Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | First Bancorp, Inc /ME/ | ||
Entity Central Index Key | 765,207 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 272,996 | ||
Entity Common Stock, Shares Outstanding | 10,846,398 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 19,207 | $ 17,366 |
Interest-bearing deposits in other banks | 860 | 293 |
Securities available for sale | 300,172 | 300,416 |
Securities to be held to maturity (fair value of $259,655,000 at December 31, 2017, and $225,537,000 at December 31, 2016) | 256,567 | 226,828 |
Restricted equity securities, at cost | 10,358 | 11,930 |
Loans held for sale | 386 | 782 |
Loans | 1,164,139 | 1,071,526 |
Less allowance for loan losses | 10,729 | 10,138 |
Net loans | 1,153,410 | 1,061,388 |
Accrued interest receivable | 5,867 | 5,532 |
Premises and equipment, net | 22,502 | 22,202 |
Other real estate owned | 1,012 | 375 |
Goodwill | 29,805 | 29,805 |
Other assets | 42,784 | 35,958 |
Total assets | 1,842,930 | 1,712,875 |
Liabilities | ||
Demand deposits | 181,970 | 140,482 |
NOW deposits | 281,405 | 282,971 |
Money market deposits | 163,898 | 125,544 |
Savings deposits | 232,605 | 217,340 |
Certificates of deposit | 559,001 | 476,620 |
Total deposits | 1,418,879 | 1,242,957 |
Borrowed funds – short term | 113,638 | 158,774 |
Borrowed funds – long term | 115,120 | 120,127 |
Other liabilities | 13,972 | 18,496 |
Total liabilities | 1,661,609 | 1,540,354 |
Commitments and contingent liabilities | ||
Shareholders' equity | ||
Common stock, one cent par value per share | 108 | 108 |
Additional paid-in capital | 61,747 | 60,723 |
Retained earnings | 121,144 | 111,693 |
Accumulated other comprehensive income (loss) | ||
Net unrealized loss on securities available for sale | (2,901) | (935) |
Net unrealized loss on securities transferred from available for sale to held to maturity | (174) | (129) |
Net unrealized gain on cash flow hedging derivative instruments | 1,544 | 1,163 |
Net unrecognized loss on postretirement benefit costs | (147) | (102) |
Total shareholders' equity | 181,321 | 172,521 |
Total liabilities and shareholders' equity | $ 1,842,930 | $ 1,712,875 |
Common stock | ||
Number of shares authorized (in shares) | 18,000,000 | 18,000,000 |
Number of shares issued (in shares) | 10,829,918 | 10,793,946 |
Number of shares outstanding (in shares) | 10,829,918 | 10,793,946 |
Book value per common share (usd per share) | $ 16.74 | $ 15.98 |
Tangible book value per common share (usd per share) | $ 13.97 | $ 13.20 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Securities to be held to maturity, fair value | $ 259,655 | $ 225,537 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income | |||
Interest and fees on loans (includes tax-exempt income of $798,000 in 2017, $670,000 in 2016, and $578,000 in 2015) | $ 45,373 | $ 39,996 | $ 36,620 |
Interest on deposits with other banks | 52 | 22 | 19 |
Interest and dividends on investments (includes tax-exempt income of $6,501,000 in 2017, $5,168,000 in 2016, and $5,157,000 in 2015) | 15,407 | 13,741 | 14,171 |
Total interest and dividend income | 60,832 | 53,759 | 50,810 |
Interest expense | |||
Interest on deposits | 9,479 | 6,028 | 5,285 |
Interest on borrowed funds | 4,050 | 4,784 | 4,589 |
Total interest expense | 13,529 | 10,812 | 9,874 |
Net interest income | 47,303 | 42,947 | 40,936 |
Provision for loan losses | 2,000 | 1,600 | 1,550 |
Net interest income after provision for loan losses | 45,303 | 41,347 | 39,386 |
Non-interest income | |||
Fiduciary and investment management income | 2,680 | 2,411 | 2,258 |
Service charges on deposit accounts | 2,081 | 2,237 | 2,384 |
Net securities gains | 471 | 673 | 1,399 |
Mortgage origination and servicing income | 1,853 | 2,192 | 1,558 |
Other operating income | 5,463 | 4,986 | 4,631 |
Total non-interest income | 12,548 | 12,499 | 12,230 |
Non-interest expense | |||
Salaries and employee benefits | 16,601 | 15,215 | 15,080 |
Occupancy expense | 2,400 | 2,313 | 2,312 |
Furniture and equipment expense | 3,681 | 3,305 | 3,171 |
FDIC insurance premiums | 1,008 | 789 | 890 |
Amortization of identified intangibles | 43 | 43 | 58 |
Other operating expense | 7,918 | 7,718 | 8,385 |
Total non-interest expense | 31,651 | 29,383 | 29,896 |
Income before income taxes | 26,200 | 24,463 | 21,720 |
Applicable tax expense | 6,612 | 6,454 | 5,514 |
Net income | $ 19,588 | $ 18,009 | $ 16,206 |
Basic earnings per common share (in usd per share) | $ 1.82 | $ 1.68 | $ 1.52 |
Diluted earnings per common share (in usd per share) | $ 1.81 | $ 1.66 | $ 1.51 |
Other comprehensive income (loss), net of tax | |||
Net unrealized loss on securities available for sale | $ (1,452) | $ (2,058) | $ (1,399) |
Net unrealized loss on securities transferred from available for sale to held to maturity, net of amortization | (14) | (17) | (64) |
Net unrealized gain on cash flow hedging derivative instruments | 107 | 1,163 | 0 |
Net unrecognized gain (loss) on postretirement benefits | (19) | 54 | (31) |
Other comprehensive loss | (1,378) | (858) | (1,494) |
Comprehensive income | $ 18,210 | $ 17,151 | $ 14,712 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Interest and fees on loans (tax-exempt income) | $ 798 | $ 670 | $ 578 |
Interest and dividends on investments (tax-exempt income) | $ 6,501 | $ 5,168 | $ 5,157 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock and additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Warrants | WarrantsRetained earnings |
Balance at Dec. 31, 2014 | $ 161,554 | $ 59,389 | $ 99,816 | $ 2,349 | ||
Balance (in shares) at Dec. 31, 2014 | 10,724,359 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 16,206 | 16,206 | ||||
Net unrealized gain (loss) on securities available for sale, net of tax | (1,399) | (1,399) | ||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (64) | (64) | ||||
Unrecognized gain (loss) for post-retirement benefits, net of tax | (31) | (31) | ||||
Comprehensive income (loss) | 14,712 | 16,206 | (1,494) | |||
Cash dividends declared | (9,349) | (9,349) | ||||
Equity compensation expense | 296 | $ 296 | ||||
Payment for repurchase of common stock and warrants | (180) | $ (180) | ||||
Payment for repurchase of common stock (in shares) | (10,138) | |||||
Issuance of restricted stock (in shares) | 14,179 | |||||
Proceeds from sale of common stock | 465 | $ 465 | ||||
Proceeds from sale of common stock (in shares) | 25,455 | |||||
Balance at Dec. 31, 2015 | 167,498 | $ 59,970 | 106,673 | 855 | ||
Balance (in shares) at Dec. 31, 2015 | 10,753,855 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,503 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | 1,852 | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (11) | |||||
Balance at Mar. 31, 2016 | 171,544 | |||||
Balance at Dec. 31, 2015 | 167,498 | $ 59,970 | 106,673 | 855 | ||
Balance (in shares) at Dec. 31, 2015 | 10,753,855 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 18,009 | 18,009 | ||||
Net unrealized gain (loss) on securities available for sale, net of tax | (2,058) | (2,058) | ||||
Net unrealized gain on cash flow hedging derivate instruments, net of tax | 1,163 | 1,163 | ||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (17) | (17) | ||||
Unrecognized gain (loss) for post-retirement benefits, net of tax | 54 | 54 | ||||
Comprehensive income (loss) | 17,151 | 18,009 | (858) | |||
Cash dividends declared | (11,110) | (11,110) | ||||
Equity compensation expense | 298 | $ 298 | ||||
Payment for repurchase of common stock and warrants | (129) | (129) | $ (1,750) | $ (1,750) | ||
Payment for repurchase of common stock (in shares) | (7,156) | |||||
Tax benefit from vesting of restricted stock | 32 | $ 32 | ||||
Issuance of restricted stock (in shares) | 21,847 | |||||
Proceeds from sale of common stock | 531 | $ 531 | ||||
Proceeds from sale of common stock (in shares) | 25,400 | |||||
Balance at Dec. 31, 2016 | $ 172,521 | $ 60,831 | 111,693 | (3) | ||
Balance (in shares) at Dec. 31, 2016 | 10,793,946 | 10,793,946 | ||||
Balance at Mar. 31, 2016 | $ 171,544 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,624 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | 1,025 | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (10) | |||||
Balance at Jun. 30, 2016 | 174,788 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,562 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | (1,292) | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | 9 | |||||
Balance at Sep. 30, 2016 | 175,994 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,320 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | (3,643) | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (5) | |||||
Balance at Dec. 31, 2016 | $ 172,521 | $ 60,831 | 111,693 | (3) | ||
Balance (in shares) at Dec. 31, 2016 | 10,793,946 | 10,793,946 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 4,637 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | 1 | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (4) | |||||
Balance at Mar. 31, 2017 | 174,910 | |||||
Balance at Dec. 31, 2016 | $ 172,521 | $ 60,831 | 111,693 | (3) | ||
Balance (in shares) at Dec. 31, 2016 | 10,793,946 | 10,793,946 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 19,588 | 19,588 | ||||
Net unrealized gain (loss) on securities available for sale, net of tax | (1,452) | (1,452) | ||||
Net unrealized gain on cash flow hedging derivative instruments, net of tax | 107 | 107 | ||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (14) | (14) | ||||
Unrecognized gain (loss) for post-retirement benefits, net of tax | (19) | (19) | ||||
Comprehensive income (loss) | 18,210 | 19,588 | (1,378) | |||
Cash dividends declared | (10,280) | (10,280) | ||||
Equity compensation expense | 392 | $ 392 | ||||
Payment for repurchase of common stock and warrants | (154) | (154) | ||||
Payment for repurchase of common stock (in shares) | (5,562) | |||||
Reclassification adjustment for effect of enacted tax law changes | 297 | (297) | ||||
Issuance of restricted stock (in shares) | 18,850 | |||||
Proceeds from sale of common stock | 632 | $ 632 | ||||
Proceeds from sale of common stock (in shares) | 22,684 | |||||
Balance at Dec. 31, 2017 | $ 181,321 | $ 61,855 | 121,144 | (1,678) | ||
Balance (in shares) at Dec. 31, 2017 | 10,829,918 | 10,829,918 | ||||
Balance at Mar. 31, 2017 | $ 174,910 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,883 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | 349 | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (4) | |||||
Balance at Jun. 30, 2017 | 177,537 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 4,982 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | (240) | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (3) | |||||
Balance at Sep. 30, 2017 | 179,882 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,086 | |||||
Net unrealized gain (loss) on securities available for sale, net of tax | (1,562) | |||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (3) | |||||
Balance at Dec. 31, 2017 | $ 181,321 | $ 61,855 | $ 121,144 | $ (1,678) | ||
Balance (in shares) at Dec. 31, 2017 | 10,829,918 | 10,829,918 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per share (USD per share) | $ 0.95 | $ 1.03 | $ 0.87 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 19,588 | $ 18,009 | $ 16,206 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,864 | 1,745 | 1,720 |
Change in deferred taxes | 2,083 | (139) | 332 |
Provision for loan losses | 2,000 | 1,600 | 1,550 |
Loans originated for resale | (39,039) | (54,257) | (31,306) |
Proceeds from sales and transfers of loans | 40,172 | 55,035 | 31,671 |
Net gain on sales of loans | (737) | (1,211) | (714) |
Net gain on sale or call of securities | (471) | (673) | (1,399) |
Net amortization of investment premiums | 3,390 | 2,810 | 783 |
Net (gain) loss on sale of other real estate owned | (84) | (177) | 5 |
Provision for losses on other real estate owned | 17 | 132 | 311 |
Equity compensation expense | 392 | 298 | 296 |
Tax benefit from vesting of restricted stock | 0 | 32 | 0 |
Net increase in other assets and accrued interest | (4,742) | (2,460) | (455) |
Net increase (decrease) in other liabilities | (2,020) | 665 | 1,418 |
Net gain on disposal of premises and equipment | (108) | 0 | 0 |
Amortization of investments in limited partnerships | 178 | 194 | 266 |
Net acquisition amortization | 43 | 43 | 58 |
Net cash provided by operating activities | 22,526 | 21,646 | 20,742 |
Cash flows from investing activities | |||
(Increase) decrease in interest-bearing deposits in other banks | (567) | 3,720 | (454) |
Proceeds from sales of securities available for sale | 15,587 | 10,309 | 35,468 |
Proceeds from maturities, payments, calls of securities available for sale | 157,013 | 79,223 | 36,588 |
Proceeds from maturities, payments, calls of securities held to maturity | 14,770 | 88,899 | 45,688 |
Proceeds from sales of other real estate owned | 607 | 1,786 | 3,260 |
Purchases of securities available for sale | (177,706) | (172,343) | (111,616) |
Purchases of securities to be held to maturity | (44,334) | (75,573) | (9,644) |
Investment in bank-owned life insurance | 0 | 0 | (10,000) |
Purchase of Federal Home Loan Bank Stock | 0 | 0 | (345) |
Redemption of restricted equity securities | 1,572 | 2,327 | 0 |
Net increase in loans | (95,199) | (84,850) | (74,375) |
Capital expenditures | (2,529) | (2,131) | (927) |
Proceeds from sale of premises and equipment | 473 | 0 | 10 |
Net cash used in investing activities | (130,313) | (148,633) | (86,347) |
Cash flows from financing activities | |||
Net increase in demand, savings, and money market accounts | 88,372 | 94,130 | 94,889 |
Net increase (decrease) in certificates of deposit | 82,381 | 105,638 | (76,519) |
Advances on long-term borrowings | 50,000 | 35,000 | 55,000 |
Repayment on long-term borrowings | (70,000) | (30,000) | (40,000) |
Net increase (decrease) in short-term borrowings | (30,143) | (63,556) | 42,541 |
Payment to repurchase common stock | (154) | (129) | (180) |
Proceeds from sale of common stock | 632 | 531 | 465 |
Repurchase of warrants | 0 | (1,750) | 0 |
Dividends paid | (11,460) | (9,810) | (9,349) |
Net cash provided by financing activities | 109,628 | 130,054 | 66,847 |
Net increase in cash and cash equivalents | 1,841 | 3,067 | 1,242 |
Cash and cash equivalents at beginning of year | 17,366 | 14,299 | 13,057 |
Cash and cash equivalents at end of year | 19,207 | 17,366 | 14,299 |
Interest paid | 13,366 | 10,767 | 9,960 |
Income taxes paid | 5,730 | 6,367 | 4,235 |
Non-cash transactions: | |||
Net transfer from loans to other real estate owned | $ 1,177 | $ 584 | $ 1,323 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank. All intercompany accounts and transactions have been eliminated in consolidation. Subsequent Events Events occurring subsequent to December 31, 2017 , have been evaluated as to their potential impact to the financial statements. Use of Estimates in Preparation of Financial Statements In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, goodwill, the valuation of mortgage servicing rights, and other-than-temporary impairment of securities. Investment Securities Investment securities are classified as available for sale or held to maturity when purchased. There are no trading account securities. Securities available for sale consist primarily of debt securities which Management intends to hold for indefinite periods of time. They may be used as part of the Bank's funds management strategy, and may be sold in response to changes in interest rates or prepayment risk, changes in liquidity needs, or for other reasons. They are accounted for at fair value, with unrealized gains or losses adjusted through shareholders' equity, net of related income taxes. The cost basis is adjusted for the amortization of premiums and accretion of discounts, computed using the effective interest method over the securities' contractual lives. Securities to be held to maturity consist primarily of debt securities which Management has acquired solely for long-term investment purposes, rather than for purposes of trading or future sale. For securities to be held to maturity, Management has the intent and the Bank has the ability to hold such securities until their respective maturity dates. Such securities are carried at cost adjusted for the amortization of premiums and accretion of discounts, computed using the effective interest method over the securities' contractual lives. Investment securities transactions are accounted for on a settlement date basis; reported amounts would not be materially different from those accounted for on a trade date basis. Gains and losses on the sales of investment securities are determined using the amortized cost of the specifically identified security. For declines in the fair value of individual debt securities available for sale below their cost that are deemed to be other than temporary, where the Bank does not intend to sell the security and it is more likely than not that the Bank will not be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in the fair value of the debt security related to 1) credit loss is recognized in earnings and 2) other factors is recognized in other comprehensive income or loss. Credit loss is deemed to exist if the present value of expected future cash flows using the effective rate at acquisition is less than the amortized cost basis of the debt security. For individual debt securities where the Bank intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. Derivative Financial Instruments Designated as Hedges The Company recognizes all derivatives in the consolidated balance sheets at fair value. On the date the Bank enters into the derivative contract, the Company designates the derivative as a hedge of either a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or a held for trading instrument (“trading instrument”). The Bank formally documents relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting changes in cash flows or fair values of hedged items. Changes in fair value of a derivative that is effective and that qualifies as a cash flow hedge are recorded in other comprehensive income (loss) and are reclassified into earnings when the forecasted transaction or related cash flows affect earnings. Changes in fair value of a derivative that qualifies as a fair value hedge and the change in fair value of the hedged item are both recorded in earnings and offset each other when the transaction is effective. Those derivatives that are classified as trading instruments are recorded at fair value with changes in fair value recorded in earnings. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, that it is unlikely that the forecasted transaction will occur, or that the designation of the derivative as a hedging instrument is no longer appropriate. Loans Held for Sale Loans held for sale consist of residential real estate mortgage loans and are carried at the lower of aggregate cost or fair value, as determined by current investor yield requirements. Loans Loans are generally reported at their outstanding principal balances, adjusted for chargeoffs, the allowance for loan losses and any deferred fees or costs to originate loans. Loan commitments are recorded when funded. Loan Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the balance sheets with the related loan balances, and the amortization is included with the related interest income. Allowance for Loan Losses Loans considered to be uncollectible are charged against the allowance for loan losses. The allowance for loan losses is maintained at a level determined by Management to be appropriate to absorb probable losses. This allowance is increased by provisions charged to operating expenses and recoveries on loans previously charged off. Arriving at an appropriate level of allowance for loan losses necessarily involves a high degree of judgment. In determining the appropriate level of allowance for loan losses, Management takes into consideration several factors, including reviews of individual non-performing loans and performing loans listed on the watch report requiring periodic evaluation, loan portfolio size by category, recent loss experience, delinquency trends and current economic conditions. For all loan classes, loans over 30 days past due are considered delinquent. Impaired loans include restructured loans and loans placed on non-accrual status when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. Management takes into consideration impaired loans in addition to the above mentioned factors in determining the appropriate level of allowance for loan losses. Troubled Debt Restructured A troubled debt restructured ("TDR") constitutes a restructuring of debt if the Bank, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. To determine whether or not a loan should be classified as a TDR, Management evaluates a loan to first determine if the borrower demonstrates financial difficulty. Common indicators of this include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender. If the borrower is experiencing financial difficulty and concessions are granted, such as maturity date extension, interest rate adjustments to below market pricing, or a deferral of payments, the loan will generally be classified as a TDR. Accrual of Interest Income and Expense Interest on loans and investment securities is taken into income using methods which relate the income earned to the balances of loans and investment securities outstanding. Interest expense on liabilities is derived by applying applicable interest rates to principal amounts outstanding. For all classes of loans, recording of interest income on problem loans, which includes impaired loans, ceases when collectibility of principal and interest within a reasonable period of time becomes doubtful. Cash payments received on non-accrual loans, which includes impaired loans, are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected or when it otherwise becomes well secured and in the process of collection. Premises and Equipment Premises, furniture and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed by straight-line methods over the asset's estimated useful life. Other Real Estate Owned ("OREO") Real estate acquired by foreclosure or deed in lieu of foreclosure is transferred to OREO and recorded at fair value, less estimated costs to sell, based on appraised value at the date actually or constructively received. Loan losses arising from the acquisition of such property are charged against the allowance for loan losses. Subsequent provisions to reduce the carrying value of a property are recorded to the allowance for OREO losses and a charge to operations on a property specific basis. Goodwill and Identified Intangible Assets Intangible assets include the excess of the purchase price over the fair value of net assets acquired (goodwill) from the acquisition of FNB Bankshares in 2005 as well as the core deposit intangible related to the same acquisition. The core deposit intangible is amortized on a straight-line basis over ten years . There was no annual amortization expense for 2017 or 2016 as the expense is now fully amortized. For 2015 the annual amortization expense was $15,000 . Intangible assets also include the goodwill and core deposit intangible from the 2012 acquisition of a bank branch in Rockland, Maine and a bank building in Bangor, Maine. The core deposit intangible will be amortized on a straight-line basis over ten years . Annual amortization expense for each of 2017 , 2016 and 2015 was $43,000 , and the amortization expense for each year until fully amortized (presently expected to be 2022) will be $43,000 . The straight-line basis is used because the Company does not expect significant run off in the core deposits acquired. The Company annually evaluates goodwill, and periodically evaluates other intangible assets, for impairment. At December 31, 2017 , the Company determined goodwill and other intangible assets were not impaired. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, and for tax credits that are available to offset future taxable income. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the change is enacted. On December 22, 2017 the Tax Cuts and Jobs Act of 2017 ("TCJA") was enacted. One facet of TCJA reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of this legislation, the Company evaluated its deferred tax assets and deferred tax liabilities. The effect of the new corporate income tax rate reduced the value of our net tax deferred assets by $134,000 , and a charge to earnings was recorded for this amount in the fourth quarter of 2017. Loan Servicing Servicing rights are recognized when they are acquired through sale of loans. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. Post-Retirement Benefits The cost of providing post-retirement benefits is accrued during the active service period of the employee or director. Earnings Per Share Basic earnings per share data are based on the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to restricted stock granted and stock options and warrants outstanding, determined by the treasury stock method. Comprehensive Income (Loss) Comprehensive income (loss) includes net income and other comprehensive income (loss), which is comprised of the change in unrealized gains and losses on securities available for sale, net of tax, change in unrealized losses on securities transferred from available for sale to held to maturity, net of amortization, change in unrealized gain on cash flow hedging derivative instruments, net of tax, and unrecognized gains and losses related to post-retirement benefit costs, net of tax. Segments The First Bancorp, Inc., through the branches of its subsidiary, First National Bank, provides a broad range of financial services to individuals and companies in coastal Maine. These services include demand, time, and savings deposits; lending; ATM processing; and investment management and trust services. Operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all of the Company's banking operations are considered by Management to be aggregated in one reportable operating segment. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. At December 31, 2017 , the Company had a contractual clearing balance of $500,000 and a reserve balance requirement of $2,654,000 at the Federal Reserve Bank, which are satisfied by both cash on hand at branches and balances held at the Federal Reserve Bank of Boston. The Company maintains a portion of its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant risk with respect to these accounts. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following tables summarize the amortized cost and estimated fair value of investment securities at December 31, 2017 and 2016 : Amortized Unrealized Unrealized Fair Value As of December 31, 2017 Cost Gains Losses (Estimated) Securities available for sale Mortgage-backed securities $ 293,689,000 $ 722,000 $ (4,422,000 ) $ 289,989,000 State and political subdivisions 6,860,000 16,000 (107,000 ) 6,769,000 Other equity securities 3,296,000 121,000 (3,000 ) 3,414,000 $ 303,845,000 $ 859,000 $ (4,532,000 ) $ 300,172,000 Securities to be held to maturity U.S. Government-sponsored agencies $ 11,155,000 $ — $ (180,000 ) $ 10,975,000 Mortgage-backed securities 23,284,000 568,000 (128,000 ) 23,724,000 State and political subdivisions 217,828,000 3,931,000 (1,103,000 ) 220,656,000 Corporate securities 4,300,000 — — 4,300,000 $ 256,567,000 $ 4,499,000 $ (1,411,000 ) $ 259,655,000 Restricted equity securities Federal Home Loan Bank Stock $ 9,321,000 $ — $ — $ 9,321,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 10,358,000 $ — $ — $ 10,358,000 Amortized Unrealized Unrealized Fair Value As of December 31, 2016 Cost Gains Losses (Estimated) Securities available for sale Mortgage-backed securities $ 282,397,000 $ 1,334,000 $ (3,127,000 ) $ 280,604,000 State and political subdivisions 16,183,000 475,000 (176,000 ) 16,482,000 Other equity securities 3,274,000 63,000 (7,000 ) 3,330,000 $ 301,854,000 $ 1,872,000 $ (3,310,000 ) $ 300,416,000 Securities to be held to maturity U.S. Government-sponsored agencies $ 11,943,000 $ 35,000 $ (233,000 ) $ 11,745,000 Mortgage-backed securities 31,201,000 967,000 (147,000 ) 32,021,000 State and political subdivisions 179,384,000 1,971,000 (3,884,000 ) 177,471,000 Corporate securities 4,300,000 — — 4,300,000 $ 226,828,000 $ 2,973,000 $ (4,264,000 ) $ 225,537,000 Restricted equity securities Federal Home Loan Bank Stock $ 10,893,000 $ — $ — $ 10,893,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 11,930,000 $ — $ — $ 11,930,000 The following table summarizes the contractual maturities of investment securities at December 31, 2017 : Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 111,000 $ 112,000 $ 635,000 $ 637,000 Due in 1 to 5 years 841,000 842,000 18,059,000 18,164,000 Due in 5 to 10 years 29,003,000 29,177,000 37,182,000 37,719,000 Due after 10 years 270,594,000 266,627,000 200,691,000 203,135,000 Equity securities 3,296,000 3,414,000 — — $ 303,845,000 $ 300,172,000 $ 256,567,000 $ 259,655,000 The following table summarizes the contractual maturities of investment securities at December 31, 2016 : Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 253,000 $ 253,000 $ 906,000 $ 913,000 Due in 1 to 5 years 2,251,000 2,298,000 13,451,000 13,714,000 Due in 5 to 10 years 21,043,000 21,505,000 41,588,000 42,448,000 Due after 10 years 275,033,000 273,030,000 170,883,000 168,462,000 Equity securities 3,274,000 3,330,000 — — $ 301,854,000 $ 300,416,000 $ 226,828,000 $ 225,537,000 At December 31, 2017 , securities with a fair value of $231,516,000 were pledged to secure borrowings from the Federal Home Loan Bank of Boston, public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a fair value of $222,328,000 as of December 31, 2016 pledged for the same purposes. Gains and losses on the sale of securities available for sale are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received. The following table shows securities gains and losses for 2017 , 2016 and 2015 : 2017 2016 2015 Proceeds from sales of securities $ 15,587,000 $ 10,309,000 $ 35,468,000 Gross realized gains 471,000 673,000 1,399,000 Gross realized losses — — — Net gain $ 471,000 $ 673,000 $ 1,399,000 Related income taxes $ 165,000 $ 236,000 $ 490,000 Management reviews securities with unrealized losses for other than temporary impairment. As of December 31, 2017 , there were 241 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 157 had been temporarily impaired for 12 months or more. At the present time, there have been no material changes in the credit quality of these securities resulting in other than temporary impairment, and in Management's opinion, no additional write-down for other-than-temporary impairment is warranted. Information regarding securities temporarily impaired as of December 31, 2017 is summarized below: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2017 Value Losses Value Losses Value Losses U.S. Government-sponsored agencies $ 7,161,000 $ (94,000 ) $ 3,814,000 $ (86,000 ) $ 10,975,000 $ (180,000 ) Mortgage-backed securities 132,025,000 (1,857,000 ) 101,707,000 (2,693,000 ) 233,732,000 (4,550,000 ) State and political subdivisions 9,425,000 (149,000 ) 38,864,000 (1,061,000 ) 48,289,000 (1,210,000 ) Other equity securities — — 9,000 (3,000 ) 9,000 (3,000 ) $ 148,611,000 $ (2,100,000 ) $ 144,394,000 $ (3,843,000 ) $ 293,005,000 $ (5,943,000 ) As of December 31, 2016 , there were 299 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 15 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2016 is summarized below: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2016 Value Losses Value Losses Value Losses U.S. Government-sponsored agencies $ 6,642,000 $ (233,000 ) $ — $ — $ 6,642,000 $ (233,000 ) Mortgage-backed securities 197,528,000 (3,090,000 ) 2,905,000 (184,000 ) 200,433,000 (3,274,000 ) State and political subdivisions 72,348,000 (4,060,000 ) — — 72,348,000 (4,060,000 ) Other equity securities — — 128,000 (7,000 ) 128,000 (7,000 ) $ 276,518,000 $ (7,383,000 ) $ 3,033,000 $ (191,000 ) $ 279,551,000 $ (7,574,000 ) During the third quarter of 2014, the Company transferred securities with a total amortized cost of $89,780,000 and a corresponding fair value of $89,757,000 from available for sale to held to maturity. The net unrealized loss, net of taxes, on these securities at the date of the transfer was $15,000 . The net unrealized holding loss at the time of transfer continues to be reported in accumulated other comprehensive income (loss), net of tax and is amortized over the remaining lives of the securities as an adjustment of the yield. The amortization of the net unrealized loss reported in accumulated other comprehensive income (loss) will offset the effect on interest income of the discount for the transferred securities. The remaining unamortized balance of the net unrealized losses for the securities transferred from available for sale to held to maturity was $174,000 at December 31, 2017 . These securities were transferred as a part of the Company's overall investment and balance sheet strategies. The Bank is a member of the Federal Home Loan Bank ("FHLB") of Boston, a cooperatively owned wholesale bank for housing and finance in the six New England States. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. The Bank uses the FHLB for much of its wholesale funding needs. As of December 31, 2017 and 2016 , the Bank's investment in FHLB stock totaled $9,321,000 and $10,893,000 , respectively. FHLB stock is a restricted equity security and therefore is reported at cost, which equals par value. The Company periodically evaluates its investment in FHLB stock for impairment based on, among other factors, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through December 31, 2017 . The Bank will continue to monitor its investment in FHLB stock. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights At December 31, 2017 and 2016 , the Bank serviced loans for others totaling $260,258,000 and $250,083,000 , respectively. Net gains from the sale of loans totaled $737,000 in 2017 , $1,211,000 in 2016 , and $714,000 in 2015 . In 2017 , mortgage servicing rights of $567,000 were capitalized and amortization for the year totaled $362,000 . At December 31, 2017 , mortgage servicing rights had a fair value of $2,321,000 . In 2016 , mortgage servicing rights of $554,000 were capitalized and amortization for the year totaled $459,000 . At December 31, 2016 , mortgage servicing rights had a fair value of $1,696,000 . Financial Accounting Standards Board ("FASB") Accounting Standards Codification (the "Codification" or "ASC") Topic 860, "Transfers and Servicing", requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. Servicing assets and servicing liabilities are reported using the amortization method or the fair value measurement method. In evaluating the carrying values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. The model utilizes several assumptions, the most significant of which are loan prepayments, calculated using a three -month moving average of weekly prepayment data published by the Public Securities Association (PSA) and modeled against the serviced loan portfolio, and the discount rate to discount future cash flows. As of December 31, 2017 , the prepayment assumption using the PSA model was 167 , which translates into an anticipated annual prepayment rate of 10.00% . The discount rate is 9.50% . Other assumptions include delinquency rates, foreclosure rates, servicing cost inflation, and annual unit loan cost. All assumptions are adjusted periodically to reflect current circumstances. Amortization of mortgage servicing rights, as well as write-offs due to prepayments of the related mortgage loans, are recorded as a charge against mortgage servicing fee income. Mortgage servicing rights are included in other assets and detailed in the following table: As of December 31, 2017 2016 Mortgage servicing rights $ 5,428,000 $ 5,901,000 Accumulated amortization (4,160,000 ) (4,680,000 ) Impairment reserve — (108,000 ) $ 1,268,000 $ 1,113,000 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | Loans The following table shows the composition of the Company's loan portfolio as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Commercial Real estate $ 323,809,000 27.8 % $ 302,506,000 28.2 % Construction 38,056,000 3.3 % 25,406,000 2.4 % Other 181,528,000 15.6 % 150,769,000 14.1 % Municipal 33,391,000 2.9 % 27,056,000 2.5 % Residential Term 432,661,000 37.1 % 411,469,000 38.4 % Construction 17,868,000 1.5 % 18,303,000 1.7 % Home equity line of credit 111,302,000 9.6 % 110,907,000 10.4 % Consumer 25,524,000 2.2 % 25,110,000 2.3 % Total loans $ 1,164,139,000 100.0 % $ 1,071,526,000 100.0 % Loan balances include net deferred loan costs of $5,748,000 in 2017 and $4,921,000 in 2016 . Pursuant to collateral agreements, qualifying first mortgage loans, which were valued at $239,805,000 and $257,122,000 at December 31, 2017 and 2016 , respectively, were used to collateralize borrowings from the Federal Home Loan Bank of Boston. In addition, commercial, construction and home equity loans totaling $290,247,000 at December 31, 2017 and $261,463,000 at December 31, 2016 , were used to collateralize a standby line of credit at the Federal Reserve Bank of Boston that is currently unused. At December 31, 2017 and 2016 , non-accrual loans were $14,736,000 and $7,774,000 , respectively. For the years ended December 31, 2017 , 2016 and 2015 , interest income which would have been recognized on these loans, if interest had been accrued, was $496,000 , $288,000 , and $369,000 , respectively. Loans more than 90 days past due accruing interest totaled $445,000 at December 31, 2017 and $777,000 at December 31, 2016 . The Company continues to accrue interest on these loans because it believes collection of principal and interest is reasonably assured. Loans to directors, officers and employees totaled $34,715,000 at December 31, 2017 and $34,889,000 at December 31, 2016 . A summary of loans to directors and executive officers is as follows: For the years ended December 31, 2017 2016 Balance at beginning of year $ 23,293,000 $ 20,401,000 New loans 867,000 6,278,000 Repayments (1,863,000 ) (3,386,000 ) Balance at end of year $ 22,297,000 $ 23,293,000 Information on the past-due status of loans as of December 31, 2017 , is presented in the following table: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due All Past Due Current Total 90+ Days & Accruing Commercial Real estate $ 574,000 $ 80,000 $ 220,000 $ 874,000 $ 322,935,000 $ 323,809,000 $ — Construction — — — — 38,056,000 38,056,000 — Other 542,000 6,663,000 574,000 7,779,000 173,749,000 181,528,000 — Municipal — — — — 33,391,000 33,391,000 — Residential Term 1,031,000 4,372,000 2,256,000 7,659,000 425,002,000 432,661,000 436,000 Construction 101,000 370,000 — 471,000 17,397,000 17,868,000 — Home equity line of credit 537,000 445,000 725,000 1,707,000 109,595,000 111,302,000 — Consumer 159,000 18,000 9,000 186,000 25,338,000 25,524,000 9,000 Total $ 2,944,000 $ 11,948,000 $ 3,784,000 $ 18,676,000 $ 1,145,463,000 $ 1,164,139,000 $ 445,000 Information on the past-due status of loans as of December 31, 2016 , is presented in the following table: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due All Past Due Current Total 90+ Days & Accruing Commercial Real estate $ 1,039,000 $ 22,000 $ 2,415,000 $ 3,476,000 $ 299,030,000 $ 302,506,000 $ 753,000 Construction — — — — 25,406,000 25,406,000 — Other 202,000 33,000 796,000 1,031,000 149,738,000 150,769,000 20,000 Municipal — — — — 27,056,000 27,056,000 — Residential Term 631,000 3,970,000 1,802,000 6,403,000 405,066,000 411,469,000 — Construction — — — — 18,303,000 18,303,000 — Home equity line of credit 704,000 157,000 703,000 1,564,000 109,343,000 110,907,000 — Consumer 135,000 45,000 4,000 184,000 24,926,000 25,110,000 4,000 Total $ 2,711,000 $ 4,227,000 $ 5,720,000 $ 12,658,000 $ 1,058,868,000 $ 1,071,526,000 $ 777,000 For all classes, loans are placed on non-accrual status when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when principal and interest is 90 days or more past due unless the loan is both well secured and in the process of collection (in which case the loan may continue to accrue interest in spite of its past due status). A loan is "well secured" if it is secured (1) by collateral in the form of liens on or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full, or (2) by the guarantee of a financially responsible party. A loan is "in the process of collection" if collection of the loan is proceeding in due course either (1) through legal action, including judgment enforcement procedures, or, (2) in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status in the near future. Information on nonaccrual loans as of December 31, 2017 and 2016 is presented in the following table: As of December 31, 2017 2016 Commercial Real estate $ 752,000 $ 1,907,000 Construction — — Other 9,357,000 964,000 Municipal — — Residential Term 3,778,000 4,060,000 Construction — — Home equity line of credit 833,000 843,000 Consumer 16,000 — Total $ 14,736,000 $ 7,774,000 Information regarding impaired loans is as follows: For the years ended December 31, 2017 2016 2015 Average investment in impaired loans $ 29,108,000 $ 28,217,000 $ 32,698,000 Interest income recognized on impaired loans, all on cash basis 784,000 1,104,000 1,220,000 As of December 31, 2017 2016 Balance of impaired loans $ 31,392,000 $ 27,583,000 Less portion for which no allowance for loan losses is allocated (18,023,000 ) (19,716,000 ) Portion of impaired loan balance for which an allowance for loan losses is allocated $ 13,369,000 $ 7,867,000 Portion of allowance for loan losses allocated to the impaired loan balance $ 1,812,000 $ 974,000 Impaired loans include restructured loans and loans placed on non-accrual. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. If the measure of an impaired loan is lower than the recorded investment in the loan and estimated selling costs, a specific reserve is established for the difference, or, in certain situations, if the measure of an impaired loan is lower than the recorded investment in the loan and estimated selling costs, the difference is written off. A breakdown of impaired loans by category as of December 31, 2017 , is presented in the following table: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Recognized Interest Income With No Related Allowance Commercial Real estate $ 3,791,000 $ 3,996,000 $ — $ 5,124,000 $ 164,000 Construction 741,000 741,000 — 62,000 38,000 Other 2,591,000 2,671,000 — 1,908,000 36,000 Municipal — — — — — Residential Term 9,769,000 10,909,000 — 10,770,000 297,000 Construction — — — — — Home equity line of credit 1,115,000 1,429,000 — 1,351,000 18,000 Consumer 16,000 29,000 — 12,000 — $ 18,023,000 $ 19,775,000 $ — $ 19,227,000 $ 553,000 With an Allowance Recorded Commercial Real estate $ 3,999,000 $ 4,116,000 $ 224,000 $ 4,460,000 $ 152,000 Construction — — — 699,000 — Other 7,327,000 7,371,000 1,309,000 2,584,000 — Municipal — — — — — Residential Term 1,979,000 2,144,000 255,000 2,106,000 79,000 Construction — — — — — Home equity line of credit 64,000 67,000 24,000 32,000 — Consumer — — — — — $ 13,369,000 $ 13,698,000 $ 1,812,000 $ 9,881,000 $ 231,000 Total Commercial Real estate $ 7,790,000 $ 8,112,000 $ 224,000 $ 9,584,000 $ 316,000 Construction 741,000 741,000 — 761,000 38,000 Other 9,918,000 10,042,000 1,309,000 4,492,000 36,000 Municipal — — — — — Residential Term 11,748,000 13,053,000 255,000 12,876,000 376,000 Construction — — — — — Home equity line of credit 1,179,000 1,496,000 24,000 1,383,000 18,000 Consumer 16,000 29,000 — 12,000 — $ 31,392,000 $ 33,473,000 $ 1,812,000 $ 29,108,000 $ 784,000 Substantially all interest income recognized on impaired loans for all classes of financing receivables was recognized on a cash basis as received. A breakdown of impaired loans by category as of December 31, 2016 , is presented in the following table: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Recognized Interest Income With No Related Allowance Commercial Real estate $ 5,201,000 $ 5,614,000 $ — $ 6,252,000 $ 220,000 Construction — — — 32,000 — Other 1,671,000 1,852,000 — 1,074,000 86,000 Municipal — — — — — Residential Term 11,483,000 12,654,000 — 11,025,000 442,000 Construction — — — — — Home equity line of credit 1,361,000 1,733,000 — 1,213,000 33,000 Consumer — — — 9,000 — $ 19,716,000 $ 21,853,000 $ — $ 19,605,000 $ 781,000 With an Allowance Recorded Commercial Real estate $ 4,820,000 $ 4,925,000 $ 505,000 $ 4,153,000 $ 186,000 Construction 763,000 763,000 100,000 816,000 36,000 Other 72,000 72,000 39,000 317,000 — Municipal — — — — — Residential Term 2,186,000 2,328,000 304,000 3,209,000 101,000 Construction — — — — — Home equity line of credit 26,000 28,000 26,000 69,000 — Consumer — — — 48,000 — $ 7,867,000 $ 8,116,000 $ 974,000 $ 8,612,000 $ 323,000 Total Commercial Real estate $ 10,021,000 $ 10,539,000 $ 505,000 $ 10,405,000 $ 406,000 Construction 763,000 763,000 100,000 848,000 36,000 Other 1,743,000 1,924,000 39,000 1,391,000 86,000 Municipal — — — — — Residential Term 13,669,000 14,982,000 304,000 14,234,000 543,000 Construction — — — — — Home equity line of credit 1,387,000 1,761,000 26,000 1,282,000 33,000 Consumer — — — 57,000 — $ 27,583,000 $ 29,969,000 $ 974,000 $ 28,217,000 $ 1,104,000 A breakdown of impaired loans by category as of December 31, 2015 , is presented in the following table: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Recognized Interest Income With No Related Allowance Commercial Real estate $ 7,173,000 $ 7,496,000 $ — $ 8,990,000 $ 301,000 Construction 30,000 30,000 — 3,000 1,000 Other 1,163,000 1,210,000 — 1,893,000 76,000 Municipal — — — — — Residential Term 11,122,000 12,157,000 — 10,480,000 415,000 Construction — — — — — Home equity line of credit 1,401,000 2,054,000 — 1,400,000 43,000 Consumer — — — 42,000 3,000 $ 20,889,000 $ 22,947,000 $ — $ 22,808,000 $ 839,000 With an Allowance Recorded Commercial Real estate $ 3,544,000 $ 3,627,000 $ 89,000 $ 3,066,000 $ 149,000 Construction 996,000 996,000 302,000 1,153,000 44,000 Other 71,000 77,000 8,000 256,000 5,000 Municipal — — — — — Residential Term 3,966,000 4,193,000 326,000 5,228,000 180,000 Construction — — — — — Home equity line of credit 65,000 66,000 29,000 187,000 3,000 Consumer — — — — — $ 8,642,000 $ 8,959,000 $ 754,000 $ 9,890,000 $ 381,000 Total Commercial Real estate $ 10,717,000 $ 11,123,000 $ 89,000 $ 12,056,000 $ 450,000 Construction 1,026,000 1,026,000 302,000 1,156,000 45,000 Other 1,234,000 1,287,000 8,000 2,149,000 81,000 Municipal — — — — — Residential Term 15,088,000 16,350,000 326,000 15,708,000 595,000 Construction — — — — — Home equity line of credit 1,466,000 2,120,000 29,000 1,587,000 46,000 Consumer — — — 42,000 3,000 $ 29,531,000 $ 31,906,000 $ 754,000 $ 32,698,000 $ 1,220,000 Troubled Debt Restructured A TDR constitutes a restructuring of debt if the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. To determine whether or not a loan should be classified as a TDR, Management evaluates a loan based upon the following criteria: • The borrower demonstrates financial difficulty; common indicators include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender, and • The Company has granted a concession; common concession types include maturity date extension, interest rate adjustments to below market pricing, and deferment of payments. As of December 31, 2017 , the Company had 62 loans with a value of $17,801,000 that have been classified as TDRs. This compares to 71 loans with a value of $21,526,000 classified as TDRs as of December 31, 2016 . The impairment carried as a specific reserve in the allowance for loan losses is calculated by present valuing the cashflow modification on the loan, or, for collateral-dependent loans, using the fair value of the collateral less costs to sell. The following table shows TDRs by class and the specific reserve as of December 31, 2017 : Number of Loans Balance Specific Reserves Commercial Real estate 8 $ 7,038,000 $ 90,000 Construction 1 741,000 — Other 4 561,000 — Municipal — — — Residential Term 46 8,948,000 233,000 Construction — — — Home equity line of credit 3 513,000 — Consumer — — — 62 $ 17,801,000 $ 323,000 The following table shows TDRs by class and the specific reserve as of December 31, 2016 : Number of Loans Balance Specific Reserves Commercial Real estate 10 $ 8,937,000 $ 375,000 Construction 1 763,000 100,000 Other 5 779,000 — Municipal — — — Residential Term 52 10,503,000 261,000 Construction — — — Home equity line of credit 3 544,000 — Consumer — — — 71 $ 21,526,000 $ 736,000 As of December 31, 2017 , 12 of the loans classified as TDRs with a total balance of $1,407,000 were more than 30 days past due. None of these loans had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2017 : Number of Loans Balance Specific Reserves Commercial Real estate — $ — $ — Construction — — — Other — — — Municipal — — — Residential Term 11 1,240,000 44,000 Construction — — — Home equity line of credit 1 167,000 — Consumer — — — 12 $ 1,407,000 $ 44,000 As of December 31, 2016 , 12 of the loans classified as TDRs with a total balance of $2,303,000 were more than 30 days past due. None of these loans had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2016 : Number of Loans Balance Specific Reserves Commercial Real estate 1 $ 822,000 $ 264,000 Construction — — — Other — — — Municipal — — — Residential Term 10 1,314,000 26,000 Construction — — — Home equity line of credit 1 167,000 — Consumer — — — 12 $ 2,303,000 $ 290,000 For the years ended December 31, 2017 and 2016 , no loans were placed on TDR status. As of December 31, 2017 , Management is aware of four loans classified as TDRs that are involved in bankruptcy with an outstanding balance of $688,000 . As of December 31, 2017 , there were nine loans with an outstanding balance of $1,145,000 that were classified as TDRs and were on non-accrual status, three of which, with an outstanding balance of $458,000 , were in the process of foreclosure. Residential Mortgage Loans in Process of Foreclosure As of December 31, 2017 , there were 12 mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $1,777,000 ; this compares to 15 mortgage loans collateralized by residential real estate in the process of foreclosure with a total balance of $2,058,000 as of December 31, 2016 . |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The Company provides for loan losses through the establishment of an allowance for loan losses which represents an estimated reserve for existing losses in the loan portfolio. A systematic methodology is used for determining the allowance that includes a quarterly review process, risk rating changes, and adjustments to the allowance. The loan portfolio is classified in eight classes and credit risk is evaluated separately in each class. The loan portfolio is classified in eight classes and credit risk is evaluated separately in each class. Major risk characteristics relevant to each portfolio segment are as follows: Commercial Real Estate - Commercial real estate loans are impacted by factors such as competitive market forces, vacancy rates, cap rates, net operating incomes, lease renewals and overall economic demand. In addition, loans in the recreational and tourism sector can be affected by weather conditions, such as unseasonably low winter snowfalls. Commercial real estate lending also carries a higher degree of environmental risk than other real estate lending. Commercial Construction - Commercial construction loans are impacted by factors similar to those for commercial real estate loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget. Commercial Other - A weakened economy, soft consumer spending, and the rising cost of labor or raw materials are examples of issues that can impact the credit quality in this segment. Municipal Loans - The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment. Residential Real Estate Term - The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment. Residential Real Estate Construction - The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment. Residential construction loans are impacted by factors similar to those for residential real estate term loans in addition to risks related to contractor financial capacity and ability to complete a project within acceptable time frames and within budget. Home Equity Line of Credit - The overall health of the economy, including unemployment rates and housing prices, has an impact on the credit quality of this segment. Consumer - The overall health of the economy, including unemployment rates, has an impact on the credit quality of this segment. The appropriate level of the allowance is evaluated continually based on a review of significant loans, with a particular emphasis on nonaccruing, past due, and other loans that may require special attention. Other factors include general conditions in local and national economies; loan portfolio composition and asset quality indicators; and internal factors such as changes in underwriting policies, credit administration practices, experience, ability and depth of lending management, among others. The allowance consists of four elements: (1) specific reserves for loans evaluated individually for impairment; (2) general reserves for each portfolio segment based on historical loan loss experience, (3) qualitative reserves judgmentally adjusted for local and national economic conditions, concentrations, portfolio composition, volume and severity of delinquencies and nonaccrual loans, trends of criticized and classified loans, changes in credit policies and underwriting standards, credit administration practices, and other factors as applicable for each portfolio segment; and (4) unallocated reserves. All outstanding loans are considered in evaluating the appropriateness of the allowance. The following table summarizes the composition of the allowance for loan losses, by class of financing receivable and allowance, as of December 31, 2017 and 2016 : As of December 31, 2017 2016 Allowance for Loans Evaluated Individually for Impairment Commercial Real estate $ 224,000 $ 505,000 Construction — 100,000 Other 1,309,000 39,000 Municipal — — Residential Term 255,000 304,000 Construction — — Home equity line of credit 24,000 26,000 Consumer — — Total $ 1,812,000 $ 974,000 Allowance for Loans Evaluated Collectively for Impairment Commercial Real estate $ 3,648,000 $ 3,483,000 Construction 434,000 296,000 Other 2,049,000 1,741,000 Municipal 20,000 18,000 Residential Term 875,000 984,000 Construction 36,000 44,000 Home equity line of credit 668,000 781,000 Consumer 545,000 559,000 Unallocated 642,000 1,258,000 Total $ 8,917,000 $ 9,164,000 Total Allowance for Loan Losses Commercial Real estate $ 3,872,000 $ 3,988,000 Construction 434,000 396,000 Other 3,358,000 1,780,000 Municipal 20,000 18,000 Residential Term 1,130,000 1,288,000 Construction 36,000 44,000 Home equity line of credit 692,000 807,000 Consumer 545,000 559,000 Unallocated 642,000 1,258,000 Total $ 10,729,000 $ 10,138,000 The allowance consists of four elements: (1) specific reserves for loans evaluated individually for impairment; (2) general reserves for each portfolio segment based on historical loan loss experience; (3) qualitative reserves judgmentally adjusted for local and national economic conditions, concentrations, portfolio composition, volume and severity of delinquencies and nonaccrual loans, trends of criticized and classified loans, changes in credit policies, and underwriting standards, credit administration practices, and other factors as applicable for each portfolio segment; and (4) unallocated reserves. All outstanding loans are considered in evaluating the appropriateness of the allowance. A breakdown of the allowance for loan losses as of December 31, 2017 and 2016 , by class of financing receivable and allowance element, is presented in the following tables: As of December 31, 2017 Specific Reserves on Loans Evaluated Individually for Impairment General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Unallocated Reserves Total Reserves Commercial Real estate $ 224,000 $ 1,285,000 $ 2,363,000 $ — $ 3,872,000 Construction — 153,000 281,000 — 434,000 Other 1,309,000 723,000 1,326,000 — 3,358,000 Municipal — — 20,000 — 20,000 Residential Term 255,000 311,000 564,000 — 1,130,000 Construction — 13,000 23,000 — 36,000 Home equity line of credit 24,000 297,000 371,000 — 692,000 Consumer — 251,000 294,000 — 545,000 Unallocated — — — 642,000 642,000 $ 1,812,000 $ 3,033,000 $ 5,242,000 $ 642,000 $ 10,729,000 As of December 31, 2016 Specific Reserves on Loans Evaluated Individually for Impairment General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Unallocated Reserves Total Reserves Commercial Real estate $ 505,000 $ 1,471,000 $ 2,012,000 $ — $ 3,988,000 Construction 100,000 125,000 171,000 — 396,000 Other 39,000 735,000 1,006,000 — 1,780,000 Municipal — — 18,000 — 18,000 Residential Term 304,000 563,000 421,000 — 1,288,000 Construction — 25,000 19,000 — 44,000 Home equity line of credit 26,000 444,000 337,000 — 807,000 Consumer — 328,000 231,000 — 559,000 Unallocated — — — 1,258,000 1,258,000 $ 974,000 $ 3,691,000 $ 4,215,000 $ 1,258,000 $ 10,138,000 Qualitative adjustment factors are taken into consideration when determining reserve estimates. These adjustment factors are based upon our evaluation of various current conditions, including those listed below. • General economic conditions. • Credit quality trends with emphasis on loan delinquencies, nonaccrual levels and classified loans. • Recent loss experience in particular segments of the portfolio. • Loan volumes and concentrations, including changes in mix. • Other factors, including changes in quality of the loan origination; loan policy changes; changes in credit risk management processes; Bank regulatory and external loan review examination results. The qualitative portion of the allowance for loan losses was 0.45% of related loans as of December 31, 2017 , compared to 0.39% of related loans as of December 31, 2016 . The qualitative portion increased $1,027,000 between December 31, 2016 and December 31, 2017 due to loan growth, slippage in certain economic factors, and an increase in nonaccrual loans. The unallocated component totaled $642,000 at December 31, 2017 , or 6.0% of the total reserve. This compares to $1,258,000 or 12.4% as of December 31, 2016 . The change results from reduced imprecision owing to additional information related to certain loan relationships having been obtained and analyzed. The allowance for loan losses as a percent of total loans stood at 0.92% as of December 31, 2017 , compared to 0.95% of total loans as of December 31, 2016 . Commercial loans are comprised of three major classes; commercial real estate loans, commercial construction loans and other commercial loans. Commercial real estate loans consist of mortgage loans to finance investments in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and other specific or mixed use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Commercial real estate loans typically have a loan-to-value ratio of up to 80% based upon current valuation information at the time the loan is made. Commercial real estate loans are primarily paid by the cash flow generated from the real property, such as operating leases, rents, or other operating cash flows from the borrower. Commercial construction loans consist of loans to finance construction in a mix of owner- and non-owner occupied commercial real estate properties. Commercial construction loans typically have maturities of less than two years . Payment structures during the construction period are typically on an interest only basis, although principal payments may be established depending on the type of construction project being financed. During the construction phase, commercial construction loans are primarily paid by cash flow generated from the construction project or other operating cash flows from the borrower or guarantors, if applicable. At the end of the construction period, loan repayment typically comes from a third party source in the event that the Bank will not be providing permanent term financing. Collateral valuation and loan-to-value guidelines follow those for commercial real estate loans. Other commercial loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured. Municipal loans are comprised of loans to municipalities in Maine for capitalized expenditures, construction projects or tax-anticipation notes. All municipal loans are considered general obligations of the municipality and are collateralized by the taxing ability of the municipality for repayment of debt. Residential loans are comprised of two classes: term loans and construction loans. Residential term loans consist of residential real estate loans held in the Bank's loan portfolio made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and loan-to-value ratios within established policy and regulatory guidelines. Collateral values are determined based on appraisals and evaluations in accordance with established policy and regulatory guidelines. Residential loans typically have a loan-to-value ratio of up to 80% based on appraisal information at the time the loan is made. Collateral consists of mortgage liens on one- to four-family residential properties. Loans are offered with fixed or adjustable rates with amortization terms of up to thirty years . Residential construction loans typically consist of loans for the purpose of constructing single family residences to be owned and occupied by the borrower. Borrower qualifications include favorable credit history combined with supportive income requirements and loan-to-value ratios within established policy and regulatory guidelines. Residential construction loans normally have construction terms of one year or less and payment during the construction term is typically on an interest only basis from sources including interest reserves, borrower liquidity and/or income. Residential construction loans will typically convert to permanent financing from the Bank or have another financing commitment in place from an acceptable mortgage lender. Collateral valuation and loan-to-value guidelines are consistent with those for residential term loans. Home equity lines of credit are made to qualified individuals and are secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. The home equity line of credit typically has a variable interest rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Loan maturities are normally 300 months . Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to- value ratios usually not exceeding 80% inclusive of priority liens. Collateral valuation guidelines follow those for residential real estate loans. Consumer loan products including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as auto, recreational vehicles, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. Construction, land and land development loans, both commercial and residential, comprise a small portion of the portfolio, and at 34.4% of capital are below the regulatory guidance of 100.0% of capital at December 31, 2017. Construction loans and non- owner-occupied commercial real estate loans are at 129.2% of total capital at December 31, 2017 , below the regulatory limit of 300.0% of capital. The process of establishing the allowance with respect to the commercial loan portfolio begins when a Loan Officer or Senior Officer (or designate) initially assigns each loan a risk rating, using established credit criteria, which is reviewed and updated if necessary at least annually or when conditions may warrant a change in the assigned risk rating. Approximately 50% of the outstanding loans and commitments are subject to review and validation annually by an independent consulting firm. Additionally, commercial loan relationships with exposure greater than or equal to $500,000 and lines of credit greater than $250,000 are subject to review annually by the Bank's internal credit review function. The methodology employs Management's judgment as to the level of losses on existing loans based on internal review of the loan portfolio, including an analysis of a borrower's current financial position, and the consideration of current and anticipated economic conditions and their potential effects on specific borrowers and or lines of business. The risk rating system has eight levels, defined as follows: 1 Strong Credits rated "1" are characterized by borrowers fully responsible for the credit with excellent capacity to pay principal and interest. Loans rated "1" may be secured with acceptable forms of liquid collateral. 2 Above Average Credits rated "2" are characterized by borrowers that have better than average liquidity, capitalization, earnings and/or cash flow with a consistent record of solid financial performance. 3 Satisfactory Credits rated "3" are characterized by borrowers with favorable liquidity, profitability and financial condition with adequate cash flow to pay debt service. 4 Average Credits rated "4" are characterized by borrowers that present risk more than 1, 2 and 3 rated loans and merit an ordinary level of ongoing monitoring. Financial condition is on par or somewhat below industry averages while cash flow is generally adequate to meet debt service requirements. 5 Watch Credits rated "5" are characterized by borrowers that warrant greater monitoring due to financial condition or unresolved and identified risk factors. 6 Other Assets Especially Mentioned (OAEM) Loans in this category are currently supported but are potentially weak and constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. OAEM have potential weaknesses which may, if not checked or corrected, weaken the asset or inadequately protect the Bank's credit position at some future date. 7 Substandard Loans in this category are inadequately supported by the current paying capacity of the borrower or of the collateral, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Bank may sustain some loss if deficiencies are not corrected. 8 Doubtful Loans classified "Doubtful" have the same weaknesses as those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. The following table summarizes the risk ratings for the Company's commercial construction, commercial real estate, commercial other and municipal loans as of December 31, 2017 : Commercial Real Estate Commercial Construction Commercial Other Municipal Loans All Risk- Rated Loans 1 Strong $ — $ — $ 1,586,000 $ — $ 1,586,000 2 Above average 12,534,000 40,000 5,776,000 32,673,000 51,023,000 3 Satisfactory 73,899,000 2,856,000 38,151,000 718,000 115,624,000 4 Average 173,956,000 22,446,000 84,360,000 — 280,762,000 5 Watch 41,652,000 12,714,000 33,934,000 — 88,300,000 6 OAEM 3,442,000 — 2,765,000 — 6,207,000 7 Substandard 18,203,000 — 14,956,000 — 33,159,000 8 Doubtful 123,000 — — — 123,000 Total $ 323,809,000 $ 38,056,000 $ 181,528,000 $ 33,391,000 $ 576,784,000 The following table summarizes the risk ratings for the Company's commercial construction, commercial real estate, commercial other and municipal loans as of December 31, 2016 : Commercial Real Estate Commercial Construction Commercial Other Municipal Loans All Risk- Rated Loans 1 Strong $ 2,000 $ — $ 850,000 $ — $ 852,000 2 Above average 13,981,000 49,000 8,934,000 25,527,000 48,491,000 3 Satisfactory 81,286,000 1,345,000 48,212,000 1,529,000 132,372,000 4 Average 139,421,000 16,506,000 65,146,000 — 221,073,000 5 Watch 43,181,000 7,349,000 16,864,000 — 67,394,000 6 OAEM 4,569,000 — 1,587,000 — 6,156,000 7 Substandard 20,066,000 157,000 9,176,000 — 29,399,000 8 Doubtful — — — — — Total $ 302,506,000 $ 25,406,000 $ 150,769,000 $ 27,056,000 $ 505,737,000 Commercial loans are generally charged off when all or a portion of the principal amount is determined to be uncollectible. This determination is based on circumstances specific to a borrower including repayment ability, analysis of collateral and other factors as applicable. Residential loans are comprised of two classes: term loans, which include traditional amortizing home mortgages, and construction loans, which include loans for owner-occupied residential construction. Residential loans typically have a 75% to 80% loan to value based upon current appraisal information at the time the loan is made. Home equity loans and lines of credit are typically written to the same underwriting standards. Consumer loans are primarily amortizing loans to individuals collateralized by automobiles, pleasure craft and recreation vehicles, typically with a maximum loan to value of 80% to 90% of the purchase price of the collateral. Consumer loans also include a small amount of unsecured short-term time notes to individuals. Residential loans, consumer loans and home equity lines of credit are segregated into homogeneous pools with similar risk characteristics. Trends and current conditions are analyzed and historical loss experience is adjusted accordingly. Quantitative and qualitative adjustment factors for these segments are consistent with those for the commercial and municipal classes. Certain loans in the residential, home equity lines of credit and consumer classes identified as having the potential for further deterioration are analyzed individually to confirm impairment status, and to determine the need for a specific reserve; however, there is no formal rating system used for these classes. Consumer loans greater than 120 days past due are generally charged off. Residential loans 90 days or more past due are placed on non-accrual status unless the loans are both well secured and in the process of collection. One-to four-family residential real estate loans and home equity loans are written down or charged-off no later than 180 days past due, or for residential real estate secured loans having a borrower in bankruptcy, within 60 days of receipt of notification of filing from the bankruptcy court, whichever is sooner. This is subject to completion of a current assessment of the value of the collateral with any outstanding loan balance in excess of the fair value of the property, less costs to sell, written down or charged-off. There were no changes to the Company's accounting policies or methodology used to estimate the allowance for loan losses during the year ended December 31, 2017 . The following tables present allowance for loan losses activity by class, allowance for loan loss balances by class and related loan balances by class for the years ended December 31, 2017 , 2016 and 2015 : For the year ended December 31, 2017 Commercial Residential Home Equity Line of Credit Real Estate Construction Other Municipal Term Construction Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 3,988,000 $ 396,000 $ 1,780,000 $ 18,000 $ 1,288,000 $ 44,000 $ 807,000 $ 559,000 $ 1,258,000 $ 10,138,000 Chargeoffs 587,000 — 212,000 — 456,000 — 28,000 335,000 — 1,618,000 Recoveries — — 49,000 — 40,000 — 11,000 109,000 — 209,000 Provision (credit) 471,000 38,000 1,741,000 2,000 258,000 (8,000 ) (98,000 ) 212,000 (616,000 ) 2,000,000 Ending balance $ 3,872,000 $ 434,000 $ 3,358,000 $ 20,000 $ 1,130,000 $ 36,000 $ 692,000 $ 545,000 $ 642,000 $ 10,729,000 Ending balance specifically evaluated for impairment $ 224,000 $ — $ 1,309,000 $ — $ 255,000 $ — $ 24,000 $ — $ — $ 1,812,000 Ending balance collectively evaluated for impairment $ 3,648,000 $ 434,000 $ 2,049,000 $ 20,000 $ 875,000 $ 36,000 $ 668,000 $ 545,000 $ 642,000 $ 8,917,000 Related loan balances: Ending balance $ 323,809,000 $ 38,056,000 $ 181,528,000 $ 33,391,000 $ 432,661,000 $ 17,868,000 $ 111,302,000 $ 25,524,000 $ — $ 1,164,139,000 Ending balance specifically evaluated for impairment $ 7,790,000 $ 741,000 $ 9,918,000 $ — $ 11,748,000 $ — $ 1,179,000 $ 16,000 $ — $ 31,392,000 Ending balance collectively evaluated for impairment $ 316,019,000 $ 37,315,000 $ 171,610,000 $ 33,391,000 $ 420,913,000 $ 17,868,000 $ 110,123,000 $ 25,508,000 $ — $ 1,132,747,000 For the year ended December 31, 2016 Commercial Residential Home Equity Line of Credit Real Estate Construction Other Municipal Term Construction Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 3,120,000 $ 580,000 $ 1,452,000 $ 17,000 $ 1,391,000 $ 24,000 $ 893,000 $ 566,000 $ 1,873,000 $ 9,916,000 Chargeoffs 294,000 75,000 376,000 — 379,000 — 147,000 450,000 — 1,721,000 Recoveries — 8,000 129,000 — 93,000 — 5,000 108,000 — 343,000 Provision (credit) 1,162,000 (117,000 ) 575,000 1,000 183,000 20,000 56,000 335,000 (615,000 ) 1,600,000 Ending balance $ 3,988,000 $ 396,000 $ 1,780,000 $ 18,000 $ 1,288,000 $ 44,000 $ 807,000 $ 559,000 $ 1,258,000 $ 10,138,000 Ending balance specifically evaluated for impairment $ 505,000 $ 100,000 $ 39,000 $ — $ 304,000 $ — $ 26,000 $ — $ — $ 974,000 Ending balance collectively evaluated for impairment $ 3,483,000 $ 296,000 $ 1,741,000 $ 18,000 $ 984,000 $ 44,000 $ 781,000 $ 559,000 $ 1,258,000 $ 9,164,000 Related loan balances: Ending balance $ 302,506,000 $ 25,406,000 $ 150,769,000 $ 27,056,000 $ 411,469,000 $ 18,303,000 $ 110,907,000 $ 25,110,000 $ — $ 1,071,526,000 Ending balance specifically evaluated for impairment $ 10,021,000 $ 763,000 $ 1,743,000 $ — $ 13,669,000 $ — $ 1,387,000 $ — $ — $ 27,583,000 Ending balance collectively evaluated for impairment $ 292,485,000 $ 24,643,000 $ 149,026,000 $ 27,056,000 $ 397,800,000 $ 18,303,000 $ 109,520,000 $ 25,110,000 $ — $ 1,043,943,000 For the year ended December 31, 2015 Commercial Residential Home Equity Line of Credit Real Estate Construction Other Municipal Term Construction Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 3,532,000 $ 823,000 $ 1,505,000 $ 15,000 $ 1,185,000 $ 20,000 $ 1,060,000 $ 542,000 $ 1,662,000 $ 10,344,000 Chargeoffs 280,000 9,000 732,000 — 420,000 — 582,000 350,000 — 2,373,000 Recoveries 2,000 1,000 88,000 — 152,000 — 31,000 121,000 — 395,000 Provision (credit) (134,000 ) (235,000 ) 591,000 2,000 474,000 4,000 384,000 253,000 211,000 1,550,000 Ending balance $ 3,120,000 $ 580,000 $ 1,452,000 $ 17,000 $ 1,391,000 $ 24,000 $ 893,000 $ 566,000 $ 1,873,000 $ 9,916,000 Ending balance specifically evaluated for impairment $ 89,000 $ 302,000 $ 8,000 $ — $ 326,000 $ — $ 29,000 $ — $ — $ 754,000 Ending balance collectively evaluated for impairment $ 3,031,000 $ 278,000 $ 1,444,000 $ 17,000 $ 1,065,000 $ 24,000 $ 864,000 $ 566,000 $ 1,873,000 $ 9,162,000 Related loan balances: Ending balance $ 269,462,000 $ 24,881,000 $ 128,341,000 $ 19,751,000 $ 403,030,000 $ 8,451,000 $ 110,202,000 $ 24,520,000 $ — $ 988,638,000 Ending balance specifically evaluated for impairment $ 10,717,000 $ 1,026,000 $ 1,234,000 $ — $ 15,088,000 $ — $ 1,466,000 $ — $ — $ 29,531,000 Ending balance collectively evaluated for impairment $ 258,745,000 $ 23,855,000 $ 127,107,000 $ 19,751,000 $ 387,942,000 $ 8,451,000 $ 108,736,000 $ 24,520,000 $ — $ 959,107,000 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost and consist of the following: As of December 31, 2017 2016 Land $ 4,639,000 $ 4,742,000 Land improvements 1,052,000 1,041,000 Buildings 22,254,000 21,601,000 Equipment 13,147,000 12,032,000 41,092,000 39,416,000 Less accumulated depreciation 18,590,000 17,214,000 $ 22,502,000 $ 22,202,000 Future minimum receipts under lease agreements at December 31, 2017 for each of the next five years and in the aggregate are: 2018 $192,000 2019 141,000 2020 101,000 2021 97,000 2022 94,000 Thereafter 9,000 $634,000 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned The following summarizes other real estate owned: As of December 31, 2017 2016 Real estate acquired in settlement of loans $ 1,012,000 $ 375,000 Changes in the allowance for losses from other real estate owned were as follows: For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ 205,000 $ 162,000 $ 654,000 Losses charged to allowance (169,000 ) (89,000 ) (803,000 ) Provision charged to operating expenses 17,000 132,000 311,000 Balance at end of year $ 53,000 $ 205,000 $ 162,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The current and deferred components of income tax expense (benefit) were as follows: For the years ended December 31, 2017 2016 2015 Federal income tax Current $ 4,184,000 $ 6,276,000 $ 4,895,000 Deferred 2,083,000 (139,000 ) 332,000 6,267,000 6,137,000 5,227,000 State franchise tax 345,000 317,000 287,000 $ 6,612,000 $ 6,454,000 $ 5,514,000 The actual tax expense differs from the expected tax expense (computed by applying the applicable U.S. Federal corporate income tax rate to income before income taxes) as follows: For the years ended December 31, 2017 2016 2015 Expected tax expense $ 9,170,000 $ 8,562,000 $ 7,602,000 Non-taxable income (2,625,000 ) (2,176,000 ) (2,086,000 ) State franchise tax, net of federal tax benefit 224,000 206,000 187,000 Equity compensation (83,000 ) — — Tax credits, net of amortization (88,000 ) (105,000 ) (185,000 ) Change in federal tax rate 134,000 — — Other (120,000 ) (33,000 ) (4,000 ) $ 6,612,000 $ 6,454,000 $ 5,514,000 Deferred tax assets and liabilities are recognized at the expected future tax rate. On December 22, 2017, the federal tax rate decreased from 35% to 21% effective January 1, 2018. Accordingly, deferred tax assets and liabilities were revalued at December 31, 2017 to reflect the 21% tax rate. Deferred tax assets and liabilities are classified in other assets and other liabilities in the consolidated balance sheets. No valuation allowance is deemed necessary for the deferred tax asset. Items that give rise to the deferred income tax assets and liabilities and the tax effect of each at December 31, 2017 and 2016 are as follows: 2017 2016 Allowance for loan losses $ 2,253,000 $ 3,548,000 OREO 11,000 72,000 Accrued pension and post-retirement 1,036,000 1,730,000 Goodwill — 2,000 Unrealized loss on securities transferred from available for sale to held to maturity 46,000 70,000 Unrealized loss on securities available for sale 772,000 503,000 Restricted stock grants 173,000 237,000 Core deposit intangible 15,000 20,000 Investment in flow through entities 22,000 29,000 Other assets 28,000 48,000 Total deferred tax asset 4,356,000 6,259,000 Net deferred loan costs (1,313,000 ) (1,895,000 ) Depreciation (1,306,000 ) (1,808,000 ) Goodwill (39,000 ) — Mortgage servicing rights (266,000 ) (390,000 ) Unrealized gain on derivative instruments (410,000 ) (626,000 ) Prepaid expense (821,000 ) — Total deferred tax liability (4,155,000 ) (4,719,000 ) Net deferred tax asset $ 201,000 $ 1,540,000 At December 31, 2017 and 2016, the Company held investments in two limited partnerships with related low income housing tax credits. The investments are carried at cost and amortized on the effective yield method as they were entered into prior to 2015. The tax credits from the investments are estimated at $204,000 and $231,000 for the years ended December 31, 2017 and 2016 , respectively, and are recorded as a reduction of income tax expense. Amortization of the investment in the limited partnership totaled $178,000 and $194,000 for the years ended December 31, 2017 and 2016 , respectively, and is recognized as a component of income tax expense in the consolidated statements of income. The carrying value of these investments was $1,408,000 and $1,503,000 at December 31, 2017 and 2016 , respectively, and is recorded in securities available for sale. The Company's total exposure to the limited partnerships was $1,408,000 and $1,503,000 at December 31, 2017 and 2016 , respectively, which is comprised of the Company's equity investment in the limited partnerships. FASB ASC Topic 740, "Income Taxes," defines the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company's financial statements. Topic 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended December 31, 2014 through 2017 . |
Certificates of Deposit
Certificates of Deposit | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Certificates of Deposit | Certificates of Deposit The following table represents the breakdown of certificates of deposit at December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Certificates of deposit < $100,000 $ 284,066,000 $ 195,115,000 Certificates $100,000 to $250,000 232,759,000 240,904,000 Certificates $250,000 and over 42,176,000 40,601,000 $ 559,001,000 $ 476,620,000 At December 31, 2017 , the scheduled maturities of certificates of deposit are as follows: Year of Maturity Less than $100,000 $100,000 and Greater All Certificates of Deposit 2018 $ 215,571,000 $ 177,745,000 $ 393,316,000 2019 26,401,000 27,164,000 53,565,000 2020 17,516,000 33,710,000 51,226,000 2021 13,137,000 17,060,000 30,197,000 2022 11,411,000 19,256,000 30,667,000 2023 and thereafter 30,000 — 30,000 $ 284,066,000 $ 274,935,000 $ 559,001,000 Interest on certificates of deposit of $100,000 or more was $2,105,000 , $1,970,000 , and $2,431,000 in 2017 , 2016 and 2015 , respectively. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2017 | |
Borrowed Funds [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds consist of advances from the FHLB and securities sold under agreements to repurchase with municipal and commercial customers. Pursuant to collateral agreements, FHLB advances are collateralized by all stock in FHLB, qualifying first mortgage loans, U.S. Government and Agency securities not pledged to others, and funds on deposit with FHLB. All FHLB advances as of December 31, 2017 had fixed rates of interest until their respective maturity dates. Securities sold under agreements to repurchase include U.S. agencies securities and other securities. Repurchase agreements have maturity dates ranging from one to 365 days. The Bank also has in place $44,000,000 in credit lines with correspondent banks and a credit facility of $168,000,000 with the Federal Reserve Bank of Boston using commercial and home equity loans as collateral which are currently not in use. Borrowed funds at December 31, 2017 and 2016 have the following range of interest rates and maturity dates: As of December 31, 2017 Federal Home Loan Bank Advances 2018 1.59% - 3.25% $ 43,074,000 2020 1.60% - 1.97% 55,000,000 2021 1.55% 10,000,000 2023 and thereafter 0.00% - 0.99% 50,120,000 158,194,000 Repurchase agreements Municipal and commercial customers 0.15% - 2.48% 70,564,000 $ 228,758,000 As of December 31, 2016 Federal Home Loan Bank Advances 2017 0.99% - 3.69% $ 74,600,000 2018 2.25% - 3.25% 30,000,000 2020 1.60% - 1.97% 55,000,000 2021 1.55% 10,000,000 2022 and thereafter 0.00% - 0.59% 25,127,000 194,727,000 Repurchase agreements Municipal and commercial customers 0.15% - 1.93% 84,174,000 $ 278,901,000 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan The Bank has a defined contribution plan available to substantially all employees who have completed three months of service. Employees may contribute up to Internal Revenue Service determined limits and the Bank may provide a match to employee contributions not to exceed 3.0% of compensation depending on contribution level. Subject to a vote of the Board of Directors, the Bank may also make a profit-sharing contribution to the Plan. Such contribution equaled 2.0% of each eligible employee's compensation in 2017 , 2016 , and 2015 . The expense related to the 401(k) plan was $554,000 , $435,000 , and $462,000 in 2017 , 2016 , and 2015 , respectively. Deferred Compensation and Supplemental Retirement Plan The Bank also provides unfunded supplemental retirement benefits for certain officers, payable in installments over 20 years upon retirement or death. The agreements consist of individual contracts with differing characteristics that, when taken together, do not constitute a post-retirement plan. The costs for these benefits are recognized over the service periods of the participating officers in accordance with FASB ASC Topic 712, "Compensation – Nonretirement Postemployment Benefits". The expense of these supplemental plans was $219,000 in 2017 , $215,000 in 2016 , and $312,000 in 2015 . As of December 31, 2017 and 2016 , the accrued liability of these plans was $3,060,000 and $3,073,000 , respectively, and is recorded in other liabilities. Post-Retirement Benefit Plans The Bank sponsors two post-retirement benefit plans. One plan currently provides a subsidy for health insurance premiums to certain retired employees and a future subsidy for seven active employees who were age 50 and over in 1996. These subsidies are based on years of service and range between $40 and $1,200 per month per person. The Bank also provides health insurance for retired directors. The other plan provides life insurance coverage to certain retired employees. None of these plans are pre-funded. The Company utilizes FASB ASC Topic 712 to recognize the overfunded or underfunded status of a defined benefit post-retirement plan as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income (loss). The following table sets forth the accumulated post-retirement benefit obligation and funded status: At December 31, 2017 2016 2015 Change in benefit obligations Benefit obligation at beginning of year: $ 1,870,000 $ 1,967,000 $ 1,928,000 Interest cost 77,000 81,000 80,000 Benefits paid (113,000 ) (109,000 ) (102,000 ) Actuarial (gain) loss 40,000 (69,000 ) 61,000 Benefit obligation at end of year: $ 1,874,000 $ 1,870,000 $ 1,967,000 Funded status Benefit obligation at end of year $ (1,874,000 ) $ (1,870,000 ) $ (1,967,000 ) Unamortized loss 186,000 156,000 240,000 Accrued benefit cost $ (1,688,000 ) $ (1,714,000 ) $ (1,727,000 ) Weighted average discount rate as of December 31 4.25 % 4.25 % 4.25 % The following table sets forth the net periodic benefit cost: For the years ended December 31, 2017 2016 2015 Components of net periodic benefit cost Interest cost $ 77,000 $ 81,000 $ 80,000 Amortization of loss — 4,000 — Other settlement expense 11,000 11,000 12,000 Net periodic benefit cost $ 88,000 $ 96,000 $ 92,000 Weighted average discount rate for net periodic cost 4.25 % 4.25 % 4.25 % The measurement date for benefit obligations was as of year-end for all years presented. The estimated amount of benefits to be paid in 2018 is $128,000 . For years ending 2019 through 2022 , the estimated amount of benefits to be paid is $128,000 , $127,000 , $126,000 and $124,000 , respectively, and the total estimated amount of benefits to be paid for years ended 2023 through 2027 is $636,000 . Plan expense for 2018 is estimated to be $77,000 . In accordance with FASB ASC Topic 715, "Compensation – Retirement Benefits", amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) are as follows: At December 31, 2017 2016 Portion to Be Recognized in Income in 2018 Unamortized net actuarial loss $ (186,000 ) $ (156,000 ) $ (185,000 ) Deferred tax benefit at 35% 65,000 54,000 65,000 Reclassification adjustment for effect of enacted tax law changes (26,000 ) — — Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss) $ (147,000 ) $ (102,000 ) $ (120,000 ) |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following table summarizes activity in the unrealized gain or loss on available for sale securities included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 . For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ (935,000 ) $ 1,123,000 $ 2,522,000 Unrealized losses arising during the year (1,763,000 ) (2,493,000 ) (754,000 ) Reclassification of realized gains during the year (471,000 ) (673,000 ) (1,399,000 ) Related deferred taxes 782,000 1,108,000 754,000 Reclassification adjustment for effect of enacted tax law changes (514,000 ) — — Net change (1,966,000 ) (2,058,000 ) (1,399,000 ) Balance at end of year $ (2,901,000 ) $ (935,000 ) $ 1,123,000 The reclassification of realized gains is included in the net securities gains line of the consolidated statements of income and comprehensive income and the tax effect is included in the income tax expense line of the same statement. The following table summarizes activity in the unrealized loss on securities transferred from available for sale to held to maturity included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015 . For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ (129,000 ) $ (112,000 ) $ (48,000 ) Amortization of net unrealized losses (22,000 ) (26,000 ) (98,000 ) Related deferred taxes 8,000 9,000 34,000 Reclassification adjustment for effect of enacted tax law changes (31,000 ) — — Net change (45,000 ) (17,000 ) (64,000 ) Balance at end of year $ (174,000 ) $ (129,000 ) $ (112,000 ) The following table represents the effect of the Company's derivative financial instruments included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015 . For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ 1,163,000 $ — $ — Unrealized gains on cash flow hedging derivatives arising during the year 165,000 1,790,000 — Related deferred taxes (58,000 ) (627,000 ) — Reclassification adjustment for effect of enacted tax law changes 274,000 — — Net change 381,000 1,163,000 — Balance at end of year $ 1,544,000 $ 1,163,000 $ — The following table summarizes activity in the unrealized gain or loss on postretirement benefits included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015 : For the years ended December 31, 2017 2016 2015 Unrecognized postretirement benefits at beginning of year $ (102,000 ) $ (156,000 ) $ (125,000 ) Change in unamortized net actuarial loss (30,000 ) 84,000 (48,000 ) Related deferred taxes 11,000 (30,000 ) 17,000 Reclassification adjustment for effect of enacted tax law changes (26,000 ) $ — $ — Net change (45,000 ) $ 54,000 $ (31,000 ) Unrecognized postretirement benefits at end of year $ (147,000 ) $ (102,000 ) $ (156,000 ) The reclassification of accumulated losses is a component of net periodic benefit cost (see Note 12) and the income tax effect is included in the income tax expense line of the consolidated statements of income and comprehensive income. |
Financial Derivative Instrument
Financial Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments | Financial Derivative Instruments As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to mitigate significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so that changes in interest rates do not have a significant effect on net interest income. The Company recognizes its derivative instruments in the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. In 2016, interest rate swaps were contracted to limit the Company’s exposure to rising interest rates on short-term liabilities indexed to one-month London Inter-bank Offered Rates (LIBOR). The interest rate swaps were designated as cash flow hedges. No new derivate instruments were added in 2017. The details of the interest rate swap agreements are as follows: As of December 31, 2017 2016 Notional Amount Effective Date Maturity Date Variable Index Received Fixed Rate Paid Fair Value (1) Fair Value (1) $ 30,000,000 June 28, 2016 June 28, 2021 1-Month USD LIBOR 0.94 % $ 1,154,000 $ 1,049,000 $ 20,000,000 June 27, 2016 June 27, 2021 1-Month USD LIBOR 0.89 % $ 801,000 741,000 $ 50,000,000 $ 1,955,000 $ 1,790,000 (1) Presented within other assets in the consolidated balance sheet. The Company would reclassify unrealized gains or losses accounted for within accumulated other comprehensive income (loss) into earnings if the interest rate swaps were to become ineffective or the swaps were to terminate. In the next 12 months, the Company does not believe it will be required to reclassify any unrealized gains or losses accounted for within accumulated other comprehensive income (loss) into earnings as a result of ineffectiveness or swap termination. Amounts paid or received under the swaps are reported in interest expense in the statement of income, and in interest paid in the statement of cash flows. |
Preferred and Common Stock
Preferred and Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Preferred and Common Stock | Preferred and Common Stock Preferred Stock On January 9, 2009, the Company issued $25,000,000 in Fixed Rate Cumulative Perpetual Preferred Stock, Series A, to the U.S. Treasury under the Capital Purchase Program ("the CPP Shares"). The CPP Shares qualified as Tier 1 capital on the Company's books for regulatory purposes and ranked senior to the Company's common stock and senior or at an equal level in the Company's capital structure to any other shares of preferred stock the Company may issue in the future. In three separate transactions in 2012 and 2013, the Company repurchased all of the CPP Shares from the Treasury. Incident to such issuance of the CPP Shares, the Company issued to the U.S. Treasury warrants (the "Warrants") to purchase up to 225,904 shares of the Company's common stock at a price per share of $16.60 (subject to adjustment). The Warrants (and any shares of common stock issuable pursuant to the Warrants) are freely transferable by Treasury to third parties. The warrants have a term of 10 years and could be exercised by Treasury or a subsequent holder at any time or from time to time during their term. To the extent they had not previously been exercised, the Warrants will expire after ten years. The Warrants were unchanged as a result of the CPP Shares repurchase transactions. In May 2015, the Treasury sold all of the Warrants to private parties. In accordance with the contractual terms of the Warrants, the number of shares issuable upon exercise of the Warrants and the strike price were adjusted at the time of the sale. As a result of this transaction, the number of shares issuable under the Warrants was adjusted to 226,819 with a strike price of $16.53 per share. In November 2016, the Company repurchased all of the outstanding Warrants for an aggregate purchase price of $1,750,000 . Common Stock In 2016, the Company reserved 250,000 shares of its common stock to be made available to directors and employees who elect to participate in the stock purchase or savings and investment plans. As of December 31, 2017 , 27,273 shares had been issued pursuant to these plans, leaving 222,727 shares available for future use. The issuance price is based on the market price of the stock at issuance date. Prior to 2016, the Company had reserved 700,000 shares of its common stock to be made available to directors and employees who elect to participate in the stock purchase or savings investment plans. Sales of stock to directors and employees amounted to 12,762 shares in 2017 , and 14,511 shares in 2016 , and 13,787 shares in 2015 . In 2001, the Company established a dividend reinvestment plan to allow shareholders to use their cash dividends for the automatic purchase of shares in the Company. When the plan was established, 600,000 shares were registered with the Securities and Exchange Commission, and as of December 31, 2017 , 257,759 shares have been issued, leaving 342,241 shares usable for future issuance. Participation in this plan is optional and at the individual discretion of each shareholder. Shares are purchased for the plan from the Company at a price per share equal to the average of the daily bid and asked prices reported on the NASDAQ System for the five trading days immediately preceding, but not including, the dividend payment date. Sales of stock under the dividend reinvestment plan amounted to 9,922 shares in 2017 , 10,889 shares in 2016 , and 11,668 shares in 2015 . Issuance of common stock for these plans totaled $632,000 , $531,000 and $465,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Stock Options and Stock-Based C
Stock Options and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Stock-Based Compensation | Stock Options and Stock-Based Compensation At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock options, restricted stock awards and other equity based awards to attract and retain the best available personnel, provide additional incentive to officers, employees and non-employee Directors and promote the success of our business. Such grants and awards have been and will be structured in a manner that does not encourage the recipients to expose the Company to undue or inappropriate risk. Options issued under the 2010 Plan will qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code. Other compensation under the 2010 Plan will qualify as performance-based for purposes of Section 162(m) of the Internal Revenue Code, and will satisfy NASDAQ guidelines relating to equity compensation. As of December 31, 2017 , 127,560 shares of restricted stock had been granted under the 2010 Plan, of which 71,086 shares remain restricted as of December 31, 2017 as detailed in the following table: Year Granted Vesting Term (In Years) Shares Remaining Term (In Years) 2013 5.0 14,776 0.3 2014 5.0 10,422 1.3 2015 5.0 12,023 2.3 2016 5.0 15,015 3.3 2017 1.0 3,976 0.4 2017 3.0 4,902 2.3 2017 5.0 9,972 4.3 71,086 2.0 The compensation cost related to these restricted stock grants was $1,428,000 and will be recognized over the vesting terms of each grant. In 2017 , $392,000 of expense was recognized for these restricted shares, leaving $601,000 in unrecognized expense as of December 31, 2017 . In 2016 , $298,000 of expense was recognized for restricted shares, leaving $457,000 in unrecognized expense as of December 31, 2016 . The Company established a shareholder-approved stock option plan in 1995 (the "1995 Plan"), under which the Company granted options to employees for 600,000 shares of common stock. Only incentive stock options were granted under the 1995 Plan. The exercise price of each option grant was determined by the Options Committee of the Board of Directors, and in no instance was less than the fair market value on the date of the grant. An option's maximum term was ten years from the date of grant, with 50% of the options granted vesting two years from the date of grant and the remaining 50% vesting five years from the date of grant. As of January 16, 2005, all options under the 1995 Plan had been granted, and as of January 16, 2015, all options under the 1995 Plan had been exercised or expired. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table provides detail for basic earnings per share (EPS) and diluted (EPS) for the years ended December 31, 2017 , 2016 and 2015 : Income (Numerator) Shares (Denominator) Per-Share Amount For the year ended December 31, 2017 Net income as reported $ 19,588,000 Basic EPS: Income available to common shareholders 19,588,000 10,747,306 $ 1.82 Effect of dilutive securities: restricted stock 71,712 Diluted EPS: Income available to common shareholders plus assumed conversions $ 19,588,000 10,819,018 $ 1.81 For the year ended December 31, 2016 Net income as reported $ 18,009,000 Basic EPS: Income available to common shareholders 18,009,000 10,713,290 $ 1.68 Effect of dilutive securities: restricted stock and warrants 116,512 Diluted EPS: Income available to common shareholders plus assumed conversions $ 18,009,000 10,829,802 $ 1.66 For the year ended December 31, 2015 Net income as reported $ 16,206,000 Basic EPS: Income available to common shareholders 16,206,000 10,674,755 $ 1.52 Effect of dilutive securities: restricted stock and warrants 90,114 Diluted EPS: Income available to common shareholders plus assumed conversions $ 16,206,000 10,764,869 $ 1.51 All EPS calculations have been made using the weighted average number of shares outstanding during the period. The dilutive securities are restricted stock granted to certain key members of Management and warrants granted to the U.S. Treasury under the Capital Purchase Program. The dilutive number of shares has been calculated using the treasury method, assuming that all granted stock and warrants were vested and exercised at the end of each period. The following table presents the number of options and warrants outstanding as of December 31, 2015 and the amount for which the average price at year end is above or below the strike price: Outstanding In-the-Money Out-of-the-Money As of December 31, 2015 Warrants issued to private parties 226,819 226,819 — Total dilutive securities 226,819 226,819 — |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements The ability of the Company to pay cash dividends to its shareholders depends primarily on receipt of dividends from its subsidiary, the Bank. The Bank may pay dividends to its parent out of so much of its net income as the Bank's directors deem appropriate, subject to the limitation that the total of all dividends declared by the Bank in any calendar year may not exceed the total of its net income of that year combined with its retained net income of the preceding two years and subject to minimum regulatory capital requirements. The amount available for dividends in 2018 will be 2018 earnings plus retained earnings of $15,846,000 from 2017 and 2016 . The payment of dividends by the Company is also affected by various regulatory requirements and policies, such as the requirements to maintain adequate capital. In addition, if, in the opinion of the applicable regulatory authority, a bank under its jurisdiction is engaged in or is about to engage in an unsafe or unsound practice (which, depending on the financial condition of the bank, could include the payment of dividends), that authority may require, after notice and hearing, that such bank cease and desist from that practice. The Federal Reserve Bank and the Comptroller of the Currency have each indicated that paying dividends that deplete a bank's capital base to an inadequate level would be an unsafe and unsound banking practice. The Federal Reserve Bank, the Comptroller of the Currency and the Federal Deposit Insurance Corporation have issued policy statements which provide that bank holding companies and insured banks should generally only pay dividends out of current operating earnings. In addition to the effect on the payment of dividends, failure to meet minimum capital requirements can also result in mandatory and discretionary actions by regulators that, if undertaken, could have an impact on the Company's operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measurements of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Financial institution regulators have established guidelines for minimum capital ratios for banks and bank holding companies. The net unrealized gain or loss on securities available for sale is generally not included in computing regulatory capital. During the first quarter of 2015, the Company adopted the new Basel III regulatory capital framework as approved by the federal banking agencies. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. Additionally, under the new rule, in order to avoid limitations on capital distributions, including dividend payments, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. As of December 31, 2017 , the Company's capital conservation buffer was 7.24% , and met both the 2017 minimum requirement of 2.25% and the fully phased-in 2019 minimum requirement. As of December 31, 2017 , the most recent notification from the Office of the Comptroller of the Currency classified the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since this notification that Management believes have changed the institution's category. The actual and minimum capital amounts and ratios for the Bank are presented in the following table: Actual For capital adequacy purposes To be well-capitalized under prompt corrective action provisions As of December 31, 2017 Tier 2 capital to $ 162,355,000 $ 86,063,000 $ 107,579,000 risk-weighted assets 15.09 % 8.00 % 10.00 % Tier 1 capital to $ 151,526,000 $ 64,548,000 $ 86,063,000 risk-weighted assets 14.09 % 6.00 % 8.00 % Common equity Tier 1 capital to $ 151,526,000 $ 48,411,000 $ 69,926,000 risk-weighted assets 14.09 % 4.50 % 6.50 % Tier 1 capital to $ 151,526,000 $ 71,386,000 $ 89,233,000 average assets 8.49 % 4.00 % 5.00 % As of December 31, 2016 Tier 2 capital to $ 151,487,000 $ 77,928,000 $ 97,410,000 risk-weighted assets 15.55 % 8.00 % 10.00 % Tier 1 capital to $ 141,249,000 $ 58,446,000 $ 77,928,000 risk-weighted assets 14.50 % 6.00 % 8.00 % Common equity Tier 1 capital to $ 141,249,000 $ 43,835,000 $ 63,317,000 risk-weighted assets 14.50 % 4.50 % 6.50 % Tier 1 capital to $ 141,249,000 $ 65,437,000 $ 81,797,000 average assets 8.63 % 4.00 % 5.00 % The actual and minimum capital amounts and ratios for the Company, on a consolidated basis, are presented in the following table: Actual For capital adequacy purposes To be well-capitalized under prompt corrective action provisions As of December 31, 2017 Tier 2 capital to $ 163,943,000 $ 86,070,000 n/a risk-weighted assets 15.24 % 8.00 % n/a Tier 1 capital to $ 153,114,000 $ 64,553,000 n/a risk-weighted assets 14.23 % 6.00 % n/a Common equity Tier 1 capital to $ 153,114,000 $ 48,415,000 n/a risk-weighted assets 14.23 % 4.50 % n/a Tier 1 capital to $ 153,114,000 $ 71,435,000 n/a average assets 8.57 % 4.00 % n/a As of December 31, 2016 Tier 2 capital to $ 152,802,000 $ 77,928,000 n/a risk-weighted assets 15.69 % 8.00 % n/a Tier 1 capital to $ 142,564,000 $ 58,446,000 n/a risk-weighted assets 14.64 % 6.00 % n/a Common equity Tier 1 capital to $ 142,564,000 $ 43,835,000 n/a risk-weighted assets 14.64 % 4.50 % n/a Tier 1 capital to $ 142,564,000 $ 65,470,000 n/a average assets 8.71 % 4.00 % n/a |
Off-Balance-Sheet Financial Ins
Off-Balance-Sheet Financial Instruments and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance-Sheet Financial Instruments and Concentrations of Credit Risk | Off-Balance-Sheet Financial Instruments and Concentrations of Credit Risk The Bank is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, commitments for unused lines of credit, and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. Commitments for unused lines of credit are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on Management's credit evaluation of the borrower. The Bank did not incur any losses on its commitments in 2017 , 2016 or 2015 . Standby letters of credit are conditional commitments issued by the Bank to guarantee a customer's performance to a third party, with the customer being obligated to repay (with interest) any amounts paid out by the Bank under the letter of credit. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. At December 31, 2017 and 2016 , the Bank had the following off-balance-sheet financial instruments, whose contract amounts represent credit risk: As of December 31, 2017 2016 Unused lines, collateralized by residential real estate $ 76,887,000 $ 76,646,000 Other unused commitments 62,771,000 57,738,000 Standby letters of credit 3,497,000 4,198,000 Commitments to extend credit 8,724,000 10,684,000 Total $ 151,879,000 $ 149,266,000 The Bank grants residential, commercial and consumer loans to customers principally located in the Mid-Coast and Down East regions of Maine. Collateral on these loans typically consists of residential or commercial real estate, or personal property. Although the loan portfolio is diversified, a substantial portion of borrowers' ability to honor their contracts is dependent on the economic conditions in the area, especially in the real estate sector. Derivative Financial Instruments Designated as Hedges As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company's interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets and/or liabilities so that change in interest rates does not have a significant adverse effect on net interest income. Derivative instruments that Management periodically uses as part of its interest rate risk management strategy may include interest rate swap agreements, interest rate floor agreements, and interest rate cap agreements. At December 31, 2017 , the Company had two outstanding, off-balance sheet, derivative instruments. These derivative instruments were interest rate swap agreements, with notional principal amounts totaling $50,000,000 and an unrealized gain of $1,544,000 , net of tax. The notional amounts of the financial derivative instruments do not represent exposure to credit loss. The Company is exposed to credit loss only to the extent the counter-party defaults in its responsibility to pay interest under the terms of the agreements. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that Management believes to be creditworthy and by limiting the amount of exposure to each counter-party. At December 31, 2017 , the Company’s derivative instrument counterparties were credit rated “A” by the major credit rating agencies. The interest rate swap agreements were entered into by the Company to limit its exposure to rising interest rates and were designated as cash flow hedges. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Certain assets and liabilities are recorded at fair value to provide additional insight into the Company's quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available for sale are recorded at fair value on a recurring basis. Other assets, such as mortgage servicing rights, loans held for sale, and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows. Level 1 – Valuation is based upon quoted prices for identical instruments in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation includes use of discounted cash flow models and similar techniques. The fair value methods and assumptions for the Company's financial instruments and other assets measured at fair value are set forth below. Cash, Cash Equivalents and Interest-Bearing Deposits in Other Banks The carrying values of cash equivalents, due from banks and federal funds sold approximate their relative fair values. As such, the Company classifies these financial instruments as Level 1. Investment Securities The fair values of investment securities are estimated by independent providers using a market approach with observable inputs, including matrix pricing and recent transactions. In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company's principal markets. The Company's principal markets for its securities portfolios are the secondary institutional markets, with an exit price that is predominantly reflective of bid level pricing in those markets. Fair values are calculated based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. If these considerations had been incorporated into the fair value estimates, the aggregate fair value could have been changed. The carrying values of restricted equity securities approximate fair values. As such, the Company classifies investment securities as Level 2. Loans Held for Sale Loans held for sale are recorded at the lower of carrying value or market value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies mortgage loans held for sale as Level 2. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. The fair values of performing loans are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest risk inherent in the loan. The estimates of maturity are based on the Company's historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions, and the effects of estimated prepayments. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Management has made estimates of fair value using discount rates that it believes to be reasonable. However, because there is no market for many of these financial instruments, Management has no basis to determine whether the fair value presented above would be indicative of the value negotiated in an actual sale. As such, the Company classifies loans as Level 3, except for certain collateral-dependent impaired loans. Fair values of impaired loans are based on estimated cash flows and are discounted using a rate commensurate with the risk associated with the estimated cash flows, or if collateral dependent, discounted to the appraised value of the collateral as determined by reference to sale prices of similar properties, less costs to sell. As such, the Company classifies collateral dependent impaired loans for which a specific reserve results in a fair value measure as Level 2. All other impaired loans are classified as Level 3. Other Real Estate Owned Real estate acquired through foreclosure is initially recorded at fair value. The fair value of other real estate owned is based on property appraisals and an analysis of sales prices of similar properties currently available. As such, the Company records other real estate owned as nonrecurring Level 2. Mortgage Servicing Rights Mortgage servicing rights represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method and compared to fair value for impairment. In evaluating the fair values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. As such, the Company classifies mortgage servicing rights as Level 2. Accrued Interest Receivable The fair value estimate of this financial instrument approximates the carrying value as this financial instrument has a short maturity. It is the Company's policy to stop accruing interest on loans for which it is probable that the interest is not collectible. Therefore, this financial instrument has been adjusted for estimated credit loss. As such, the Company classifies accrued interest receivable as Level 2. Deposits The fair value of deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. As such, the Company classifies deposits as Level 2. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposits compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company's net assets could increase. Borrowed Funds The fair value of borrowed funds is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently available for borrowings of similar remaining maturities. As such, the Company classifies borrowed funds as Level 2. Accrued Interest Payable The fair value estimate approximates the carrying amount as this financial instrument has a short maturity. As such, the Company classifies accrued interest payable as Level 2. Derivatives The fair value of interest rate swaps is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2017 and 2016 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings. Off-Balance-Sheet Instruments Off-balance-sheet instruments include loan commitments. Fair values for loan commitments have not been presented as the future revenue derived from such financial instruments is not significant. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These values do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on Management's judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial instruments include the deferred tax asset, premises and equipment, and other real estate owned. In addition, tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2017 and 2016 . At December 31, 2017 Level 1 Level 2 Level 3 Total Securities available for sale Mortgage-backed securities $ — $ 289,989,000 $ — $ 289,989,000 State and political subdivisions — 6,769,000 — 6,769,000 Other equity securities — 3,414,000 — 3,414,000 Total securities available for sale $ — $ 300,172,000 $ — $ 300,172,000 Interest rate swap agreements $ — $ 1,955,000 $ — $ 1,955,000 Total assets $ — $ 302,127,000 $ — $ 302,127,000 At December 31, 2016 Level 1 Level 2 Level 3 Total Securities available for sale Mortgage-backed securities $ — $ 280,604,000 $ — $ 280,604,000 State and political subdivisions — 16,482,000 — 16,482,000 Other equity securities — 3,330,000 — 3,330,000 Total securities available for sale $ — $ 300,416,000 $ — $ 300,416,000 Interest rate swap agreements $ — $ 1,790,000 $ — $ 1,790,000 Total assets $ — $ 302,206,000 $ — $ 302,206,000 Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The following tables present assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance for losses of $53,000 and $205,000 at December 31, 2017 and 2016 , respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $1,531,000 and $478,000 at December 31, 2017 and 2016 , respectively. At December 31, 2017 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ 1,012,000 $ — $ 1,012,000 Impaired loans — 6,521,000 — 6,521,000 Total assets $ — $ 7,533,000 $ — $ 7,533,000 At December 31, 2016 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ 375,000 $ — $ 375,000 Impaired loans — 827,000 — 827,000 Total assets $ — $ 1,202,000 $ — $ 1,202,000 Fair Value of Financial Instruments FASB ASC Topic 825, "Financial Instruments," requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, if the fair values can be reasonably determined. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. FASB ASC Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The carrying amounts and estimated fair values for financial instruments as of December 31, 2017 were as follows: Carrying Estimated As of December 31, 2017 value fair value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 19,207,000 $ 19,207,000 $ 19,207,000 $ — $ — Interest-bearing deposits in other banks 860,000 860,000 860,000 — — Securities available for sale 300,172,000 300,172,000 — 300,172,000 — Securities to be held to maturity 256,567,000 259,655,000 — 259,655,000 — Restricted equity securities 10,358,000 10,358,000 — 10,358,000 — Loans held for sale 386,000 386,000 — 386,000 — Loans (net of allowance for loan losses) Commercial Real estate 319,691,000 311,321,000 — 72,000 311,249,000 Construction 37,594,000 36,610,000 — — 36,610,000 Other 177,956,000 175,455,000 — 6,018,000 169,437,000 Municipal 33,370,000 33,280,000 — — 33,280,000 Residential Term 431,459,000 431,028,000 — 391,000 430,637,000 Construction 17,830,000 17,613,000 — — 17,613,000 Home equity line of credit 110,566,000 109,012,000 — 40,000 108,972,000 Consumer 24,944,000 24,408,000 — — 24,408,000 Total loans 1,153,410,000 1,138,727,000 — 6,521,000 1,132,206,000 Mortgage servicing rights 1,268,000 2,321,000 — 2,321,000 — Interest rate swap agreements 1,955,000 1,955,000 — 1,955,000 — Accrued interest receivable 5,867,000 5,867,000 — 5,867,000 — Financial liabilities Demand deposits $ 181,970,000 $ 174,481,000 $ — $ 174,481,000 $ — NOW deposits 281,405,000 261,702,000 — 261,702,000 — Money market deposits 163,898,000 153,497,000 — 153,497,000 — Savings deposits 232,605,000 203,799,000 — 203,799,000 — Local certificates of deposit 223,074,000 220,734,000 — 220,734,000 — National certificates of deposit 335,927,000 335,775,000 — 335,775,000 — Total deposits 1,418,879,000 1,349,988,000 — 1,349,988,000 — Repurchase agreements 70,564,000 67,976,000 — 67,976,000 — Federal Home Loan Bank advances 158,194,000 156,396,000 — 156,396,000 — Total borrowed funds 228,758,000 224,372,000 — 224,372,000 — Accrued interest payable 642,000 642,000 — 642,000 — The carrying amounts and estimated fair values for financial instruments as of December 31, 2016 were as follows: Carrying Estimated As of December 31, 2016 value fair value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 17,366,000 $ 17,366,000 $ 17,366,000 $ — $ — Interest-bearing deposits in other banks 293,000 293,000 293,000 — — Securities available for sale 300,416,000 300,416,000 — 300,416,000 — Securities to be held to maturity 226,828,000 225,537,000 — 225,537,000 — Restricted equity securities 11,930,000 11,930,000 — 11,930,000 — Loans held for sale 782,000 782,000 — 782,000 — Loans (net of allowance for loan losses) Commercial Real estate 297,952,000 293,103,000 — 558,000 292,545,000 Construction 24,954,000 24,548,000 — — 24,548,000 Other 148,737,000 147,394,000 — 33,000 147,361,000 Municipal 27,035,000 27,446,000 — — 27,446,000 Residential Term 409,999,000 410,327,000 — 236,000 410,091,000 Construction 18,253,000 18,125,000 — — 18,125,000 Home equity line of credit 109,986,000 108,740,000 — — 108,740,000 Consumer 24,472,000 24,131,000 — — 24,131,000 Total loans 1,061,388,000 1,053,814,000 — 827,000 1,052,987,000 Mortgage servicing rights 1,113,000 1,696,000 — 1,696,000 — Interest rate swap agreements 1,790,000 1,790,000 — 1,790,000 — Accrued interest receivable 5,532,000 5,532,000 — 5,532,000 — Financial liabilities Demand deposits $ 140,482,000 $ 133,342,000 $ — $ 133,342,000 $ — NOW deposits 282,971,000 259,418,000 — 259,418,000 — Money market deposits 125,544,000 115,087,000 — 115,087,000 — Savings deposits 217,340,000 188,260,000 — 188,260,000 — Local certificates of deposit 210,316,000 209,370,000 — 209,370,000 — National certificates of deposit 266,304,000 266,372,000 — 266,372,000 — Total deposits 1,242,957,000 1,171,849,000 — 1,171,849,000 — Repurchase agreements 84,174,000 79,827,000 — 79,827,000 — Federal Home Loan Bank advances 194,727,000 193,733,000 — 193,733,000 — Total borrowed funds 278,901,000 273,560,000 — 273,560,000 — Accrued interest payable 479,000 479,000 — 479,000 — |
Other Operating Income and Expe
Other Operating Income and Expense | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Operating Income and Expense | Other Operating Income and Expense Other operating income and other operating expense include the following items greater than 1% of revenues. For the years ended December 31, 2017 2016 2015 Other operating income ATM and debit card income $ 3,378,000 $ 3,024,000 $ 2,714,000 Other operating expense Advertising and marketing expense $ 1,208,000 $ 1,099,000 $ 1,178,000 Accounting and auditing expenses 818,000 690,000 797,000 ATM and interchange expense 886,000 853,000 814,000 |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Loss Contingency [Abstract] | |
Legal Contingencies | Legal Contingencies Various legal claims also arise from time to time in the normal course of business which, in the opinion of Management, will have no material effect on the Company's consolidated financial statements. |
Reclassifications
Reclassifications | 12 Months Ended |
Dec. 31, 2017 | |
Prior Period Adjustment [Abstract] | |
Reclassifications | Reclassifications Certain items from prior years were reclassified in the financial statements to conform with the current year presentation. These do not have a material impact on the balance sheet or statement of income presentations. |
Condensed Financial Information
Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent | Condensed Financial Information of Parent Condensed financial information for The First Bancorp, Inc. exclusive of its subsidiary is as follows: Balance Sheets As of December 31, 2017 2016 Assets Cash and cash equivalents $ 958,000 $ 613,000 Dividends receivable 2,500,000 3,800,000 Investments 441,000 432,000 Investment in subsidiary 152,174,000 143,611,000 Premises and equipment 3,000 4,000 Goodwill 27,559,000 27,559,000 Other assets 312,000 300,000 Total assets $ 183,947,000 $ 176,319,000 Liabilities and shareholders' equity Dividends payable $ 2,599,000 $ 3,778,000 Other liabilities 27,000 20,000 Total liabilities 2,626,000 3,798,000 Shareholders' equity Common stock 108,000 108,000 Additional paid-in capital 61,747,000 60,723,000 Retained earnings 119,373,000 111,653,000 Accumulated other comprehensive income Net unrealized gain on available for sale securities, net of tax 93,000 37,000 Total accumulated other comprehensive income 93,000 37,000 Total shareholders' equity 181,321,000 172,521,000 Total liabilities and shareholders' equity $ 183,947,000 $ 176,319,000 Statements of Income For the years ended December 31, 2017 2016 2015 Interest and dividends on investments $ 15,000 $ 22,000 $ 18,000 Net securities losses (3,000 ) (6,000 ) — Total income 12,000 16,000 18,000 Occupancy expense 5,000 9,000 12,000 Other operating expense 588,000 528,000 488,000 Total expense 593,000 537,000 500,000 Loss before income taxes and Bank earnings (581,000 ) (521,000 ) (482,000 ) Applicable income taxes (187,000 ) (186,000 ) (172,000 ) Loss before Bank earnings (394,000 ) (335,000 ) (310,000 ) Equity in earnings of Bank Remitted 11,180,000 11,300,000 10,000,000 Unremitted 8,802,000 7,044,000 6,516,000 Net income $ 19,588,000 $ 18,009,000 $ 16,206,000 Statements of Cash Flows For the years ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 19,588,000 $ 18,009,000 $ 16,206,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 5,000 8,000 12,000 Equity compensation expense 392,000 298,000 296,000 Loss on sale of investments 3,000 6,000 — Tax benefit from vesting of restricted stock — 32,000 — (Increase) decrease in other assets 27,000 136,000 (135,000 ) (Increase) decrease in dividends receivable 1,300,000 (1,300,000 ) (50,000 ) Increase (decrease) in dividends payable (1,179,000 ) 112,000 — Increase (decrease) in other liabilities (3,000 ) (4,000 ) 160,000 Unremitted earnings of Bank (8,802,000 ) (7,044,000 ) (6,516,000 ) Net cash provided by operating activities 11,331,000 10,253,000 9,973,000 Cash flows from investing activities: Proceeds from sales/maturities of investments — 87,000 — Capital expenditures (4,000 ) — — Net cash provided by (used in) investing activities (4,000 ) 87,000 — Cash flows from financing activities: Purchase of common stock (154,000 ) (129,000 ) (180,000 ) Proceeds from sale of common stock 632,000 531,000 465,000 Repurchase of warrants — (1,750,000 ) — Dividends paid (11,460,000 ) (9,810,000 ) (9,349,000 ) Net cash used in financing activities (10,982,000 ) (11,158,000 ) (9,064,000 ) Net increase (decrease) in cash and cash equivalents 345,000 (818,000 ) 909,000 Cash and cash equivalents at beginning of year 613,000 1,431,000 522,000 Cash and cash equivalents at end of year $ 958,000 $ 613,000 $ 1,431,000 |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements The FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, in 2014 to replace the current plethora of industry-specific rules with a broad, principles-based framework for recognizing and measuring revenue. Due to the complexity of the new pronouncement and the anticipated effort required by entities in many industries to implement ASU No. 2014-09, FASB delayed the effective date. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance to annual reporting periods beginning after December 15, 2017, and all other entities should apply the guidance to annual reporting periods beginning after December 15, 2018. FASB formed a Transition Resource Group to assist it in identifying implementation issues that may require further clarification or amendment to ASU No. 2014-09. As a result of that group’s deliberations, FASB has issued the following amendments, which will be effective concurrently with ASU No. 2014-09: ASU No. 2016-08, Principal versus Agent Considerations, which clarifies whether an entity should record the gross amount of revenue or only its ultimate share when a third party is also involved in providing goods or services to a customer; ASU No. 2016-10, Identifying Performance Obligations and Licensing, which clarifies and simplifies the process for determining whether performance obligations to a customer should be segregated and accounted for individually, and clarifies how the new revenue rules apply to licenses of intellectual property; and ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, which clarifies and simplifies the process of assessing collectability of consideration under a contract, presentation of sales taxes, accounting for noncash consideration received, and certain transitional issues. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, the Company does not expect the new guidance to have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company is currently performing an overall assessment of revenue streams and reviewing contracts potentially affected by the ASU including trust and asset management fees, deposit related fees, interchange fees, and merchant income, to determine the potential impact the new guidance is expected to have on the Company’s Consolidated Financial Statements. In addition, the Company continues to follow certain implementation issues relevant to the banking industry which are still pending resolution. The Company plans to adopt ASU No. 2014-09 on January 1, 2018 utilizing the modified retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of U.S. GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management does not expect the ASU to have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Management is reviewing the guidance in the ASU to determine whether it will have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (APIC). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated on the date the award is granted, or recognized when they occur. ASU No. 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. The adoption of the ASU did not have a material effect on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model, requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements, and anticipates it may have a material impact. The Bank has formed an implementation committee for ASU 2016-13. To date, committee members have participated in educational seminars on the new standards, begun the process of identifying the historical data sets that will be necessary to implement the new standard, and chose a third-party vendor who provides software solutions for ASU 2016-13 modeling and calculation. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a Company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU will be effective for the Company on January 1, 2020 and will be applied prospectively. The Company does not expect the implementation to have a material effect on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be accreted to maturity. The ASU is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company's current practice aligns with the ASU therefore Management believes there will be no impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The ASU was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a shared-based payment award. The ASU include guidance on determining which changes to the terms and conditions of share-based payment awards require and entity to apply modification accounting under Topic 718. The ASU is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The ASU should be applied prospectively to an award modified on or after the adoption date. Management does not expect the ASU to have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). The amendments in this ASU improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. In addition, this ASU makes certain targeted improvements to simplify the application of the hedge accounting guidance in current US GAAP. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal year. Early application is permitted in any interim period after issuance of the ASU. Management is reviewing the guidance in this ASU to determine whether it will have a material effect on the Company's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Loss). This ASU was issued to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted for financial statements which have not yet been issued. The Company adopted the ASU for the December 31, 2017 consolidated financial statements, which resulted in a reclassification adjustment on the Consolidated Statements of Changes in Shareholders' Equity of $297,000 from accumulated other comprehensive income (loss) to retained earnings. Refer to Note 9, Income Taxes, for additional information. |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Quarterly Information The following tables provide unaudited financial information by quarter for each of the past two years: Dollars in thousands except per share data 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 Balance Sheets Cash and cash equivalents $ 14,533 $ 20,838 $ 23,456 $ 17,366 $ 17,600 $ 23,718 $ 22,375 $ 19,207 Interest-bearing deposits in other banks 6,372 7,568 15,098 293 3,272 291 584 860 Investments 453,336 457,599 471,063 527,244 553,453 552,269 541,678 556,739 Restricted equity securities 13,875 14,441 14,048 11,930 13,363 12,311 10,798 10,358 Net loans and loans held for sale 994,947 1,029,568 1,019,922 1,062,170 1,080,347 1,110,919 1,110,508 1,153,796 Other assets 91,618 91,440 91,501 93,872 95,793 96,143 95,758 101,970 Total assets $ 1,574,681 $ 1,621,454 $ 1,635,088 $ 1,712,875 $ 1,763,828 $ 1,795,651 $ 1,781,701 $ 1,842,930 Deposits $ 1,109,441 $ 1,145,709 $ 1,173,749 $ 1,242,957 $ 1,346,483 $ 1,319,259 $ 1,350,049 $ 1,418,879 Borrowed funds 276,531 283,095 268,098 278,901 226,467 282,277 234,328 228,758 Other liabilities 17,165 17,862 17,247 18,496 15,968 16,578 17,442 13,972 Shareholders' equity 171,544 174,788 175,994 172,521 174,910 177,537 179,882 181,321 Total liabilities & equity $ 1,574,681 $ 1,621,454 $ 1,635,088 $ 1,712,875 $ 1,763,828 $ 1,795,651 $ 1,781,701 $ 1,842,930 Income and Comprehensive Income Statements Interest income $ 13,276 $ 13,600 $ 13,283 $ 13,600 $ 14,491 $ 15,002 $ 15,517 $ 15,822 Interest expense 2,547 2,649 2,754 2,862 3,015 3,337 3,563 3,614 Net interest income 10,729 10,951 10,529 10,738 11,476 11,665 11,954 12,208 Provision for loan losses 375 375 375 475 500 500 750 250 Net interest income after provision for loan losses 10,354 10,576 10,154 10,263 10,976 11,165 11,204 11,958 Non-interest income 2,964 3,006 3,469 3,060 2,843 3,002 3,493 3,210 Non-interest expense 7,200 7,245 7,405 7,533 7,698 7,640 8,013 8,300 Income before taxes 6,118 6,337 6,218 5,790 6,121 6,527 6,684 6,868 Income taxes 1,615 1,713 1,656 1,470 1,484 1,644 1,702 1,782 Net income $ 4,503 $ 4,624 $ 4,562 $ 4,320 $ 4,637 $ 4,883 $ 4,982 $ 5,086 Basic earnings per share $ 0.42 $ 0.43 $ 0.43 $ 0.40 $ 0.43 $ 0.45 $ 0.46 $ 0.48 Diluted earnings per share $ 0.42 $ 0.43 $ 0.42 $ 0.39 $ 0.43 $ 0.45 $ 0.46 $ 0.47 Other comprehensive income (loss), net of tax Net unrealized gain (loss) on securities available for sale $ 1,852 $ 1,025 $ (1,292 ) $ (3,643 ) $ 1 $ 349 $ (240 ) $ (1,562 ) Net unrealized gain (loss) on securities transfered from available for sale to held to maturity (11 ) (10 ) 9 (5 ) (4 ) (4 ) (3 ) (3 ) Net unrealized gain (loss) on cash flow hedging derivative instruments — (135 ) 193 1,105 63 (171 ) (20 ) 235 Unrecognized gain (loss) on postretirement benefit costs — — — 54 — — — (19 ) Other comprehensive income (loss) $ 1,841 $ 880 $ (1,090 ) $ (2,489 ) $ 60 $ 174 $ (263 ) $ (1,349 ) Comprehensive income $ 6,344 $ 5,504 $ 3,472 $ 1,831 $ 4,697 $ 5,057 $ 4,719 $ 3,737 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank. All intercompany accounts and transactions have been eliminated in consolidation. |
Subsequent Events | Subsequent Events Events occurring subsequent to December 31, 2017 , have been evaluated as to their potential impact to the financial statements. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, goodwill, the valuation of mortgage servicing rights, and other-than-temporary impairment of securities. |
Investment Securities | Investment Securities Investment securities are classified as available for sale or held to maturity when purchased. There are no trading account securities. Securities available for sale consist primarily of debt securities which Management intends to hold for indefinite periods of time. They may be used as part of the Bank's funds management strategy, and may be sold in response to changes in interest rates or prepayment risk, changes in liquidity needs, or for other reasons. They are accounted for at fair value, with unrealized gains or losses adjusted through shareholders' equity, net of related income taxes. The cost basis is adjusted for the amortization of premiums and accretion of discounts, computed using the effective interest method over the securities' contractual lives. Securities to be held to maturity consist primarily of debt securities which Management has acquired solely for long-term investment purposes, rather than for purposes of trading or future sale. For securities to be held to maturity, Management has the intent and the Bank has the ability to hold such securities until their respective maturity dates. Such securities are carried at cost adjusted for the amortization of premiums and accretion of discounts, computed using the effective interest method over the securities' contractual lives. Investment securities transactions are accounted for on a settlement date basis; reported amounts would not be materially different from those accounted for on a trade date basis. Gains and losses on the sales of investment securities are determined using the amortized cost of the specifically identified security. For declines in the fair value of individual debt securities available for sale below their cost that are deemed to be other than temporary, where the Bank does not intend to sell the security and it is more likely than not that the Bank will not be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in the fair value of the debt security related to 1) credit loss is recognized in earnings and 2) other factors is recognized in other comprehensive income or loss. Credit loss is deemed to exist if the present value of expected future cash flows using the effective rate at acquisition is less than the amortized cost basis of the debt security. For individual debt securities where the Bank intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. |
Derivative Financial Instruments Designated as Hedges | Derivative Financial Instruments Designated as Hedges The Company recognizes all derivatives in the consolidated balance sheets at fair value. On the date the Bank enters into the derivative contract, the Company designates the derivative as a hedge of either a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or a held for trading instrument (“trading instrument”). The Bank formally documents relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting changes in cash flows or fair values of hedged items. Changes in fair value of a derivative that is effective and that qualifies as a cash flow hedge are recorded in other comprehensive income (loss) and are reclassified into earnings when the forecasted transaction or related cash flows affect earnings. Changes in fair value of a derivative that qualifies as a fair value hedge and the change in fair value of the hedged item are both recorded in earnings and offset each other when the transaction is effective. Those derivatives that are classified as trading instruments are recorded at fair value with changes in fair value recorded in earnings. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, that it is unlikely that the forecasted transaction will occur, or that the designation of the derivative as a hedging instrument is no longer appropriate. |
Loans Held for Sale | Loans Held for Sale Loans held for sale consist of residential real estate mortgage loans and are carried at the lower of aggregate cost or fair value, as determined by current investor yield requirements. |
Loans | Loans Loans are generally reported at their outstanding principal balances, adjusted for chargeoffs, the allowance for loan losses and any deferred fees or costs to originate loans. Loan commitments are recorded when funded. |
Loan Fees and Costs | Loan Fees and Costs Loan origination fees and certain direct loan origination costs are deferred and recognized in interest income as an adjustment to the loan yield over the life of the related loans. The unamortized net deferred fees and costs are included on the balance sheets with the related loan balances, and the amortization is included with the related interest income. |
Allowance for Loan Losses | Allowance for Loan Losses Loans considered to be uncollectible are charged against the allowance for loan losses. The allowance for loan losses is maintained at a level determined by Management to be appropriate to absorb probable losses. This allowance is increased by provisions charged to operating expenses and recoveries on loans previously charged off. Arriving at an appropriate level of allowance for loan losses necessarily involves a high degree of judgment. In determining the appropriate level of allowance for loan losses, Management takes into consideration several factors, including reviews of individual non-performing loans and performing loans listed on the watch report requiring periodic evaluation, loan portfolio size by category, recent loss experience, delinquency trends and current economic conditions. For all loan classes, loans over 30 days past due are considered delinquent. Impaired loans include restructured loans and loans placed on non-accrual status when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. These loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or at the fair value of the collateral if the loan is collateral dependent. Management takes into consideration impaired loans in addition to the above mentioned factors in determining the appropriate level of allowance for loan losses. |
Troubled Debt Restructured | Troubled Debt Restructured A troubled debt restructured ("TDR") constitutes a restructuring of debt if the Bank, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. To determine whether or not a loan should be classified as a TDR, Management evaluates a loan to first determine if the borrower demonstrates financial difficulty. Common indicators of this include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender. If the borrower is experiencing financial difficulty and concessions are granted, such as maturity date extension, interest rate adjustments to below market pricing, or a deferral of payments, the loan will generally be classified as a TDR. |
Accrual of Interest Income and Expense | Accrual of Interest Income and Expense Interest on loans and investment securities is taken into income using methods which relate the income earned to the balances of loans and investment securities outstanding. Interest expense on liabilities is derived by applying applicable interest rates to principal amounts outstanding. For all classes of loans, recording of interest income on problem loans, which includes impaired loans, ceases when collectibility of principal and interest within a reasonable period of time becomes doubtful. Cash payments received on non-accrual loans, which includes impaired loans, are applied to reduce the loan's principal balance until the remaining principal balance is deemed collectible, after which interest is recognized when collected. As a general rule, a loan may be restored to accrual status when payments are current for a substantial period of time, generally six months, and repayment of the remaining contractual amounts is expected or when it otherwise becomes well secured and in the process of collection. |
Premises and Equipment | Premises and Equipment Premises, furniture and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed by straight-line methods over the asset's estimated useful life. |
Other Real Estate Owned (OREO) | Other Real Estate Owned ("OREO") Real estate acquired by foreclosure or deed in lieu of foreclosure is transferred to OREO and recorded at fair value, less estimated costs to sell, based on appraised value at the date actually or constructively received. Loan losses arising from the acquisition of such property are charged against the allowance for loan losses. Subsequent provisions to reduce the carrying value of a property are recorded to the allowance for OREO losses and a charge to operations on a property specific basis. |
Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Intangible assets include the excess of the purchase price over the fair value of net assets acquired (goodwill) from the acquisition of FNB Bankshares in 2005 as well as the core deposit intangible related to the same acquisition. The core deposit intangible is amortized on a straight-line basis over ten years . There was no annual amortization expense for 2017 or 2016 as the expense is now fully amortized. For 2015 the annual amortization expense was $15,000 . Intangible assets also include the goodwill and core deposit intangible from the 2012 acquisition of a bank branch in Rockland, Maine and a bank building in Bangor, Maine. The core deposit intangible will be amortized on a straight-line basis over ten years . Annual amortization expense for each of 2017 , 2016 and 2015 was $43,000 , and the amortization expense for each year until fully amortized (presently expected to be 2022) will be $43,000 . The straight-line basis is used because the Company does not expect significant run off in the core deposits acquired. The Company annually evaluates goodwill, and periodically evaluates other intangible assets, for impairment. At December 31, 2017 , the Company determined goodwill and other intangible assets were not impaired. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases, and for tax credits that are available to offset future taxable income. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the change is enacted |
Loan Servicing | Loan Servicing Servicing rights are recognized when they are acquired through sale of loans. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that fair value is less than the capitalized amount for the stratum. |
Post-Retirement Benefits | Post-Retirement Benefits The cost of providing post-retirement benefits is accrued during the active service period of the employee or director. |
Earnings Per Share | Earnings Per Share Basic earnings per share data are based on the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to restricted stock granted and stock options and warrants outstanding, determined by the treasury stock method. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income and other comprehensive income (loss), which is comprised of the change in unrealized gains and losses on securities available for sale, net of tax, change in unrealized losses on securities transferred from available for sale to held to maturity, net of amortization, change in unrealized gain on cash flow hedging derivative instruments, net of tax, and unrecognized gains and losses related to post-retirement benefit costs, net of tax. |
Segments | Segments The First Bancorp, Inc., through the branches of its subsidiary, First National Bank, provides a broad range of financial services to individuals and companies in coastal Maine. These services include demand, time, and savings deposits; lending; ATM processing; and investment management and trust services. Operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all of the Company's banking operations are considered by Management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications Certain items from prior years were reclassified in the financial statements to conform with the current year presentation. These do not have a material impact on the balance sheet or statement of income presentations. |
Fair Value Measurement | Certain assets and liabilities are recorded at fair value to provide additional insight into the Company's quality of earnings. Some of these assets and liabilities are measured on a recurring basis while others are measured on a nonrecurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available for sale are recorded at fair value on a recurring basis. Other assets, such as mortgage servicing rights, loans held for sale, and impaired loans, are recorded at fair value on a nonrecurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows. Level 1 – Valuation is based upon quoted prices for identical instruments in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation includes use of discounted cash flow models and similar techniques. |
Fair Value of Financial Instruments | The fair value methods and assumptions for the Company's financial instruments and other assets measured at fair value are set forth below. Cash, Cash Equivalents and Interest-Bearing Deposits in Other Banks The carrying values of cash equivalents, due from banks and federal funds sold approximate their relative fair values. As such, the Company classifies these financial instruments as Level 1. Investment Securities The fair values of investment securities are estimated by independent providers using a market approach with observable inputs, including matrix pricing and recent transactions. In obtaining such valuation information from third parties, the Company has evaluated their valuation methodologies used to develop the fair values in order to determine whether the valuations are representative of an exit price in the Company's principal markets. The Company's principal markets for its securities portfolios are the secondary institutional markets, with an exit price that is predominantly reflective of bid level pricing in those markets. Fair values are calculated based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. If these considerations had been incorporated into the fair value estimates, the aggregate fair value could have been changed. The carrying values of restricted equity securities approximate fair values. As such, the Company classifies investment securities as Level 2. Loans Held for Sale Loans held for sale are recorded at the lower of carrying value or market value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies mortgage loans held for sale as Level 2. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. The fair values of performing loans are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest risk inherent in the loan. The estimates of maturity are based on the Company's historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions, and the effects of estimated prepayments. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Management has made estimates of fair value using discount rates that it believes to be reasonable. However, because there is no market for many of these financial instruments, Management has no basis to determine whether the fair value presented above would be indicative of the value negotiated in an actual sale. As such, the Company classifies loans as Level 3, except for certain collateral-dependent impaired loans. Fair values of impaired loans are based on estimated cash flows and are discounted using a rate commensurate with the risk associated with the estimated cash flows, or if collateral dependent, discounted to the appraised value of the collateral as determined by reference to sale prices of similar properties, less costs to sell. As such, the Company classifies collateral dependent impaired loans for which a specific reserve results in a fair value measure as Level 2. All other impaired loans are classified as Level 3. Other Real Estate Owned Real estate acquired through foreclosure is initially recorded at fair value. The fair value of other real estate owned is based on property appraisals and an analysis of sales prices of similar properties currently available. As such, the Company records other real estate owned as nonrecurring Level 2. Mortgage Servicing Rights Mortgage servicing rights represent the value associated with servicing residential mortgage loans. Servicing assets and servicing liabilities are reported using the amortization method and compared to fair value for impairment. In evaluating the fair values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. As such, the Company classifies mortgage servicing rights as Level 2. Accrued Interest Receivable The fair value estimate of this financial instrument approximates the carrying value as this financial instrument has a short maturity. It is the Company's policy to stop accruing interest on loans for which it is probable that the interest is not collectible. Therefore, this financial instrument has been adjusted for estimated credit loss. As such, the Company classifies accrued interest receivable as Level 2. Deposits The fair value of deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. As such, the Company classifies deposits as Level 2. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposits compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company's net assets could increase. Borrowed Funds The fair value of borrowed funds is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently available for borrowings of similar remaining maturities. As such, the Company classifies borrowed funds as Level 2. Accrued Interest Payable The fair value estimate approximates the carrying amount as this financial instrument has a short maturity. As such, the Company classifies accrued interest payable as Level 2. Derivatives The fair value of interest rate swaps is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of December 31, 2017 and 2016 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings. Off-Balance-Sheet Instruments Off-balance-sheet instruments include loan commitments. Fair values for loan commitments have not been presented as the future revenue derived from such financial instruments is not significant. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These values do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on Management's judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial instruments include the deferred tax asset, premises and equipment, and other real estate owned. In addition, tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. |
New Accounting Pronouncements | New Accounting Pronouncements The FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, in 2014 to replace the current plethora of industry-specific rules with a broad, principles-based framework for recognizing and measuring revenue. Due to the complexity of the new pronouncement and the anticipated effort required by entities in many industries to implement ASU No. 2014-09, FASB delayed the effective date. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance to annual reporting periods beginning after December 15, 2017, and all other entities should apply the guidance to annual reporting periods beginning after December 15, 2018. FASB formed a Transition Resource Group to assist it in identifying implementation issues that may require further clarification or amendment to ASU No. 2014-09. As a result of that group’s deliberations, FASB has issued the following amendments, which will be effective concurrently with ASU No. 2014-09: ASU No. 2016-08, Principal versus Agent Considerations, which clarifies whether an entity should record the gross amount of revenue or only its ultimate share when a third party is also involved in providing goods or services to a customer; ASU No. 2016-10, Identifying Performance Obligations and Licensing, which clarifies and simplifies the process for determining whether performance obligations to a customer should be segregated and accounted for individually, and clarifies how the new revenue rules apply to licenses of intellectual property; and ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, which clarifies and simplifies the process of assessing collectability of consideration under a contract, presentation of sales taxes, accounting for noncash consideration received, and certain transitional issues. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, the Company does not expect the new guidance to have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company is currently performing an overall assessment of revenue streams and reviewing contracts potentially affected by the ASU including trust and asset management fees, deposit related fees, interchange fees, and merchant income, to determine the potential impact the new guidance is expected to have on the Company’s Consolidated Financial Statements. In addition, the Company continues to follow certain implementation issues relevant to the banking industry which are still pending resolution. The Company plans to adopt ASU No. 2014-09 on January 1, 2018 utilizing the modified retrospective approach. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of U.S. GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management does not expect the ASU to have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Management is reviewing the guidance in the ASU to determine whether it will have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (APIC). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated on the date the award is granted, or recognized when they occur. ASU No. 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. The adoption of the ASU did not have a material effect on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model, requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements, and anticipates it may have a material impact. The Bank has formed an implementation committee for ASU 2016-13. To date, committee members have participated in educational seminars on the new standards, begun the process of identifying the historical data sets that will be necessary to implement the new standard, and chose a third-party vendor who provides software solutions for ASU 2016-13 modeling and calculation. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a Company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU will be effective for the Company on January 1, 2020 and will be applied prospectively. The Company does not expect the implementation to have a material effect on the Company's consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be accreted to maturity. The ASU is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company's current practice aligns with the ASU therefore Management believes there will be no impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The ASU was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a shared-based payment award. The ASU include guidance on determining which changes to the terms and conditions of share-based payment awards require and entity to apply modification accounting under Topic 718. The ASU is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The ASU should be applied prospectively to an award modified on or after the adoption date. Management does not expect the ASU to have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). The amendments in this ASU improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. In addition, this ASU makes certain targeted improvements to simplify the application of the hedge accounting guidance in current US GAAP. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal year. Early application is permitted in any interim period after issuance of the ASU. Management is reviewing the guidance in this ASU to determine whether it will have a material effect on the Company's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Loss). This ASU was issued to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted for financial statements which have not yet been issued. The Company adopted the ASU for the December 31, 2017 consolidated financial statements, which resulted in a reclassification adjustment on the Consolidated Statements of Changes in Shareholders' Equity of $297,000 from accumulated other comprehensive income (loss) to retained earnings. Refer to Note 9, Income Taxes, for additional information. |
Financial Derivative Instruments | As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to mitigate significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so that changes in interest rates do not have a significant effect on net interest income. The Company recognizes its derivative instruments in the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. In 2016, interest rate swaps were contracted to limit the Company’s exposure to rising interest rates on short-term liabilities indexed to one-month London Inter-bank Offered Rates (LIBOR). The interest rate swaps were designated as cash flow hedges. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available For Sale, Held-to-Maturity, and Restricted Equity Securities | The following tables summarize the amortized cost and estimated fair value of investment securities at December 31, 2017 and 2016 : Amortized Unrealized Unrealized Fair Value As of December 31, 2017 Cost Gains Losses (Estimated) Securities available for sale Mortgage-backed securities $ 293,689,000 $ 722,000 $ (4,422,000 ) $ 289,989,000 State and political subdivisions 6,860,000 16,000 (107,000 ) 6,769,000 Other equity securities 3,296,000 121,000 (3,000 ) 3,414,000 $ 303,845,000 $ 859,000 $ (4,532,000 ) $ 300,172,000 Securities to be held to maturity U.S. Government-sponsored agencies $ 11,155,000 $ — $ (180,000 ) $ 10,975,000 Mortgage-backed securities 23,284,000 568,000 (128,000 ) 23,724,000 State and political subdivisions 217,828,000 3,931,000 (1,103,000 ) 220,656,000 Corporate securities 4,300,000 — — 4,300,000 $ 256,567,000 $ 4,499,000 $ (1,411,000 ) $ 259,655,000 Restricted equity securities Federal Home Loan Bank Stock $ 9,321,000 $ — $ — $ 9,321,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 10,358,000 $ — $ — $ 10,358,000 Amortized Unrealized Unrealized Fair Value As of December 31, 2016 Cost Gains Losses (Estimated) Securities available for sale Mortgage-backed securities $ 282,397,000 $ 1,334,000 $ (3,127,000 ) $ 280,604,000 State and political subdivisions 16,183,000 475,000 (176,000 ) 16,482,000 Other equity securities 3,274,000 63,000 (7,000 ) 3,330,000 $ 301,854,000 $ 1,872,000 $ (3,310,000 ) $ 300,416,000 Securities to be held to maturity U.S. Government-sponsored agencies $ 11,943,000 $ 35,000 $ (233,000 ) $ 11,745,000 Mortgage-backed securities 31,201,000 967,000 (147,000 ) 32,021,000 State and political subdivisions 179,384,000 1,971,000 (3,884,000 ) 177,471,000 Corporate securities 4,300,000 — — 4,300,000 $ 226,828,000 $ 2,973,000 $ (4,264,000 ) $ 225,537,000 Restricted equity securities Federal Home Loan Bank Stock $ 10,893,000 $ — $ — $ 10,893,000 Federal Reserve Bank Stock 1,037,000 — — 1,037,000 $ 11,930,000 $ — $ — $ 11,930,000 |
Contractual Maturities of Investment Securities | The following table summarizes the contractual maturities of investment securities at December 31, 2017 : Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 111,000 $ 112,000 $ 635,000 $ 637,000 Due in 1 to 5 years 841,000 842,000 18,059,000 18,164,000 Due in 5 to 10 years 29,003,000 29,177,000 37,182,000 37,719,000 Due after 10 years 270,594,000 266,627,000 200,691,000 203,135,000 Equity securities 3,296,000 3,414,000 — — $ 303,845,000 $ 300,172,000 $ 256,567,000 $ 259,655,000 The following table summarizes the contractual maturities of investment securities at December 31, 2016 : Securities available for sale Securities to be held to maturity Amortized Cost Fair Value (Estimated) Amortized Cost Fair Value (Estimated) Due in 1 year or less $ 253,000 $ 253,000 $ 906,000 $ 913,000 Due in 1 to 5 years 2,251,000 2,298,000 13,451,000 13,714,000 Due in 5 to 10 years 21,043,000 21,505,000 41,588,000 42,448,000 Due after 10 years 275,033,000 273,030,000 170,883,000 168,462,000 Equity securities 3,274,000 3,330,000 — — $ 301,854,000 $ 300,416,000 $ 226,828,000 $ 225,537,000 |
Schedule of Securities Gains and Losses | The following table shows securities gains and losses for 2017 , 2016 and 2015 : 2017 2016 2015 Proceeds from sales of securities $ 15,587,000 $ 10,309,000 $ 35,468,000 Gross realized gains 471,000 673,000 1,399,000 Gross realized losses — — — Net gain $ 471,000 $ 673,000 $ 1,399,000 Related income taxes $ 165,000 $ 236,000 $ 490,000 |
Schedule of Temporary Impairment Losses | Information regarding securities temporarily impaired as of December 31, 2017 is summarized below: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2017 Value Losses Value Losses Value Losses U.S. Government-sponsored agencies $ 7,161,000 $ (94,000 ) $ 3,814,000 $ (86,000 ) $ 10,975,000 $ (180,000 ) Mortgage-backed securities 132,025,000 (1,857,000 ) 101,707,000 (2,693,000 ) 233,732,000 (4,550,000 ) State and political subdivisions 9,425,000 (149,000 ) 38,864,000 (1,061,000 ) 48,289,000 (1,210,000 ) Other equity securities — — 9,000 (3,000 ) 9,000 (3,000 ) $ 148,611,000 $ (2,100,000 ) $ 144,394,000 $ (3,843,000 ) $ 293,005,000 $ (5,943,000 ) As of December 31, 2016 , there were 299 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 15 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2016 is summarized below: Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized As of December 31, 2016 Value Losses Value Losses Value Losses U.S. Government-sponsored agencies $ 6,642,000 $ (233,000 ) $ — $ — $ 6,642,000 $ (233,000 ) Mortgage-backed securities 197,528,000 (3,090,000 ) 2,905,000 (184,000 ) 200,433,000 (3,274,000 ) State and political subdivisions 72,348,000 (4,060,000 ) — — 72,348,000 (4,060,000 ) Other equity securities — — 128,000 (7,000 ) 128,000 (7,000 ) $ 276,518,000 $ (7,383,000 ) $ 3,033,000 $ (191,000 ) $ 279,551,000 $ (7,574,000 ) |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Reconciliation of Mortgage Servicing Assets | Mortgage servicing rights are included in other assets and detailed in the following table: As of December 31, 2017 2016 Mortgage servicing rights $ 5,428,000 $ 5,901,000 Accumulated amortization (4,160,000 ) (4,680,000 ) Impairment reserve — (108,000 ) $ 1,268,000 $ 1,113,000 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of Loan Portfolio | The following table shows the composition of the Company's loan portfolio as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Commercial Real estate $ 323,809,000 27.8 % $ 302,506,000 28.2 % Construction 38,056,000 3.3 % 25,406,000 2.4 % Other 181,528,000 15.6 % 150,769,000 14.1 % Municipal 33,391,000 2.9 % 27,056,000 2.5 % Residential Term 432,661,000 37.1 % 411,469,000 38.4 % Construction 17,868,000 1.5 % 18,303,000 1.7 % Home equity line of credit 111,302,000 9.6 % 110,907,000 10.4 % Consumer 25,524,000 2.2 % 25,110,000 2.3 % Total loans $ 1,164,139,000 100.0 % $ 1,071,526,000 100.0 % |
Loans to Directors, Officers and Employees which exceed $60,000 | A summary of loans to directors and executive officers is as follows: For the years ended December 31, 2017 2016 Balance at beginning of year $ 23,293,000 $ 20,401,000 New loans 867,000 6,278,000 Repayments (1,863,000 ) (3,386,000 ) Balance at end of year $ 22,297,000 $ 23,293,000 |
Past Due Loans Aging | Information on the past-due status of loans as of December 31, 2017 , is presented in the following table: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due All Past Due Current Total 90+ Days & Accruing Commercial Real estate $ 574,000 $ 80,000 $ 220,000 $ 874,000 $ 322,935,000 $ 323,809,000 $ — Construction — — — — 38,056,000 38,056,000 — Other 542,000 6,663,000 574,000 7,779,000 173,749,000 181,528,000 — Municipal — — — — 33,391,000 33,391,000 — Residential Term 1,031,000 4,372,000 2,256,000 7,659,000 425,002,000 432,661,000 436,000 Construction 101,000 370,000 — 471,000 17,397,000 17,868,000 — Home equity line of credit 537,000 445,000 725,000 1,707,000 109,595,000 111,302,000 — Consumer 159,000 18,000 9,000 186,000 25,338,000 25,524,000 9,000 Total $ 2,944,000 $ 11,948,000 $ 3,784,000 $ 18,676,000 $ 1,145,463,000 $ 1,164,139,000 $ 445,000 Information on the past-due status of loans as of December 31, 2016 , is presented in the following table: 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due All Past Due Current Total 90+ Days & Accruing Commercial Real estate $ 1,039,000 $ 22,000 $ 2,415,000 $ 3,476,000 $ 299,030,000 $ 302,506,000 $ 753,000 Construction — — — — 25,406,000 25,406,000 — Other 202,000 33,000 796,000 1,031,000 149,738,000 150,769,000 20,000 Municipal — — — — 27,056,000 27,056,000 — Residential Term 631,000 3,970,000 1,802,000 6,403,000 405,066,000 411,469,000 — Construction — — — — 18,303,000 18,303,000 — Home equity line of credit 704,000 157,000 703,000 1,564,000 109,343,000 110,907,000 — Consumer 135,000 45,000 4,000 184,000 24,926,000 25,110,000 4,000 Total $ 2,711,000 $ 4,227,000 $ 5,720,000 $ 12,658,000 $ 1,058,868,000 $ 1,071,526,000 $ 777,000 |
Nonaccrual Loans | Information on nonaccrual loans as of December 31, 2017 and 2016 is presented in the following table: As of December 31, 2017 2016 Commercial Real estate $ 752,000 $ 1,907,000 Construction — — Other 9,357,000 964,000 Municipal — — Residential Term 3,778,000 4,060,000 Construction — — Home equity line of credit 833,000 843,000 Consumer 16,000 — Total $ 14,736,000 $ 7,774,000 |
Impaired Loans | Information regarding impaired loans is as follows: For the years ended December 31, 2017 2016 2015 Average investment in impaired loans $ 29,108,000 $ 28,217,000 $ 32,698,000 Interest income recognized on impaired loans, all on cash basis 784,000 1,104,000 1,220,000 As of December 31, 2017 2016 Balance of impaired loans $ 31,392,000 $ 27,583,000 Less portion for which no allowance for loan losses is allocated (18,023,000 ) (19,716,000 ) Portion of impaired loan balance for which an allowance for loan losses is allocated $ 13,369,000 $ 7,867,000 Portion of allowance for loan losses allocated to the impaired loan balance $ 1,812,000 $ 974,000 |
Impaired Loans by class of financing receivable | A breakdown of impaired loans by category as of December 31, 2017 , is presented in the following table: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Recognized Interest Income With No Related Allowance Commercial Real estate $ 3,791,000 $ 3,996,000 $ — $ 5,124,000 $ 164,000 Construction 741,000 741,000 — 62,000 38,000 Other 2,591,000 2,671,000 — 1,908,000 36,000 Municipal — — — — — Residential Term 9,769,000 10,909,000 — 10,770,000 297,000 Construction — — — — — Home equity line of credit 1,115,000 1,429,000 — 1,351,000 18,000 Consumer 16,000 29,000 — 12,000 — $ 18,023,000 $ 19,775,000 $ — $ 19,227,000 $ 553,000 With an Allowance Recorded Commercial Real estate $ 3,999,000 $ 4,116,000 $ 224,000 $ 4,460,000 $ 152,000 Construction — — — 699,000 — Other 7,327,000 7,371,000 1,309,000 2,584,000 — Municipal — — — — — Residential Term 1,979,000 2,144,000 255,000 2,106,000 79,000 Construction — — — — — Home equity line of credit 64,000 67,000 24,000 32,000 — Consumer — — — — — $ 13,369,000 $ 13,698,000 $ 1,812,000 $ 9,881,000 $ 231,000 Total Commercial Real estate $ 7,790,000 $ 8,112,000 $ 224,000 $ 9,584,000 $ 316,000 Construction 741,000 741,000 — 761,000 38,000 Other 9,918,000 10,042,000 1,309,000 4,492,000 36,000 Municipal — — — — — Residential Term 11,748,000 13,053,000 255,000 12,876,000 376,000 Construction — — — — — Home equity line of credit 1,179,000 1,496,000 24,000 1,383,000 18,000 Consumer 16,000 29,000 — 12,000 — $ 31,392,000 $ 33,473,000 $ 1,812,000 $ 29,108,000 $ 784,000 Substantially all interest income recognized on impaired loans for all classes of financing receivables was recognized on a cash basis as received. A breakdown of impaired loans by category as of December 31, 2016 , is presented in the following table: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Recognized Interest Income With No Related Allowance Commercial Real estate $ 5,201,000 $ 5,614,000 $ — $ 6,252,000 $ 220,000 Construction — — — 32,000 — Other 1,671,000 1,852,000 — 1,074,000 86,000 Municipal — — — — — Residential Term 11,483,000 12,654,000 — 11,025,000 442,000 Construction — — — — — Home equity line of credit 1,361,000 1,733,000 — 1,213,000 33,000 Consumer — — — 9,000 — $ 19,716,000 $ 21,853,000 $ — $ 19,605,000 $ 781,000 With an Allowance Recorded Commercial Real estate $ 4,820,000 $ 4,925,000 $ 505,000 $ 4,153,000 $ 186,000 Construction 763,000 763,000 100,000 816,000 36,000 Other 72,000 72,000 39,000 317,000 — Municipal — — — — — Residential Term 2,186,000 2,328,000 304,000 3,209,000 101,000 Construction — — — — — Home equity line of credit 26,000 28,000 26,000 69,000 — Consumer — — — 48,000 — $ 7,867,000 $ 8,116,000 $ 974,000 $ 8,612,000 $ 323,000 Total Commercial Real estate $ 10,021,000 $ 10,539,000 $ 505,000 $ 10,405,000 $ 406,000 Construction 763,000 763,000 100,000 848,000 36,000 Other 1,743,000 1,924,000 39,000 1,391,000 86,000 Municipal — — — — — Residential Term 13,669,000 14,982,000 304,000 14,234,000 543,000 Construction — — — — — Home equity line of credit 1,387,000 1,761,000 26,000 1,282,000 33,000 Consumer — — — 57,000 — $ 27,583,000 $ 29,969,000 $ 974,000 $ 28,217,000 $ 1,104,000 A breakdown of impaired loans by category as of December 31, 2015 , is presented in the following table: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Recognized Interest Income With No Related Allowance Commercial Real estate $ 7,173,000 $ 7,496,000 $ — $ 8,990,000 $ 301,000 Construction 30,000 30,000 — 3,000 1,000 Other 1,163,000 1,210,000 — 1,893,000 76,000 Municipal — — — — — Residential Term 11,122,000 12,157,000 — 10,480,000 415,000 Construction — — — — — Home equity line of credit 1,401,000 2,054,000 — 1,400,000 43,000 Consumer — — — 42,000 3,000 $ 20,889,000 $ 22,947,000 $ — $ 22,808,000 $ 839,000 With an Allowance Recorded Commercial Real estate $ 3,544,000 $ 3,627,000 $ 89,000 $ 3,066,000 $ 149,000 Construction 996,000 996,000 302,000 1,153,000 44,000 Other 71,000 77,000 8,000 256,000 5,000 Municipal — — — — — Residential Term 3,966,000 4,193,000 326,000 5,228,000 180,000 Construction — — — — — Home equity line of credit 65,000 66,000 29,000 187,000 3,000 Consumer — — — — — $ 8,642,000 $ 8,959,000 $ 754,000 $ 9,890,000 $ 381,000 Total Commercial Real estate $ 10,717,000 $ 11,123,000 $ 89,000 $ 12,056,000 $ 450,000 Construction 1,026,000 1,026,000 302,000 1,156,000 45,000 Other 1,234,000 1,287,000 8,000 2,149,000 81,000 Municipal — — — — — Residential Term 15,088,000 16,350,000 326,000 15,708,000 595,000 Construction — — — — — Home equity line of credit 1,466,000 2,120,000 29,000 1,587,000 46,000 Consumer — — — 42,000 3,000 $ 29,531,000 $ 31,906,000 $ 754,000 $ 32,698,000 $ 1,220,000 |
Troubled Debt Restructurings on Financing Receivables | The following table shows TDRs by class and the specific reserve as of December 31, 2017 : Number of Loans Balance Specific Reserves Commercial Real estate 8 $ 7,038,000 $ 90,000 Construction 1 741,000 — Other 4 561,000 — Municipal — — — Residential Term 46 8,948,000 233,000 Construction — — — Home equity line of credit 3 513,000 — Consumer — — — 62 $ 17,801,000 $ 323,000 The following table shows TDRs by class and the specific reserve as of December 31, 2016 : Number of Loans Balance Specific Reserves Commercial Real estate 10 $ 8,937,000 $ 375,000 Construction 1 763,000 100,000 Other 5 779,000 — Municipal — — — Residential Term 52 10,503,000 261,000 Construction — — — Home equity line of credit 3 544,000 — Consumer — — — 71 $ 21,526,000 $ 736,000 As of December 31, 2017 , 12 of the loans classified as TDRs with a total balance of $1,407,000 were more than 30 days past due. None of these loans had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2017 : Number of Loans Balance Specific Reserves Commercial Real estate — $ — $ — Construction — — — Other — — — Municipal — — — Residential Term 11 1,240,000 44,000 Construction — — — Home equity line of credit 1 167,000 — Consumer — — — 12 $ 1,407,000 $ 44,000 As of December 31, 2016 , 12 of the loans classified as TDRs with a total balance of $2,303,000 were more than 30 days past due. None of these loans had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2016 : Number of Loans Balance Specific Reserves Commercial Real estate 1 $ 822,000 $ 264,000 Construction — — — Other — — — Municipal — — — Residential Term 10 1,314,000 26,000 Construction — — — Home equity line of credit 1 167,000 — Consumer — — — 12 $ 2,303,000 $ 290,000 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Allowance for loan losses by class of financing receivable and allowance | The following table summarizes the composition of the allowance for loan losses, by class of financing receivable and allowance, as of December 31, 2017 and 2016 : As of December 31, 2017 2016 Allowance for Loans Evaluated Individually for Impairment Commercial Real estate $ 224,000 $ 505,000 Construction — 100,000 Other 1,309,000 39,000 Municipal — — Residential Term 255,000 304,000 Construction — — Home equity line of credit 24,000 26,000 Consumer — — Total $ 1,812,000 $ 974,000 Allowance for Loans Evaluated Collectively for Impairment Commercial Real estate $ 3,648,000 $ 3,483,000 Construction 434,000 296,000 Other 2,049,000 1,741,000 Municipal 20,000 18,000 Residential Term 875,000 984,000 Construction 36,000 44,000 Home equity line of credit 668,000 781,000 Consumer 545,000 559,000 Unallocated 642,000 1,258,000 Total $ 8,917,000 $ 9,164,000 Total Allowance for Loan Losses Commercial Real estate $ 3,872,000 $ 3,988,000 Construction 434,000 396,000 Other 3,358,000 1,780,000 Municipal 20,000 18,000 Residential Term 1,130,000 1,288,000 Construction 36,000 44,000 Home equity line of credit 692,000 807,000 Consumer 545,000 559,000 Unallocated 642,000 1,258,000 Total $ 10,729,000 $ 10,138,000 |
Loan losses by loan segment and allowance element | A breakdown of the allowance for loan losses as of December 31, 2017 and 2016 , by class of financing receivable and allowance element, is presented in the following tables: As of December 31, 2017 Specific Reserves on Loans Evaluated Individually for Impairment General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Unallocated Reserves Total Reserves Commercial Real estate $ 224,000 $ 1,285,000 $ 2,363,000 $ — $ 3,872,000 Construction — 153,000 281,000 — 434,000 Other 1,309,000 723,000 1,326,000 — 3,358,000 Municipal — — 20,000 — 20,000 Residential Term 255,000 311,000 564,000 — 1,130,000 Construction — 13,000 23,000 — 36,000 Home equity line of credit 24,000 297,000 371,000 — 692,000 Consumer — 251,000 294,000 — 545,000 Unallocated — — — 642,000 642,000 $ 1,812,000 $ 3,033,000 $ 5,242,000 $ 642,000 $ 10,729,000 As of December 31, 2016 Specific Reserves on Loans Evaluated Individually for Impairment General Reserves on Loans Based on Historical Loss Experience Reserves for Qualitative Factors Unallocated Reserves Total Reserves Commercial Real estate $ 505,000 $ 1,471,000 $ 2,012,000 $ — $ 3,988,000 Construction 100,000 125,000 171,000 — 396,000 Other 39,000 735,000 1,006,000 — 1,780,000 Municipal — — 18,000 — 18,000 Residential Term 304,000 563,000 421,000 — 1,288,000 Construction — 25,000 19,000 — 44,000 Home equity line of credit 26,000 444,000 337,000 — 807,000 Consumer — 328,000 231,000 — 559,000 Unallocated — — — 1,258,000 1,258,000 $ 974,000 $ 3,691,000 $ 4,215,000 $ 1,258,000 $ 10,138,000 |
Summary of risk ratings for loans | The following table summarizes the risk ratings for the Company's commercial construction, commercial real estate, commercial other and municipal loans as of December 31, 2017 : Commercial Real Estate Commercial Construction Commercial Other Municipal Loans All Risk- Rated Loans 1 Strong $ — $ — $ 1,586,000 $ — $ 1,586,000 2 Above average 12,534,000 40,000 5,776,000 32,673,000 51,023,000 3 Satisfactory 73,899,000 2,856,000 38,151,000 718,000 115,624,000 4 Average 173,956,000 22,446,000 84,360,000 — 280,762,000 5 Watch 41,652,000 12,714,000 33,934,000 — 88,300,000 6 OAEM 3,442,000 — 2,765,000 — 6,207,000 7 Substandard 18,203,000 — 14,956,000 — 33,159,000 8 Doubtful 123,000 — — — 123,000 Total $ 323,809,000 $ 38,056,000 $ 181,528,000 $ 33,391,000 $ 576,784,000 The following table summarizes the risk ratings for the Company's commercial construction, commercial real estate, commercial other and municipal loans as of December 31, 2016 : Commercial Real Estate Commercial Construction Commercial Other Municipal Loans All Risk- Rated Loans 1 Strong $ 2,000 $ — $ 850,000 $ — $ 852,000 2 Above average 13,981,000 49,000 8,934,000 25,527,000 48,491,000 3 Satisfactory 81,286,000 1,345,000 48,212,000 1,529,000 132,372,000 4 Average 139,421,000 16,506,000 65,146,000 — 221,073,000 5 Watch 43,181,000 7,349,000 16,864,000 — 67,394,000 6 OAEM 4,569,000 — 1,587,000 — 6,156,000 7 Substandard 20,066,000 157,000 9,176,000 — 29,399,000 8 Doubtful — — — — — Total $ 302,506,000 $ 25,406,000 $ 150,769,000 $ 27,056,000 $ 505,737,000 |
Allowance for loan losses transactions | The following tables present allowance for loan losses activity by class, allowance for loan loss balances by class and related loan balances by class for the years ended December 31, 2017 , 2016 and 2015 : For the year ended December 31, 2017 Commercial Residential Home Equity Line of Credit Real Estate Construction Other Municipal Term Construction Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 3,988,000 $ 396,000 $ 1,780,000 $ 18,000 $ 1,288,000 $ 44,000 $ 807,000 $ 559,000 $ 1,258,000 $ 10,138,000 Chargeoffs 587,000 — 212,000 — 456,000 — 28,000 335,000 — 1,618,000 Recoveries — — 49,000 — 40,000 — 11,000 109,000 — 209,000 Provision (credit) 471,000 38,000 1,741,000 2,000 258,000 (8,000 ) (98,000 ) 212,000 (616,000 ) 2,000,000 Ending balance $ 3,872,000 $ 434,000 $ 3,358,000 $ 20,000 $ 1,130,000 $ 36,000 $ 692,000 $ 545,000 $ 642,000 $ 10,729,000 Ending balance specifically evaluated for impairment $ 224,000 $ — $ 1,309,000 $ — $ 255,000 $ — $ 24,000 $ — $ — $ 1,812,000 Ending balance collectively evaluated for impairment $ 3,648,000 $ 434,000 $ 2,049,000 $ 20,000 $ 875,000 $ 36,000 $ 668,000 $ 545,000 $ 642,000 $ 8,917,000 Related loan balances: Ending balance $ 323,809,000 $ 38,056,000 $ 181,528,000 $ 33,391,000 $ 432,661,000 $ 17,868,000 $ 111,302,000 $ 25,524,000 $ — $ 1,164,139,000 Ending balance specifically evaluated for impairment $ 7,790,000 $ 741,000 $ 9,918,000 $ — $ 11,748,000 $ — $ 1,179,000 $ 16,000 $ — $ 31,392,000 Ending balance collectively evaluated for impairment $ 316,019,000 $ 37,315,000 $ 171,610,000 $ 33,391,000 $ 420,913,000 $ 17,868,000 $ 110,123,000 $ 25,508,000 $ — $ 1,132,747,000 For the year ended December 31, 2016 Commercial Residential Home Equity Line of Credit Real Estate Construction Other Municipal Term Construction Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 3,120,000 $ 580,000 $ 1,452,000 $ 17,000 $ 1,391,000 $ 24,000 $ 893,000 $ 566,000 $ 1,873,000 $ 9,916,000 Chargeoffs 294,000 75,000 376,000 — 379,000 — 147,000 450,000 — 1,721,000 Recoveries — 8,000 129,000 — 93,000 — 5,000 108,000 — 343,000 Provision (credit) 1,162,000 (117,000 ) 575,000 1,000 183,000 20,000 56,000 335,000 (615,000 ) 1,600,000 Ending balance $ 3,988,000 $ 396,000 $ 1,780,000 $ 18,000 $ 1,288,000 $ 44,000 $ 807,000 $ 559,000 $ 1,258,000 $ 10,138,000 Ending balance specifically evaluated for impairment $ 505,000 $ 100,000 $ 39,000 $ — $ 304,000 $ — $ 26,000 $ — $ — $ 974,000 Ending balance collectively evaluated for impairment $ 3,483,000 $ 296,000 $ 1,741,000 $ 18,000 $ 984,000 $ 44,000 $ 781,000 $ 559,000 $ 1,258,000 $ 9,164,000 Related loan balances: Ending balance $ 302,506,000 $ 25,406,000 $ 150,769,000 $ 27,056,000 $ 411,469,000 $ 18,303,000 $ 110,907,000 $ 25,110,000 $ — $ 1,071,526,000 Ending balance specifically evaluated for impairment $ 10,021,000 $ 763,000 $ 1,743,000 $ — $ 13,669,000 $ — $ 1,387,000 $ — $ — $ 27,583,000 Ending balance collectively evaluated for impairment $ 292,485,000 $ 24,643,000 $ 149,026,000 $ 27,056,000 $ 397,800,000 $ 18,303,000 $ 109,520,000 $ 25,110,000 $ — $ 1,043,943,000 For the year ended December 31, 2015 Commercial Residential Home Equity Line of Credit Real Estate Construction Other Municipal Term Construction Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 3,532,000 $ 823,000 $ 1,505,000 $ 15,000 $ 1,185,000 $ 20,000 $ 1,060,000 $ 542,000 $ 1,662,000 $ 10,344,000 Chargeoffs 280,000 9,000 732,000 — 420,000 — 582,000 350,000 — 2,373,000 Recoveries 2,000 1,000 88,000 — 152,000 — 31,000 121,000 — 395,000 Provision (credit) (134,000 ) (235,000 ) 591,000 2,000 474,000 4,000 384,000 253,000 211,000 1,550,000 Ending balance $ 3,120,000 $ 580,000 $ 1,452,000 $ 17,000 $ 1,391,000 $ 24,000 $ 893,000 $ 566,000 $ 1,873,000 $ 9,916,000 Ending balance specifically evaluated for impairment $ 89,000 $ 302,000 $ 8,000 $ — $ 326,000 $ — $ 29,000 $ — $ — $ 754,000 Ending balance collectively evaluated for impairment $ 3,031,000 $ 278,000 $ 1,444,000 $ 17,000 $ 1,065,000 $ 24,000 $ 864,000 $ 566,000 $ 1,873,000 $ 9,162,000 Related loan balances: Ending balance $ 269,462,000 $ 24,881,000 $ 128,341,000 $ 19,751,000 $ 403,030,000 $ 8,451,000 $ 110,202,000 $ 24,520,000 $ — $ 988,638,000 Ending balance specifically evaluated for impairment $ 10,717,000 $ 1,026,000 $ 1,234,000 $ — $ 15,088,000 $ — $ 1,466,000 $ — $ — $ 29,531,000 Ending balance collectively evaluated for impairment $ 258,745,000 $ 23,855,000 $ 127,107,000 $ 19,751,000 $ 387,942,000 $ 8,451,000 $ 108,736,000 $ 24,520,000 $ — $ 959,107,000 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment are carried at cost and consist of the following: As of December 31, 2017 2016 Land $ 4,639,000 $ 4,742,000 Land improvements 1,052,000 1,041,000 Buildings 22,254,000 21,601,000 Equipment 13,147,000 12,032,000 41,092,000 39,416,000 Less accumulated depreciation 18,590,000 17,214,000 $ 22,502,000 $ 22,202,000 |
Schedule of Anticipated Rental Revenue | Future minimum receipts under lease agreements at December 31, 2017 for each of the next five years and in the aggregate are: 2018 $192,000 2019 141,000 2020 101,000 2021 97,000 2022 94,000 Thereafter 9,000 $634,000 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Other Real Estate Owned | The following summarizes other real estate owned: As of December 31, 2017 2016 Real estate acquired in settlement of loans $ 1,012,000 $ 375,000 |
Change in Allowance for Losses from Other Real Estate Owned | Changes in the allowance for losses from other real estate owned were as follows: For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ 205,000 $ 162,000 $ 654,000 Losses charged to allowance (169,000 ) (89,000 ) (803,000 ) Provision charged to operating expenses 17,000 132,000 311,000 Balance at end of year $ 53,000 $ 205,000 $ 162,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Components of Income Tax Expense | The current and deferred components of income tax expense (benefit) were as follows: For the years ended December 31, 2017 2016 2015 Federal income tax Current $ 4,184,000 $ 6,276,000 $ 4,895,000 Deferred 2,083,000 (139,000 ) 332,000 6,267,000 6,137,000 5,227,000 State franchise tax 345,000 317,000 287,000 $ 6,612,000 $ 6,454,000 $ 5,514,000 |
Actual Tax Expense from Expected Tax Expense | The actual tax expense differs from the expected tax expense (computed by applying the applicable U.S. Federal corporate income tax rate to income before income taxes) as follows: For the years ended December 31, 2017 2016 2015 Expected tax expense $ 9,170,000 $ 8,562,000 $ 7,602,000 Non-taxable income (2,625,000 ) (2,176,000 ) (2,086,000 ) State franchise tax, net of federal tax benefit 224,000 206,000 187,000 Equity compensation (83,000 ) — — Tax credits, net of amortization (88,000 ) (105,000 ) (185,000 ) Change in federal tax rate 134,000 — — Other (120,000 ) (33,000 ) (4,000 ) $ 6,612,000 $ 6,454,000 $ 5,514,000 |
Components of Deferred Tax Assets and Liabilities | Items that give rise to the deferred income tax assets and liabilities and the tax effect of each at December 31, 2017 and 2016 are as follows: 2017 2016 Allowance for loan losses $ 2,253,000 $ 3,548,000 OREO 11,000 72,000 Accrued pension and post-retirement 1,036,000 1,730,000 Goodwill — 2,000 Unrealized loss on securities transferred from available for sale to held to maturity 46,000 70,000 Unrealized loss on securities available for sale 772,000 503,000 Restricted stock grants 173,000 237,000 Core deposit intangible 15,000 20,000 Investment in flow through entities 22,000 29,000 Other assets 28,000 48,000 Total deferred tax asset 4,356,000 6,259,000 Net deferred loan costs (1,313,000 ) (1,895,000 ) Depreciation (1,306,000 ) (1,808,000 ) Goodwill (39,000 ) — Mortgage servicing rights (266,000 ) (390,000 ) Unrealized gain on derivative instruments (410,000 ) (626,000 ) Prepaid expense (821,000 ) — Total deferred tax liability (4,155,000 ) (4,719,000 ) Net deferred tax asset $ 201,000 $ 1,540,000 |
Certificates of Deposit (Tables
Certificates of Deposit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Certificates of deposit | The following table represents the breakdown of certificates of deposit at December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Certificates of deposit < $100,000 $ 284,066,000 $ 195,115,000 Certificates $100,000 to $250,000 232,759,000 240,904,000 Certificates $250,000 and over 42,176,000 40,601,000 $ 559,001,000 $ 476,620,000 |
Maturities of certificates of deposit | At December 31, 2017 , the scheduled maturities of certificates of deposit are as follows: Year of Maturity Less than $100,000 $100,000 and Greater All Certificates of Deposit 2018 $ 215,571,000 $ 177,745,000 $ 393,316,000 2019 26,401,000 27,164,000 53,565,000 2020 17,516,000 33,710,000 51,226,000 2021 13,137,000 17,060,000 30,197,000 2022 11,411,000 19,256,000 30,667,000 2023 and thereafter 30,000 — 30,000 $ 284,066,000 $ 274,935,000 $ 559,001,000 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Borrowed Funds [Abstract] | |
Range of Interest Rates and Maturity Dates of Borrowed Funds | Borrowed funds at December 31, 2017 and 2016 have the following range of interest rates and maturity dates: As of December 31, 2017 Federal Home Loan Bank Advances 2018 1.59% - 3.25% $ 43,074,000 2020 1.60% - 1.97% 55,000,000 2021 1.55% 10,000,000 2023 and thereafter 0.00% - 0.99% 50,120,000 158,194,000 Repurchase agreements Municipal and commercial customers 0.15% - 2.48% 70,564,000 $ 228,758,000 As of December 31, 2016 Federal Home Loan Bank Advances 2017 0.99% - 3.69% $ 74,600,000 2018 2.25% - 3.25% 30,000,000 2020 1.60% - 1.97% 55,000,000 2021 1.55% 10,000,000 2022 and thereafter 0.00% - 0.59% 25,127,000 194,727,000 Repurchase agreements Municipal and commercial customers 0.15% - 1.93% 84,174,000 $ 278,901,000 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
Accumulated post-retirement benefit obligation and funded status | The following table sets forth the accumulated post-retirement benefit obligation and funded status: At December 31, 2017 2016 2015 Change in benefit obligations Benefit obligation at beginning of year: $ 1,870,000 $ 1,967,000 $ 1,928,000 Interest cost 77,000 81,000 80,000 Benefits paid (113,000 ) (109,000 ) (102,000 ) Actuarial (gain) loss 40,000 (69,000 ) 61,000 Benefit obligation at end of year: $ 1,874,000 $ 1,870,000 $ 1,967,000 Funded status Benefit obligation at end of year $ (1,874,000 ) $ (1,870,000 ) $ (1,967,000 ) Unamortized loss 186,000 156,000 240,000 Accrued benefit cost $ (1,688,000 ) $ (1,714,000 ) $ (1,727,000 ) Weighted average discount rate as of December 31 4.25 % 4.25 % 4.25 % |
Schedule of net benefit costs | The following table sets forth the net periodic benefit cost: For the years ended December 31, 2017 2016 2015 Components of net periodic benefit cost Interest cost $ 77,000 $ 81,000 $ 80,000 Amortization of loss — 4,000 — Other settlement expense 11,000 11,000 12,000 Net periodic benefit cost $ 88,000 $ 96,000 $ 92,000 Weighted average discount rate for net periodic cost 4.25 % 4.25 % 4.25 % |
Schedule of net periodic benefit cost not yet recognized | In accordance with FASB ASC Topic 715, "Compensation – Retirement Benefits", amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) are as follows: At December 31, 2017 2016 Portion to Be Recognized in Income in 2018 Unamortized net actuarial loss $ (186,000 ) $ (156,000 ) $ (185,000 ) Deferred tax benefit at 35% 65,000 54,000 65,000 Reclassification adjustment for effect of enacted tax law changes (26,000 ) — — Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss) $ (147,000 ) $ (102,000 ) $ (120,000 ) |
Other Comprehensive Income (L46
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes activity in the unrealized gain or loss on available for sale securities included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 . For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ (935,000 ) $ 1,123,000 $ 2,522,000 Unrealized losses arising during the year (1,763,000 ) (2,493,000 ) (754,000 ) Reclassification of realized gains during the year (471,000 ) (673,000 ) (1,399,000 ) Related deferred taxes 782,000 1,108,000 754,000 Reclassification adjustment for effect of enacted tax law changes (514,000 ) — — Net change (1,966,000 ) (2,058,000 ) (1,399,000 ) Balance at end of year $ (2,901,000 ) $ (935,000 ) $ 1,123,000 The reclassification of realized gains is included in the net securities gains line of the consolidated statements of income and comprehensive income and the tax effect is included in the income tax expense line of the same statement. The following table summarizes activity in the unrealized loss on securities transferred from available for sale to held to maturity included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015 . For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ (129,000 ) $ (112,000 ) $ (48,000 ) Amortization of net unrealized losses (22,000 ) (26,000 ) (98,000 ) Related deferred taxes 8,000 9,000 34,000 Reclassification adjustment for effect of enacted tax law changes (31,000 ) — — Net change (45,000 ) (17,000 ) (64,000 ) Balance at end of year $ (174,000 ) $ (129,000 ) $ (112,000 ) The following table represents the effect of the Company's derivative financial instruments included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015 . For the years ended December 31, 2017 2016 2015 Balance at beginning of year $ 1,163,000 $ — $ — Unrealized gains on cash flow hedging derivatives arising during the year 165,000 1,790,000 — Related deferred taxes (58,000 ) (627,000 ) — Reclassification adjustment for effect of enacted tax law changes 274,000 — — Net change 381,000 1,163,000 — Balance at end of year $ 1,544,000 $ 1,163,000 $ — The following table summarizes activity in the unrealized gain or loss on postretirement benefits included in other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015 : For the years ended December 31, 2017 2016 2015 Unrecognized postretirement benefits at beginning of year $ (102,000 ) $ (156,000 ) $ (125,000 ) Change in unamortized net actuarial loss (30,000 ) 84,000 (48,000 ) Related deferred taxes 11,000 (30,000 ) 17,000 Reclassification adjustment for effect of enacted tax law changes (26,000 ) $ — $ — Net change (45,000 ) $ 54,000 $ (31,000 ) Unrecognized postretirement benefits at end of year $ (147,000 ) $ (102,000 ) $ (156,000 ) |
Financial Derivative Instrume47
Financial Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The details of the interest rate swap agreements are as follows: As of December 31, 2017 2016 Notional Amount Effective Date Maturity Date Variable Index Received Fixed Rate Paid Fair Value (1) Fair Value (1) $ 30,000,000 June 28, 2016 June 28, 2021 1-Month USD LIBOR 0.94 % $ 1,154,000 $ 1,049,000 $ 20,000,000 June 27, 2016 June 27, 2021 1-Month USD LIBOR 0.89 % $ 801,000 741,000 $ 50,000,000 $ 1,955,000 $ 1,790,000 (1) Presented within other assets in the consolidated balance sheet. |
Stock Options and Stock-Based48
Stock Options and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | At the 2010 Annual Meeting, shareholders approved the 2010 Equity Incentive Plan (the "2010 Plan"). This reserves 400,000 shares of common stock for issuance in connection with stock option |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share (EPS) | The following table provides detail for basic earnings per share (EPS) and diluted (EPS) for the years ended December 31, 2017 , 2016 and 2015 : Income (Numerator) Shares (Denominator) Per-Share Amount For the year ended December 31, 2017 Net income as reported $ 19,588,000 Basic EPS: Income available to common shareholders 19,588,000 10,747,306 $ 1.82 Effect of dilutive securities: restricted stock 71,712 Diluted EPS: Income available to common shareholders plus assumed conversions $ 19,588,000 10,819,018 $ 1.81 For the year ended December 31, 2016 Net income as reported $ 18,009,000 Basic EPS: Income available to common shareholders 18,009,000 10,713,290 $ 1.68 Effect of dilutive securities: restricted stock and warrants 116,512 Diluted EPS: Income available to common shareholders plus assumed conversions $ 18,009,000 10,829,802 $ 1.66 For the year ended December 31, 2015 Net income as reported $ 16,206,000 Basic EPS: Income available to common shareholders 16,206,000 10,674,755 $ 1.52 Effect of dilutive securities: restricted stock and warrants 90,114 Diluted EPS: Income available to common shareholders plus assumed conversions $ 16,206,000 10,764,869 $ 1.51 |
Number of options and warrants outstanding and amount above or below the strike price | The following table presents the number of options and warrants outstanding as of December 31, 2015 and the amount for which the average price at year end is above or below the strike price: Outstanding In-the-Money Out-of-the-Money As of December 31, 2015 Warrants issued to private parties 226,819 226,819 — Total dilutive securities 226,819 226,819 — |
Regulatory Capital Requiremen50
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
The actual and minimum capital amounts and ratios | The actual and minimum capital amounts and ratios for the Bank are presented in the following table: Actual For capital adequacy purposes To be well-capitalized under prompt corrective action provisions As of December 31, 2017 Tier 2 capital to $ 162,355,000 $ 86,063,000 $ 107,579,000 risk-weighted assets 15.09 % 8.00 % 10.00 % Tier 1 capital to $ 151,526,000 $ 64,548,000 $ 86,063,000 risk-weighted assets 14.09 % 6.00 % 8.00 % Common equity Tier 1 capital to $ 151,526,000 $ 48,411,000 $ 69,926,000 risk-weighted assets 14.09 % 4.50 % 6.50 % Tier 1 capital to $ 151,526,000 $ 71,386,000 $ 89,233,000 average assets 8.49 % 4.00 % 5.00 % As of December 31, 2016 Tier 2 capital to $ 151,487,000 $ 77,928,000 $ 97,410,000 risk-weighted assets 15.55 % 8.00 % 10.00 % Tier 1 capital to $ 141,249,000 $ 58,446,000 $ 77,928,000 risk-weighted assets 14.50 % 6.00 % 8.00 % Common equity Tier 1 capital to $ 141,249,000 $ 43,835,000 $ 63,317,000 risk-weighted assets 14.50 % 4.50 % 6.50 % Tier 1 capital to $ 141,249,000 $ 65,437,000 $ 81,797,000 average assets 8.63 % 4.00 % 5.00 % The actual and minimum capital amounts and ratios for the Company, on a consolidated basis, are presented in the following table: Actual For capital adequacy purposes To be well-capitalized under prompt corrective action provisions As of December 31, 2017 Tier 2 capital to $ 163,943,000 $ 86,070,000 n/a risk-weighted assets 15.24 % 8.00 % n/a Tier 1 capital to $ 153,114,000 $ 64,553,000 n/a risk-weighted assets 14.23 % 6.00 % n/a Common equity Tier 1 capital to $ 153,114,000 $ 48,415,000 n/a risk-weighted assets 14.23 % 4.50 % n/a Tier 1 capital to $ 153,114,000 $ 71,435,000 n/a average assets 8.57 % 4.00 % n/a As of December 31, 2016 Tier 2 capital to $ 152,802,000 $ 77,928,000 n/a risk-weighted assets 15.69 % 8.00 % n/a Tier 1 capital to $ 142,564,000 $ 58,446,000 n/a risk-weighted assets 14.64 % 6.00 % n/a Common equity Tier 1 capital to $ 142,564,000 $ 43,835,000 n/a risk-weighted assets 14.64 % 4.50 % n/a Tier 1 capital to $ 142,564,000 $ 65,470,000 n/a average assets 8.71 % 4.00 % n/a |
Off-Balance-Sheet Financial I51
Off-Balance-Sheet Financial Instruments and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance-Sheet Financial instruments | At December 31, 2017 and 2016 , the Bank had the following off-balance-sheet financial instruments, whose contract amounts represent credit risk: As of December 31, 2017 2016 Unused lines, collateralized by residential real estate $ 76,887,000 $ 76,646,000 Other unused commitments 62,771,000 57,738,000 Standby letters of credit 3,497,000 4,198,000 Commitments to extend credit 8,724,000 10,684,000 Total $ 151,879,000 $ 149,266,000 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured on recurring basis measured at fair value | The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2017 and 2016 . At December 31, 2017 Level 1 Level 2 Level 3 Total Securities available for sale Mortgage-backed securities $ — $ 289,989,000 $ — $ 289,989,000 State and political subdivisions — 6,769,000 — 6,769,000 Other equity securities — 3,414,000 — 3,414,000 Total securities available for sale $ — $ 300,172,000 $ — $ 300,172,000 Interest rate swap agreements $ — $ 1,955,000 $ — $ 1,955,000 Total assets $ — $ 302,127,000 $ — $ 302,127,000 At December 31, 2016 Level 1 Level 2 Level 3 Total Securities available for sale Mortgage-backed securities $ — $ 280,604,000 $ — $ 280,604,000 State and political subdivisions — 16,482,000 — 16,482,000 Other equity securities — 3,330,000 — 3,330,000 Total securities available for sale $ — $ 300,416,000 $ — $ 300,416,000 Interest rate swap agreements $ — $ 1,790,000 $ — $ 1,790,000 Total assets $ — $ 302,206,000 $ — $ 302,206,000 |
Assets and liabilities measured on non-recurring basis measured at fair value | The following tables present assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance for losses of $53,000 and $205,000 at December 31, 2017 and 2016 , respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $1,531,000 and $478,000 at December 31, 2017 and 2016 , respectively. At December 31, 2017 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ 1,012,000 $ — $ 1,012,000 Impaired loans — 6,521,000 — 6,521,000 Total assets $ — $ 7,533,000 $ — $ 7,533,000 At December 31, 2016 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ 375,000 $ — $ 375,000 Impaired loans — 827,000 — 827,000 Total assets $ — $ 1,202,000 $ — $ 1,202,000 |
Estimated fair value of financial instruments | The carrying amounts and estimated fair values for financial instruments as of December 31, 2017 were as follows: Carrying Estimated As of December 31, 2017 value fair value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 19,207,000 $ 19,207,000 $ 19,207,000 $ — $ — Interest-bearing deposits in other banks 860,000 860,000 860,000 — — Securities available for sale 300,172,000 300,172,000 — 300,172,000 — Securities to be held to maturity 256,567,000 259,655,000 — 259,655,000 — Restricted equity securities 10,358,000 10,358,000 — 10,358,000 — Loans held for sale 386,000 386,000 — 386,000 — Loans (net of allowance for loan losses) Commercial Real estate 319,691,000 311,321,000 — 72,000 311,249,000 Construction 37,594,000 36,610,000 — — 36,610,000 Other 177,956,000 175,455,000 — 6,018,000 169,437,000 Municipal 33,370,000 33,280,000 — — 33,280,000 Residential Term 431,459,000 431,028,000 — 391,000 430,637,000 Construction 17,830,000 17,613,000 — — 17,613,000 Home equity line of credit 110,566,000 109,012,000 — 40,000 108,972,000 Consumer 24,944,000 24,408,000 — — 24,408,000 Total loans 1,153,410,000 1,138,727,000 — 6,521,000 1,132,206,000 Mortgage servicing rights 1,268,000 2,321,000 — 2,321,000 — Interest rate swap agreements 1,955,000 1,955,000 — 1,955,000 — Accrued interest receivable 5,867,000 5,867,000 — 5,867,000 — Financial liabilities Demand deposits $ 181,970,000 $ 174,481,000 $ — $ 174,481,000 $ — NOW deposits 281,405,000 261,702,000 — 261,702,000 — Money market deposits 163,898,000 153,497,000 — 153,497,000 — Savings deposits 232,605,000 203,799,000 — 203,799,000 — Local certificates of deposit 223,074,000 220,734,000 — 220,734,000 — National certificates of deposit 335,927,000 335,775,000 — 335,775,000 — Total deposits 1,418,879,000 1,349,988,000 — 1,349,988,000 — Repurchase agreements 70,564,000 67,976,000 — 67,976,000 — Federal Home Loan Bank advances 158,194,000 156,396,000 — 156,396,000 — Total borrowed funds 228,758,000 224,372,000 — 224,372,000 — Accrued interest payable 642,000 642,000 — 642,000 — The carrying amounts and estimated fair values for financial instruments as of December 31, 2016 were as follows: Carrying Estimated As of December 31, 2016 value fair value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 17,366,000 $ 17,366,000 $ 17,366,000 $ — $ — Interest-bearing deposits in other banks 293,000 293,000 293,000 — — Securities available for sale 300,416,000 300,416,000 — 300,416,000 — Securities to be held to maturity 226,828,000 225,537,000 — 225,537,000 — Restricted equity securities 11,930,000 11,930,000 — 11,930,000 — Loans held for sale 782,000 782,000 — 782,000 — Loans (net of allowance for loan losses) Commercial Real estate 297,952,000 293,103,000 — 558,000 292,545,000 Construction 24,954,000 24,548,000 — — 24,548,000 Other 148,737,000 147,394,000 — 33,000 147,361,000 Municipal 27,035,000 27,446,000 — — 27,446,000 Residential Term 409,999,000 410,327,000 — 236,000 410,091,000 Construction 18,253,000 18,125,000 — — 18,125,000 Home equity line of credit 109,986,000 108,740,000 — — 108,740,000 Consumer 24,472,000 24,131,000 — — 24,131,000 Total loans 1,061,388,000 1,053,814,000 — 827,000 1,052,987,000 Mortgage servicing rights 1,113,000 1,696,000 — 1,696,000 — Interest rate swap agreements 1,790,000 1,790,000 — 1,790,000 — Accrued interest receivable 5,532,000 5,532,000 — 5,532,000 — Financial liabilities Demand deposits $ 140,482,000 $ 133,342,000 $ — $ 133,342,000 $ — NOW deposits 282,971,000 259,418,000 — 259,418,000 — Money market deposits 125,544,000 115,087,000 — 115,087,000 — Savings deposits 217,340,000 188,260,000 — 188,260,000 — Local certificates of deposit 210,316,000 209,370,000 — 209,370,000 — National certificates of deposit 266,304,000 266,372,000 — 266,372,000 — Total deposits 1,242,957,000 1,171,849,000 — 1,171,849,000 — Repurchase agreements 84,174,000 79,827,000 — 79,827,000 — Federal Home Loan Bank advances 194,727,000 193,733,000 — 193,733,000 — Total borrowed funds 278,901,000 273,560,000 — 273,560,000 — Accrued interest payable 479,000 479,000 — 479,000 — |
Other Operating Income and Ex53
Other Operating Income and Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other operating income and expense | Other operating income and other operating expense include the following items greater than 1% of revenues. For the years ended December 31, 2017 2016 2015 Other operating income ATM and debit card income $ 3,378,000 $ 3,024,000 $ 2,714,000 Other operating expense Advertising and marketing expense $ 1,208,000 $ 1,099,000 $ 1,178,000 Accounting and auditing expenses 818,000 690,000 797,000 ATM and interchange expense 886,000 853,000 814,000 |
Condensed Financial Informati54
Condensed Financial Information of Parent (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed financial information for Parent | Condensed financial information for The First Bancorp, Inc. exclusive of its subsidiary is as follows: Balance Sheets As of December 31, 2017 2016 Assets Cash and cash equivalents $ 958,000 $ 613,000 Dividends receivable 2,500,000 3,800,000 Investments 441,000 432,000 Investment in subsidiary 152,174,000 143,611,000 Premises and equipment 3,000 4,000 Goodwill 27,559,000 27,559,000 Other assets 312,000 300,000 Total assets $ 183,947,000 $ 176,319,000 Liabilities and shareholders' equity Dividends payable $ 2,599,000 $ 3,778,000 Other liabilities 27,000 20,000 Total liabilities 2,626,000 3,798,000 Shareholders' equity Common stock 108,000 108,000 Additional paid-in capital 61,747,000 60,723,000 Retained earnings 119,373,000 111,653,000 Accumulated other comprehensive income Net unrealized gain on available for sale securities, net of tax 93,000 37,000 Total accumulated other comprehensive income 93,000 37,000 Total shareholders' equity 181,321,000 172,521,000 Total liabilities and shareholders' equity $ 183,947,000 $ 176,319,000 Statements of Income For the years ended December 31, 2017 2016 2015 Interest and dividends on investments $ 15,000 $ 22,000 $ 18,000 Net securities losses (3,000 ) (6,000 ) — Total income 12,000 16,000 18,000 Occupancy expense 5,000 9,000 12,000 Other operating expense 588,000 528,000 488,000 Total expense 593,000 537,000 500,000 Loss before income taxes and Bank earnings (581,000 ) (521,000 ) (482,000 ) Applicable income taxes (187,000 ) (186,000 ) (172,000 ) Loss before Bank earnings (394,000 ) (335,000 ) (310,000 ) Equity in earnings of Bank Remitted 11,180,000 11,300,000 10,000,000 Unremitted 8,802,000 7,044,000 6,516,000 Net income $ 19,588,000 $ 18,009,000 $ 16,206,000 Statements of Cash Flows For the years ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 19,588,000 $ 18,009,000 $ 16,206,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 5,000 8,000 12,000 Equity compensation expense 392,000 298,000 296,000 Loss on sale of investments 3,000 6,000 — Tax benefit from vesting of restricted stock — 32,000 — (Increase) decrease in other assets 27,000 136,000 (135,000 ) (Increase) decrease in dividends receivable 1,300,000 (1,300,000 ) (50,000 ) Increase (decrease) in dividends payable (1,179,000 ) 112,000 — Increase (decrease) in other liabilities (3,000 ) (4,000 ) 160,000 Unremitted earnings of Bank (8,802,000 ) (7,044,000 ) (6,516,000 ) Net cash provided by operating activities 11,331,000 10,253,000 9,973,000 Cash flows from investing activities: Proceeds from sales/maturities of investments — 87,000 — Capital expenditures (4,000 ) — — Net cash provided by (used in) investing activities (4,000 ) 87,000 — Cash flows from financing activities: Purchase of common stock (154,000 ) (129,000 ) (180,000 ) Proceeds from sale of common stock 632,000 531,000 465,000 Repurchase of warrants — (1,750,000 ) — Dividends paid (11,460,000 ) (9,810,000 ) (9,349,000 ) Net cash used in financing activities (10,982,000 ) (11,158,000 ) (9,064,000 ) Net increase (decrease) in cash and cash equivalents 345,000 (818,000 ) 909,000 Cash and cash equivalents at beginning of year 613,000 1,431,000 522,000 Cash and cash equivalents at end of year $ 958,000 $ 613,000 $ 1,431,000 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information | The following tables provide unaudited financial information by quarter for each of the past two years: Dollars in thousands except per share data 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 Balance Sheets Cash and cash equivalents $ 14,533 $ 20,838 $ 23,456 $ 17,366 $ 17,600 $ 23,718 $ 22,375 $ 19,207 Interest-bearing deposits in other banks 6,372 7,568 15,098 293 3,272 291 584 860 Investments 453,336 457,599 471,063 527,244 553,453 552,269 541,678 556,739 Restricted equity securities 13,875 14,441 14,048 11,930 13,363 12,311 10,798 10,358 Net loans and loans held for sale 994,947 1,029,568 1,019,922 1,062,170 1,080,347 1,110,919 1,110,508 1,153,796 Other assets 91,618 91,440 91,501 93,872 95,793 96,143 95,758 101,970 Total assets $ 1,574,681 $ 1,621,454 $ 1,635,088 $ 1,712,875 $ 1,763,828 $ 1,795,651 $ 1,781,701 $ 1,842,930 Deposits $ 1,109,441 $ 1,145,709 $ 1,173,749 $ 1,242,957 $ 1,346,483 $ 1,319,259 $ 1,350,049 $ 1,418,879 Borrowed funds 276,531 283,095 268,098 278,901 226,467 282,277 234,328 228,758 Other liabilities 17,165 17,862 17,247 18,496 15,968 16,578 17,442 13,972 Shareholders' equity 171,544 174,788 175,994 172,521 174,910 177,537 179,882 181,321 Total liabilities & equity $ 1,574,681 $ 1,621,454 $ 1,635,088 $ 1,712,875 $ 1,763,828 $ 1,795,651 $ 1,781,701 $ 1,842,930 Income and Comprehensive Income Statements Interest income $ 13,276 $ 13,600 $ 13,283 $ 13,600 $ 14,491 $ 15,002 $ 15,517 $ 15,822 Interest expense 2,547 2,649 2,754 2,862 3,015 3,337 3,563 3,614 Net interest income 10,729 10,951 10,529 10,738 11,476 11,665 11,954 12,208 Provision for loan losses 375 375 375 475 500 500 750 250 Net interest income after provision for loan losses 10,354 10,576 10,154 10,263 10,976 11,165 11,204 11,958 Non-interest income 2,964 3,006 3,469 3,060 2,843 3,002 3,493 3,210 Non-interest expense 7,200 7,245 7,405 7,533 7,698 7,640 8,013 8,300 Income before taxes 6,118 6,337 6,218 5,790 6,121 6,527 6,684 6,868 Income taxes 1,615 1,713 1,656 1,470 1,484 1,644 1,702 1,782 Net income $ 4,503 $ 4,624 $ 4,562 $ 4,320 $ 4,637 $ 4,883 $ 4,982 $ 5,086 Basic earnings per share $ 0.42 $ 0.43 $ 0.43 $ 0.40 $ 0.43 $ 0.45 $ 0.46 $ 0.48 Diluted earnings per share $ 0.42 $ 0.43 $ 0.42 $ 0.39 $ 0.43 $ 0.45 $ 0.46 $ 0.47 Other comprehensive income (loss), net of tax Net unrealized gain (loss) on securities available for sale $ 1,852 $ 1,025 $ (1,292 ) $ (3,643 ) $ 1 $ 349 $ (240 ) $ (1,562 ) Net unrealized gain (loss) on securities transfered from available for sale to held to maturity (11 ) (10 ) 9 (5 ) (4 ) (4 ) (3 ) (3 ) Net unrealized gain (loss) on cash flow hedging derivative instruments — (135 ) 193 1,105 63 (171 ) (20 ) 235 Unrecognized gain (loss) on postretirement benefit costs — — — 54 — — — (19 ) Other comprehensive income (loss) $ 1,841 $ 880 $ (1,090 ) $ (2,489 ) $ 60 $ 174 $ (263 ) $ (1,349 ) Comprehensive income $ 6,344 $ 5,504 $ 3,472 $ 1,831 $ 4,697 $ 5,057 $ 4,719 $ 3,737 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Finite lived intangible asset, amortization (in years) | 10 years | ||
Amortization of identified intangibles | $ 43 | $ 43 | $ 58 |
Net tax deferred assets | $ 134 | ||
Number of reportable operating segments | segment | 1 | ||
Bank Acquisitions From Camden National Bank | Core Deposits | |||
Business Acquisition [Line Items] | |||
Finite lived intangible asset, amortization (in years) | 10 years | ||
Amortization of identified intangibles | $ 43 | 43 | 43 |
Yearly amortization expense until fully amortized | 43 | ||
FNB Bankshares | Core Deposits | |||
Business Acquisition [Line Items] | |||
Amortization of identified intangibles | $ 0 | $ 0 | $ 15 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Cash and Cash Equivalents [Abstract] | |
Contractual clearing balance | $ 500 |
Cash held in Reserve at Federal Reserve Bank | $ 2,654 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Securities available for sale | ||
Amortized Cost | $ 303,845,000 | $ 301,854,000 |
Unrealized Gains | 859,000 | 1,872,000 |
Unrealized Losses | (4,532,000) | (3,310,000) |
Fair Value (Estimated) | 300,172,000 | 300,416,000 |
Securities to be held to maturity, cost and FMV [Abstract] | ||
Amortized Cost | 256,567,000 | 226,828,000 |
Unrealized Gains | 4,499,000 | 2,973,000 |
Unrealized Losses | (1,411,000) | (4,264,000) |
Fair Value (Estimated) | 259,655,000 | 225,537,000 |
Restricted equity securities, cost and FMV [Abstract] | ||
Amortized Cost | 10,358,000 | 11,930,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value Estimated | 10,358,000 | 11,930,000 |
Federal Home Loan Bank Stock | ||
Restricted equity securities, cost and FMV [Abstract] | ||
Amortized Cost | 9,321,000 | 10,893,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value Estimated | 9,321,000 | 10,893,000 |
Federal Reserve Bank Stock | ||
Restricted equity securities, cost and FMV [Abstract] | ||
Amortized Cost | 1,037,000 | 1,037,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value Estimated | 1,037,000 | 1,037,000 |
Mortgage-backed securities | ||
Securities available for sale | ||
Amortized Cost-Debt | 293,689,000 | 282,397,000 |
Unrealized Gains | 722,000 | 1,334,000 |
Unrealized Losses | (4,422,000) | (3,127,000) |
Fair Value (Estimated) | 289,989,000 | 280,604,000 |
State and political subdivisions | ||
Securities available for sale | ||
Amortized Cost-Debt | 6,860,000 | 16,183,000 |
Unrealized Gains | 16,000 | 475,000 |
Unrealized Losses | (107,000) | (176,000) |
Fair Value (Estimated) | 6,769,000 | 16,482,000 |
Other equity securities | ||
Securities available for sale | ||
Amortized Cost-Debt | 3,296,000 | 3,274,000 |
Unrealized Gains | 121,000 | 63,000 |
Unrealized Losses | (3,000) | (7,000) |
Fair Value (Estimated) | 3,414,000 | 3,330,000 |
U.S. Government-sponsored agencies | ||
Securities to be held to maturity, cost and FMV [Abstract] | ||
Amortized Cost | 11,155,000 | 11,943,000 |
Unrealized Gains | 0 | 35,000 |
Unrealized Losses | (180,000) | (233,000) |
Fair Value (Estimated) | 10,975,000 | 11,745,000 |
Mortgage-backed securities | ||
Securities to be held to maturity, cost and FMV [Abstract] | ||
Amortized Cost | 23,284,000 | 31,201,000 |
Unrealized Gains | 568,000 | 967,000 |
Unrealized Losses | (128,000) | (147,000) |
Fair Value (Estimated) | 23,724,000 | 32,021,000 |
State and political subdivisions | ||
Securities to be held to maturity, cost and FMV [Abstract] | ||
Amortized Cost | 217,828,000 | 179,384,000 |
Unrealized Gains | 3,931,000 | 1,971,000 |
Unrealized Losses | (1,103,000) | (3,884,000) |
Fair Value (Estimated) | 220,656,000 | 177,471,000 |
Corporate securities | ||
Securities to be held to maturity, cost and FMV [Abstract] | ||
Amortized Cost | 4,300,000 | 4,300,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value (Estimated) | $ 4,300,000 | $ 4,300,000 |
Investment Securities - Summa59
Investment Securities - Summary of Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in 1 year or less | $ 111 | $ 253 |
Fair Value (Estimated), Due in 1 year or less | 112 | 253 |
Amortized Cost, Due in 1 to 5 years | 841 | 2,251 |
Fair Value (Estimated), Due in 1 to 5 years | 842 | 2,298 |
Amortized Cost, Due in 5 to 10 years | 29,003 | 21,043 |
Fair Value (Estimated), Due in 1 to 5 years | 29,177 | 21,505 |
Amortized Cost, Due after 10 years | 270,594 | 275,033 |
Fair Value (Estimated), Due after 10 years | 266,627 | 273,030 |
Amortized Cost-Equity | 3,296 | 3,274 |
Fair Value (Estimated)-Equity | 3,414 | 3,330 |
Amortized Cost | 303,845 | 301,854 |
Fair Value (Estimated) | 300,172 | 300,416 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in 1 year or less | 635 | 906 |
Fair Value (Estimated), Due in 1 year or less | 637 | 913 |
Amortized Cost, Due in 1 to 5 years | 18,059 | 13,451 |
Fair Value (Estimated), Due in 1 to 5 years | 18,164 | 13,714 |
Amortized Cost, Due in 5 to 10 years | 37,182 | 41,588 |
Fair Value (Estimated), Due in 1 to 5 years | 37,719 | 42,448 |
Amortized Cost, Due after 10 years | 200,691 | 170,883 |
Fair Value (Estimated), Due after 10 years | 203,135 | 168,462 |
Amortized Cost | 256,567 | 226,828 |
Fair Value (Estimated) | $ 259,655 | $ 225,537 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)securitystate | Dec. 31, 2016USD ($)security | Sep. 30, 2014USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities pledged as collateral | $ 231,516,000 | $ 222,328,000 | |
Number of securities temporarily impaired (security) | security | 241 | 299 | |
Number of securities temporarily impaired for 12 months or more (security) | security | 157 | 15 | |
Period of temporary impairment | 12 months | 12 months | |
Amortized cost of securities transferred | $ 89,780,000 | ||
Fair value of securities transferred | 89,757,000 | ||
Net unrealized losses on securities transferred | $ 15,000 | ||
Net unrealized loss on securities transferred from available for sale to held to maturity | $ 174,000 | $ 129,000 | |
Number of states | state | 6 | ||
FHLB stock | $ 9,321,000 | 10,893,000 | |
Impairment losses | $ 0 | $ 0 |
Investment Securities - Securit
Investment Securities - Securities Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities | $ 15,587 | $ 10,309 | $ 35,468 |
Gross realized gains | 471 | 673 | 1,399 |
Gross realized losses | 0 | 0 | 0 |
Net gain | 471 | 673 | 1,399 |
Related income taxes | $ 165 | $ 236 | $ 490 |
Investment Securities - Secur62
Investment Securities - Securities Temporarily Impaired (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 148,611 | $ 276,518 |
Less than 12 months, Unrealized Losses | (2,100) | (7,383) |
12 months or more, Fair Value | 144,394 | 3,033 |
12 months or more, Unrealized Losses | (3,843) | (191) |
Fair Value | 293,005 | 279,551 |
Unrealized Losses | (5,943) | (7,574) |
U.S. Government-sponsored agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 7,161 | 6,642 |
Less than 12 months, Unrealized Losses | (94) | (233) |
12 months or more, Fair Value | 3,814 | 0 |
12 months or more, Unrealized Losses | (86) | 0 |
Fair Value | 10,975 | 6,642 |
Unrealized Losses | (180) | (233) |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 132,025 | 197,528 |
Less than 12 months, Unrealized Losses | (1,857) | (3,090) |
12 months or more, Fair Value | 101,707 | 2,905 |
12 months or more, Unrealized Losses | (2,693) | (184) |
Fair Value | 233,732 | 200,433 |
Unrealized Losses | (4,550) | (3,274) |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 9,425 | 72,348 |
Less than 12 months, Unrealized Losses | (149) | (4,060) |
12 months or more, Fair Value | 38,864 | 0 |
12 months or more, Unrealized Losses | (1,061) | 0 |
Fair Value | 48,289 | 72,348 |
Unrealized Losses | (1,210) | (4,060) |
Other equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or more, Fair Value | 9 | 128 |
12 months or more, Unrealized Losses | (3) | (7) |
Fair Value | 9 | 128 |
Unrealized Losses | $ (3) | $ (7) |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |||
Outstanding principal balance of loans serviced for others | $ 260,258 | $ 250,083 | |
Net gain from sale of loans | (737) | (1,211) | $ (714) |
Mortgage servicing rights capitalized | 567 | 554 | |
Amortization of mortgage servicing rights | 362 | 459 | |
Fair value of mortgage servicing rights | $ 2,321 | 1,696 | |
Moving average of weekly prepayment data (in months) | 3 months | ||
Anticipated loan prepayment rate of servicing assets (in hundredths) | 10.00% | ||
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, discount rate adjustment factor (in hundredths) | 9.50% | ||
Summary of mortgage servicing rights [Abstract] | |||
Mortgage servicing rights | $ 5,428 | 5,901 | |
Accumulated amortization | (4,160) | (4,680) | |
Impairment reserve | 0 | (108) | |
Mortgage servicing rights, net | $ 1,268 | $ 1,113 |
Loans - Loan Portfolio (Details
Loans - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 1,164,139 | $ 1,071,526 | $ 988,638 |
Percentage of loans receivable | 100.00% | 100.00% | |
Commercial | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 323,809 | $ 302,506 | 269,462 |
Percentage of loans receivable | 27.80% | 28.20% | |
Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 38,056 | $ 25,406 | 24,881 |
Percentage of loans receivable | 3.30% | 2.40% | |
Commercial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 181,528 | $ 150,769 | 128,341 |
Percentage of loans receivable | 15.60% | 14.10% | |
Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 33,391 | $ 27,056 | 19,751 |
Percentage of loans receivable | 2.90% | 2.50% | |
Residential | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 17,868 | $ 18,303 | 8,451 |
Percentage of loans receivable | 1.50% | 1.70% | |
Residential | Term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 432,661 | $ 411,469 | 403,030 |
Percentage of loans receivable | 37.10% | 38.40% | |
Home Equity LIne of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 111,302 | $ 110,907 | 110,202 |
Percentage of loans receivable | 9.60% | 10.40% | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 25,524 | $ 25,110 | $ 24,520 |
Percentage of loans receivable | 2.20% | 2.30% |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($) | |
Schedule of Financing Receivables [Line Items] | |||
Net deferred loan costs included in loan balances | $ 5,748 | $ 4,921 | |
Loans used to collateralize borrowings from the Federal Home Loan Bank of Boston | 239,805 | 257,122 | |
Commercial, construction and home equity loans used to collateralize unused line of credit at the Federal Reserve Bank of Boston | 290,247 | 261,463 | |
Nonaccrual loans | 14,736 | 7,774 | |
Interest income which would have been recognized on these loans, if interest had been accrued | 496 | 288 | $ 369 |
90 Plus Days And Accruing | 445 | 777 | |
Loans to directors, officers and employees | $ 34,715 | $ 34,889 | |
Number of loans | loan | 62 | 71 | |
TDR recorded investment | $ 17,801 | $ 21,526 | |
Number of loans | loan | 12 | 12 | |
TDR recorded investment more than 30 days past due | $ 1,407 | $ 2,303 | |
Number of loans placed on TDR status in previous 12 months | loan | 0 | 0 | |
Number of loans | loan | 0 | ||
Loans classified as TDRs that are involved in bankruptcy | $ 688 | ||
Number of loans classified as TDRs that were on non-accrual status | loan | 9 | ||
Loans classified as TDRs that were on non-accrual status | $ 1,145 | ||
Number of loans classified as TDRs that are involved in foreclosure | loan | 3 | ||
Loans classified as TDRs that are involved in foreclosure | $ 458 | ||
Number of mortgage loans in the process of foreclosure | loan | 12 | 15 | |
Mortgage loans in the process of foreclosure | $ 1,777 | $ 2,058 | |
Loans Receivable in Bankruptcy | |||
Schedule of Financing Receivables [Line Items] | |||
Number of loans | loan | 4 |
Loans - Summary of Loans to Dir
Loans - Summary of Loans to Directors and Executive Officers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 23,293 | $ 20,401 |
New loans | 867 | 6,278 |
Repayments | (1,863) | (3,386) |
Ending balance | $ 22,297 | $ 23,293 |
Loans - Past-due Status of Loan
Loans - Past-due Status of Loans by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | $ 18,676 | $ 12,658 | |
Current | 1,145,463 | 1,058,868 | |
Loans | 1,164,139 | 1,071,526 | $ 988,638 |
90 Plus Days And Accruing | 445 | 777 | |
Commercial | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 874 | 3,476 | |
Current | 322,935 | 299,030 | |
Loans | 323,809 | 302,506 | 269,462 |
90 Plus Days And Accruing | 0 | 753 | |
Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
Current | 38,056 | 25,406 | |
Loans | 38,056 | 25,406 | 24,881 |
90 Plus Days And Accruing | 0 | 0 | |
Commercial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 7,779 | 1,031 | |
Current | 173,749 | 149,738 | |
Loans | 181,528 | 150,769 | 128,341 |
90 Plus Days And Accruing | 0 | 20 | |
Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
Current | 33,391 | 27,056 | |
Loans | 33,391 | 27,056 | 19,751 |
90 Plus Days And Accruing | 0 | 0 | |
Residential | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 471 | 0 | |
Current | 17,397 | 18,303 | |
Loans | 17,868 | 18,303 | 8,451 |
90 Plus Days And Accruing | 0 | 0 | |
Residential | Term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 7,659 | 6,403 | |
Current | 425,002 | 405,066 | |
Loans | 432,661 | 411,469 | 403,030 |
90 Plus Days And Accruing | 436 | 0 | |
Home Equity LIne of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 1,707 | 1,564 | |
Current | 109,595 | 109,343 | |
Loans | 111,302 | 110,907 | 110,202 |
90 Plus Days And Accruing | 0 | 0 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 186 | 184 | |
Current | 25,338 | 24,926 | |
Loans | 25,524 | 25,110 | $ 24,520 |
90 Plus Days And Accruing | 9 | 4 | |
30-59 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 2,944 | 2,711 | |
30-59 Days Past Due | Commercial | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 574 | 1,039 | |
30-59 Days Past Due | Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
30-59 Days Past Due | Commercial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 542 | 202 | |
30-59 Days Past Due | Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
30-59 Days Past Due | Residential | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 101 | 0 | |
30-59 Days Past Due | Residential | Term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 1,031 | 631 | |
30-59 Days Past Due | Home Equity LIne of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 537 | 704 | |
30-59 Days Past Due | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 159 | 135 | |
60-89 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 11,948 | 4,227 | |
60-89 Days Past Due | Commercial | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 80 | 22 | |
60-89 Days Past Due | Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | Commercial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 6,663 | 33 | |
60-89 Days Past Due | Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | Residential | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 370 | 0 | |
60-89 Days Past Due | Residential | Term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 4,372 | 3,970 | |
60-89 Days Past Due | Home Equity LIne of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 445 | 157 | |
60-89 Days Past Due | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 18 | 45 | |
90 Days Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 3,784 | 5,720 | |
90 Days Past Due | Commercial | Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 220 | 2,415 | |
90 Days Past Due | Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
90 Days Past Due | Commercial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 574 | 796 | |
90 Days Past Due | Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
90 Days Past Due | Residential | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 0 | 0 | |
90 Days Past Due | Residential | Term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 2,256 | 1,802 | |
90 Days Past Due | Home Equity LIne of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | 725 | 703 | |
90 Days Past Due | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Past Due | $ 9 | $ 4 |
Loans - Nonaccrual Loans (Detai
Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 14,736 | $ 7,774 |
Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 752 | 1,907 |
Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 9,357 | 964 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Residential | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Residential | Term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 3,778 | 4,060 |
Home Equity LIne of Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 833 | 843 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 16 | $ 0 |
Loans - Information Regarding I
Loans - Information Regarding Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Average investment in impaired loans | $ 29,108 | $ 28,217 | $ 32,698 |
Interest income recognized on impaired loans, all on cash basis | 784 | 1,104 | 1,220 |
Balance of impaired loans | 31,392 | 27,583 | 29,531 |
Less portion for which no allowance for loan losses is allocated | (18,023) | (19,716) | |
Portion of impaired loan balance for which an allowance for loan losses is allocated | 13,369 | 7,867 | |
Portion of allowance for loan losses allocated to the impaired loan balance | $ 1,812 | $ 974 | $ 754 |
Loans - Impaired Loans by Class
Loans - Impaired Loans by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | $ 18,023 | $ 19,716 | $ 20,889 |
Recorded Investment, With Related Allowance | 13,369 | 7,867 | 8,642 |
Balance of impaired loans | 31,392 | 27,583 | 29,531 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 19,775 | 21,853 | 22,947 |
Unpaid Principal Balance, With Related Allowance | 13,698 | 8,116 | 8,959 |
Unpaid Principal Balance | 33,473 | 29,969 | 31,906 |
Related Allowance | 1,812 | 974 | 754 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 19,227 | 19,605 | 22,808 |
Average Recorded Investment, With Related Allowance | 9,881 | 8,612 | 9,890 |
Average Recorded Investment | 29,108 | 28,217 | 32,698 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 553 | 781 | 839 |
Recognized Interest Income, With Related Allowance | 231 | 323 | 381 |
Recognized Interest Income | 784 | 1,104 | 1,220 |
Commercial | Real Estate | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 3,791 | 5,201 | 7,173 |
Recorded Investment, With Related Allowance | 3,999 | 4,820 | 3,544 |
Balance of impaired loans | 7,790 | 10,021 | 10,717 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 3,996 | 5,614 | 7,496 |
Unpaid Principal Balance, With Related Allowance | 4,116 | 4,925 | 3,627 |
Unpaid Principal Balance | 8,112 | 10,539 | 11,123 |
Related Allowance | 224 | 505 | 89 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 5,124 | 6,252 | 8,990 |
Average Recorded Investment, With Related Allowance | 4,460 | 4,153 | 3,066 |
Average Recorded Investment | 9,584 | 10,405 | 12,056 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 164 | 220 | 301 |
Recognized Interest Income, With Related Allowance | 152 | 186 | 149 |
Recognized Interest Income | 316 | 406 | 450 |
Commercial | Construction | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 741 | 0 | 30 |
Recorded Investment, With Related Allowance | 0 | 763 | 996 |
Balance of impaired loans | 741 | 763 | 1,026 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 741 | 0 | 30 |
Unpaid Principal Balance, With Related Allowance | 0 | 763 | 996 |
Unpaid Principal Balance | 741 | 763 | 1,026 |
Related Allowance | 0 | 100 | 302 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 62 | 32 | 3 |
Average Recorded Investment, With Related Allowance | 699 | 816 | 1,153 |
Average Recorded Investment | 761 | 848 | 1,156 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 38 | 0 | 1 |
Recognized Interest Income, With Related Allowance | 0 | 36 | 44 |
Recognized Interest Income | 38 | 36 | 45 |
Commercial | Other | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 2,591 | 1,671 | 1,163 |
Recorded Investment, With Related Allowance | 7,327 | 72 | 71 |
Balance of impaired loans | 9,918 | 1,743 | 1,234 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 2,671 | 1,852 | 1,210 |
Unpaid Principal Balance, With Related Allowance | 7,371 | 72 | 77 |
Unpaid Principal Balance | 10,042 | 1,924 | 1,287 |
Related Allowance | 1,309 | 39 | 8 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 1,908 | 1,074 | 1,893 |
Average Recorded Investment, With Related Allowance | 2,584 | 317 | 256 |
Average Recorded Investment | 4,492 | 1,391 | 2,149 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 36 | 86 | 76 |
Recognized Interest Income, With Related Allowance | 0 | 0 | 5 |
Recognized Interest Income | 36 | 86 | 81 |
Municipal | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 0 | 0 | 0 |
Recorded Investment, With Related Allowance | 0 | 0 | 0 |
Balance of impaired loans | 0 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance, With Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 0 | 0 | 0 |
Average Recorded Investment, With Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 0 | 0 | 0 |
Recognized Interest Income, With Related Allowance | 0 | 0 | 0 |
Recognized Interest Income | 0 | 0 | 0 |
Residential | Construction | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 0 | 0 | 0 |
Recorded Investment, With Related Allowance | 0 | 0 | 0 |
Balance of impaired loans | 0 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance, With Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 0 | 0 | 0 |
Average Recorded Investment, With Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 0 | 0 | 0 |
Recognized Interest Income, With Related Allowance | 0 | 0 | 0 |
Recognized Interest Income | 0 | 0 | 0 |
Residential | Term | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 9,769 | 11,483 | 11,122 |
Recorded Investment, With Related Allowance | 1,979 | 2,186 | 3,966 |
Balance of impaired loans | 11,748 | 13,669 | 15,088 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 10,909 | 12,654 | 12,157 |
Unpaid Principal Balance, With Related Allowance | 2,144 | 2,328 | 4,193 |
Unpaid Principal Balance | 13,053 | 14,982 | 16,350 |
Related Allowance | 255 | 304 | 326 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 10,770 | 11,025 | 10,480 |
Average Recorded Investment, With Related Allowance | 2,106 | 3,209 | 5,228 |
Average Recorded Investment | 12,876 | 14,234 | 15,708 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 297 | 442 | 415 |
Recognized Interest Income, With Related Allowance | 79 | 101 | 180 |
Recognized Interest Income | 376 | 543 | 595 |
Home Equity LIne of Credit | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 1,115 | 1,361 | 1,401 |
Recorded Investment, With Related Allowance | 64 | 26 | 65 |
Balance of impaired loans | 1,179 | 1,387 | 1,466 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 1,429 | 1,733 | 2,054 |
Unpaid Principal Balance, With Related Allowance | 67 | 28 | 66 |
Unpaid Principal Balance | 1,496 | 1,761 | 2,120 |
Related Allowance | 24 | 26 | 29 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 1,351 | 1,213 | 1,400 |
Average Recorded Investment, With Related Allowance | 32 | 69 | 187 |
Average Recorded Investment | 1,383 | 1,282 | 1,587 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 18 | 33 | 43 |
Recognized Interest Income, With Related Allowance | 0 | 0 | 3 |
Recognized Interest Income | 18 | 33 | 46 |
Consumer | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Recorded Investment, No Related Allowance | 16 | 0 | 0 |
Recorded Investment, With Related Allowance | 0 | 0 | 0 |
Balance of impaired loans | 16 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Unpaid Principal Balance, No Related Allowance | 29 | 0 | 0 |
Unpaid Principal Balance, With Related Allowance | 0 | 0 | 0 |
Unpaid Principal Balance | 29 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Average Recorded Investment, No Related Allowance | 12 | 9 | 42 |
Average Recorded Investment, With Related Allowance | 0 | 48 | 0 |
Average Recorded Investment | 12 | 57 | 42 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Recognized Interest Income, No Related Allowance | 0 | 0 | 3 |
Recognized Interest Income, With Related Allowance | 0 | 0 | 0 |
Recognized Interest Income | $ 0 | $ 0 | $ 3 |
Loans - TDRs by Class and Speci
Loans - TDRs by Class and Specific Reserve (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 62 | 71 |
Balance | $ 17,801 | $ 21,526 |
Specific Reserves | $ 323 | $ 736 |
Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 8 | 10 |
Balance | $ 7,038 | $ 8,937 |
Specific Reserves | $ 90 | $ 375 |
Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Balance | $ 741 | $ 763 |
Specific Reserves | $ 0 | $ 100 |
Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 4 | 5 |
Balance | $ 561 | $ 779 |
Specific Reserves | $ 0 | $ 0 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Residential | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Residential | Term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 46 | 52 |
Balance | $ 8,948 | $ 10,503 |
Specific Reserves | $ 233 | $ 261 |
Home Equity LIne of Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 3 | 3 |
Balance | $ 513 | $ 544 |
Specific Reserves | $ 0 | $ 0 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Loans - TDRs by Class and Assoc
Loans - TDRs by Class and Associated Specific Reserves (Details) $ in Thousands | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 12 | 12 |
Balance | $ 1,407 | $ 2,303 |
Specific Reserves | $ 44 | $ 290 |
Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Balance | $ 0 | $ 822 |
Specific Reserves | $ 0 | $ 264 |
Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Residential | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Residential | Term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 11 | 10 |
Balance | $ 1,240 | $ 1,314 |
Specific Reserves | $ 44 | $ 26 |
Home Equity LIne of Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Balance | $ 167 | $ 167 |
Specific Reserves | $ 0 | $ 0 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Balance | $ 0 | $ 0 |
Specific Reserves | $ 0 | $ 0 |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)loan_class | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of loan classes | loan_class | 8 | |||
Percent of related loans | 0.45% | 0.39% | ||
Increase (decrease) in qualitative portion | $ 1,027 | |||
Allowance for loan losses | $ 10,729 | $ 10,138 | $ 9,916 | $ 10,344 |
Allowance for loan losses as a percent of total loans | 0.92% | 0.95% | ||
Number of commercial loan classes | loan_class | 3 | |||
Loan-to-value percent, commercial real estate | 80.00% | |||
Number of residential loan classes | loan_class | 2 | |||
Construction loans, percent of capital | 34.40% | |||
Construction loans, maximum percent of capital | 100.00% | |||
Construction loans and non-owner-occupied commercial real estate loans, percent of capital | 129.20% | |||
Construction loans and non-owner-occupied commercial real estate loans, maximum percent of capital | 300.00% | |||
Outstanding loans and commitments subject by independent consulting firm | 50.00% | |||
Residential loans, loan to value percent minimum | 75.00% | |||
Residential loans, loan to value percent, maximum | 80.00% | |||
Consumer loans, loan to value percent, minimum | 80.00% | |||
Consumer loans, loan to value percent, maximum | 90.00% | |||
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 434 | $ 396 | 580 | 823 |
Loan maturities | 2 years | |||
Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 692 | 807 | 893 | 1,060 |
Loan maturities | 300 months | |||
Loan to value ratio | 0.8 | |||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan to value ratio | 0.80 | |||
Amortization term (in years) | 30 years | |||
Delinquent period before residential loans are placed on non-accrual status | 90 days | |||
Delinquent period for loans charged off | 180 days | |||
Delinquent period for loans charged off after receipt of notification | 60 days | |||
Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 36 | 44 | 24 | 20 |
Loan maturities | 1 year | |||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 545 | 559 | $ 566 | $ 542 |
Delinquent period before consumer loans are charged off | 120 days | |||
Unallocated Reserves | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 642 | $ 1,258 | ||
Percent of total allowance reserve | 6.00% | 12.40% | ||
Unallocated Reserves | Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 0 | $ 0 | ||
Unallocated Reserves | Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 0 | $ 0 |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Composition of Allowance for Loans Losses, by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | $ 1,812 | $ 974 | $ 754 | |
Allowance for Loans Evaluated Collectively for Impairment | 8,917 | 9,164 | 9,162 | |
Total Allowance for Loan Losses | 10,729 | 10,138 | 9,916 | $ 10,344 |
Commercial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 224 | 505 | 89 | |
Allowance for Loans Evaluated Collectively for Impairment | 3,648 | 3,483 | 3,031 | |
Total Allowance for Loan Losses | 3,872 | 3,988 | 3,120 | 3,532 |
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 0 | 100 | 302 | |
Allowance for Loans Evaluated Collectively for Impairment | 434 | 296 | 278 | |
Total Allowance for Loan Losses | 434 | 396 | 580 | 823 |
Commercial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 1,309 | 39 | 8 | |
Allowance for Loans Evaluated Collectively for Impairment | 2,049 | 1,741 | 1,444 | |
Total Allowance for Loan Losses | 3,358 | 1,780 | 1,452 | 1,505 |
Municipal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 0 | 0 | 0 | |
Allowance for Loans Evaluated Collectively for Impairment | 20 | 18 | 17 | |
Total Allowance for Loan Losses | 20 | 18 | 17 | 15 |
Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 0 | 0 | 0 | |
Allowance for Loans Evaluated Collectively for Impairment | 36 | 44 | 24 | |
Total Allowance for Loan Losses | 36 | 44 | 24 | 20 |
Residential | Term | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 255 | 304 | 326 | |
Allowance for Loans Evaluated Collectively for Impairment | 875 | 984 | 1,065 | |
Total Allowance for Loan Losses | 1,130 | 1,288 | 1,391 | 1,185 |
Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 24 | 26 | 29 | |
Allowance for Loans Evaluated Collectively for Impairment | 668 | 781 | 864 | |
Total Allowance for Loan Losses | 692 | 807 | 893 | 1,060 |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 0 | 0 | 0 | |
Allowance for Loans Evaluated Collectively for Impairment | 545 | 559 | 566 | |
Total Allowance for Loan Losses | 545 | 559 | 566 | 542 |
Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Loans Evaluated Individually for Impairment | 0 | 0 | 0 | |
Allowance for Loans Evaluated Collectively for Impairment | 642 | 1,258 | 1,873 | |
Total Allowance for Loan Losses | $ 642 | $ 1,258 | $ 1,873 | $ 1,662 |
Allowance for Loan Losses - Fin
Allowance for Loan Losses - Financing Receivable and Allowance Element by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 10,729 | $ 10,138 | $ 9,916 | $ 10,344 |
Commercial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,872 | 3,988 | 3,120 | 3,532 |
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 434 | 396 | 580 | 823 |
Commercial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,358 | 1,780 | 1,452 | 1,505 |
Municipal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 20 | 18 | 17 | 15 |
Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 36 | 44 | 24 | 20 |
Residential | Term | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,130 | 1,288 | 1,391 | 1,185 |
Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 692 | 807 | 893 | 1,060 |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 545 | 559 | 566 | 542 |
Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 642 | 1,258 | $ 1,873 | $ 1,662 |
Specific Reserves on Loans Evaluated Individually for Impairment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,812 | 974 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Commercial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 224 | 505 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 100 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Commercial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,309 | 39 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Municipal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Residential | Term | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 255 | 304 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 24 | 26 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Specific Reserves on Loans Evaluated Individually for Impairment | Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
General Reserves on Loans Based on Historical Loss Experience | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,033 | 3,691 | ||
General Reserves on Loans Based on Historical Loss Experience | Commercial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,285 | 1,471 | ||
General Reserves on Loans Based on Historical Loss Experience | Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 153 | 125 | ||
General Reserves on Loans Based on Historical Loss Experience | Commercial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 723 | 735 | ||
General Reserves on Loans Based on Historical Loss Experience | Municipal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
General Reserves on Loans Based on Historical Loss Experience | Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 13 | 25 | ||
General Reserves on Loans Based on Historical Loss Experience | Residential | Term | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 311 | 563 | ||
General Reserves on Loans Based on Historical Loss Experience | Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 297 | 444 | ||
General Reserves on Loans Based on Historical Loss Experience | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 251 | 328 | ||
General Reserves on Loans Based on Historical Loss Experience | Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Reserves for Qualitative Factors | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 5,242 | 4,215 | ||
Reserves for Qualitative Factors | Commercial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 2,363 | 2,012 | ||
Reserves for Qualitative Factors | Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 281 | 171 | ||
Reserves for Qualitative Factors | Commercial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,326 | 1,006 | ||
Reserves for Qualitative Factors | Municipal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 20 | 18 | ||
Reserves for Qualitative Factors | Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 23 | 19 | ||
Reserves for Qualitative Factors | Residential | Term | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 564 | 421 | ||
Reserves for Qualitative Factors | Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 371 | 337 | ||
Reserves for Qualitative Factors | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 294 | 231 | ||
Reserves for Qualitative Factors | Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 642 | 1,258 | ||
Unallocated Reserves | Commercial | Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Commercial | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Municipal | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Residential | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Residential | Term | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Home Equity LIne of Credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | ||
Unallocated Reserves | Unallocated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 642 | $ 1,258 |
Allowance for Loan Losses - Ris
Allowance for Loan Losses - Risk Ratings by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | $ 576,784 | $ 505,737 |
Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 323,809 | 302,506 |
Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 38,056 | 25,406 |
Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 181,528 | 150,769 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 33,391 | 27,056 |
1 Strong | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 1,586 | 852 |
1 Strong | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 2 |
1 Strong | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
1 Strong | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 1,586 | 850 |
1 Strong | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
2 Above average | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 51,023 | 48,491 |
2 Above average | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 12,534 | 13,981 |
2 Above average | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 40 | 49 |
2 Above average | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 5,776 | 8,934 |
2 Above average | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 32,673 | 25,527 |
3 Satisfactory | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 115,624 | 132,372 |
3 Satisfactory | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 73,899 | 81,286 |
3 Satisfactory | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 2,856 | 1,345 |
3 Satisfactory | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 38,151 | 48,212 |
3 Satisfactory | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 718 | 1,529 |
4 Average | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 280,762 | 221,073 |
4 Average | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 173,956 | 139,421 |
4 Average | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 22,446 | 16,506 |
4 Average | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 84,360 | 65,146 |
4 Average | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
5 Watch | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 88,300 | 67,394 |
5 Watch | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 41,652 | 43,181 |
5 Watch | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 12,714 | 7,349 |
5 Watch | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 33,934 | 16,864 |
5 Watch | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
6 OAEM | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 6,207 | 6,156 |
6 OAEM | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 3,442 | 4,569 |
6 OAEM | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
6 OAEM | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 2,765 | 1,587 |
6 OAEM | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
8 Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 33,159 | 29,399 |
8 Doubtful | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 18,203 | 20,066 |
8 Doubtful | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 157 |
8 Doubtful | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 14,956 | 9,176 |
8 Doubtful | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
8 Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 123 | 0 |
8 Doubtful | Commercial | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 123 | 0 |
8 Doubtful | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
8 Doubtful | Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | 0 | 0 |
8 Doubtful | Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rated loans receivable | $ 0 | $ 0 |
Allowance for Loan Losses - Act
Allowance for Loan Losses - Activity by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | $ 10,138 | $ 9,916 | $ 10,138 | $ 9,916 | $ 10,344 | ||||||
Chargeoffs | 1,618 | 1,721 | 2,373 | ||||||||
Recoveries | 209 | 343 | 395 | ||||||||
Provision for loan losses | $ 250 | $ 750 | $ 500 | 500 | $ 475 | $ 375 | $ 375 | 375 | 2,000 | 1,600 | 1,550 |
Ending balance | 10,729 | 10,138 | 10,729 | 10,138 | 9,916 | ||||||
Ending balance specifically evaluated for impairment | 1,812 | 974 | 1,812 | 974 | 754 | ||||||
Ending balance collectively evaluated for impairment | 8,917 | 9,164 | 8,917 | 9,164 | 9,162 | ||||||
Loans | 1,164,139 | 1,071,526 | 1,164,139 | 1,071,526 | 988,638 | ||||||
Ending balance specifically evaluated for impairment | 31,392 | 27,583 | 31,392 | 27,583 | 29,531 | ||||||
Ending balance collectively evaluated for impairment | 1,132,747 | 1,043,943 | 1,132,747 | 1,043,943 | 959,107 | ||||||
Commercial | Real Estate | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 3,988 | 3,120 | 3,988 | 3,120 | 3,532 | ||||||
Chargeoffs | 587 | 294 | 280 | ||||||||
Recoveries | 0 | 0 | 2 | ||||||||
Provision for loan losses | 471 | 1,162 | (134) | ||||||||
Ending balance | 3,872 | 3,988 | 3,872 | 3,988 | 3,120 | ||||||
Ending balance specifically evaluated for impairment | 224 | 505 | 224 | 505 | 89 | ||||||
Ending balance collectively evaluated for impairment | 3,648 | 3,483 | 3,648 | 3,483 | 3,031 | ||||||
Loans | 323,809 | 302,506 | 323,809 | 302,506 | 269,462 | ||||||
Ending balance specifically evaluated for impairment | 7,790 | 10,021 | 7,790 | 10,021 | 10,717 | ||||||
Ending balance collectively evaluated for impairment | 316,019 | 292,485 | 316,019 | 292,485 | 258,745 | ||||||
Commercial | Construction | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 396 | 580 | 396 | 580 | 823 | ||||||
Chargeoffs | 0 | 75 | 9 | ||||||||
Recoveries | 0 | 8 | 1 | ||||||||
Provision for loan losses | 38 | (117) | (235) | ||||||||
Ending balance | 434 | 396 | 434 | 396 | 580 | ||||||
Ending balance specifically evaluated for impairment | 0 | 100 | 0 | 100 | 302 | ||||||
Ending balance collectively evaluated for impairment | 434 | 296 | 434 | 296 | 278 | ||||||
Loans | 38,056 | 25,406 | 38,056 | 25,406 | 24,881 | ||||||
Ending balance specifically evaluated for impairment | 741 | 763 | 741 | 763 | 1,026 | ||||||
Ending balance collectively evaluated for impairment | 37,315 | 24,643 | 37,315 | 24,643 | 23,855 | ||||||
Commercial | Other | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 1,780 | 1,452 | 1,780 | 1,452 | 1,505 | ||||||
Chargeoffs | 212 | 376 | 732 | ||||||||
Recoveries | 49 | 129 | 88 | ||||||||
Provision for loan losses | 1,741 | 575 | 591 | ||||||||
Ending balance | 3,358 | 1,780 | 3,358 | 1,780 | 1,452 | ||||||
Ending balance specifically evaluated for impairment | 1,309 | 39 | 1,309 | 39 | 8 | ||||||
Ending balance collectively evaluated for impairment | 2,049 | 1,741 | 2,049 | 1,741 | 1,444 | ||||||
Loans | 181,528 | 150,769 | 181,528 | 150,769 | 128,341 | ||||||
Ending balance specifically evaluated for impairment | 9,918 | 1,743 | 9,918 | 1,743 | 1,234 | ||||||
Ending balance collectively evaluated for impairment | 171,610 | 149,026 | 171,610 | 149,026 | 127,107 | ||||||
Municipal | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 18 | 17 | 18 | 17 | 15 | ||||||
Chargeoffs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provision for loan losses | 2 | 1 | 2 | ||||||||
Ending balance | 20 | 18 | 20 | 18 | 17 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 20 | 18 | 20 | 18 | 17 | ||||||
Loans | 33,391 | 27,056 | 33,391 | 27,056 | 19,751 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 33,391 | 27,056 | 33,391 | 27,056 | 19,751 | ||||||
Residential | Construction | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 44 | 24 | 44 | 24 | 20 | ||||||
Chargeoffs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provision for loan losses | (8) | 20 | 4 | ||||||||
Ending balance | 36 | 44 | 36 | 44 | 24 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 36 | 44 | 36 | 44 | 24 | ||||||
Loans | 17,868 | 18,303 | 17,868 | 18,303 | 8,451 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 17,868 | 18,303 | 17,868 | 18,303 | 8,451 | ||||||
Residential | Term | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 1,288 | 1,391 | 1,288 | 1,391 | 1,185 | ||||||
Chargeoffs | 456 | 379 | 420 | ||||||||
Recoveries | 40 | 93 | 152 | ||||||||
Provision for loan losses | 258 | 183 | 474 | ||||||||
Ending balance | 1,130 | 1,288 | 1,130 | 1,288 | 1,391 | ||||||
Ending balance specifically evaluated for impairment | 255 | 304 | 255 | 304 | 326 | ||||||
Ending balance collectively evaluated for impairment | 875 | 984 | 875 | 984 | 1,065 | ||||||
Loans | 432,661 | 411,469 | 432,661 | 411,469 | 403,030 | ||||||
Ending balance specifically evaluated for impairment | 11,748 | 13,669 | 11,748 | 13,669 | 15,088 | ||||||
Ending balance collectively evaluated for impairment | 420,913 | 397,800 | 420,913 | 397,800 | 387,942 | ||||||
Home Equity LIne of Credit | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 807 | 893 | 807 | 893 | 1,060 | ||||||
Chargeoffs | 28 | 147 | 582 | ||||||||
Recoveries | 11 | 5 | 31 | ||||||||
Provision for loan losses | (98) | 56 | 384 | ||||||||
Ending balance | 692 | 807 | 692 | 807 | 893 | ||||||
Ending balance specifically evaluated for impairment | 24 | 26 | 24 | 26 | 29 | ||||||
Ending balance collectively evaluated for impairment | 668 | 781 | 668 | 781 | 864 | ||||||
Loans | 111,302 | 110,907 | 111,302 | 110,907 | 110,202 | ||||||
Ending balance specifically evaluated for impairment | 1,179 | 1,387 | 1,179 | 1,387 | 1,466 | ||||||
Ending balance collectively evaluated for impairment | 110,123 | 109,520 | 110,123 | 109,520 | 108,736 | ||||||
Consumer | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | 559 | 566 | 559 | 566 | 542 | ||||||
Chargeoffs | 335 | 450 | 350 | ||||||||
Recoveries | 109 | 108 | 121 | ||||||||
Provision for loan losses | 212 | 335 | 253 | ||||||||
Ending balance | 545 | 559 | 545 | 559 | 566 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 545 | 559 | 545 | 559 | 566 | ||||||
Loans | 25,524 | 25,110 | 25,524 | 25,110 | 24,520 | ||||||
Ending balance specifically evaluated for impairment | 16 | 0 | 16 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 25,508 | 25,110 | 25,508 | 25,110 | 24,520 | ||||||
Unallocated | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning balance | $ 1,258 | $ 1,873 | 1,258 | 1,873 | 1,662 | ||||||
Chargeoffs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Provision for loan losses | (616) | (615) | 211 | ||||||||
Ending balance | 642 | 1,258 | 642 | 1,258 | 1,873 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | 642 | 1,258 | 642 | 1,258 | 1,873 | ||||||
Loans | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance specifically evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance collectively evaluated for impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 41,092 | $ 39,416 |
Less accumulated depreciation | 18,590 | 17,214 |
Premises and equipment, net | 22,502 | 22,202 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,639 | 4,742 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,052 | 1,041 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 22,254 | 21,601 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 13,147 | $ 12,032 |
Premises and Equipment - Antici
Premises and Equipment - Anticipated Rental Revenue (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 192 |
2,019 | 141 |
2,020 | 101 |
2,021 | 97 |
2,022 | 94 |
Thereafter | 9 |
Total | $ 634 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Other Real Estate Owned [Abstract] | |||
Real estate acquired in settlement of loans | $ 1,012 | $ 375 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | 205 | 162 | $ 654 |
Losses charged to allowance | (169) | (89) | (803) |
Provision charged to operating expenses | 17 | 132 | 311 |
Balance at end of year | $ 53 | $ 205 | $ 162 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)limited_partnership | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)limited_partnership | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)limited_partnership | Dec. 31, 2016USD ($)limited_partnership | Dec. 31, 2015USD ($) | |
Federal income tax | |||||||||||
Current | $ 4,184,000 | $ 6,276,000 | $ 4,895,000 | ||||||||
Deferred | 2,083,000 | (139,000) | 332,000 | ||||||||
Federal income tax expense | 6,267,000 | 6,137,000 | 5,227,000 | ||||||||
State franchise tax | 345,000 | 317,000 | 287,000 | ||||||||
Income tax expense | $ 1,782,000 | $ 1,702,000 | $ 1,644,000 | $ 1,484,000 | $ 1,470,000 | $ 1,656,000 | $ 1,713,000 | $ 1,615,000 | 6,612,000 | 6,454,000 | 5,514,000 |
Reconciliation between US expected tax rate and actual tax expense | |||||||||||
Expected tax expense | 9,170,000 | 8,562,000 | 7,602,000 | ||||||||
Non-taxable income | (2,625,000) | (2,176,000) | (2,086,000) | ||||||||
State franchise tax, net of federal tax benefit | 224,000 | 206,000 | 187,000 | ||||||||
Equity compensation | (83,000) | 0 | 0 | ||||||||
Tax credits, net of amortization | (88,000) | (105,000) | (185,000) | ||||||||
Change in federal tax rate | 134,000 | 0 | 0 | ||||||||
Other | (120,000) | (33,000) | (4,000) | ||||||||
Income tax expense | 1,782,000 | $ 1,702,000 | $ 1,644,000 | $ 1,484,000 | 1,470,000 | $ 1,656,000 | $ 1,713,000 | $ 1,615,000 | 6,612,000 | 6,454,000 | $ 5,514,000 |
Components of deferred tax assets and liabilities | |||||||||||
Allowance for loan losses | 2,253,000 | 3,548,000 | 2,253,000 | 3,548,000 | |||||||
OREO | 11,000 | 72,000 | 11,000 | 72,000 | |||||||
Accrued pension and post-retirement | 1,036,000 | 1,730,000 | 1,036,000 | 1,730,000 | |||||||
Goodwill | 0 | 2,000 | 0 | 2,000 | |||||||
Unrealized loss on securities transferred from available for sale to held to maturity | 46,000 | 70,000 | 46,000 | 70,000 | |||||||
Unrealized loss on securities available for sale | 772,000 | 503,000 | 772,000 | 503,000 | |||||||
Restricted stock grants | 173,000 | 237,000 | 173,000 | 237,000 | |||||||
Core deposit intangible | 15,000 | 20,000 | 15,000 | 20,000 | |||||||
Investment in flow through entities | 22,000 | 29,000 | 22,000 | 29,000 | |||||||
Other assets | 28,000 | 48,000 | 28,000 | 48,000 | |||||||
Total deferred tax asset | 4,356,000 | 6,259,000 | 4,356,000 | 6,259,000 | |||||||
Net deferred loan costs | (1,313,000) | (1,895,000) | (1,313,000) | (1,895,000) | |||||||
Depreciation | (1,306,000) | (1,808,000) | (1,306,000) | (1,808,000) | |||||||
Goodwill | (39,000) | 0 | (39,000) | 0 | |||||||
Mortgage servicing rights | (266,000) | (390,000) | (266,000) | (390,000) | |||||||
Unrealized gain on derivative instruments | (410,000) | (626,000) | (410,000) | (626,000) | |||||||
Prepaid expense | (821,000) | 0 | (821,000) | 0 | |||||||
Total deferred tax liability | (4,155,000) | (4,719,000) | (4,155,000) | (4,719,000) | |||||||
Net deferred tax asset | $ 201,000 | $ 1,540,000 | $ 201,000 | $ 1,540,000 | |||||||
Limited partnerships | |||||||||||
Limited partnerships held as investments | limited_partnership | 2 | 2 | 2 | 2 | |||||||
Tax credits from investments in limited partnerships | $ 204,000 | $ 231,000 | |||||||||
Amortization of investments in limited partnerships | 178,000 | 194,000 | |||||||||
Carrying value of investments in limited partnerships | $ 1,408,000 | $ 1,503,000 | 1,408,000 | 1,503,000 | |||||||
Total exposure to limited partnerships | $ 1,408,000 | $ 1,503,000 | $ 1,408,000 | $ 1,503,000 |
Certificates of Deposit (Detail
Certificates of Deposit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Maturities Of Certificates Of Deposit [Line Items] | |||
Certificates of deposit less than $100,000 | $ 284,066 | $ 195,115 | |
Certificates $100,000 to $250,000 | 232,759 | 240,904 | |
Certificates $250,000 and over | 42,176 | 40,601 | |
Total | 559,001 | 476,620 | |
Maturity of certificates of deposit [Abstract] | |||
2,018 | 393,316 | ||
2,019 | 53,565 | ||
2,020 | 51,226 | ||
2,021 | 30,197 | ||
2,022 | 30,667 | ||
2023 and thereafter | 30 | ||
Total | 559,001 | 476,620 | |
Interest expense on certificates of deposit of $100,000 or greater | 2,105 | $ 1,970 | $ 2,431 |
Less than $100,000 | |||
Maturities Of Certificates Of Deposit [Line Items] | |||
Total | 284,066 | ||
Maturity of certificates of deposit [Abstract] | |||
2,018 | 215,571 | ||
2,019 | 26,401 | ||
2,020 | 17,516 | ||
2,021 | 13,137 | ||
2,022 | 11,411 | ||
2023 and thereafter | 30 | ||
Total | 284,066 | ||
$100,000 and Greater | |||
Maturities Of Certificates Of Deposit [Line Items] | |||
Total | 274,935 | ||
Maturity of certificates of deposit [Abstract] | |||
2,018 | 177,745 | ||
2,019 | 27,164 | ||
2,020 | 33,710 | ||
2,021 | 17,060 | ||
2,022 | 19,256 | ||
2023 and thereafter | 0 | ||
Total | $ 274,935 |
Borrowed Funds (Details)
Borrowed Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | |
Disclosure of Repurchase Agreements [Abstract] | ||||||||
Range of repurchase agreements' maturity dates | one to 365 | |||||||
Amount of line of credit with correspondent banks | $ 44,000 | |||||||
Credit facility with Federal Reserve Bank | $ 168,000 | |||||||
Federal Home Loan Bank, Advances, Maturities Summary [Abstract] | ||||||||
Interest rate, due in year four | 1.55% | |||||||
Interest rate, due in year five | 0.00% | 1.55% | ||||||
Due in twelve months maturity | $ 43,074 | $ 74,600 | ||||||
Due in year two maturity | 30,000 | |||||||
Due in year three maturity | 55,000 | |||||||
Due in year four maturity | 10,000 | 55,000 | ||||||
Due in year five maturity | 10,000 | |||||||
Due thereafter | 50,120 | 25,127 | ||||||
Total | 158,194 | 194,727 | ||||||
Repurchase agreements for municipal and commercial customers | 70,564 | 84,174 | ||||||
Total | $ 228,758 | $ 278,901 | $ 234,328 | $ 282,277 | $ 226,467 | $ 268,098 | $ 283,095 | $ 276,531 |
Minimum | ||||||||
Disclosure of Repurchase Agreements [Abstract] | ||||||||
Range of repurchase agreements' maturity dates (days) | 1 day | |||||||
Federal Home Loan Bank, Advances, Maturities Summary [Abstract] | ||||||||
Interest rate, due in next twelve months | 1.59% | 0.99% | ||||||
Interest rate, due in year two | 2.25% | |||||||
Interest rate, due in year three | 1.60% | 0.00% | ||||||
Interest rate, due in year four | 1.60% | |||||||
Interest rate, due thereafter | 0.00% | 0.00% | ||||||
Interest rate, Repurchase agreements for municipal and commercial customers | 0.15% | 0.15% | ||||||
Maximum | ||||||||
Disclosure of Repurchase Agreements [Abstract] | ||||||||
Range of repurchase agreements' maturity dates (days) | 365 days | |||||||
Federal Home Loan Bank, Advances, Maturities Summary [Abstract] | ||||||||
Interest rate, due in next twelve months | 3.25% | 3.69% | ||||||
Interest rate, due in year two | 3.25% | |||||||
Interest rate, due in year three | 1.97% | 0.00% | ||||||
Interest rate, due in year four | 1.97% | |||||||
Interest rate, due thereafter | 0.99% | 0.59% | ||||||
Interest rate, Repurchase agreements for municipal and commercial customers | 1.93% | 1.93% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)planemployee | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined contribution plan [Abstract] | |||
Defined contribution plan service period (in months) | 3 months | ||
Defined contribution plan employer maximum percentage match of annual salary based on employee contribution (in hundredths) | 3.00% | ||
Defined contribution plan employer maximum percentage of annual profit-sharing contribution to plan for benefit of employee (in hundredths) | 2.00% | 2.00% | 2.00% |
Expense related to 401(k) plan | $ 554,000 | $ 435,000 | $ 462,000 |
Defined benefit plans, general information | The Bank also provides unfunded supplemental retirement benefits for certain officers, payable in installments over 20 years upon retirement or death. The agreements consist of individual contracts with differing characteristics that, when taken together, do not constitute a post-retirement plan. | ||
Non-qualified deferred compensation payable period (in years) | 2 years | ||
Supplemental retirement benefits, period of benefits to be received | 20 years | ||
Pension expense | $ 219,000 | 215,000 | $ 312,000 |
Accrued pension liability | $ 3,060,000 | $ 3,073,000 | |
Number of post-retirement benefit plans | plan | 2 | ||
Number of active employees aged 50 and over | employee | 7 | ||
Employee benefit plan age (in years) | 50 years | ||
Post-retirement benefit plan health insurance subsidy range minimum per month per person | $ 40 | ||
Post-retirement benefit plan health insurance subsidy range maximum per month per person | 1,200 | ||
Expected future benefit payments in 2018 | 128,000 | ||
Expected future benefit payments in 2019 | 128,000 | ||
Expected future benefit payments in 2020 | 127,000 | ||
Expected future benefit payments in 2021 | 126,000 | ||
Expected future benefit payments in 2022 | 124,000 | ||
Expected future benefit payments in 2022 through 2026 | 636,000 | ||
Estimated plan expense | $ 77,000 | ||
Federal statutory income tax rate (percent) | 35.00% | 35.00% | 35.00% |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Post-Retirement Benefit Obligation, Funded Status, and Net Periodic Benefit Cost (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Change in Benefit Obligations [Roll Forward] | ||||||
Benefit obligation at beginning of year | $ 1,870 | $ 1,967 | $ 1,928 | |||
Interest cost | 77 | 81 | 80 | |||
Benefits paid | (113) | (109) | (102) | |||
Actuarial (gain) loss | $ 40 | $ (69) | $ 61 | |||
Benefit obligation at end of period | 1,874 | 1,870 | 1,967 | |||
Funded Status of Plan [Abstract] | ||||||
Benefit obligation at end of period | (1,870) | (1,967) | (1,928) | (1,874) | (1,870) | (1,967) |
Unamortized loss | 186 | 156 | 240 | |||
Accrued benefit cost | $ (1,688) | $ (1,714) | $ (1,727) | |||
Weighted average discount rate as of December 31 | 0.0425 | 0.0425 | 0.0425 | |||
Components of Net Periodic Benefit Cost [Abstract] | ||||||
Interest cost | 77 | 81 | 80 | |||
Amortization of loss | 0 | 4 | 0 | |||
Other settlement expense | 11 | 11 | 12 | |||
Net periodic benefit cost | $ 88 | $ 96 | $ 92 | |||
Weighted average discount rate for net periodic cost | 4.25% | 4.25% | 4.25% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost Not Yet Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits, Description [Abstract] | ||
Unamortized net actuarial loss | $ (186) | $ (156) |
Deferred tax benefit at 35% | 65 | 54 |
Reclassification adjustment for effect of enacted tax law changes | (26) | 0 |
Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss) | (147) | $ (102) |
Portion to Be Recognized in Income in 2018 | ||
Unamortized net actuarial loss | (185) | |
Deferred tax benefit at 35% | 65 | |
Reclassification adjustment for effect of enacted tax law changes | 0 | |
Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss) | $ (120) |
Other Comprehensive Income (L87
Other Comprehensive Income (Loss), Summary of Unrealized Gains and Losses on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance | $ 179,882 | $ 177,537 | $ 174,910 | $ 172,521 | $ 175,994 | $ 174,788 | $ 171,544 | $ 167,498 | $ 172,521 | $ 167,498 | $ 161,554 |
Other comprehensive loss | (1,349) | (263) | 174 | 60 | (2,489) | (1,090) | 880 | 1,841 | (1,378) | (858) | (1,494) |
Balance | 181,321 | $ 179,882 | $ 177,537 | 174,910 | 172,521 | $ 175,994 | $ 174,788 | 171,544 | 181,321 | 172,521 | 167,498 |
Accumulated Net Unrealized Investment Gain (Loss) | |||||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance | $ (935) | $ 1,123 | (935) | 1,123 | 2,522 | ||||||
Unrealized gains (losses) during the period | (1,763) | (2,493) | (754) | ||||||||
Realized gains during the period | (471) | (673) | (1,399) | ||||||||
Related deferred taxes | 782 | 1,108 | 754 | ||||||||
Reclassification adjustment for effect of enacted tax law changes | (514) | 0 | 0 | ||||||||
Other comprehensive loss | (1,966) | (2,058) | (1,399) | ||||||||
Balance | $ (2,901) | $ (935) | $ (2,901) | $ (935) | $ 1,123 |
Other Comprehensive Income (L88
Other Comprehensive Income (Loss), Summary of Transfer of AFS Securities to HTM (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance | $ 179,882 | $ 177,537 | $ 174,910 | $ 172,521 | $ 175,994 | $ 174,788 | $ 171,544 | $ 167,498 | $ 172,521 | $ 167,498 | $ 161,554 |
Other comprehensive loss | (1,349) | (263) | 174 | 60 | (2,489) | (1,090) | 880 | 1,841 | (1,378) | (858) | (1,494) |
Balance | 181,321 | $ 179,882 | $ 177,537 | 174,910 | 172,521 | $ 175,994 | $ 174,788 | 171,544 | 181,321 | 172,521 | 167,498 |
Accumulated Net Gain (Loss) on Securities Transferred from Available-for-Sale to Held-to-Maturity | |||||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance | $ (129) | $ (112) | (129) | (112) | (48) | ||||||
Amortization of unrealized losses | (22) | (26) | (98) | ||||||||
Related deferred taxes | 8 | 9 | 34 | ||||||||
Reclassification adjustment for effect of enacted tax law changes | (31) | 0 | 0 | ||||||||
Other comprehensive loss | (45) | (17) | (64) | ||||||||
Balance | $ (174) | $ (129) | $ (174) | $ (129) | $ (112) |
Other Comprehensive Income (L89
Other Comprehensive Income (Loss), Summary of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance | $ 179,882 | $ 177,537 | $ 174,910 | $ 172,521 | $ 175,994 | $ 174,788 | $ 171,544 | $ 167,498 | $ 172,521 | $ 167,498 | $ 161,554 |
Other comprehensive loss | (1,349) | (263) | 174 | 60 | (2,489) | (1,090) | 880 | 1,841 | (1,378) | (858) | (1,494) |
Balance | 181,321 | $ 179,882 | $ 177,537 | 174,910 | 172,521 | $ 175,994 | $ 174,788 | 171,544 | 181,321 | 172,521 | 167,498 |
Accumulated Net Gain (Loss) from Cash Flow Hedges | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Balance | $ 1,163 | $ 0 | 1,163 | 0 | 0 | ||||||
Unrealized gains (losses) during the period | 165 | 1,790 | 0 | ||||||||
Related deferred taxes | (58) | (627) | 0 | ||||||||
Reclassification adjustment for effect of enacted tax law changes | 274 | 0 | 0 | ||||||||
Other comprehensive loss | 381 | 1,163 | 0 | ||||||||
Balance | $ 1,544 | $ 1,163 | $ 1,544 | $ 1,163 | $ 0 |
Other Comprehensive Income (L90
Other Comprehensive Income (Loss), Summary of Unrealized Gains and Losses on Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance | $ 179,882 | $ 177,537 | $ 174,910 | $ 172,521 | $ 175,994 | $ 174,788 | $ 171,544 | $ 167,498 | $ 172,521 | $ 167,498 | $ 161,554 |
Other comprehensive loss | (1,349) | (263) | 174 | 60 | (2,489) | (1,090) | 880 | 1,841 | (1,378) | (858) | (1,494) |
Balance | 181,321 | $ 179,882 | $ 177,537 | 174,910 | 172,521 | $ 175,994 | $ 174,788 | 171,544 | 181,321 | 172,521 | 167,498 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) | |||||||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance | $ (102) | $ (156) | (102) | (156) | (125) | ||||||
Unrealized gains (losses) during the period | (30) | 84 | (48) | ||||||||
Related deferred taxes | 11 | (30) | 17 | ||||||||
Reclassification adjustment for effect of enacted tax law changes | (26) | 0 | 0 | ||||||||
Other comprehensive loss | (45) | 54 | (31) | ||||||||
Balance | $ (147) | $ (102) | $ (147) | $ (102) | $ (156) |
Financial Derivative Instrume91
Financial Derivative Instruments (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
June 28, 2016 | ||
Derivative [Line Items] | ||
Notional Amount | $ 30,000,000 | |
Fixed Rate Paid | 0.94% | |
Fair Value | $ 1,154,000 | $ 1,049,000 |
June 27, 2016 | ||
Derivative [Line Items] | ||
Notional Amount | $ 20,000,000 | |
Fixed Rate Paid | 0.89% | |
Fair Value | $ 801,000 | 741,000 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amount | 50,000,000 | |
Fair Value | $ 1,955,000 | $ 1,790,000 |
Preferred and Common Stock (Det
Preferred and Common Stock (Details) - USD ($) | Jan. 09, 2009 | Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | May 31, 2015 | Dec. 31, 2001 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||
Proceeds from issuance of CPP Shares | $ 25,000,000 | |||||||
Number of shares of common stock issuable pursuant to the Warrants, maximum (in shares) | 225,904 | 226,819 | 226,819 | |||||
Exercise price of the Warrants (in dollars per share) | $ 16.60 | $ 16.53 | ||||||
Term of warrants (in years) | 10 years | |||||||
Repurchase of warrants | $ 1,750,000 | $ 0 | $ 1,750,000 | $ 0 | ||||
Common stock | ||||||||
Number of shares available to directors and employees for stock purchase or savings and investment plans (in shares) | 250,000 | 700,000 | 700,000 | |||||
Number of shares issued under employee savings and investment plan (in shares) | 27,273 | |||||||
Number of shares available for future use under employee savings and investment plan (in shares) | 222,727 | |||||||
Number of shares issued during period, employee benefit plan (in shares) | 12,762 | 14,511 | 13,787 | |||||
Number of shares registered with SEC for dividend reinvestment plan (in shares) | 600,000 | |||||||
Number of shares issued during period, dividend reinvestment plan (in shares) | 9,922 | 10,889 | 11,668 | 257,759 | ||||
Number of shares for future use (in shares) | 342,241 | |||||||
Number of trading days immediately preceding dividend payment date used in determining per share price of shares purchased | 5 days | |||||||
Proceeds from sale of common stock | $ 632,000 | $ 531,000 | $ 465,000 | |||||
Capital Purchase Program | ||||||||
Common stock | ||||||||
Proceeds from sale of common stock | $ 632,000 | $ 531,000 | $ 465,000 |
Stock Options and Stock-Based93
Stock Options and Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 1995 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock reserved for issuance (in shares) | 400,000 | |||
Shares | 127,560 | |||
Compensation cost related to restricted stock grants | $ 1,428 | |||
Compensation expense recognized for restricted shares | 392 | $ 298 | ||
Unrecognized compensation costs | $ 601 | $ 457 | ||
Vesting Term (In Years) | 10 years | |||
Percentage of options vesting two years (in hundredths) | 50.00% | |||
Vesting term, option one (in years) | 2 years | |||
Percentage of options vesting five years (in hundredths) | 50.00% | |||
Vesting term, option two (in years) | 5 years | |||
1995 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted in 1995 (in shares) | 600,000 | |||
Plan 2010 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares | 71,086 |
Stock Options and Stock-Based94
Stock Options and Stock-Based Compensation - Summary of Restricted Stock Granted (Details) - shares | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 1995 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting Term (In Years) | 10 years | |||||
Shares | 127,560 | |||||
Plan 2010 | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares | 71,086 | |||||
Remaining Term (In Years) | 2 years | |||||
Plan 2010 | Restricted Stock | One Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting Term (In Years) | 1 year | |||||
Shares | 3,976 | |||||
Remaining Term (In Years) | 4 months 24 days | |||||
Plan 2010 | Restricted Stock | Five Years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting Term (In Years) | 5 years | 5 years | 5 years | 5 years | 5 years | |
Shares | 9,972 | 15,015 | 12,023 | 10,422 | 14,776 | |
Remaining Term (In Years) | 4 years 3 months 18 days | 3 years 3 months 18 days | 2 years 3 months 18 days | 1 year 3 months 18 days | 3 months 18 days | |
Plan 2010 | Restricted Stock | Three Years [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting Term (In Years) | 3 years | |||||
Shares | 4,902 | |||||
Remaining Term (In Years) | 2 years 3 months 18 days |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2015 | Jan. 09, 2009 | |
Income (Numerator) [Abstract] | |||||||||||||
Net income as reported | $ 5,086 | $ 4,982 | $ 4,883 | $ 4,637 | $ 4,320 | $ 4,562 | $ 4,624 | $ 4,503 | $ 19,588 | $ 18,009 | $ 16,206 | ||
Basic EPS: Income available to common shareholders | 19,588 | 18,009 | 16,206 | ||||||||||
Diluted EPS: Income available to common shareholders plus assumed conversions | $ 19,588 | $ 18,009 | $ 16,206 | ||||||||||
Shares (Denominator) [Abstract] | |||||||||||||
Weighted average number of common shares outstanding (in shares) | 10,747,306 | 10,713,290 | 10,674,755 | ||||||||||
Incremental shares (in shares) | 71,712 | 116,512 | 90,114 | ||||||||||
Diluted EPS: Income available to common shareholders plus assumed conversions (in shares) | 10,819,018 | 10,829,802 | 10,764,869 | ||||||||||
Per-Share Amount [Abstract] | |||||||||||||
Basic EPS: Income available to common shareholders (in dollars per share) | $ 0.48 | $ 0.46 | $ 0.45 | $ 0.43 | $ 0.40 | $ 0.43 | $ 0.43 | $ 0.42 | $ 1.82 | $ 1.68 | $ 1.52 | ||
Diluted EPS: Income available to common shareholders plus assumed conversions (in dollars per share) | $ 0.47 | $ 0.46 | $ 0.45 | $ 0.43 | $ 0.39 | $ 0.42 | $ 0.43 | $ 0.42 | $ 1.81 | $ 1.66 | $ 1.51 | ||
Warrants issued to private parties | 226,819 | 226,819 | 225,904 | ||||||||||
Total Dilutive Securities | 226,819 | ||||||||||||
In-the-Money | |||||||||||||
Per-Share Amount [Abstract] | |||||||||||||
Warrants issued to private parties | 226,819 | ||||||||||||
Total Dilutive Securities | 226,819 | ||||||||||||
Out-of-the-Money | |||||||||||||
Per-Share Amount [Abstract] | |||||||||||||
Warrants issued to private parties | 0 | ||||||||||||
Total Dilutive Securities | 0 |
Regulatory Capital Requiremen96
Regulatory Capital Requirements (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Retained earnings from prior two years available for dividends | $ 15,850,000 | ||
Capital conservation buffer phase in, minimum (as a percentage) | 2.25% | 0.00% | |
Capital conservation buffer phase in, maximum (as a percentage) | 2.50% | ||
Capital conservation buffer (as a percentage) | 7.24% | ||
Tier 1 capital to risk-weighted assets [Abstract] | |||
Actual | $ 153,114,000 | $ 142,564,000 | |
Actual | 153,114,000 | 142,564,000 | |
For capital adequacy purposes | $ 43,835,000 | ||
Risk-weighted assets [Abstract] | |||
Actual (in hundredths) | 14.64% | ||
For capital adequacy purposes (in hundredths) | 4.50% | ||
Non Consolidated | |||
Tier 2 capital to risk-weighted asets [Abstract] | |||
Actual | 162,355,000 | $ 151,487,000 | |
For capital adequacy purposes | 86,063,000 | 77,928,000 | |
To be well-capitalized under prompt corrective action provisions | 107,579,000 | 97,410,000 | |
Tier 1 capital to risk-weighted assets [Abstract] | |||
Actual | 151,526,000 | 141,249,000 | |
For capital adequacy purposes | 64,548,000 | 58,446,000 | |
To be well-capitalized under prompt corrective action provisions | 86,063,000 | 77,928,000 | |
Actual | 151,526,000 | 141,249,000 | |
For capital adequacy purposes | 48,411,000 | 43,835,000 | |
To be well-capitalized under prompt corrective action provisions | $ 69,926,000 | $ 63,317,000 | |
Risk-weighted assets [Abstract] | |||
Actual (in hundredths) | 15.09% | 15.55% | |
For capital adequacy purposes (in hundredths) | 8.00% | 8.00% | |
To be well-capitalized under prompt corrective action provisions (in hundredths) | 10.00% | 10.00% | |
Actual (in hundredths) | 14.09% | 14.50% | |
For capital adequacy purposes (in hundredths) | 6.00% | 6.00% | |
To be well-capitalized under prompt corrective action provisions (in hundredths) | 8.00% | 8.00% | |
Actual (in hundredths) | 14.09% | 14.50% | |
For capital adequacy purposes (in hundredths) | 4.50% | 4.50% | |
To be well-capitalized under prompt corrective action provisions (in hundredths) | 6.50% | 6.50% | |
Tier 1 capital to average assets [Abstract] | |||
Actual | $ 151,526,000 | $ 141,249,000 | |
For capital adequacy purpose | 71,386,000 | 65,437,000 | |
To be well-capitalized under prompt corrective action provisions | $ 89,233,000 | $ 81,797,000 | |
Average assets [Abstract] | |||
Actual (in hundredths) | 8.49% | 8.63% | |
For capital adequacy purpose (in hundredths) | 4.00% | 4.00% | |
To be well-capitalized under prompt corrective action provisions (in hundredths) | 5.00% | 5.00% | |
Consolidated | |||
Tier 2 capital to risk-weighted asets [Abstract] | |||
Actual | $ 163,943,000 | $ 152,802,000 | |
For capital adequacy purposes | 86,070,000 | 77,928,000 | |
Tier 1 capital to risk-weighted assets [Abstract] | |||
For capital adequacy purposes | 64,553,000 | $ 58,446,000 | |
For capital adequacy purposes | $ 48,415,000 | ||
Risk-weighted assets [Abstract] | |||
Actual (in hundredths) | 15.24% | 15.69% | |
For capital adequacy purposes (in hundredths) | 8.00% | 8.00% | |
Actual (in hundredths) | 14.23% | 14.64% | |
For capital adequacy purposes (in hundredths) | 6.00% | 6.00% | |
Actual (in hundredths) | 14.23% | ||
For capital adequacy purposes (in hundredths) | 4.50% | ||
Tier 1 capital to average assets [Abstract] | |||
Actual | $ 153,114,000 | $ 142,564,000 | |
For capital adequacy purpose | $ 71,435,000 | $ 65,470,000 | |
Average assets [Abstract] | |||
Actual (in hundredths) | 8.57% | 8.71% | |
For capital adequacy purpose (in hundredths) | 4.00% | 4.00% |
Off-Balance-Sheet Financial I97
Off-Balance-Sheet Financial Instruments and Concentrations of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)derivative | Dec. 31, 2016USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet financial instruments | $ 151,879,000 | $ 149,266,000 |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of derivative instruments (derivative) | derivative | 2 | |
Notional Amount | $ 50,000,000 | |
Unrealized gain on derivative | 1,544,000 | |
Unused lines, collateralized by residential real estate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet financial instruments | 76,887,000 | 76,646,000 |
Other unused commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet financial instruments | 62,771,000 | 57,738,000 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet financial instruments | 3,497,000 | 4,198,000 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet financial instruments | $ 8,724,000 | $ 10,684,000 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Recorded on a Recurring and Nonrecurring Basis(Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | $ 300,172 | $ 300,416 | ||
Allowance for loan losses, other real estate owned | 53 | 205 | $ 162 | $ 654 |
Allowance for impaired loans | 1,531 | 478 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Interest rate swap agreements | 0 | 0 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 300,172 | 300,416 | ||
Interest rate swap agreements | 1,955 | 1,790 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Interest rate swap agreements | 0 | 0 | ||
Estimate of Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 300,172 | 300,416 | ||
Interest rate swap agreements | 1,955 | 1,790 | ||
Mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 289,989 | 280,604 | ||
State and political subdivisions | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 6,769 | 16,482 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 300,172 | 300,416 | ||
Assets measured at fair value | 302,127 | 302,206 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Recurring | Estimate of Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 300,172 | 300,416 | ||
Assets measured at fair value | 302,127 | 302,206 | ||
Fair Value, Measurements, Recurring | Interest Rate Swap | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate swap agreements | 0 | 0 | ||
Fair Value, Measurements, Recurring | Interest Rate Swap | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate swap agreements | 1,955 | 1,790 | ||
Fair Value, Measurements, Recurring | Interest Rate Swap | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate swap agreements | 0 | 0 | ||
Fair Value, Measurements, Recurring | Interest Rate Swap | Estimate of Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate swap agreements | 1,955 | 1,790 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 289,989 | 280,604 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed securities | Estimate of Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 289,989 | 280,604 | ||
Fair Value, Measurements, Recurring | State and political subdivisions | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | State and political subdivisions | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 6,769 | 16,482 | ||
Fair Value, Measurements, Recurring | State and political subdivisions | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | State and political subdivisions | Estimate of Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 6,769 | 16,482 | ||
Fair Value, Measurements, Recurring | Other equity securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Other equity securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 3,414 | 3,330 | ||
Fair Value, Measurements, Recurring | Other equity securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Other equity securities | Estimate of Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 3,414 | 3,330 | ||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other real estate owned | 1,012 | 375 | ||
Impaired loans | 6,521 | 827 | ||
Assets measured at fair value | 7,533 | 1,202 | ||
Fair Value, Measurements, Nonrecurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other real estate owned | 0 | 0 | ||
Impaired loans | 0 | 0 | ||
Assets measured at fair value | 0 | 0 | ||
Fair Value, Measurements, Nonrecurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other real estate owned | 1,012 | 375 | ||
Impaired loans | 6,521 | 827 | ||
Assets measured at fair value | 7,533 | 1,202 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other real estate owned | 0 | 0 | ||
Impaired loans | 0 | 0 | ||
Assets measured at fair value | $ 0 | $ 0 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 |
Financial assets | ||||||||
Securities available for sale | $ 300,172 | $ 300,416 | ||||||
Securities to be held to maturity, fair value | 259,655 | 225,537 | ||||||
Restricted equity securities, at cost | 10,358 | 11,930 | ||||||
Loans (net of allowance for loan losses) | ||||||||
Mortgage servicing rights | 2,321 | 1,696 | ||||||
Financial liabilities | ||||||||
Demand deposits | 181,970 | 140,482 | ||||||
NOW deposits | 281,405 | 282,971 | ||||||
Money market deposits | 163,898 | 125,544 | ||||||
Savings deposits | 232,605 | 217,340 | ||||||
Certificates of deposit | 559,001 | 476,620 | ||||||
Total deposits | 1,418,879 | $ 1,350,049 | $ 1,319,259 | $ 1,346,483 | 1,242,957 | $ 1,173,749 | $ 1,145,709 | $ 1,109,441 |
Level 1 | ||||||||
Financial assets | ||||||||
Cash and cash equivalents | 19,207 | 17,366 | ||||||
Interest-bearing deposits in other banks | 860 | 293 | ||||||
Securities available for sale | 0 | 0 | ||||||
Securities to be held to maturity, fair value | 0 | 0 | ||||||
Restricted equity securities, at cost | 0 | 0 | ||||||
Loans held for sale | 0 | 0 | ||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Mortgage servicing rights | 0 | 0 | ||||||
Interest rate swap agreements | 0 | 0 | ||||||
Accrued interest receivable | 0 | 0 | ||||||
Financial liabilities | ||||||||
Demand deposits | 0 | 0 | ||||||
NOW deposits | 0 | 0 | ||||||
Money market deposits | 0 | 0 | ||||||
Savings deposits | 0 | 0 | ||||||
Certificates of deposit | 0 | 0 | ||||||
National certificates of deposit | 0 | 0 | ||||||
Total deposits | 0 | 0 | ||||||
Repurchase agreements | 0 | 0 | ||||||
Federal Home Loan Bank advances | 0 | 0 | ||||||
Total borrowed funds | 0 | 0 | ||||||
Accrued interest payable | 0 | 0 | ||||||
Level 1 | Commercial | Real Estate | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Commercial | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Commercial | Other | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Municipal | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Residential | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Residential | Term | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Home Equity LIne of Credit | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 1 | Consumer | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 2 | ||||||||
Financial assets | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Interest-bearing deposits in other banks | 0 | 0 | ||||||
Securities available for sale | 300,172 | 300,416 | ||||||
Securities to be held to maturity, fair value | 259,655 | 225,537 | ||||||
Restricted equity securities, at cost | 10,358 | 11,930 | ||||||
Loans held for sale | 386 | 782 | ||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 6,521 | 827 | ||||||
Mortgage servicing rights | 2,321 | 1,696 | ||||||
Interest rate swap agreements | 1,955 | 1,790 | ||||||
Accrued interest receivable | 5,867 | 5,532 | ||||||
Financial liabilities | ||||||||
Demand deposits | 174,481 | 133,342 | ||||||
NOW deposits | 261,702 | 259,418 | ||||||
Money market deposits | 153,497 | 115,087 | ||||||
Savings deposits | 203,799 | 188,260 | ||||||
Certificates of deposit | 220,734 | 209,370 | ||||||
National certificates of deposit | 335,775 | 266,372 | ||||||
Total deposits | 1,349,988 | 1,171,849 | ||||||
Repurchase agreements | 67,976 | 79,827 | ||||||
Federal Home Loan Bank advances | 156,396 | 193,733 | ||||||
Total borrowed funds | 224,372 | 273,560 | ||||||
Accrued interest payable | 642 | 479 | ||||||
Level 2 | Commercial | Real Estate | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 72 | 558 | ||||||
Level 2 | Commercial | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 2 | Commercial | Other | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 6,018 | 33 | ||||||
Level 2 | Municipal | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 2 | Residential | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 2 | Residential | Term | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 391 | 236 | ||||||
Level 2 | Home Equity LIne of Credit | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 40 | 0 | ||||||
Level 2 | Consumer | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 0 | 0 | ||||||
Level 3 | ||||||||
Financial assets | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Interest-bearing deposits in other banks | 0 | 0 | ||||||
Securities available for sale | 0 | 0 | ||||||
Securities to be held to maturity, fair value | 0 | 0 | ||||||
Restricted equity securities, at cost | 0 | 0 | ||||||
Loans held for sale | 0 | 0 | ||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 1,132,206 | 1,052,987 | ||||||
Mortgage servicing rights | 0 | 0 | ||||||
Interest rate swap agreements | 0 | 0 | ||||||
Accrued interest receivable | 0 | 0 | ||||||
Financial liabilities | ||||||||
Demand deposits | 0 | 0 | ||||||
NOW deposits | 0 | 0 | ||||||
Money market deposits | 0 | 0 | ||||||
Savings deposits | 0 | 0 | ||||||
Certificates of deposit | 0 | 0 | ||||||
National certificates of deposit | 0 | 0 | ||||||
Total deposits | 0 | 0 | ||||||
Repurchase agreements | 0 | 0 | ||||||
Federal Home Loan Bank advances | 0 | 0 | ||||||
Total borrowed funds | 0 | 0 | ||||||
Accrued interest payable | 0 | 0 | ||||||
Level 3 | Commercial | Real Estate | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 311,249 | 292,545 | ||||||
Level 3 | Commercial | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 36,610 | 24,548 | ||||||
Level 3 | Commercial | Other | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 169,437 | 147,361 | ||||||
Level 3 | Municipal | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 33,280 | 27,446 | ||||||
Level 3 | Residential | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 17,613 | 18,125 | ||||||
Level 3 | Residential | Term | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 430,637 | 410,091 | ||||||
Level 3 | Home Equity LIne of Credit | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 108,972 | 108,740 | ||||||
Level 3 | Consumer | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 24,408 | 24,131 | ||||||
Carrying Amount | ||||||||
Financial assets | ||||||||
Cash and cash equivalents | 19,207 | 17,366 | ||||||
Interest-bearing deposits in other banks | 860 | 293 | ||||||
Securities available for sale | 300,172 | 300,416 | ||||||
Securities to be held to maturity, fair value | 256,567 | 226,828 | ||||||
Restricted equity securities, at cost | 10,358 | 11,930 | ||||||
Loans held for sale | 386 | 782 | ||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 1,153,410 | 1,061,388 | ||||||
Mortgage servicing rights | 1,268 | 1,113 | ||||||
Interest rate swap agreements | 1,955 | 1,790 | ||||||
Accrued interest receivable | 5,867 | 5,532 | ||||||
Financial liabilities | ||||||||
Demand deposits | 181,970 | 140,482 | ||||||
NOW deposits | 281,405 | 282,971 | ||||||
Money market deposits | 163,898 | 125,544 | ||||||
Savings deposits | 232,605 | 217,340 | ||||||
Certificates of deposit | 223,074 | 210,316 | ||||||
National certificates of deposit | 335,927 | 266,304 | ||||||
Total deposits | 1,418,879 | 1,242,957 | ||||||
Repurchase agreements | 70,564 | 84,174 | ||||||
Federal Home Loan Bank advances | 158,194 | 194,727 | ||||||
Total borrowed funds | 228,758 | 278,901 | ||||||
Accrued interest payable | 642 | 479 | ||||||
Carrying Amount | Commercial | Real Estate | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 319,691 | 297,952 | ||||||
Carrying Amount | Commercial | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 37,594 | 24,954 | ||||||
Carrying Amount | Commercial | Other | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 177,956 | 148,737 | ||||||
Carrying Amount | Municipal | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 33,370 | 27,035 | ||||||
Carrying Amount | Residential | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 17,830 | 18,253 | ||||||
Carrying Amount | Residential | Term | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 431,459 | 409,999 | ||||||
Carrying Amount | Home Equity LIne of Credit | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 110,566 | 109,986 | ||||||
Carrying Amount | Consumer | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 24,944 | 24,472 | ||||||
Estimate of Fair Value | ||||||||
Financial assets | ||||||||
Cash and cash equivalents | 19,207 | 17,366 | ||||||
Interest-bearing deposits in other banks | 860 | 293 | ||||||
Securities available for sale | 300,172 | 300,416 | ||||||
Securities to be held to maturity, fair value | 259,655 | 225,537 | ||||||
Restricted equity securities, at cost | 10,358 | 11,930 | ||||||
Loans held for sale | 386 | 782 | ||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 1,138,727 | 1,053,814 | ||||||
Mortgage servicing rights | 2,321 | 1,696 | ||||||
Interest rate swap agreements | 1,955 | 1,790 | ||||||
Accrued interest receivable | 5,867 | 5,532 | ||||||
Financial liabilities | ||||||||
Demand deposits | 174,481 | 133,342 | ||||||
NOW deposits | 261,702 | 259,418 | ||||||
Money market deposits | 153,497 | 115,087 | ||||||
Savings deposits | 203,799 | 188,260 | ||||||
Certificates of deposit | 220,734 | 209,370 | ||||||
National certificates of deposit | 335,775 | 266,372 | ||||||
Total deposits | 1,349,988 | 1,171,849 | ||||||
Repurchase agreements | 67,976 | 79,827 | ||||||
Federal Home Loan Bank advances | 156,396 | 193,733 | ||||||
Total borrowed funds | 224,372 | 273,560 | ||||||
Accrued interest payable | 642 | 479 | ||||||
Estimate of Fair Value | Commercial | Real Estate | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 311,321 | 293,103 | ||||||
Estimate of Fair Value | Commercial | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 36,610 | 24,548 | ||||||
Estimate of Fair Value | Commercial | Other | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 175,455 | 147,394 | ||||||
Estimate of Fair Value | Municipal | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 33,280 | 27,446 | ||||||
Estimate of Fair Value | Residential | Construction | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 17,613 | 18,125 | ||||||
Estimate of Fair Value | Residential | Term | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 431,028 | 410,327 | ||||||
Estimate of Fair Value | Home Equity LIne of Credit | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | 109,012 | 108,740 | ||||||
Estimate of Fair Value | Consumer | ||||||||
Loans (net of allowance for loan losses) | ||||||||
Loans | $ 24,408 | $ 24,131 |
Other Operating Income and E100
Other Operating Income and Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other operating expense | |||
Advertising and marketing expense | $ 1,208 | $ 1,099 | $ 1,178 |
Accounting and auditing expenses | 818 | 690 | 797 |
ATM and interchange expense | 886 | 853 | 814 |
ATM and debit card income | |||
Other operating income | |||
ATM and debit card income | $ 3,378 | $ 3,024 | $ 2,714 |
Condensed Financial Informat101
Condensed Financial Information of Parent (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||||||||||||
Cash and cash equivalents | $ 19,207 | $ 22,375 | $ 23,718 | $ 17,600 | $ 17,366 | $ 23,456 | $ 20,838 | $ 14,533 | $ 19,207 | $ 17,366 | |||
Investments | 556,739 | 541,678 | 552,269 | 553,453 | 527,244 | 471,063 | 457,599 | 453,336 | 556,739 | 527,244 | |||
Premises and equipment | 22,502 | 22,202 | 22,502 | 22,202 | |||||||||
Goodwill | 29,805 | 29,805 | 29,805 | 29,805 | |||||||||
Other assets | 42,784 | 35,958 | 42,784 | 35,958 | |||||||||
Total assets | 1,842,930 | 1,781,701 | 1,795,651 | 1,763,828 | 1,712,875 | 1,635,088 | 1,621,454 | 1,574,681 | 1,842,930 | 1,712,875 | |||
Liabilities and shareholders' equity | |||||||||||||
Other liabilities | 13,972 | 17,442 | 16,578 | 15,968 | 18,496 | 17,247 | 17,862 | 17,165 | 13,972 | 18,496 | |||
Total liabilities | 1,661,609 | 1,540,354 | 1,661,609 | 1,540,354 | |||||||||
Shareholders' equity | |||||||||||||
Common stock | 108 | 108 | 108 | 108 | |||||||||
Additional paid-in capital | 61,747 | 60,723 | 61,747 | 60,723 | |||||||||
Retained earnings | 121,144 | 111,693 | 121,144 | 111,693 | |||||||||
Accumulated other comprehensive income (loss) | |||||||||||||
Net unrealized gain on available for sale securities, net of tax | (2,901) | (935) | (2,901) | (935) | |||||||||
Total shareholders' equity | 181,321 | 179,882 | 177,537 | 174,910 | 172,521 | 175,994 | 174,788 | 171,544 | 181,321 | 172,521 | $ 167,498 | $ 161,554 | |
Total liabilities and shareholders' equity | 1,842,930 | 1,781,701 | 1,795,651 | 1,763,828 | 1,712,875 | 1,635,088 | 1,621,454 | 1,574,681 | 1,842,930 | 1,712,875 | |||
Statements of Income | |||||||||||||
Net securities gains | 471 | 673 | 1,399 | ||||||||||
Income before income taxes | 6,868 | 6,684 | 6,527 | 6,121 | 5,790 | 6,218 | 6,337 | 6,118 | 26,200 | 24,463 | 21,720 | ||
Applicable tax expense | 1,782 | 1,702 | 1,644 | 1,484 | 1,470 | 1,656 | 1,713 | 1,615 | 6,612 | 6,454 | 5,514 | ||
Equity in earnings of Bank | |||||||||||||
Net income | 5,086 | 4,982 | 4,883 | 4,637 | 4,320 | 4,562 | 4,624 | 4,503 | 19,588 | 18,009 | 16,206 | ||
Cash flows from operating activities | |||||||||||||
Net income | 5,086 | $ 4,982 | $ 4,883 | 4,637 | 4,320 | $ 4,562 | $ 4,624 | 4,503 | 19,588 | 18,009 | 16,206 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation | 1,864 | 1,745 | 1,720 | ||||||||||
Equity compensation expense | 392 | 298 | 296 | ||||||||||
Loss on sale of investments | (471) | (673) | (1,399) | ||||||||||
Tax benefit from vesting of restricted stock | 0 | 32 | 0 | ||||||||||
(Increase) decrease in other assets | (4,742) | (2,460) | (455) | ||||||||||
Increase (decrease) in other liabilities | (2,020) | 665 | 1,418 | ||||||||||
Net cash provided by operating activities | 22,526 | 21,646 | 20,742 | ||||||||||
Cash flows from investing activities | |||||||||||||
Proceeds from maturities, payments, calls of securities available for sale | 157,013 | 79,223 | 36,588 | ||||||||||
Capital expenditures | (2,529) | (2,131) | (927) | ||||||||||
Net cash used in investing activities | (130,313) | (148,633) | (86,347) | ||||||||||
Cash flows from financing activities | |||||||||||||
Purchase of common stock | (154) | (129) | (180) | ||||||||||
Proceeds from sale of common stock | 632 | 531 | 465 | ||||||||||
Repurchase of warrants | $ (1,750) | 0 | (1,750) | 0 | |||||||||
Dividends paid | (11,460) | (9,810) | (9,349) | ||||||||||
Net cash provided by financing activities | 109,628 | 130,054 | 66,847 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 1,841 | 3,067 | 1,242 | ||||||||||
Cash and cash equivalents at beginning of year | 17,366 | 14,299 | 17,366 | 14,299 | 13,057 | ||||||||
Cash and cash equivalents at end of year | 19,207 | 17,366 | 19,207 | 17,366 | 14,299 | ||||||||
Parent Company | |||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | 958 | 613 | 958 | 613 | |||||||||
Dividends receivable | 2,500 | 3,800 | 2,500 | 3,800 | |||||||||
Investments | 441 | 432 | 441 | 432 | |||||||||
Investment in subsidiary | 152,174 | 143,611 | 152,174 | 143,611 | |||||||||
Premises and equipment | 3 | 4 | 3 | 4 | |||||||||
Goodwill | 27,559 | 27,559 | 27,559 | 27,559 | |||||||||
Other assets | 312 | 300 | 312 | 300 | |||||||||
Total assets | 183,947 | 176,319 | 183,947 | 176,319 | |||||||||
Liabilities and shareholders' equity | |||||||||||||
Dividends payable | 2,599 | 3,778 | 2,599 | 3,778 | |||||||||
Other liabilities | 27 | 20 | 27 | 20 | |||||||||
Total liabilities | 2,626 | 3,798 | 2,626 | 3,798 | |||||||||
Shareholders' equity | |||||||||||||
Common stock | 108 | 108 | 108 | 108 | |||||||||
Additional paid-in capital | 61,747 | 60,723 | 61,747 | 60,723 | |||||||||
Retained earnings | 119,373 | 111,653 | 119,373 | 111,653 | |||||||||
Accumulated other comprehensive income (loss) | |||||||||||||
Net unrealized gain on available for sale securities, net of tax | 93 | 37 | 93 | 37 | |||||||||
Total accumulated other comprehensive income | 93 | 37 | 93 | 37 | |||||||||
Total shareholders' equity | 181,321 | 172,521 | 181,321 | 172,521 | |||||||||
Total liabilities and shareholders' equity | 183,947 | 176,319 | 183,947 | 176,319 | |||||||||
Statements of Income | |||||||||||||
Interest and dividends on investments | 15 | 22 | 18 | ||||||||||
Net securities gains | (3) | (6) | 0 | ||||||||||
Total income | 12 | 16 | 18 | ||||||||||
Occupancy expense | 5 | 9 | 12 | ||||||||||
Other operating expense | 588 | 528 | 488 | ||||||||||
Total expense | 593 | 537 | 500 | ||||||||||
Income before income taxes | (581) | (521) | (482) | ||||||||||
Applicable tax expense | (187) | (186) | (172) | ||||||||||
Loss before Bank earnings | (394) | (335) | (310) | ||||||||||
Equity in earnings of Bank | |||||||||||||
Remitted | 11,180 | 11,300 | 10,000 | ||||||||||
Unremitted | 8,802 | 7,044 | 6,516 | ||||||||||
Net income | 19,588 | 18,009 | 16,206 | ||||||||||
Cash flows from operating activities | |||||||||||||
Net income | 19,588 | 18,009 | 16,206 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation | 5 | 8 | 12 | ||||||||||
Equity compensation expense | 392 | 298 | 296 | ||||||||||
Loss on sale of investments | 3 | 6 | 0 | ||||||||||
Tax benefit from vesting of restricted stock | 0 | 32 | 0 | ||||||||||
(Increase) decrease in other assets | 27 | 136 | (135) | ||||||||||
(Increase) decrease in dividends receivable | 1,300 | (1,300) | (50) | ||||||||||
Increase (decrease) in dividends payable | (1,179) | 112 | 0 | ||||||||||
Increase (decrease) in other liabilities | (3) | (4) | 160 | ||||||||||
Unremitted earnings of Bank | (8,802) | (7,044) | (6,516) | ||||||||||
Net cash provided by operating activities | 11,331 | 10,253 | 9,973 | ||||||||||
Cash flows from investing activities | |||||||||||||
Proceeds from maturities, payments, calls of securities available for sale | 0 | 87 | 0 | ||||||||||
Capital expenditures | (4) | 0 | 0 | ||||||||||
Net cash used in investing activities | (4) | 87 | 0 | ||||||||||
Cash flows from financing activities | |||||||||||||
Purchase of common stock | (154) | (129) | (180) | ||||||||||
Proceeds from sale of common stock | 632 | 531 | 465 | ||||||||||
Repurchase of warrants | 0 | (1,750) | 0 | ||||||||||
Dividends paid | (11,460) | (9,810) | (9,349) | ||||||||||
Net cash provided by financing activities | (10,982) | (11,158) | (9,064) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 345 | (818) | 909 | ||||||||||
Cash and cash equivalents at beginning of year | $ 613 | $ 1,431 | 613 | 1,431 | 522 | ||||||||
Cash and cash equivalents at end of year | $ 958 | $ 613 | $ 958 | $ 613 | $ 1,431 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Retained earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification adjustment for effect of enacted tax law changes | $ 297 |
Quarterly Information (Details)
Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheets | ||||||||||||
Cash and cash equivalents | $ 19,207 | $ 22,375 | $ 23,718 | $ 17,600 | $ 17,366 | $ 23,456 | $ 20,838 | $ 14,533 | $ 19,207 | $ 17,366 | ||
Interest-bearing deposits in other banks | 860 | 584 | 291 | 3,272 | 293 | 15,098 | 7,568 | 6,372 | 860 | 293 | ||
Investments | 556,739 | 541,678 | 552,269 | 553,453 | 527,244 | 471,063 | 457,599 | 453,336 | 556,739 | 527,244 | ||
Restricted equity securities | 10,358 | 10,798 | 12,311 | 13,363 | 11,930 | 14,048 | 14,441 | 13,875 | 10,358 | 11,930 | ||
Net loans and loans held for sale | 1,153,796 | 1,110,508 | 1,110,919 | 1,080,347 | 1,062,170 | 1,019,922 | 1,029,568 | 994,947 | 1,153,796 | 1,062,170 | ||
Other assets | 101,970 | 95,758 | 96,143 | 95,793 | 93,872 | 91,501 | 91,440 | 91,618 | 101,970 | 93,872 | ||
Total assets | 1,842,930 | 1,781,701 | 1,795,651 | 1,763,828 | 1,712,875 | 1,635,088 | 1,621,454 | 1,574,681 | 1,842,930 | 1,712,875 | ||
Deposits | 1,418,879 | 1,350,049 | 1,319,259 | 1,346,483 | 1,242,957 | 1,173,749 | 1,145,709 | 1,109,441 | 1,418,879 | 1,242,957 | ||
Borrowed funds | 228,758 | 234,328 | 282,277 | 226,467 | 278,901 | 268,098 | 283,095 | 276,531 | 228,758 | 278,901 | ||
Other liabilities | 13,972 | 17,442 | 16,578 | 15,968 | 18,496 | 17,247 | 17,862 | 17,165 | 13,972 | 18,496 | ||
Shareholders' equity | 181,321 | 179,882 | 177,537 | 174,910 | 172,521 | 175,994 | 174,788 | 171,544 | 181,321 | 172,521 | $ 167,498 | $ 161,554 |
Total liabilities and shareholders' equity | 1,842,930 | 1,781,701 | 1,795,651 | 1,763,828 | 1,712,875 | 1,635,088 | 1,621,454 | 1,574,681 | 1,842,930 | 1,712,875 | ||
Statements of Income | ||||||||||||
Interest income | 15,822 | 15,517 | 15,002 | 14,491 | 13,600 | 13,283 | 13,600 | 13,276 | 60,832 | 53,759 | 50,810 | |
Interest expense | 3,614 | 3,563 | 3,337 | 3,015 | 2,862 | 2,754 | 2,649 | 2,547 | 13,529 | 10,812 | 9,874 | |
Net interest income | 12,208 | 11,954 | 11,665 | 11,476 | 10,738 | 10,529 | 10,951 | 10,729 | 47,303 | 42,947 | 40,936 | |
Provision for loan losses | 250 | 750 | 500 | 500 | 475 | 375 | 375 | 375 | 2,000 | 1,600 | 1,550 | |
Net interest income after provision for loan losses | 11,958 | 11,204 | 11,165 | 10,976 | 10,263 | 10,154 | 10,576 | 10,354 | 45,303 | 41,347 | 39,386 | |
Non-interest income | 3,210 | 3,493 | 3,002 | 2,843 | 3,060 | 3,469 | 3,006 | 2,964 | 12,548 | 12,499 | 12,230 | |
Non-interest expense | 8,300 | 8,013 | 7,640 | 7,698 | 7,533 | 7,405 | 7,245 | 7,200 | 31,651 | 29,383 | 29,896 | |
Income before income taxes | 6,868 | 6,684 | 6,527 | 6,121 | 5,790 | 6,218 | 6,337 | 6,118 | 26,200 | 24,463 | 21,720 | |
Applicable tax expense | 1,782 | 1,702 | 1,644 | 1,484 | 1,470 | 1,656 | 1,713 | 1,615 | 6,612 | 6,454 | 5,514 | |
Net income | $ 5,086 | $ 4,982 | $ 4,883 | $ 4,637 | $ 4,320 | $ 4,562 | $ 4,624 | $ 4,503 | $ 19,588 | $ 18,009 | $ 16,206 | |
Basic earnings per common share (in usd per share) | $ 0.48 | $ 0.46 | $ 0.45 | $ 0.43 | $ 0.40 | $ 0.43 | $ 0.43 | $ 0.42 | $ 1.82 | $ 1.68 | $ 1.52 | |
Diluted earnings per common share (in usd per share) | $ 0.47 | $ 0.46 | $ 0.45 | $ 0.43 | $ 0.39 | $ 0.42 | $ 0.43 | $ 0.42 | $ 1.81 | $ 1.66 | $ 1.51 | |
Other comprehensive income (loss), net of tax | ||||||||||||
Net unrealized gain (loss) on securities available for sale | $ (1,562) | $ (240) | $ 349 | $ 1 | $ (3,643) | $ (1,292) | $ 1,025 | $ 1,852 | $ (1,452) | $ (2,058) | $ (1,399) | |
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax | (3) | (3) | (4) | (4) | (5) | 9 | (10) | (11) | (14) | (17) | (64) | |
Net unrealized gain on cash flow hedging derivative instruments | 235 | (20) | (171) | 63 | 1,105 | 193 | (135) | 0 | 107 | 1,163 | 0 | |
Unrecognized gain (loss) on postretirement benefit costs | (19) | 0 | 0 | 0 | 54 | 0 | 0 | 0 | (19) | 54 | (31) | |
Other comprehensive loss | (1,349) | (263) | 174 | 60 | (2,489) | (1,090) | 880 | 1,841 | (1,378) | (858) | (1,494) | |
Comprehensive income | $ 3,737 | $ 4,719 | $ 5,057 | $ 4,697 | $ 1,831 | $ 3,472 | $ 5,504 | $ 6,344 | $ 18,210 | $ 17,151 | $ 14,712 |