognized net gain (loss), Net of Tax | (196) | (219) | (392) | (438) |
Amortization of unrecognized loss [Member] | SERP [Member] | ||||
Less: amortization of unrecognized net gain (loss), Before Tax | (29) | (40) | (58) | (81) |
Less: amortization of unrecognized net gain (loss), Tax Effect | 8 | 11 | 15 | 22 |
Less: amortization of unrecognized net gain (loss), Net of Tax | $ (21) | (29) | (43) | (59) |
Amortization of prior service costs [Member] | Pension Plan [Member] | ||||
Less: amortization of prior service costs, Before Tax | (2) | (4) | ||
Less: amortization of prior service costs, Tax Effect | 1 | |||
Less: amortization of prior service costs, Net of Tax | $ (2) | (3) | ||
Amortization of prior service costs [Member] | SERP [Member] | ||||
Less: amortization of prior service costs, Before Tax | 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 | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net gains/(losses) - other | $ 30 | $ 147 | $ 44 | $ 181 | ||
Tax (expense) benefit | (790) | (840) | (1,667) | (1,488) | ||
Net income | 2,602 | $ 3,151 | 3,016 | $ 2,506 | 5,753 | 5,522 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Gain on calls | 145 | 145 | ||||
Net income | (239) | (152) | (479) | (412) | ||
Investment securities- with OTTI AFS [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest income (expense) on investment securities: taxable | 50 | 52 | 99 | 107 | ||
Tax (expense) benefit | (13) | (53) | (26) | (68) | ||
Net income | 37 | 144 | 73 | 184 | ||
Investment Securities -All Other AFS [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net gains/(losses) - other | 6 | (10) | (19) | |||
Tax (expense) benefit | (2) | 3 | 5 | |||
Net income | 4 | (7) | (14) | |||
Investment Securities HTM [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest income (expense) on investment securities: taxable | (86) | (52) | (161) | (114) | ||
Tax (expense) benefit | 23 | 14 | 43 | 31 | ||
Net income | (63) | (38) | (118) | (83) | ||
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Tax (expense) benefit | 73 | 81 | 146 | 163 | ||
Net income | (196) | (221) | (392) | (441) | ||
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of unrecognized loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Salaries and employee benefits | (269) | (300) | (538) | (600) | ||
Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of prior service costs [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Salaries and employee benefits | (2) | (4) | ||||
SERP [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Tax (expense) benefit | 8 | 11 | 15 | 22 | ||
Net income | (21) | (30) | (42) | (58) | ||
SERP [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of unrecognized loss [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Salaries and employee benefits | $ (29) | $ (41) | (58) | (81) | ||
SERP [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of prior service costs [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Salaries and employee benefits | $ 1 | $ 1 |
Leases - (Narrative) (Details)
Leases - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Total operating lease expense | $ 100 | $ 200 |
Short-term lease expense | $ 13 | $ 37 |
Leases (Classification of ROU A
Leases (Classification of ROU Assets and Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use asset | $ 2,594 |
Operating lease liability | $ 3,177 |
Leases - (Weighted-Average Leas
Leases - (Weighted-Average Lease Term and Discount Rate for Operating Leases) (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term - Operating leases | 8 years 9 months 22 days |
Weighted-average discount rate - Operating leases | 5.09% |
Leases - (Future Minimum Paymen
Leases - (Future Minimum Payments for Operating Leases) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Future minimum payments | |
2019 (remainder of year) | $ 229 |
2020 | 467 |
2021 | 466 |
2022 | 459 |
2023 | 393 |
Thereafter | 1,983 |
Total future minimum lease payments | 3,997 |
Amount representing interest | (820) |
Present value of net future minimum lease payments | $ 3,177 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Borrowed Funds [Abstract] | |
Repurchase agreements secured by available for sale securities | $ 45 |
FHLB advances secured by loans receivable | $ 214 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Overnight borrowings, weighted average interest rate | 2.70% | |
Outstanding at end of period | $ 31,155 | $ 77,707 |
Short-term Correspondent Bank Advance | ||
Overnight borrowings | 40,000 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Outstanding at end of period | $ 31,155 | $ 37,707 |
Weighted average interest rate | 0.35% | 0.24% |
Maximum amount outstanding as of any month end | $ 40,579 | $ 55,648 |
Average amount outstanding | $ 37,218 | $ 44,045 |
Approximate weighted average rate during the period | 0.29% | 0.20% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discretionary contribution, percent of participant's base salary | 15.00% | ||||||
Vesting period of employer discretionary contribution | 2 years | ||||||
Defined benefit plan participation expense | $ 14,906 | $ 14,906 | $ 29,812 | $ 29,812 | |||
Four Employees [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Vesting period of employer discretionary contribution | 2 years | 2 years | 2 years | ||||
Employer discretionary contribution | $ 123,179 | $ 119,252 | $ 112,780 | ||||
Defined benefit plan participation expense | $ 18,788 | $ 37,576 | |||||
Pension [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Period of employment used to determine benefits | 5 years | ||||||
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 their (a) 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"). | ||||||
Employer discretionary contribution | $ 2,000,000 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 66 | $ 81 | $ 133 | $ 162 |
Interest cost | 437 | 396 | 874 | 793 |
Expected return on assets | (764) | (810) | (1,528) | (1,620) |
Amortization of net actuarial loss | 269 | 300 | 538 | 600 |
Amortization of prior service cost | 2 | 4 | ||
Net pension expense/(credit) included in employee benefits and other expense | $ 8 | $ (31) | $ 17 | $ (61) |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 23 | $ 28 | $ 47 | $ 56 |
Interest cost | 83 | 75 | 165 | 150 |
Amortization of recognized loss | 29 | 41 | 58 | 81 |
Amortization of prior service cost | (1) | (1) | ||
Net pension expense/(credit) included in employee benefits and other expense | $ 135 | $ 144 | $ 269 | $ 286 |
Equity Compensation Plan Info_2
Equity Compensation Plan Information (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Deferred compensation arrangement with individual, description | Stock-based awards were made to non-employee directors in May 2019 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 | 14,641 | ||||
Per share fair market value of issued fully vested common stock shares | $ 18.30 | $ 18.30 | |||
Shares issued to Director | 1,000 | ||||
Cash paid to Director | $ 10,000 | ||||
Stock compensation expense | $ 66,894 | $ 62,331 | $ 133,612 | $ 115,889 | |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Letters of Credit and Off Balance Sheet Liabilities [Abstract] | ||
Outstanding standby letters of credit | $ 8.6 | $ 3.4 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2016USD ($)contract | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Decrease in fair value of derivatives | $ 1,100,000 | ||
Deferred tax asset on gain on derivative | 298,000 | ||
Cash flow hedge ineffectiveness | 0 | ||
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap notional amount | $ 30,000,000 | ||
Number of interest rate swap contracts | contract | 4 | ||
Interest rate swap fair value | $ (55,000) | $ (1,000,000) | |
Swap Contract - 3-Year $5 million [Member] | |||
Derivative [Line Items] | |||
Interest rate swap notional amount | $ 5,000,000 | ||
Interest rate swap contracts term | 3 years | ||
Derivative, maturity date | Jun. 17, 2019 | ||
Swap Contract - 5-Year $5 million [Member] | |||
Derivative [Line Items] | |||
Interest rate swap notional amount | $ 5,000,000 | ||
Interest rate swap contracts term | 5 years | ||
Derivative, maturity date | Mar. 17, 2021 | ||
Swap Contract - 10-Year $15 million [Member] | |||
Derivative [Line Items] | |||
Interest rate swap notional amount | $ 15,000,000 | ||
Interest rate swap contracts term | 10 years | ||
Derivative, maturity date | Mar. 17, 2026 | ||
Swap Contract- 7 year $5 Million [Member] | |||
Derivative [Line Items] | |||
Interest rate swap notional amount | $ 5,000,000 | ||
Interest rate swap contracts term | 7 years | ||
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amount of gain or (loss) recognized in OCI on derivative (effective portion) | $ (666) | $ 148 | $ (1,098) | $ 755 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Amount of gain or (loss) recognized in OCI on derivative (effective portion) | $ 486 | $ 108 | $ 801 | $ 551 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Investment security collateral as a percentage of borrowing | 102.00% | |
Interest Rate Swap [Member] | ||
Gross Amounts of Recognized (Assets)/Liabilities | $ 55 | $ (1,043) |
Net Amounts of (Assets)/Liabilities Presented in the Statement of Condition | 55 | (1,043) |
Gross Amounts Not Offset in the Statement of Condition: Financial Instruments | (55) | 1,043 |
Net Amount | ||
Repurchase Agreements [Member] | ||
Gross Amounts of Recognized (Assets)/Liabilities | 31,155 | 37,707 |
Net Amounts of (Assets)/Liabilities Presented in the Statement of Condition | 31,155 | 37,707 |
Gross Amounts Not Offset in the Statement of Condition: Financial Instruments | (31,155) | (37,707) |
Net Amount |
Adoption of New Accounting St_2
Adoption of New Accounting Standards and Effects of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Operating lease right-of-use asset | $ 2,594 | |
Operating lease liability | $ 3,177 | |
ASU 2016-02 [Member] | ||
Operating lease right-of-use asset | $ 2,700 | |
Operating lease liability | $ 3,300 |