Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 17, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CORTLAND BANCORP INC | ||
Entity Central Index Key | 774569 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $49,284,497 | ||
Entity Common Stock, Shares Outstanding | 4,527,849 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $6,588 | $8,271 |
Interest-earning deposits | 3,981 | 4,125 |
Total cash and cash equivalents | 10,569 | 12,396 |
Investment securities available-for-sale (Note 2) | 162,247 | 160,886 |
Trading securities (Note 2) | 7,861 | 7,247 |
Loans held for sale | 632 | 656 |
Total loans (Note 3) | 360,185 | 346,833 |
Less allowance for loan losses (Note 3) | -5,202 | -3,764 |
Net loans | 354,983 | 343,069 |
Premises and equipment | 7,697 | 6,676 |
Bank-owned life insurance | 16,990 | 15,049 |
Other assets | 7,953 | 10,939 |
Total assets | 568,932 | 556,918 |
LIABILITIES | ||
Noninterest-bearing deposits | 94,731 | 89,905 |
Interest-bearing deposits (Note 5) | 362,030 | 358,764 |
Total deposits | 456,761 | 448,669 |
Short-term borrowings | 4,259 | 3,804 |
Federal Home Loan Bank advances - short term (Note 6) | 15,500 | 8,100 |
Federal Home Loan Bank advances - long term (Note 6) | 25,000 | 34,500 |
Subordinated debt (Note 7) | 5,155 | 5,155 |
Other liabilities | 6,405 | 7,155 |
Total liabilities | 513,080 | 507,383 |
SHAREHOLDERS’ EQUITY | ||
Common stock - $5.00 stated value - authorized 20,000,000 shares; issued 4,728,267 shares in 2014 and 2013; outstanding shares, 4,527,848 in 2014 and 2013 (Note 1) | 23,641 | 23,641 |
Additional paid-in capital (Note 1) | 20,833 | 20,833 |
Retained earnings | 14,555 | 11,502 |
Accumulated other comprehensive income (loss) (Note 1) | 376 | -2,888 |
Treasury stock, at cost, 200,419 shares in 2014 and 2013 | -3,553 | -3,553 |
Total shareholders’ equity | 55,852 | 49,535 |
Total liabilities and shareholders’ equity | $568,932 | $556,918 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, stated value | $5 | $5 |
Common stock, shares issued | 4,728,267 | 4,728,267 |
Common stock, shares outstanding | 4,527,848 | 4,527,848 |
Treasury stock, shares | 200,419 | 200,419 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME | |||
Interest and fees on loans | $16,120 | $15,993 | $16,260 |
Interest and dividends on investment securities: | |||
Taxable interest | 2,677 | 2,498 | 3,174 |
Nontaxable interest | 1,721 | 1,408 | 1,411 |
Dividends | 126 | 131 | 139 |
Other interest income | 21 | 30 | 31 |
Total interest income | 20,665 | 20,060 | 21,015 |
INTEREST EXPENSE | |||
Deposits | 1,694 | 2,102 | 2,698 |
Other short-term borrowings | 3 | 3 | 5 |
Federal Home Loan Bank advances - short term | 156 | 135 | 79 |
Federal Home Loan Bank advances - long term | 943 | 1,074 | 1,189 |
Subordinated debt | 88 | 90 | 100 |
Total interest expense | 2,884 | 3,404 | 4,071 |
Net interest income | 17,781 | 16,656 | 16,944 |
PROVISION FOR LOAN LOSSES (Note 3) | 1,638 | 650 | 3,020 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 16,143 | 16,006 | 13,924 |
NON-INTEREST INCOME | |||
Fees for customer services | 2,007 | 1,935 | 2,041 |
Investment securities available-for-sale gains, net | 588 | 535 | 14 |
Trading security gains, net | 327 | 185 | |
Total other-than-temporary impairment losses | 1,641 | -35 | |
Portion of gains recognized in other comprehensive income (before tax) | -3,595 | -136 | |
Net impairment losses recognized in earnings | -1,954 | -171 | |
Mortgage banking gains, net | 440 | 1,491 | 1,772 |
Other real estate gains (losses), net | 9 | -25 | -35 |
Earnings on bank-owned life insurance | 336 | 324 | 379 |
Wealth management income | 313 | 218 | |
Other non-interest income | 107 | 36 | 188 |
Total non-interest income | 4,127 | 2,745 | 4,188 |
NON-INTEREST EXPENSES | |||
Salaries and employee benefits | 9,147 | 9,844 | 8,706 |
Net occupancy and equipment expense | 1,912 | 1,896 | 1,794 |
State and local taxes | 341 | 555 | 497 |
FDIC insurance expense | 309 | 391 | 297 |
Professional fees | 815 | 806 | 801 |
Other operating expenses | 2,975 | 3,387 | 3,262 |
Total non-interest expenses | 15,499 | 16,879 | 15,357 |
INCOME BEFORE FEDERAL INCOME TAX EXPENSE (BENEFIT) | 4,771 | 1,872 | 2,755 |
Federal income tax expense (benefit) (Note 10) | 902 | 88 | -158 |
NET INCOME | $3,869 | $1,784 | $2,913 |
EARNINGS PER SHARE (Note 1) | $0.85 | $0.39 | $0.64 |
CASH DIVIDENDS DECLARED PER SHARE | $0.18 | $0.12 | $0.03 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $3,869 | $1,784 | $2,913 |
Securities available for sale: | |||
Unrealized holding gains (losses) on available-for-sale securities | 5,465 | -3,166 | 1,292 |
Tax effect | -1,858 | 1,076 | -439 |
Reclassification adjustment for other-than-temporary impairment losses on debt securities | 1,954 | 171 | |
Tax effect | -664 | -58 | |
Reclassification adjustment for net gains realized in net income | -588 | -535 | -14 |
Tax effect | 200 | 182 | 4 |
Total securities available for sale | 3,219 | -1,153 | 956 |
Change in post-retirement obligations | 45 | -28 | |
Total other comprehensive income (loss) | 3,264 | -1,181 | 956 |
Total comprehensive income | $7,133 | $603 | $3,869 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Thousands | ||||||
Beginning balance at Dec. 31, 2011 | $45,719 | $23,641 | $20,850 | $7,485 | ($2,663) | ($3,594) |
Net income | 2,913 | 2,913 | ||||
Other comprehensive income (loss), net of tax | 956 | 956 | ||||
Cash dividend declared ($0.03 per share in 2012 $0.12 per share in 2013 $0.18 per share in 2014) | -136 | -136 | ||||
Ending balance at Dec. 31, 2012 | 49,452 | 23,641 | 20,850 | 10,262 | -1,707 | -3,594 |
Net income | 1,784 | 1,784 | ||||
Other comprehensive income (loss), net of tax | -1,181 | -1,181 | ||||
Cash dividend declared ($0.03 per share in 2012 $0.12 per share in 2013 $0.18 per share in 2014) | -544 | -544 | ||||
Treasury shares reissued (2,333 shares) | 24 | -17 | 41 | |||
Ending balance at Dec. 31, 2013 | 49,535 | 23,641 | 20,833 | 11,502 | -2,888 | -3,553 |
Net income | 3,869 | 3,869 | ||||
Other comprehensive income (loss), net of tax | 3,264 | 3,264 | ||||
Cash dividend declared ($0.03 per share in 2012 $0.12 per share in 2013 $0.18 per share in 2014) | -816 | -816 | ||||
Ending balance at Dec. 31, 2014 | $55,852 | $23,641 | $20,833 | $14,555 | $376 | ($3,553) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Consolidated Statements Of Changes In Shareholders Equity Parenthetical Unaudited [Abstract] | |||
CASH DIVIDENDS DECLARED PER SHARE | $0.18 | $0.12 | $0.03 |
Treasury shares reissued shares | 2,333 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net cash flow (deficit) from operating activities | |||
Net income | $3,869 | $1,784 | $2,913 |
Adjustments to reconcile net income to net cash flow (deficit) from operating activities: | |||
Depreciation, amortization and accretion | 2,465 | 3,221 | 3,060 |
Provision for loan losses | 1,638 | 650 | 3,020 |
Investment securities available-for-sale gains, net | -588 | -535 | -14 |
Net impairment losses recognized in earnings | 1,954 | 171 | |
Other real estate (gains) losses, net | -9 | 25 | 35 |
Originations of mortgage banking loans held for sale | -18,443 | -249,714 | -244,112 |
Proceeds from the sale of mortgage banking loans | 18,907 | 275,305 | 222,075 |
Mortgage banking gains, net | -440 | -1,491 | -1,772 |
Increase in trading account | -614 | -7,247 | |
Earnings on bank-owned life insurance | -336 | -324 | -379 |
Changes in: | |||
Interest receivable | -48 | 90 | 154 |
Interest payable | -42 | -69 | -81 |
Deferred taxes | 451 | 96 | 973 |
Prepaid FDIC assessment | 1,187 | 272 | |
Federal income tax receivable | 982 | 667 | -1,719 |
Other assets and liabilities | -586 | 1,301 | 493 |
Net cash flow (deficit) from operating activities | 7,206 | 26,900 | -14,911 |
Cash deficit from investing activities | |||
Purchases of available-for-sale securities | -52,515 | -50,377 | -71,540 |
Proceeds from sale of securities | 32,733 | 29,338 | 24,796 |
Proceeds from call, maturity and principal payments on securities | 22,137 | 39,126 | 46,884 |
Net increase in loans made to customers | -13,649 | -30,496 | -30,509 |
Proceeds from sale of other real estate | 99 | 321 | 327 |
Proceeds from sale of premises and equipment | 14 | ||
Purchases of bank-owned life insurance | -1,605 | -714 | -694 |
Purchases of premises and equipment | -1,864 | -894 | -730 |
Net cash deficit from investing activities | -14,664 | -13,682 | -31,466 |
Cash flow (deficit) from financing activities | |||
Net increase (decrease) in deposit accounts | 8,092 | -28,232 | 54,136 |
Net change in short-term borrowings | 455 | -247 | -722 |
Net change in Federal Home Loan Bank advances - short term | 7,400 | 3,100 | 6,000 |
Purchase of Federal Home Loan Bank advances - long term | 3,000 | 0 | |
Repayments of Federal Home Loan Bank advances - long term | -12,500 | -2,500 | -1,500 |
Dividends paid | -816 | -544 | -136 |
Proceeds from sale of treasury shares | 24 | ||
Net cash flow (deficit) from financing activities | 5,631 | -28,399 | 57,778 |
Net change in cash and cash equivalents | -1,827 | -15,181 | 11,401 |
Cash and cash equivalents | |||
Beginning of period | 12,396 | 27,577 | 16,176 |
End of period | 10,569 | 12,396 | 27,577 |
Cash paid during the period for: | |||
Income taxes | 320 | 400 | |
Interest | 2,926 | 3,473 | 4,152 |
Transfer of loans to other real estate owned | $97 | $234 | $70 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
The accounting and financial reporting policies of Cortland Bancorp (the Company), and its bank subsidiary, The Cortland Savings and Banking Company (the Bank), reflect banking industry practices and conform to U.S. generally accepted accounting principles. A summary of the significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements is set forth below. | ||||||||||||
Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, CSB Mortgage Company, Inc. and New Resources Leasing Co. All significant intercompany balances and transactions have been eliminated. | ||||||||||||
Industry Segment Information: The Company and its subsidiaries operate in the domestic banking industry which accounts for substantially all of the Company’s assets, revenues and operating income. The Company, through the Bank, grants residential, consumer, and commercial loans and offers a variety of saving plans to customers located primarily in the Northeastern Ohio and Western Pennsylvania area. Based on the analysis performed by the Company, management has determined that the Company only has one operating segment, which is commercial banking. The chief operating decision-makers use consolidated results to make operating and strategic decisions, and therefore are not required to disclose any additional segment information. | ||||||||||||
Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Balance Sheet and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Cash Flow: Cash and cash equivalents include cash on hand and amounts due from banks, both interest and non-interest bearing, but excludes the liquid portion of the securities trading account. The Company reports net cash flows for customer loan transactions, deposit transactions and deposits made with other financial institutions. | ||||||||||||
Investment Securities: Investments in debt and equity securities are classified as held-to-maturity, available-for-sale or trading. Securities classified as held-to-maturity are those that management has the positive intent and ability to hold to maturity. Securities classified as available-for-sale are those that could be sold for liquidity, investment management, or similar reasons, even though management has no present intentions to do so. Securities classified as trading are those that management has bought principally for the purpose of selling in the near term. The Company currently has no securities classified as held-to-maturity. | ||||||||||||
Available-for-sale securities are carried at fair value with unrealized gains and losses recorded as a separate component of shareholders’ equity, net of tax. Realized gains or losses on dispositions are based on net proceeds and the adjusted carrying amount of securities sold, using the specific identification method. Interest income includes amortization of purchase premium or discount and is amortized on the level-yield method without anticipating payments, except for U.S. Government mortgage-backed and related securities where twelve months of historical prepayments are taken into consideration. Trading securities are carried at fair value with valuation adjustments included in non-interest income. | ||||||||||||
Other-than-Temporary Investment Security Impairment: Securities are evaluated periodically to determine whether a decline in value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, along with the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline in value is permanent, but indicates that the prospect for a near-term recovery of value is not necessarily favorable and that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Unrealized losses on available-for-sale investments have not been recognized into income. However, once a decline in value is determined to be other-than-temporary, the credit related other-than-temporary impairment (OTTI) is recognized in earnings while the non-credit related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). Unrealized losses on trading securities are recognized in the Consolidated Statements of Income. | ||||||||||||
Loans: Loans are stated at the principal amount outstanding net of the unamortized balance of deferred loan origination fees and costs. Deferred loan origination fees and costs are amortized as an adjustment to the related loan yield over the contractual life using the level-yield method. Interest income on loans is accrued over the term of the loans based on the amount of principal outstanding. The accrual of interest is discontinued on a loan when management determines that the collection of interest is doubtful. Generally, a loan is placed on non-accrual status once the borrower is 90 days past due on payments, or whenever sufficient information is received to question the collectability of the loan or any time legal proceedings are initiated involving a loan. Interest income accrued up to the date a loan is placed on non-accrual is reversed through interest income. Cash payments received while a loan is classified as non-accrual are recorded as a reduction to principal or reported as interest income according to management’s judgment as to the collectability of principal. A loan is returned to accrual status when either all of the principal and interest amounts contractually due are brought current and future payments are, in management’s judgment, collectable, or when it otherwise becomes well secured and in the process of collection. When a loan is charged-off, any interest accrued but not collected on the loan is charged against earnings. The same treatment is applied to impaired loans, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. | ||||||||||||
Loans Held for Sale: The Company originates certain residential mortgage loans for sale in the secondary mortgage loan market. The Company concurrently sells the rights to service the related loans. These loans are classified as loans held for sale, and carried at the estimated fair value based on secondary market prices. Adjustments to the fair value of loans held for sale are included in “mortgage banking gains” in the Consolidated Statements of Income. Deferred fees and costs related to loans held for sale are not amortized, but included in the cost basis at the time of sale. | ||||||||||||
Allowance for Loan Losses (ALLL) and Allowance for Losses on Lending Related Commitments: Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. Commercial loans and commercial real estate loans are reviewed on a regular basis with a focus on larger loans, along with loans which have experienced past payment or financial deficiencies. Larger commercial loans and commercial real estate loans are evaluated for impairment in accordance with the Bank’s loan review policy. These loans are analyzed to determine if they are impaired. All loans that are delinquent 90 days and are placed on non-accrual status are evaluated on an individual basis. Allowances for loan losses on impaired loans are determined using the estimated future cash flows of the loan, discounted to their present value using the loan’s effective interest rate, or in most cases, the estimated fair value of the underlying collateral. If the analysis indicates a collection shortfall, a specific reserve is allocated to loans on an individual basis which are reviewed for impairment. The remaining loans are evaluated and classified as groups of loans with similar risk characteristics. | ||||||||||||
Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Accordingly, the allowance is maintained by management at a level considered adequate to cover possible losses that are currently anticipated. Estimates of credit losses should reflect consideration of all significant factors that affect collectability of the portfolio. While historical loss experience provides a reasonable starting point, historical losses, or even recent trends in losses are not, by themselves, a sufficient basis to determine the appropriate level for the ALLL. Management will also consider any factors that are likely to cause estimated credit losses associated with the Bank’s current portfolio to differ from historical loss experience. Factors include, but are not limited to, changes in lending policies and procedures, including underwriting standards and collection, charge-offs, and recovery practices; changes in economic trends; changes in the nature and volume of the portfolio; changes in the experience and ability of lending management and the depth of staff; changes in the trend, volume and severity of past-due and classified loans, and trends in the volume of non-accrual loans; the existence and effect of any concentrations of credit and changes in the level of such concentrations; levels and trends in classification; declining trends in performance; structure and lack of performance measures and migration between risk classifications. | ||||||||||||
Key risk factors and assumptions are updated to reflect actual experience and changing circumstances. While management may periodically allocate portions of the ALLL for specific problem loans, the entire ALLL is available for any charge-offs that occur. | ||||||||||||
Certain collateral dependent loans are evaluated individually for impairment, based on management’s best estimate of discounted cash repayments and the anticipated proceeds from liquidating collateral. The actual timing and amount of repayments and the ultimate realizable value of the collateral may differ from management’s estimates. | ||||||||||||
The expected loss for certain other commercial credits utilizes internal risk ratings. These loss estimates are sensitive to changes in the customer’s risk profile, the realizable value of collateral, other risk factors and the related loss experience of other credits of similar risk. Consumer credits generally employ statistical loss factors, adjusted for other risk indicators, applied to pools of similar loans stratified by asset type. These loss estimates are sensitive to changes in delinquency status and shifts in the aggregate risk profile. | ||||||||||||
The Company maintains an allowance for losses on unfunded commercial lending commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for loan losses. This allowance is reported as a liability on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these losses is recorded as a component of other operating expense. | ||||||||||||
Loan Charge-off Policies: Consumer loans are generally fully or partially charged down to the fair value of collateral securing the asset prior to the loan becoming 180 days past due, unless the loan is well secured and in the process of collection. All other loans are generally charged down to the net realizable value when the loan is 90 days past due. | ||||||||||||
Troubled Debt Restructurings (TDR): A loan is classified as a TDR when management grants a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, except in situations of economic difficulties. Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches non-accrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. | ||||||||||||
Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed generally on the straight-line method over the estimated useful lives (5 to 40 years) of the various assets. Maintenance and repairs are expensed and major improvements are capitalized. | ||||||||||||
Other Real Estate: Real estate acquired through foreclosure or deed-in-lieu of foreclosure is included in other assets on the Consolidated Balance Sheets. Such real estate is carried at the lower of cost or fair value less estimated costs to sell. Any reduction from the carrying value of the related loan to fair value at the time of acquisition is accounted for as a loan loss. Any subsequent reduction in fair market value is reflected as a valuation allowance through a charge to income. Costs of significant property improvements are capitalized, whereas costs relating to holding and maintaining the property are charged to expense. | ||||||||||||
Cash Surrender Value of Life Insurance: Bank-owned life insurance (BOLI) represents life insurance on the lives of certain Company employees, officers and directors who have provided positive consent allowing the Company to be the co-beneficiary of such policies. Since the Company is the owner of the insurance policies, increases in the cash value of the policies, as well as its share of insurance proceeds received, are recorded in noninterest income, and are not subject to income taxes. The cash surrender value of the policies is included on the Consolidated Balance Sheets. The Company reviews the financial strength of the insurance carriers prior to the purchase of BOLI and quarterly thereafter. The amount of BOLI with any individual carrier is limited to 15% of Tier I Capital. The Company has purchased BOLI to provide a long-term asset to offset long-term benefit liabilities, while generating competitive investment yields. | ||||||||||||
Endorsement Split-Dollar Life Insurance Arrangement: The Company maintains a liability for the death benefit promised under split-dollar life insurance arrangements. | ||||||||||||
Derivative Instruments and Hedging Activities: To mitigate interest rate risk associated with commitments made to borrowers for mortgage loans that have not yet closed and that are intended for sale in the secondary markets, the Company may enter into commitments to sell loans or mortgage-backed securities, considered to be derivatives, to limit exposure to potential movements in market interest rates. The Company also enters into contracts for the future delivery of residential mortgage loans when interest rate locks are entered into in order to economically hedge potential adverse effects of changes in interest rates. These contracts are also derivative instruments. All derivative instruments are recognized as either other assets or other liabilities at fair value in the Consolidated Balance Sheets. Gains or losses are recorded as part of mortgage banking gains on the Consolidated Statements of Income. | ||||||||||||
Advertising: The Company expenses advertising costs as incurred. Advertising expense was $277,000 in 2014, $240,000 in 2013 and $191,000 in 2012. | ||||||||||||
Income Taxes: A deferred tax liability or asset is determined at each balance sheet date. It is measured by applying currently enacted tax laws to future amounts that result from differences in the financial statement and tax bases of assets and liabilities. | ||||||||||||
Other Comprehensive Income (Loss): Accumulated other comprehensive income (loss) for the Company is comprised of unrealized holding gains (losses) on available-for-sale securities, net of tax, and post-retirement obligations. | ||||||||||||
Per Share Amounts: Basic earnings per common share are based on weighted average shares outstanding. | ||||||||||||
The following table sets forth the computation of basic earnings per common share: | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income (amounts in thousands) | $ | 3,869 | $ | 1,784 | $ | 2,913 | ||||||
Weighted average common shares outstanding | 4,527,848 | 4,527,350 | 4,525,524 | |||||||||
Earnings per share | $ | 0.85 | $ | 0.39 | $ | 0.64 | ||||||
Off-Balance Sheet Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | ||||||||||||
Reclassifications: Certain items in the financial statements for 2013 and 2012 have been reclassified to conform to the 2014 presentation. Such restrictions did not affect net income or shareholders’ equity. | ||||||||||||
Authoritative Accounting Guidance: | ||||||||||||
In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update. | ||||||||||||
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements -Going Concern (Subtopic 205-40). The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity's most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. | ||||||||||||
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ||||||||||||||||||||||||
Investment Securities | NOTE 2 - INVESTMENT SECURITIES | |||||||||||||||||||||||
The following is a summary of investment securities available-for-sale: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
31-Dec-14 | Amortized Cost | Gross | Gross | Fair Value | ||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
U.S. Treasury securities | $ | 100 | $ | 1 | $ | — | $ | 101 | ||||||||||||||||
U.S. Government agencies and corporations | 8,640 | 88 | 80 | 8,648 | ||||||||||||||||||||
Obligations of states and political subdivisions | 48,547 | 1,667 | 123 | 50,091 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 85,675 | 353 | 441 | 85,587 | ||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 14,030 | 26 | 64 | 13,992 | ||||||||||||||||||||
Trust preferred securities | 1,662 | — | 883 | 779 | ||||||||||||||||||||
Total debt securities | 158,654 | 2,135 | 1,591 | 159,198 | ||||||||||||||||||||
Federal Home Loan Bank (FHLB) stock | 2,823 | — | — | 2,823 | ||||||||||||||||||||
Federal Reserve Bank (FRB) stock | 226 | — | — | 226 | ||||||||||||||||||||
Total regulatory stock | 3,049 | — | — | 3,049 | ||||||||||||||||||||
Total investment securities available-for-sale | $ | 161,703 | $ | 2,135 | $ | 1,591 | $ | 162,247 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
31-Dec-13 | Amortized Cost | Gross | Gross | Fair Value | ||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
U.S. Treasury securities | $ | 107 | $ | 5 | $ | — | $ | 112 | ||||||||||||||||
U.S. Government agencies and corporations | 9,259 | — | 312 | 8,947 | ||||||||||||||||||||
Obligations of states and political subdivisions | 44,575 | 467 | 1,507 | 43,535 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 79,255 | 644 | 1,877 | 78,022 | ||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 17,120 | 105 | 140 | 17,085 | ||||||||||||||||||||
Trust preferred securities | 11,854 | — | 1,718 | 10,136 | ||||||||||||||||||||
Total debt securities | 162,170 | 1,221 | 5,554 | 157,837 | ||||||||||||||||||||
Federal Home Loan Bank (FHLB) stock | 2,823 | — | — | 2,823 | ||||||||||||||||||||
Federal Reserve Bank (FRB) stock | 226 | — | — | 226 | ||||||||||||||||||||
Total regulatory stock | 3,049 | — | — | 3,049 | ||||||||||||||||||||
Total investment securities available-for-sale | $ | 165,219 | $ | 1,221 | $ | 5,554 | $ | 160,886 | ||||||||||||||||
The regulatory stock is carried at cost and the Company is required to hold such investments as a condition of membership in order to transact business with the FHLB of Cincinnati and the FRB. The stock is bought from and sold based upon its par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB and FRB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB and FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB and FRB and (d) the liquidity position of the FHLB and FRB. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||||||||
At December 31, 2014, trading securities of $7.9 million are an investment in obligations of states and political subdivisions and include cash equivalent investments for trading liquidity. There were $7.2 million held at December 31, 2013. Unrealized gains and losses on trading securities at December 31, 2014 were $39,000 and $4,000, respectively, compared to $52,000 and $3,000, respectively, at December 31, 2013. Total net unrealized gains of $34,000 and realized gains of $293,000 for the year ended December 31, 2014 and net unrealized gains of $49,000 and realized gains of $137,000 for the year ended December 31, 2013 are included in the Consolidated Statement of Income. | ||||||||||||||||||||||||
The amortized cost and fair value of debt securities at December 31, 2014, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 474 | $ | 479 | ||||||||||||||||||||
Due after one year through five years | 375 | 378 | ||||||||||||||||||||||
Due after five years through ten years | 18,230 | 18,629 | ||||||||||||||||||||||
Due after ten years | 39,870 | 40,133 | ||||||||||||||||||||||
Total | 58,949 | 59,619 | ||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed and related securities | 99,705 | 99,579 | ||||||||||||||||||||||
Total debt securities | $ | 158,654 | $ | 159,198 | ||||||||||||||||||||
The following table sets forth the proceeds, gains and losses realized on securities sold or called for each of the years ended December 31: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Proceeds on securities sold | $ | 32,733 | $ | 29,338 | $ | 24,796 | ||||||||||||||||||
Gross realized gains | 1,170 | 658 | 1,198 | |||||||||||||||||||||
Gross realized losses | 582 | 123 | 1,188 | |||||||||||||||||||||
Proceeds on securities called | $ | 4,441 | $ | 7,153 | $ | 2,537 | ||||||||||||||||||
Gross realized gains | — | — | 8 | |||||||||||||||||||||
Gross realized losses | — | — | 4 | |||||||||||||||||||||
Investment securities with a carrying value of approximately $116.6 million at December 31, 2014 and $108.5 million at December 31, 2013 were pledged to secure deposits and for other purposes. The remaining securities provide an adequate level of liquidity. | ||||||||||||||||||||||||
The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2014: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
U.S. Government agencies and corporations | $ | 335 | $ | 2 | $ | 1,910 | $ | 78 | $ | 2,245 | $ | 80 | ||||||||||||
Obligations of states and political subdivisions | 2,456 | 18 | 4,159 | 105 | 6,615 | 123 | ||||||||||||||||||
U.S. Government-sponsored mortgage-backed | 14,460 | 33 | 31,550 | 408 | 46,010 | 441 | ||||||||||||||||||
securities | ||||||||||||||||||||||||
U.S. Government-sponsored collateralized | 2,273 | 30 | 3,145 | 34 | 5,418 | 64 | ||||||||||||||||||
mortgage obligations | ||||||||||||||||||||||||
Trust preferred securities | — | — | 779 | 883 | 779 | 883 | ||||||||||||||||||
Total | $ | 19,524 | $ | 83 | $ | 41,543 | $ | 1,508 | $ | 61,067 | $ | 1,591 | ||||||||||||
The above table represents 37 investment securities where the fair value is less than the related amortized cost. | ||||||||||||||||||||||||
The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2013: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,144 | $ | 129 | $ | 1,803 | $ | 183 | $ | 8,947 | $ | 312 | ||||||||||||
Obligations of states and political subdivisions | 19,785 | 1,142 | 1,883 | 365 | 21,668 | 1,507 | ||||||||||||||||||
U.S. Government-sponsored mortgage-backed | 34,424 | 1,044 | 29,922 | 833 | 64,346 | 1,877 | ||||||||||||||||||
securities | ||||||||||||||||||||||||
U.S. Government-sponsored collateralized | 6,575 | 126 | 2,095 | 14 | 8,670 | 140 | ||||||||||||||||||
mortgage obligations | ||||||||||||||||||||||||
Trust preferred securities | — | — | 1,633 | 1,718 | 1,633 | 1,718 | ||||||||||||||||||
Total | $ | 67,928 | $ | 2,441 | $ | 37,336 | $ | 3,113 | $ | 105,264 | $ | 5,554 | ||||||||||||
The above table represents 83 investment securities where the current value is less than the related amortized cost. | ||||||||||||||||||||||||
The trust preferred securities with an unrealized loss represent pools of trust preferred debt issued primarily by bank holding companies. The unrealized losses on the Company’s investment in U.S. Government-sponsored-mortgage-backed securities, U.S. Government-sponsored collateralized mortgage obligations, obligations of states and political subdivisions and U.S. Government agencies and corporations were caused by changes in market rates and related spreads. It is expected that the securities would not be settled at less than the amortized cost of the Company’s investment because the decline in fair value is attributable to changes in interest rates and relative spreads and not credit quality. Also, except for the securities described below, the Company does not intend to sell those investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of its amortized cost basis less any current period credit loss. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||||||||
Securities Deemed to be Other-Than-Temporarily Impaired | ||||||||||||||||||||||||
The Company reviews investment debt securities on an ongoing basis for the presence of other-than-temporary impairment (OTTI) with formal reviews performed quarterly. | ||||||||||||||||||||||||
For debt securities in an unrealized loss position, management assesses whether (a) it has the intent to sell the debt security or (b) it is more-likely-than-not that it will be required to sell the debt security before its anticipated recovery. If either of these conditions is met, an OTTI on the security must be recognized. | ||||||||||||||||||||||||
In instances in which a determination is made that a credit loss (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis) exists but the entity does not intend to sell the debt security and it is not more-likely-than-not that the entity will be required to sell the debt security before the anticipated recovery of its remaining amortized cost basis (i.e., the amortized cost basis less any current-period credit loss), the Company presents the amount of the OTTI recognized in the Consolidated Statement of Income. | ||||||||||||||||||||||||
In these instances, the impairment is separated into (a) the amount of the total impairment related to the credit loss, and (b) the amount of the total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in other comprehensive income. The total other-than-temporary impairment is presented in the Consolidated Statement of Income with an offset for the amount of the total other-than-temporary impairment that is recognized in other comprehensive income. | ||||||||||||||||||||||||
As more fully disclosed in Note 11, the Company assessed the impairment of certain securities currently in an illiquid market. The Company records impairment credit losses in earnings (before tax) and non-credit impairment losses in other comprehensive income (loss) (before tax). Through the impairment assessment process, the Company determined that the investments discussed in the following table were other-than-temporarily impaired at December 31, 2013 and 2012, with no impairment loss recognized in 2014. | ||||||||||||||||||||||||
The Company recorded impairment credit losses in earnings (before tax) and non-credit impairment losses in other comprehensive income (loss) (before tax) as indicated in the following table: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||
Net impairment losses recognized in earnings (before tax) | $ | — | $ | 1,954 | $ | 171 | ||||||||||||||||||
Impairment losses recognized in other comprehensive | $ | — | $ | 3,595 | $ | 136 | ||||||||||||||||||
income (before tax) | ||||||||||||||||||||||||
The following provides a cumulative roll forward of credit losses recognized in earnings for trust preferred securities held for the years ended: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Beginning balance | $ | 2,305 | $ | 351 | $ | 10,674 | ||||||||||||||||||
Reduction for debt securities for which other-than-temporary | — | — | — | |||||||||||||||||||||
impairment has been previously recognized and there is no | ||||||||||||||||||||||||
related other comprehensive income | ||||||||||||||||||||||||
Credit losses on debt securities for which other-than-temporary | — | 1,954 | — | |||||||||||||||||||||
impairment has not been previously recognized | ||||||||||||||||||||||||
Additional credit losses on debt securities for which | — | — | 171 | |||||||||||||||||||||
other-than-temporary impairment was previously recognized | ||||||||||||||||||||||||
Sale of debt securities | (2,165 | ) | — | (10,494 | ) | |||||||||||||||||||
Ending balance | $ | 140 | $ | 2,305 | $ | 351 | ||||||||||||||||||
In January 2014, the Company determined that its portfolio of insurance trust preferred collateralized debt obligations, commonly known as iTruPS securities, were considered disallowed investments under the final rule implementing Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as the Volcker Rule, which was originally released jointly by five regulatory agencies on December 10, 2013, and further clarified with the release of the Interim Final Rule on January 14, 2014. The final rule requires banking entities to divest disallowed securities by July 21, 2015, unless, upon application, the Federal Reserve grants extensions to July 21, 2017. | ||||||||||||||||||||||||
With the release of the Interim Final Rule on January 14, 2014, the joint agencies granted relief by permitting financial institutions to retain their interests in certain collateralized debt obligations, but limited that provision to those collateralized by issuances prior to May 2010 from bank or thrift holding companies with less than $15 billion in consolidated assets. The Interim Final Rule did not contain a provision for issuances by insurance companies, which comprise the various iTruPS securities owned by the Company. | ||||||||||||||||||||||||
The disallowed iTruPS consisted of nine positions with an amortized cost of $10.5 million. Because the Company could no longer hold the securities until their anticipated recovery, an OTTI was recognized for the entire amount of unrealized loss as of December 31, 2013. The fair value of the iTruPS, as determined by the discounted cash flow model used by the Company, aggregated to $8.5 million. The resulting OTTI charge of approximately $2.0 million was included in the above table in 2013. | ||||||||||||||||||||||||
In February 2014, the Company completed the sale of all nine of the disallowed investments along with one other permissible holding. Proceeds of $10.2 million were received on an amortized cost of $10.0 million resulting in a pre-tax gain of approximately $200,000. | ||||||||||||||||||||||||
During the third quarter of 2012, the Company explored the possible sale of the trust preferred securities collateralized by banks through various brokerage firms. With the lack of an active market for these securities, the brokers sought bids individually for the securities from potential buyers in their client base. Through this process, the Company sold 19 of the 22 bank collateralized positions realizing a nominal net loss of $164,000. All of these securities exhibited evidence of significant deterioration in issuers’ creditworthiness. The three remaining bank collateralized positions, as well as the 9 positions collateralized by insurance companies, had historically not exhibited material other-than-temporary impairment, thus were excluded from sale considerations. Also during the third quarter of 2012, the Company disposed of the two remaining private-label mortgage-backed securities, thereby eliminating all future risk and uncertainty relating to this investment category. A net loss of $288,000 was realized on the sale of these securities. | ||||||||||||||||||||||||
At December 31, 2014, there was $779,000 of investment securities considered to be in non-accrual status. This balance is comprised of two trust preferred securities. As a result of the delay in the collection of interest payments, management placed these securities in non-accrual status. Current estimates indicate that the interest payment delays may exceed ten years. |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||
The Company, through the Bank, grants residential, consumer and commercial loans to customers located primarily in Northeastern Ohio and Western Pennsylvania. | ||||||||||||||||||||||||||||
The following represents the composition of the loan portfolio for the period ending: | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Balance | % | Balance | % | |||||||||||||||||||||||||
Commercial | $ | 72,330 | 20.1 | $ | 73,643 | 21.2 | ||||||||||||||||||||||
Commercial real estate | 223,536 | 62.1 | 206,744 | 59.6 | ||||||||||||||||||||||||
Residential real estate | 38,875 | 10.8 | 42,288 | 12.2 | ||||||||||||||||||||||||
Consumer - home equity | 21,328 | 5.9 | 19,510 | 5.6 | ||||||||||||||||||||||||
Consumer - other | 4,116 | 1.1 | 4,648 | 1.4 | ||||||||||||||||||||||||
Total loans | $ | 360,185 | $ | 346,833 | ||||||||||||||||||||||||
Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented loans in the portfolio by product type. Loans are segmented into the following pools: commercial loans, commercial real estate loans, residential real estate loans and consumer loans. The Company also sub-segments the consumer loan portfolio into the following two classes: home equity loans and other consumer loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over multiple periods for all portfolio segments. Management evaluates these results and utilizes the most reflective period in the calculation. Certain qualitative factors are then added to the historical allocation percentage to get the adjusted factor. | ||||||||||||||||||||||||||||
These factors include, but are not limited to, the following: | ||||||||||||||||||||||||||||
Factor Considered: | Risk Trend: | |||||||||||||||||||||||||||
Levels of and trends in charge-offs, classifications and non-accruals | Stable | |||||||||||||||||||||||||||
Trends in volume and terms | Increasing | |||||||||||||||||||||||||||
Changes in lending policies and procedures | Stable | |||||||||||||||||||||||||||
Experience, depth and ability of management | Stable | |||||||||||||||||||||||||||
Economic trends | Decreasing | |||||||||||||||||||||||||||
Concentrations of credit | Increasing | |||||||||||||||||||||||||||
The following factors are analyzed and applied to loans internally graded with higher risk credit in addition to the above factors for non-classified loans: | ||||||||||||||||||||||||||||
Risk Trend: | ||||||||||||||||||||||||||||
Factor Considered: | ||||||||||||||||||||||||||||
Levels and trends in classification | Stable | |||||||||||||||||||||||||||
Declining trends in financial performance | Stable | |||||||||||||||||||||||||||
Structure and lack of performance measures | Stable | |||||||||||||||||||||||||||
Migration between risk categories | Increasing | |||||||||||||||||||||||||||
The provision charged to operations can be allocated to a loan segment either as a positive or negative value as a result of any material changes to: net charge-offs or recovery, risk factors or loan balances. The increase in provision to the commercial loan category was due mainly to a specific reserve provision of approximately $1.3 million on loans to one related group. This was also reflected in the increase in classified loans. | ||||||||||||||||||||||||||||
The change in the allowance for the commercial real estate categories is due to increases in standard and special mention loans offset by the reduction in the amount of net charge-offs which impacts the provision charged to operations for the year-to-date for any category of loans. Charge-offs affect the historical rate applied to each category, and the amount needed to replenish the amount charged-off. | ||||||||||||||||||||||||||||
Residential real estate provision was lower due to a decrease in historical charge-off factor and in other qualitative factors. Consumer home equity went down due to a decrease in the historical rate due to a large year of charge-offs rolling off and a decrease in other qualitative factors. | ||||||||||||||||||||||||||||
The following is an analysis of changes in the allowance for loan losses for the periods ended: | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-14 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 593 | $ | 2,638 | $ | 356 | $ | 88 | $ | 89 | $ | 3,764 | ||||||||||||||||
Loan charge-offs | (123 | ) | (186 | ) | (93 | ) | (48 | ) | (144 | ) | (594 | ) | ||||||||||||||||
Recoveries | 274 | 3 | 16 | 24 | 77 | 394 | ||||||||||||||||||||||
Net loan recoveries (charge-offs) | 151 | (183 | ) | (77 | ) | (24 | ) | (67 | ) | (200 | ) | |||||||||||||||||
Provision charged to operations | 1,320 | 299 | (50 | ) | (4 | ) | 73 | 1,638 | ||||||||||||||||||||
Balance at end of period | $ | 2,064 | $ | 2,754 | $ | 229 | $ | 60 | $ | 95 | $ | 5,202 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 639 | $ | 2,616 | $ | 343 | $ | 123 | $ | 104 | $ | 3,825 | ||||||||||||||||
Loan charge-offs | (1 | ) | (782 | ) | (81 | ) | (12 | ) | (146 | ) | (1,022 | ) | ||||||||||||||||
Recoveries | 167 | 11 | 26 | 18 | 89 | 311 | ||||||||||||||||||||||
Net loan recoveries (charge-offs) | 166 | (771 | ) | (55 | ) | 6 | (57 | ) | (711 | ) | ||||||||||||||||||
Provision charged to operations | (212 | ) | 793 | 68 | (41 | ) | 42 | 650 | ||||||||||||||||||||
Balance at end of period | $ | 593 | $ | 2,638 | $ | 356 | $ | 88 | $ | 89 | $ | 3,764 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-12 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 565 | $ | 1,803 | $ | 470 | $ | 128 | $ | 92 | $ | 3,058 | ||||||||||||||||
Loan charge-offs | (1,937 | ) | (36 | ) | (231 | ) | (59 | ) | (152 | ) | (2,415 | ) | ||||||||||||||||
Recoveries | 9 | 37 | 46 | 13 | 57 | 162 | ||||||||||||||||||||||
Net loan recoveries (charge-offs) | (1,928 | ) | 1 | (185 | ) | (46 | ) | (95 | ) | (2,253 | ) | |||||||||||||||||
Provision charged to operations | 2,002 | 812 | 58 | 41 | 107 | 3,020 | ||||||||||||||||||||||
Balance at end of period | $ | 639 | $ | 2,616 | $ | 343 | $ | 123 | $ | 104 | $ | 3,825 | ||||||||||||||||
The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the consolidated balance sheet date. | ||||||||||||||||||||||||||||
The following tables present a full breakdown by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-14 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,316 | $ | 148 | $ | — | $ | — | $ | — | $ | 1,464 | ||||||||||||||||
Collectively evaluated for impairment | 748 | 2,606 | 229 | 60 | 95 | 3,738 | ||||||||||||||||||||||
Total ending allowance balance | $ | 2,064 | $ | 2,754 | $ | 229 | $ | 60 | $ | 95 | $ | 5,202 | ||||||||||||||||
Loan Portfolio: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,023 | $ | 5,729 | $ | — | $ | — | $ | — | $ | 7,752 | ||||||||||||||||
Collectively evaluated for impairment | 70,307 | 217,807 | 38,875 | 21,328 | 4,116 | 352,433 | ||||||||||||||||||||||
Total ending loans balance | $ | 72,330 | $ | 223,536 | $ | 38,875 | $ | 21,328 | $ | 4,116 | $ | 360,185 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 50 | $ | 251 | $ | — | $ | — | $ | — | $ | 301 | ||||||||||||||||
Collectively evaluated for impairment | 543 | 2,387 | 356 | 88 | 89 | 3,463 | ||||||||||||||||||||||
Total ending allowance balance | $ | 593 | $ | 2,638 | $ | 356 | $ | 88 | $ | 89 | $ | 3,764 | ||||||||||||||||
Loan Portfolio: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 418 | $ | 5,134 | $ | — | $ | — | $ | — | $ | 5,552 | ||||||||||||||||
Collectively evaluated for impairment | 73,225 | 201,610 | 42,288 | 19,510 | 4,648 | 341,281 | ||||||||||||||||||||||
Total ending loans balance | $ | 73,643 | $ | 206,744 | $ | 42,288 | $ | 19,510 | $ | 4,648 | $ | 346,833 | ||||||||||||||||
The following tables represent credit exposures by internally assigned grades for years ended December 31, 2014 and 2013, respectively. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans. | ||||||||||||||||||||||||||||
The Company’s internally assigned grades are as follows: | ||||||||||||||||||||||||||||
— | Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Within this category, there are grades of exceptional, quality, acceptable and pass monitor. | |||||||||||||||||||||||||||
— | Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. | |||||||||||||||||||||||||||
— | Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||
— | Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset but with the severity which makes collection in full highly questionable and improbable, based on existing circumstances. | |||||||||||||||||||||||||||
— | Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. This rating does not mean that the assets have no recovery or salvage value but rather that the assets should be charged off now, even though partial or full recovery may be possible in the future. | |||||||||||||||||||||||||||
The following is a summary of credit quality indicators by internally assigned grade as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Commercial | Commercial real estate | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Pass | $ | 65,339 | $ | 205,890 | ||||||||||||||||||||||||
Special Mention | 4,963 | 10,209 | ||||||||||||||||||||||||||
Substandard | 2,028 | 7,437 | ||||||||||||||||||||||||||
Doubtful | — | — | ||||||||||||||||||||||||||
Ending Balance | $ | 72,330 | $ | 223,536 | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Commercial | Commercial real estate | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Pass | $ | 72,562 | $ | 192,604 | ||||||||||||||||||||||||
Special Mention | 626 | 9,158 | ||||||||||||||||||||||||||
Substandard | 455 | 4,982 | ||||||||||||||||||||||||||
Doubtful | — | — | ||||||||||||||||||||||||||
Ending Balance | $ | 73,643 | $ | 206,744 | ||||||||||||||||||||||||
The Company evaluates the classification of consumer, home equity and residential loans primarily on a pooled basis. If the Company becomes aware that adverse or distressed conditions exist that may affect a particular loan, the loan is downgraded following the above definitions of special mention and substandard. | ||||||||||||||||||||||||||||
The following is a summary of consumer credit exposure as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Residential real estate | Consumer - home equity | Consumer- other | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Performing | $ | 37,544 | $ | 21,179 | $ | 4,110 | ||||||||||||||||||||||
Nonperforming | 1,331 | 149 | 6 | |||||||||||||||||||||||||
Total | $ | 38,875 | $ | 21,328 | $ | 4,116 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Residential real estate | Consumer - home equity | Consumer- other | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Performing | $ | 41,807 | $ | 19,438 | $ | 4,632 | ||||||||||||||||||||||
Nonperforming | 481 | 72 | 16 | |||||||||||||||||||||||||
Total | $ | 42,288 | $ | 19,510 | $ | 4,648 | ||||||||||||||||||||||
Loans are considered to be nonperforming when they become 90 days past due or on nonaccrual status, though the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed in non-accrual status, previously accrued but unpaid interest is recorded against interest income. Loans in foreclosure are considered nonperforming. | ||||||||||||||||||||||||||||
The following is a summary of classes of loans on non-accrual status as of: | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Commercial | $ | 1,824 | $ | 98 | ||||||||||||||||||||||||
Commercial real estate | 2,247 | 1,279 | ||||||||||||||||||||||||||
Residential real estate | 1,331 | 481 | ||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Consumer - home equity | 149 | 72 | ||||||||||||||||||||||||||
Consumer - other | 6 | 16 | ||||||||||||||||||||||||||
Total | $ | 5,557 | $ | 1,946 | ||||||||||||||||||||||||
Gross income that should have been recorded in income on nonaccrual loans was $351,000, $147,000 and $207,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Actual interest included in income on these nonaccrual loans amounts to $149,000, $38,000 and $55,000 in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||
Troubled Debt Restructuring | ||||||||||||||||||||||||||||
Nonperforming loans also include certain loans that have been modified in troubled debt restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. | ||||||||||||||||||||||||||||
There were no loans modified as TDRs during the year ended December 31, 2014. None of the loans that were approved as TDRs in 2012 or 2013 have subsequently defaulted in the years ended December 31, 2013 and 2014. | ||||||||||||||||||||||||||||
The following presents, by class, information related to loans modified in a TDR during the periods ended: | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Number of contracts | Pre-modification recorded investment | Post-modification recorded investment | Increase in the allowance | |||||||||||||||||||||||||
Commercial | 5 | $ | 438 | $ | 438 | $ | 20 | |||||||||||||||||||||
Commercial real estate | 7 | 2,348 | 2,348 | — | ||||||||||||||||||||||||
Total restructured loans | 12 | $ | 2,786 | $ | 2,786 | $ | 20 | |||||||||||||||||||||
Subsequently defaulted | — | $ | — | |||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Number of contracts | Pre-modification recorded investment | Post-modification recorded investment | Increase in the allowance | |||||||||||||||||||||||||
Commercial real estate | 4 | $ | 1,734 | $ | 1,734 | $ | 148 | |||||||||||||||||||||
Total restructured loans | 4 | $ | 1,734 | $ | 1,734 | $ | 148 | |||||||||||||||||||||
Subsequently defaulted | — | $ | — | |||||||||||||||||||||||||
In 2013, the seven commercial real estate loans had either the rate unchanged or blended with no rate impact. All the loans had loan term changes. Five of the commercial real estate loans were to the same customer. Two of the five commercial loans were to the same company. Three of the commercial loans had loan term changes with no rate concessions made. One commercial loan had multiple changes including rate change, shortened maturity and additional collateral and one commercial loan had an extended loan term and interest only for 6 months. | ||||||||||||||||||||||||||||
In 2012, of the four additions to TDRs, three had no interest rate changes. Restructuring involved items such as new guarantees, additional loans and loan term changes. One loan had a rate reduction from 6.5% to 5.0%. | ||||||||||||||||||||||||||||
The following is an aging analysis of the recorded investment of past due loans as of the periods ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | Recorded Investment > 90 Days and Accruing | ||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Commercial | $ | 54 | $ | 282 | $ | 1,542 | $ | 1,878 | $ | 70,452 | $ | 72,330 | $ | — | ||||||||||||||
Commercial real estate | 574 | 1,774 | 2,115 | 4,463 | 219,073 | 223,536 | — | |||||||||||||||||||||
Residential real estate | 122 | 173 | 1,144 | 1,439 | 37,436 | 38,875 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Consumer - home equity | 61 | — | 149 | 210 | 21,118 | 21,328 | — | |||||||||||||||||||||
Consumer - other | 15 | — | 6 | 21 | 4,095 | 4,116 | — | |||||||||||||||||||||
Total | $ | 826 | $ | 2,229 | $ | 4,956 | $ | 8,011 | $ | 352,174 | $ | 360,185 | $ | — | ||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | Recorded Investment > 90 Days and Accruing | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 30 | $ | 30 | $ | 73,613 | $ | 73,643 | $ | — | ||||||||||||||
Commercial real estate | — | — | 1,136 | 1,136 | 205,608 | 206,744 | — | |||||||||||||||||||||
Residential real estate | — | 201 | 380 | 581 | 41,707 | 42,288 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Consumer - home equity | — | 7 | 65 | 72 | 19,438 | 19,510 | — | |||||||||||||||||||||
Consumer - other | 29 | — | 16 | 45 | 4,603 | 4,648 | — | |||||||||||||||||||||
Total | $ | 29 | $ | 208 | $ | 1,627 | $ | 1,864 | $ | 344,969 | $ | 346,833 | $ | — | ||||||||||||||
An impaired loan is a loan on which, based on current information and events, it is probable that a creditor will be unable to collect all amounts due (including both interest and principal) according to the contractual terms of the loan agreement. However, an insignificant delay or insignificant shortfall in amount of payments on a loan does not indicate that the loan is impaired. | ||||||||||||||||||||||||||||
When a loan is determined to be impaired, impairment should be measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate. However, as a practical expedient, the Company will measure impairment based on a loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. | ||||||||||||||||||||||||||||
The following are the criteria for selecting individual loans / relationships for impairment analysis. Non-homogenous loans which meet the criteria below are evaluated quarterly. | ||||||||||||||||||||||||||||
— | All borrowers whose loans are classified doubtful by examiners and internal loan review | |||||||||||||||||||||||||||
— | All loans on non-accrual status | |||||||||||||||||||||||||||
— | Any loan in foreclosure | |||||||||||||||||||||||||||
— | Any loan with a specific reserve | |||||||||||||||||||||||||||
— | Any loan determined to be collateral dependent for repayment | |||||||||||||||||||||||||||
— | Loans classified as troubled debt restructuring | |||||||||||||||||||||||||||
Any loan evaluated for impairment is excluded from the general pool of loans in the ALLL calculation regardless if a specific reserve was determined. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. | ||||||||||||||||||||||||||||
The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at December 31, 2014 and 2013. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 457 | $ | 457 | $ | — | ||||||||||||||||||||||
Commercial real estate | 4,498 | 5,242 | — | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 1,566 | 1,566 | 1,316 | |||||||||||||||||||||||||
Commercial real estate | 1,231 | 1,231 | 148 | |||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 2,023 | $ | 2,023 | $ | 1,316 | ||||||||||||||||||||||
Commercial real estate | $ | 5,729 | $ | 6,473 | $ | 148 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 320 | $ | 320 | $ | — | ||||||||||||||||||||||
Commercial real estate | 3,554 | 3,554 | — | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 98 | 98 | 50 | |||||||||||||||||||||||||
Commercial real estate | 1,580 | 1,580 | 251 | |||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 418 | $ | 418 | $ | 50 | ||||||||||||||||||||||
Commercial real estate | $ | 5,134 | $ | 5,134 | $ | 251 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 257 | $ | 17 | ||||||||||||||||||||||||
Commercial real estate | 4,069 | 158 | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 311 | — | ||||||||||||||||||||||||||
Commercial real estate | 1,430 | 73 | ||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 568 | $ | 17 | ||||||||||||||||||||||||
Commercial real estate | $ | 5,499 | $ | 231 | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 123 | $ | 6 | ||||||||||||||||||||||||
Commercial real estate | 1,638 | 117 | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 73 | — | ||||||||||||||||||||||||||
Commercial real estate | 3,015 | 95 | ||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 196 | $ | 6 | ||||||||||||||||||||||||
Commercial real estate | $ | 4,653 | $ | 212 | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 17 | $ | — | ||||||||||||||||||||||||
Commercial real estate | 1,196 | 3 | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 58 | — | ||||||||||||||||||||||||||
Commercial real estate | 3,177 | 117 | ||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 75 | $ | — | ||||||||||||||||||||||||
Commercial real estate | $ | 4,373 | $ | 120 | ||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Premises and Equipment | NOTE 4 - PREMISES AND EQUIPMENT | |||||||
The following is a summary of premises and equipment: | ||||||||
(Amounts in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Land | $ | 2,673 | $ | 1,387 | ||||
Premises | 8,298 | 8,372 | ||||||
Equipment | 8,440 | 8,652 | ||||||
Leasehold improvements | 219 | 203 | ||||||
Total premises and equipment | 19,630 | 18,614 | ||||||
Less accumulated depreciation | 11,933 | 11,938 | ||||||
Net book value | $ | 7,697 | $ | 6,676 | ||||
Depreciation expense was $715,000 in 2014, $713,000 in 2013 and $640,000 in 2012. |
Deposits
Deposits | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investments Debt And Equity Securities [Abstract] | ||||||||||||
Deposits | NOTE 5 - DEPOSITS | |||||||||||
The following is a summary of interest-bearing deposits: | ||||||||||||
(Amounts in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Demand | $ | 33,146 | $ | 33,654 | ||||||||
Money market | 84,277 | 78,783 | ||||||||||
Savings | 114,400 | 114,366 | ||||||||||
Time: | ||||||||||||
In denominations under $250,000 | 91,802 | 94,277 | ||||||||||
In denominations of $250,000 or more | 38,405 | 37,684 | ||||||||||
Total | $ | 362,030 | $ | 358,764 | ||||||||
Stated maturities of time deposits were as follows: | ||||||||||||
(Amounts in thousands) | ||||||||||||
2014 | ||||||||||||
2015 | $ | 77,574 | ||||||||||
2016 | 17,261 | |||||||||||
2017 | 4,855 | |||||||||||
2018 | 3,633 | |||||||||||
2019 | 3,459 | |||||||||||
2020 and beyond | 23,425 | |||||||||||
Total | $ | 130,207 | ||||||||||
The following is a summary of time deposits of $100,000 or more by remaining maturities: | ||||||||||||
(Amounts in thousands) | ||||||||||||
31-Dec-14 | ||||||||||||
Certificates of Deposit | Other Time Deposits | Total | ||||||||||
Three months or less | $ | 21,733 | $ | 1,468 | $ | 23,201 | ||||||
Three to six months | 9,802 | 472 | 10,274 | |||||||||
Six to twelve months | 12,225 | 108 | 12,333 | |||||||||
One through five years | 12,449 | 2,297 | 14,746 | |||||||||
Over five years | 5,690 | 2,698 | 8,388 | |||||||||
Total | $ | 61,899 | $ | 7,043 | $ | 68,942 | ||||||
Federal_Home_Loan_Bank_FHLB_Ad
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Federal Home Loan Bank Advances And Other Borrowings [Abstract] | |||||||||||||||
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings | NOTE 6 - FEDERAL HOME LOAN BANK (FHLB) ADVANCES AND OTHER SHORT TERM BORROWINGS | ||||||||||||||
The following is a summary of FHLB advances and other short term borrowings: | |||||||||||||||
(Amounts in thousands) | |||||||||||||||
December 31, | |||||||||||||||
Weighted Average Interest Rate | 2014 | 2013 | |||||||||||||
FHLB advances - long term: | |||||||||||||||
Fixed rate payable and convertible fixed rate FHLB advances, with monthly interest payments: | |||||||||||||||
Due in 2014 | $ | — | $ | 12,500 | |||||||||||
Due in 2015 | 2.93 | % | 4,000 | 4,000 | |||||||||||
Due in 2016 | 1.99 | % | 5,000 | 2,000 | |||||||||||
Due in 2017 | 4.12 | % | 16,000 | 16,000 | |||||||||||
Total FHLB advances - long term | 3.51 | % | 25,000 | 34,500 | |||||||||||
FHLB advances - short term: | |||||||||||||||
Short term | 0.29 | % | 9,500 | — | |||||||||||
Cash management | 0.17 | % | 6,000 | 8,100 | |||||||||||
Total FHLB advances - short term | 0.25 | % | 15,500 | 8,100 | |||||||||||
Total FHLB advances | 2.26 | % | 40,500 | 42,600 | |||||||||||
Other short term borrowings: | |||||||||||||||
Securities sold under repurchase agreements | 0.07 | % | 4,259 | 3,804 | |||||||||||
Total FHLB advances and other short term borrowings | 2.05 | % | $ | 44,759 | $ | 46,404 | |||||||||
The following is a summary of FHLB short term borrowings: | |||||||||||||||
(Amounts in thousands) | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 17,537 | $ | 4,559 | $ | 6,750 | |||||||||
Average interest rate during the year | 0.89% | 0.16% | 1.17% | ||||||||||||
Maximum month-end balance during the year | $ | 22,500 | $ | 13,000 | $ | 14,500 | |||||||||
Weighted average interest rate at year end | 0.25% | 0.12% | 0.14% | ||||||||||||
The following is a summary of other short term borrowings: | |||||||||||||||
(Amounts in thousands) | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 4,141 | $ | 3,453 | $ | 4,559 | |||||||||
Average interest rate during the year | 0.07% | 0.09% | 0.11% | ||||||||||||
Maximum month-end balance during the year | $ | 5,795 | $ | 4,022 | $ | 5,550 | |||||||||
Weighted average interest rate at year end | 0.07% | 0.07% | 0.13% | ||||||||||||
Securities sold under repurchase agreements represent arrangements the Bank has entered into with certain deposit customers within its local market areas. These borrowings are collateralized with securities. At December 31, 2014 and 2013, securities allocated for this purpose, owned by the Bank and held in safekeeping accounts at independent correspondent banks, amounted to $7.5 million and $7.6 million, respectively. | |||||||||||||||
At December 31, 2014, FHLB advances were collateralized by FHLB stock owned by the Bank with a carrying value of $2.8 million, a blanket lien against the Bank’s qualified mortgage loan portfolio of $25.6 million and $31.6 million in mortgage-backed securities. In comparison, in the prior year FHLB advances were collateralized by FHLB stock owned by the Bank with a carrying value of $2.8 million, a blanket lien against the Bank’s qualified mortgage loan portfolio of $26.4 million, $5.0 million in collateralized mortgage obligations and $24.0 million in mortgage-backed securities. Maximum borrowing capacities from FHLB totaled $53.4 million and $50.0 million at December 31, 2014 and 2013, respectively. | |||||||||||||||
At December 31, 2014, $22.0 million of the FHLB fixed rate advances were putable on or after certain specified dates at the option of the FHLB and at December 31, 2013, $28.5 million of the FHLB fixed rate advances were putable on or after certain specified dates at the option of the FHLB. Should the FHLB elect to exercise the put, the Company is required to pay the advance off on that date without penalty. |
Subordinated_Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | NOTE 7 - SUBORDINATED DEBT |
The Company issued $5.0 million of floating rate trust preferred securities as part of a pooled offering of such securities due December 2037. The Company owns all $155,000 of the common securities issued by the trust. The securities bear interest at the 3-month LIBOR rate plus 1.45%. The rates at December 31, 2014 and 2013 were both 1.69%. The Company issued subordinated debentures to the trust in exchange for the proceeds of the trust preferred offering. The debentures represent the sole assets of this trust. The Company may redeem the subordinated debentures, in whole or in part, at par. | |
The trust is not consolidated with the Company’s financial statements. Accordingly, the Company does not report the securities issued by the trust as liabilities, but instead reports as liabilities the subordinated debentures issued by the Company and held by the trust. The subordinated debentures qualify as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES | |||||||
The Bank occupies office facilities under operating leases extending to 2018. Most of these leases contain an option to renew at the then fair rental value for periods of five and ten years. These options enable the Bank to retain use of facilities in desirable operating areas. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Rental and lease expense was $139,000 for 2014, $181,000 for 2013 and $147,000 for 2012. | ||||||||
The following is a summary of remaining future minimum lease payments under current non-cancelable operating leases for office facilities: | ||||||||
(Amounts in thousands) | ||||||||
Years ending: | ||||||||
31-Dec-15 | $ | 166 | ||||||
31-Dec-16 | 104 | |||||||
31-Dec-17 | 56 | |||||||
31-Dec-18 | 33 | |||||||
31-Dec-19 | — | |||||||
Later years | — | |||||||
Total | $ | 359 | ||||||
At December 31, 2014, the Bank was required to maintain aggregate cash reserves amounting to $6.5 million in order to satisfy federal regulatory requirements. The reserves are held in useable vault cash and interest-earning balances at the Federal Reserve Bank of Cleveland. | ||||||||
The Bank grants commercial and industrial loans, commercial and residential mortgage loans, and consumer loans to customers in Northeastern Ohio and Western Pennsylvania. Although the Bank has a diversified portfolio, exposure to credit loss can be adversely impacted by downturns in local economic and employment conditions. Approximately 1.0% of total loans are unsecured at December 31, 2014 and 2013. | ||||||||
The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Such instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the Consolidated Balance Sheets. The contract or notional amounts or those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. | ||||||||
In the event of nonperformance by the other party, the Company’s exposure to credit loss on these financial instruments is represented by the contract or notional amount of the instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for instruments recorded on the balance sheet. The amount and nature of collateral obtained, if any, is based on management’s credit evaluation. | ||||||||
The following is a summary of such contractual commitments: | ||||||||
(Amounts in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Commitments to extend credit: | ||||||||
Fixed rate | $ | 13,825 | $ | 14,439 | ||||
Variable rate | 49,897 | 53,275 | ||||||
Standby letters of credit | 608 | 670 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Generally these financial arrangements have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. 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 Company 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 counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. | ||||||||
The Company also offers limited overdraft protection as a non-contractual courtesy which is available to businesses as well as individually/jointly owned accounts in good standing for personal or household use. The Company reserves the right to discontinue this service without prior notice. | ||||||||
The following table is a summary of overdraft protection for the periods indicated: | ||||||||
(Amounts in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Overdraft protection available on depositors' accounts | $ | 9,632 | $ | 9,678 | ||||
Balance of overdrafts included in loans | 108 | 190 | ||||||
Average daily balance of overdrafts | 117 | 115 | ||||||
Average daily balance of overdrafts as a percentage of available | 1.21 | % | 1.19 | % | ||||
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation And Retirement Disclosure [Abstract] | ||||||||||||
Benefit Plans | NOTE 9 – BENEFIT PLANS | |||||||||||
The Bank has a contributory defined contribution retirement plan (401(k) plan) which covers substantially all employees. Total expense under the plan was $284,000 for 2014, $296,000 for 2013 and $265,000 for 2012. The Bank matches participants’ voluntary contributions up to 5% of gross pay. Participants may make voluntary contributions to the plan up to a maximum of $17,500 with an additional $5,500 catch-up deferral for plan participants over the age of 50. The Bank makes monthly contributions to this plan equal to amounts accrued for plan expense. | ||||||||||||
The Company provides supplemental retirement benefit plans for the benefit of certain officers and non-officer directors. The plan for officers is designed to provide post-retirement benefits to supplement other sources of retirement income such as social security and 401(k) benefits. The benefits will be paid for a period of 15 years after retirement. Director Retirement Agreements provide for a benefit of $10,000 annually on or after the director reaches normal retirement age, which is based on a combination of age and years of service. Director retirement benefits are paid over a period of 10 years following retirement. The Company accrues the cost of these post-retirement benefits during the working careers of the officers and directors. At December 31, 2014, the accumulated liability for these benefits totaled $2.5 million, with $2.0 million accrued for the officers’ plan and $507,000 for the directors’ plan. | ||||||||||||
The following table reconciles the accumulated liability for the benefit obligation of these agreements: | ||||||||||||
(Amounts in thousands) | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 2,396 | $ | 2,218 | $ | 2,049 | ||||||
Benefit expense | 308 | 327 | 303 | |||||||||
Benefit payments | (155 | ) | (149 | ) | (134 | ) | ||||||
Ending balance | $ | 2,549 | $ | 2,396 | $ | 2,218 | ||||||
Supplemental executive retirement agreements are unfunded plans and have no plan assets. The benefit obligation represents the vested net present value of future payments to individuals under the agreements. The benefit expense, as specified in the agreements for the entire year 2015, is expected to be approximately $305,000. The benefits expected to be paid in the next year are approximately $158,000. | ||||||||||||
The Bank has purchased insurance contracts on the lives of the participants in the supplemental retirement benefit plan and has named the Bank as the beneficiary. Similarly, the Company has purchased insurance contracts on the lives of the directors with the Bancorp as beneficiary. While no direct linkage exists between the supplemental retirement benefit plan and the life insurance contracts, it is management’s current intent that the revenue from the insurance contracts be used as a funding source for the plan. | ||||||||||||
The Company accrues for the monthly benefit expense of postretirement cost of insurance for split-dollar life insurance coverage. Total net amount expensed for the years ended December 31, 2014, 2013 and 2012 was $16,000, $56,000 and $22,000, respectively, with a $45,000 credit to other comprehensive income in 2014 and a $28,000 debit to other comprehensive income in 2013. The accumulated liability at December 31, 2014 is $585,000 and $614,000 at December 31, 2013. The expense for the year ended December 31, 2015 is expected to be under $15,000. |
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Federal Income Taxes | NOTE 10 - FEDERAL INCOME TAXES | |||||||||||
The composition of income tax expense is as follows: | ||||||||||||
(Amounts in thousands) | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | $ | 451 | $ | (8 | ) | $ | (1,131 | ) | ||||
Deferred | 451 | 96 | 973 | |||||||||
Total | $ | 902 | $ | 88 | $ | (158 | ) | |||||
The ability to realize the benefit of deferred tax assets is dependent upon a number of factors, including the generation of future taxable income, the ability to carry back taxes paid in previous years, the ability to offset capital losses with capital gains, the reversal of deferred tax liabilities, and certain tax planning strategies. A valuation allowance of $94,000 has been established to offset in its entirety the tax benefits associated with securities sold at a loss that management believes may not be realizable. | ||||||||||||
The following is a summary of net deferred taxes included in other assets: | ||||||||||||
(Amounts in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Gross deferred tax assets: | ||||||||||||
Provision for loan and other real estate losses | $ | 1,769 | $ | 1,280 | ||||||||
Loan origination cost - net | 303 | 298 | ||||||||||
Impairment loss on securities | 48 | 784 | ||||||||||
Unrealized loss on available-for-sale securities | — | 1,473 | ||||||||||
Deferred compensation | 866 | 814 | ||||||||||
NOL carryforward | — | 385 | ||||||||||
AMT credit carryforward | 928 | 641 | ||||||||||
General business credit carryforward | — | 182 | ||||||||||
Other items | 809 | 727 | ||||||||||
Total gross deferred tax assets | 4,723 | 6,584 | ||||||||||
Valuation allowance | (94 | ) | (94 | ) | ||||||||
Total net deferred tax assets | 4,629 | 6,490 | ||||||||||
Gross deferred tax liabilities: | ||||||||||||
Unrealized gain on available-for-sale securities | (185 | ) | — | |||||||||
Depreciation | (494 | ) | (433 | ) | ||||||||
Other items | (595 | ) | (593 | ) | ||||||||
Total net deferred tax liabilities | (1,274 | ) | (1,026 | ) | ||||||||
Net deferred tax asset | $ | 3,355 | $ | 5,464 | ||||||||
The Company had a deferred tax asset of $928,000 for credits related to Alternative Minimum Taxes (AMT) and a deferred tax asset of $94,000 relating to a capital loss carryforward as of December 31, 2014. In comparison, the Company had a deferred tax asset of $641,000 for credits related to AMT, a deferred tax asset of $385,000 relating to a net operating loss (NOL) carryforward, a deferred tax asset of $182,000 relating to a general business credit carryforward and a deferred tax asset of $94,000 relating to a capital loss carryforward as of December 31, 2013. The AMT credits have an unlimited carry-forward period. The NOL carryforward and general business credit carryforward both had a 20 year life and were used in 2014. No valuation allowance had been established for these deferred tax assets in view of the Corporation’s ability to carry forward taxes paid and credits earned in previous years, to future years, coupled with the anticipated future taxable income as evidenced by the Corporation’s earnings potential. The capital loss carryforward has a 5 year life and expires in 2017; it has a 100% valuation allowance of $94,000 against it. Because of the Parent Company’s inability to generate taxable income, realization of the deferred tax asset therein was not probable. | ||||||||||||
The following is a reconciliation between tax expense using the statutory tax rate of 34% and the income tax provision: | ||||||||||||
(Amounts in thousands) | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory tax expense | $ | 1,622 | $ | 636 | $ | 937 | ||||||
Tax effect of non-taxable interest income | (609 | ) | (504 | ) | (512 | ) | ||||||
Tax effect of earnings on bank-owned life insurance-net | (114 | ) | (111 | ) | (129 | ) | ||||||
Tax effect of historical tax credit | — | — | (483 | ) | ||||||||
Tax effect of low income housing credit | (52 | ) | 13 | — | ||||||||
Tax effect of non-deductible expenses | 55 | 54 | 29 | |||||||||
Federal income tax expense (benefit) | $ | 902 | $ | 88 | $ | (158 | ) | |||||
The related income tax expense on investment securities gains amounted to $311,000 for 2014, $245,000 for 2013 and $4,000 for 2012, and is included in the federal income tax expense (benefit). | ||||||||||||
The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more-likely-than-not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The provision also provides guidance on the accounting for and disclosure of unrecognized tax benefits, interest and penalties. There were no significant unrecognized tax benefits at December 31, 2014 and the Company does not expect any significant increase in unrecognized tax benefits in the next twelve months. No interest or penalties were incurred for income taxes which would have been recorded as a component of income tax expense. | ||||||||||||
There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal and state income tax returns for taxable years through 2010 have been closed for purposes of examination by the Internal Revenue Service and the Ohio Department of Revenue. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Fair Value | NOTE 11 – FAIR VALUE | ||||||||||||||||||||||||||||
Measurements | |||||||||||||||||||||||||||||
The Company groups assets and liabilities recorded at fair value into 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: | Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | ||||||||||||||||||||||||||||
Level 2: | Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but which trade less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. | ||||||||||||||||||||||||||||
Level 3: | Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where inputs into the determination of fair value require significant management judgment or estimation. | ||||||||||||||||||||||||||||
The following table presents the assets reported on the consolidated balance sheets at their fair value as of December 31, 2014 and December 31, 2013 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||
2014 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 101 | $ | — | $ | 101 | $ | — | |||||||||||||||||||||
U.S. Government agencies and corporations | 8,648 | — | 8,648 | — | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 50,091 | — | 50,091 | — | |||||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 85,587 | — | 85,587 | — | |||||||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 13,992 | — | 13,992 | — | |||||||||||||||||||||||||
Trust preferred securities | 779 | — | — | 779 | |||||||||||||||||||||||||
Regulatory stock | 3,049 | 3,049 | — | — | |||||||||||||||||||||||||
Trading securities | 7,861 | — | 7,861 | — | |||||||||||||||||||||||||
Loans held for sale | 632 | 632 | — | — | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||
2013 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 112 | $ | — | $ | 112 | $ | — | |||||||||||||||||||||
U.S. Government agencies and corporations | 8,947 | — | 8,947 | — | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 43,535 | — | 43,535 | — | |||||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 78,022 | — | 78,022 | — | |||||||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 17,085 | — | 17,085 | — | |||||||||||||||||||||||||
Trust preferred securities | 10,136 | — | — | 10,136 | |||||||||||||||||||||||||
Regulatory stock | 3,049 | 3,049 | — | — | |||||||||||||||||||||||||
Trading securities | 7,247 | — | 7,247 | — | |||||||||||||||||||||||||
Loans held for sale | 656 | 656 | — | — | |||||||||||||||||||||||||
The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2014, 2013 and 2012. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Trust preferred | Trust preferred | Trust preferred securities | |||||||||||||||||||||||||||
securities | securities | ||||||||||||||||||||||||||||
Beginning balance | $ | 10,136 | $ | 7,612 | $ | 9,145 | |||||||||||||||||||||||
Net realized/unrealized gains/(losses) included in: | |||||||||||||||||||||||||||||
Noninterest income | — | (1,954 | ) | (171 | ) | ||||||||||||||||||||||||
Other comprehensive income | 835 | 4,553 | 2,183 | ||||||||||||||||||||||||||
Discount accretion (premium amortization) | 7 | 8 | 2 | ||||||||||||||||||||||||||
Sales | (10,044 | ) | — | (3,531 | ) | ||||||||||||||||||||||||
Purchases, issuance, and settlements | (155 | ) | (83 | ) | (16 | ) | |||||||||||||||||||||||
Ending balance | $ | 779 | $ | 10,136 | $ | 7,612 | |||||||||||||||||||||||
Losses included in net income for the period relating | $ | — | $ | (1,954 | ) | $ | (90 | ) | |||||||||||||||||||||
to assets held at period end | |||||||||||||||||||||||||||||
The Company conducts OTTI analyses on a quarterly basis. The initial indication of other-than-temporary impairment for both debt and equity securities is a decline in the fair value below the amount recorded for an investment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the consolidated statements of income. In determining whether an impairment is other than temporary, the Company considers a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and a determination that the Company does not intend to sell those investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of its amortized cost basis less any current period credit loss. Among the factors that are considered in determining the Company’s intent and ability is a review of its capital adequacy, interest rate risk position and liquidity. | |||||||||||||||||||||||||||||
The Company also considers the issuer’s financial condition, capital strength and near-term prospects. In addition, for debt securities the Company considers the cause of the price decline (general level of interest rates and industry- and issuer-specific factors), current ability to make future payments in a timely manner and the issuer’s ability to service debt, the assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and the Company’s intent and ability to retain the security. All of the foregoing require considerable judgment. | |||||||||||||||||||||||||||||
Trust Preferred Securities | |||||||||||||||||||||||||||||
Trust preferred securities are accounted for under FASB ASC Topic 325 Investments Other. The Company evaluates current available information in estimating the future cash flows of securities and determines whether there have been favorable or adverse changes in estimated cash flows from the cash flows previously projected. The Company considers the structure and term of the pool and the financial condition of the underlying issuers. Specifically, the evaluation incorporates factors such as interest rates and appropriate risk premiums, the timing and amount of interest and principal payments and the allocation of payments to the various note classes. Current estimates of cash flows are based on the most recent trustee reports, announcements of deferrals or defaults, expected future default rates and other relevant market information. | |||||||||||||||||||||||||||||
The Company holds trust preferred securities that are backed by pooled trust preferred debt issued by banks, thrifts and insurance companies. These securities were all rated investment grade at inception. Beginning the second half of 2008 and into 2014, factors outside the Company’s control impacted the fair value of these securities and will likely continue to do so for the foreseeable future. These factors include, but are not limited to, the following: guidance on fair value accounting, issuer credit deterioration, issuer deferral and default rates, potential failure or government seizure of underlying financial institutions or insurance companies, ratings agency actions, or regulatory actions. As a result of changes in these and various other factors during 2009 and into 2014, Moody’s Investors Service, Fitch Ratings and Standards and Poor’s downgraded multiple trust preferred securities, including securities held by the Company. All of the trust preferred securities held by the Company are now considered to be below investment grade. The deteriorating economic, credit and financial conditions experienced in 2008 and through 2014 have resulted in illiquid and inactive financial markets and severely depressed prices for these securities. As referenced in Note 2, Investment Securities, with the release of the Volcker Rule in December 2013, the Company could no longer support the ability to hold certain trust preferred securities comprised of obligations issued by insurance companies. The inability to hold the investments triggered a $2.0 million OTTI recognition reflecting the estimated fair value of the securities at December 31, 2013. For the remaining bank-issued trust preferred securities, the Company does not intend to sell the securities and it is more-likely-than-not that the Company will not be required to sell the securities before recovery of its amortized cost basis. There is a risk that subsequent evaluations could result in recognition of OTTI charges in the future. The securities had life-to-date impairment losses as presented below. | |||||||||||||||||||||||||||||
The following table details the breakdown of trust preferred securities for the periods indicated: | |||||||||||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Total number of trust preferred securities | 2 | 12 | |||||||||||||||||||||||||||
Par value | $ | 1,802 | $ | 14,366 | |||||||||||||||||||||||||
Number not considered OTTI | 1 | 1 | |||||||||||||||||||||||||||
Par value | $ | 802 | $ | 956 | |||||||||||||||||||||||||
Number considered OTTI | 1 | 11 | |||||||||||||||||||||||||||
Par value | $ | 1,000 | $ | 13,410 | |||||||||||||||||||||||||
Life-to-date impairment recognized in earnings | $ | 140 | $ | 2,305 | |||||||||||||||||||||||||
Life-to-date impairment recognized in other | 883 | 1,718 | |||||||||||||||||||||||||||
comprehensive income | |||||||||||||||||||||||||||||
Total life-to-date impairment | $ | 1,023 | $ | 4,023 | |||||||||||||||||||||||||
The following table details the one debt security with other-than-temporary impairment, its credit rating at December 31, 2014 and the related loss recognized in earnings: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Moody’s/Fitch | Amount of | Additions in QTD March 31, | Additions in QTD June 30, | Additions in QTD September 30, | Additions in QTD December 31, | Amount of | |||||||||||||||||||||||
Rating | OTTI | 2014 | 2014 | 2014 | 2014 | OTTI | |||||||||||||||||||||||
related to | related to | ||||||||||||||||||||||||||||
credit loss at | credit loss at | ||||||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||||||||
Trapeza IX B-1 | Ca/CC | $ | 140 | $ | — | $ | — | $ | — | $ | — | $ | 140 | ||||||||||||||||
Total | $ | 140 | $ | — | $ | — | $ | — | $ | — | $ | 140 | |||||||||||||||||
The following table details the 11 debt securities with other-than-temporary impairment, their credit ratings at December 31, 2013 and the related losses recognized in earnings: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Moody’s/Fitch | Amount of | Additions in QTD March 31, | Additions in QTD June 30, | Additions in QTD September 30, | Additions in QTD December 31, | Amount of | |||||||||||||||||||||||
Rating | OTTI | 2013 | 2013 | 2013 | 2013 | OTTI | |||||||||||||||||||||||
related to | related to | ||||||||||||||||||||||||||||
credit loss at | credit loss at | ||||||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||
PreTSL XXIII Class C-FP | Ca/C | $ | 211 | $ | — | $ | — | $ | — | $ | — | $ | 211 | ||||||||||||||||
I-PreTSL I | NR/CCC | — | — | — | — | 216 | 216 | ||||||||||||||||||||||
I-PreTSL I | NR/CCC | — | — | — | — | 230 | 230 | ||||||||||||||||||||||
I-PreTSL I | NR/CCC | — | — | — | — | 230 | 230 | ||||||||||||||||||||||
I-PreTSL II | NR/B | — | — | — | — | 291 | 291 | ||||||||||||||||||||||
I-PreTSL III | Ba3/CCC | — | — | — | — | 130 | 130 | ||||||||||||||||||||||
I-PreTSL III | NR/CCC | — | — | — | — | 380 | 380 | ||||||||||||||||||||||
I-PreTSL IV | Ba2/B | — | — | — | — | 140 | 140 | ||||||||||||||||||||||
I-PreTSL IV | Ba2/B | — | — | — | — | 140 | 140 | ||||||||||||||||||||||
I-PreTSL IV | Caa1/CCC | — | — | — | — | 197 | 197 | ||||||||||||||||||||||
Trapeza IX B-1 | Ca/CC | 140 | — | — | — | — | 140 | ||||||||||||||||||||||
Total | $ | 351 | $ | — | $ | — | $ | — | $ | 1,954 | $ | 2,305 | |||||||||||||||||
The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2014 used to evaluate other-than-temporary impairments: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Deal | Class | Amortized Cost | Fair Value | Unrealized | Moody’s/ | Number of | Deferrals and | Excess | |||||||||||||||||||||
Gain/(Loss) | Fitch Rating | Issuers | Defaults as a % | Subordination as a | |||||||||||||||||||||||||
Currently | of Current | % of Current | |||||||||||||||||||||||||||
Performing | Collateral | Performing | |||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
PreTSL XXIII | C-2 | $ | 802 | $ | 313 | $ | (489 | ) | B2/C | 91 | 25.2 | % | — | % | |||||||||||||||
Trapeza IX | B-1 | 860 | 466 | (394 | ) | Ca/CC | 33 | 18.1 | — | ||||||||||||||||||||
Total | $ | 1,662 | $ | 779 | $ | (883 | ) | ||||||||||||||||||||||
The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2013 used to evaluate other-than-temporary impairments: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Deal | Class | Amortized Cost | Fair Value | Unrealized | Moody’s/ | Number of | Deferrals and | Excess | |||||||||||||||||||||
Gain/(Loss) | Fitch Rating | Issuers | Defaults as a % | Subordination as a | |||||||||||||||||||||||||
Currently | of Current | % of Current | |||||||||||||||||||||||||||
Performing | Collateral | Performing | |||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
PreTSL XXIII | C-2 | $ | 956 | $ | 392 | $ | (564 | ) | Ca/C | 93 | 24.2 | % | — | % | |||||||||||||||
PreTSL XXIII | C-FP | 1,535 | 811 | (724 | ) | Ca/C | 93 | 24.2 | — | ||||||||||||||||||||
I-PreTSL I | B-1 | 770 | 770 | — | NR/CCC | 14 | 17.3 | 7.78 | |||||||||||||||||||||
I-PreTSL I | B-2 | 770 | 770 | — | NR/CCC | 14 | 17.3 | 7.78 | |||||||||||||||||||||
I-PreTSL I | B-3 | 770 | 770 | — | NR/CCC | 14 | 17.3 | 7.78 | |||||||||||||||||||||
I-PreTSL II | B-3 | 2,700 | 2,700 | — | NR/B | 21 | 8 | 18.03 | |||||||||||||||||||||
I-PreTSL III | B-2 | 870 | 870 | — | Ba3/CCC | 20 | 14.1 | 14.74 | |||||||||||||||||||||
I-PreTSL III | C | 620 | 620 | — | NR/CCC | 20 | 14.1 | 4.7 | |||||||||||||||||||||
I-PreTSL IV | B-1 | 860 | 860 | — | Ba2/B | 30 | — | 17.67 | |||||||||||||||||||||
I-PreTSL IV | B-2 | 860 | 860 | — | Ba2/B | 30 | — | 17.67 | |||||||||||||||||||||
I-PreTSL IV | C | 283 | 283 | — | Caa1/CCC | 30 | — | 11.16 | |||||||||||||||||||||
Trapeza IX | B-1 | 860 | 430 | (430 | ) | Ca/CC | 32 | 20.9 | — | ||||||||||||||||||||
Total | $ | 11,854 | $ | 10,136 | $ | (1,718 | ) | ||||||||||||||||||||||
The market for these securities at December 31, 2014 and December 31, 2013 is not active and markets for similar securities are also not active. The inactivity was evidenced first by a significant widening of the bid-ask spread in the brokered markets in which trust preferred securities trade and then by a significant decrease in the volume of trades relative to historical levels. The new issue market is also inactive as no new trust preferred securities have been issued since 2007. There are currently very few market participants who are willing and/or able to transact for these securities. The pooled market value for these securities remains very depressed relative to historical levels. Although there has been marked improvement in the credit spread premium in the corporate bond space, no such improvement has been noted in the market for trust preferred securities. | |||||||||||||||||||||||||||||
Given conditions in the debt markets today and the absence of observable transactions in the secondary and the new issue markets, the Company determined the following: | |||||||||||||||||||||||||||||
— | The few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at December 31, 2014; | ||||||||||||||||||||||||||||
— | An income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than the market approach valuation technique used at measurement dates prior to 2008; and | ||||||||||||||||||||||||||||
— | The trust preferred securities will be classified within Level 3 of the fair value hierarchy because the Company determined that significant judgments are required to determine fair value at the measurement date. | ||||||||||||||||||||||||||||
The Company enlisted the aid of an independent third party to perform the trust preferred security valuations. The approach to determining fair value involved the following process: | |||||||||||||||||||||||||||||
1 | Estimate the credit quality of the collateral using average probability of default values for each issuer (adjusted for rating levels). | ||||||||||||||||||||||||||||
2 | Consider the potential for correlation among issuers within the same industry for default probabilities (e.g. banks with other banks). | ||||||||||||||||||||||||||||
3 | Forecast the cash flows for the underlying collateral and apply to each trust preferred security tranche to determine the resulting distribution among the securities, including prepayment and cures. | ||||||||||||||||||||||||||||
4 | Discount the expected cash flows to calculate the present value of the security. | ||||||||||||||||||||||||||||
The effective discount rates on an overall basis generally range from 10.24% to 15.75% and are highly dependent upon the credit quality of the collateral, the relative position of the tranche in the capital structure of the trust preferred security and the prepayment assumptions. | |||||||||||||||||||||||||||||
With the passage of the Dodd-Frank Act, trust preferred securities issued by institutions with assets greater than $15.0 billion will no longer be included in Tier 1 capital after 2013. As a result, prepayment assumptions were adjusted to include early redemptions by all institutions meeting this criteria. As the vast majority of institutions in the trust preferred securities collateral base fall below this threshold, the revised assumption did not materially impact the valuation results. | |||||||||||||||||||||||||||||
The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2014 and December 31, 2013, by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include: quoted market prices for identical assets classified as Level 1 inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level 2 inputs. In cases where valuation techniques include inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level 3 inputs. | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets measured on a nonrecurring basis: | |||||||||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 6,288 | $ | 6,288 | |||||||||||||||||||||
Other real estate owned | $ | — | $ | — | $ | 40 | $ | 40 | |||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets measured on a nonrecurring basis: | |||||||||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,251 | $ | 5,251 | |||||||||||||||||||||
Other real estate owned | $ | — | $ | — | $ | 33 | $ | 33 | |||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||
The Company discloses fair value information about financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. | |||||||||||||||||||||||||||||
Such techniques and assumptions, as they apply to individual categories of the financial instruments, are as follows: | |||||||||||||||||||||||||||||
Cash and cash equivalents – The carrying amounts for cash and cash equivalents are a reasonable estimate of those assets’ fair value. | |||||||||||||||||||||||||||||
Investment securities – Fair values of securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Prices on trust preferred securities were calculated using a discounted cash-flow technique. Cash flows were estimated based on credit and prepayment assumptions. The present value of the projected cash flows was calculated using a discount rate equal to the current yield used to accrete the beneficial interest. | |||||||||||||||||||||||||||||
Loans held for sale – Loans held for sale consist of residential mortgage loans originated for sale. Loans held for sale are recorded at fair value based on what the secondary markets are currently offering for loans with similar characteristics. | |||||||||||||||||||||||||||||
Loans, net of allowance for loan losses – Market quotations are generally not available for loan portfolios. The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. | |||||||||||||||||||||||||||||
Bank-owned life insurance – The fair value is based upon the cash surrender value of the underlying policies and matches the book value. | |||||||||||||||||||||||||||||
Accrued interest receivable – The carrying amount is a reasonable estimate of these assets’ fair value. | |||||||||||||||||||||||||||||
Demand, savings and money market deposits – Demand, savings, and money market deposit accounts are valued at the amount payable on demand. | |||||||||||||||||||||||||||||
Time deposits – The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rates are estimated using market rates currently offered for similar instruments with similar remaining maturities. | |||||||||||||||||||||||||||||
FHLB advances – The fair value for fixed rate advances is estimated by discounting the future cash flows using rates at which advances would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value for the fixed rate advances that are convertible to quarterly LIBOR floating rate advances on or after certain specified dates at the option of the FHLB and the FHLB fixed rate advances that are putable on or after certain specified dates at the option of the FHLB are priced using the FHLB of Cincinnati’s model. | |||||||||||||||||||||||||||||
Short-term borrowings – Short-term borrowings generally have an original term to maturity of one year or less. Consequently, their carrying value is a reasonable estimate of fair value. | |||||||||||||||||||||||||||||
Subordinated debt – The floating issuances curves to maturity are averaged to obtain an index. The spread between BBB-rated bank debt and 25-year swap rates is determined to calculate the spread on outstanding trust preferred securities. The discount margin is then added to the index to arrive at a discount rate, which determines the present value of projected cash flows. | |||||||||||||||||||||||||||||
Accrued interest payable – The carrying amount is a reasonable estimate of these liabilities’ fair value. The fair value of unrecorded commitments at December 31, 2014 and December 31, 2013 is not material. | |||||||||||||||||||||||||||||
In addition, other assets and liabilities of the Company that are not defined as financial instruments are not included in the disclosures, such as property and equipment. Also, non-financial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning power of core deposit accounts, the trained work force, customer goodwill and similar items. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. | |||||||||||||||||||||||||||||
The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Amount | Fair Value | ||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,569 | $ | 10,569 | $ | — | $ | — | $ | 10,569 | |||||||||||||||||||
Investment securities available-for-sale | 162,247 | 3,049 | 158,419 | 779 | 162,247 | ||||||||||||||||||||||||
Trading securities | 7,861 | — | 7,861 | — | 7,861 | ||||||||||||||||||||||||
Loans held for sale | 632 | 632 | — | — | 632 | ||||||||||||||||||||||||
Loans, net of allowance for loan losses | 354,983 | — | — | 359,518 | 359,518 | ||||||||||||||||||||||||
Bank-owned life insurance | 16,990 | 16,990 | — | — | 16,990 | ||||||||||||||||||||||||
Accrued interest receivable | 1,723 | 1,723 | — | — | 1,723 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Demand, savings and money market deposits | $ | 326,554 | $ | 326,554 | $ | — | $ | — | $ | 326,554 | |||||||||||||||||||
Time deposits | 130,207 | — | — | 133,171 | 133,171 | ||||||||||||||||||||||||
Short-term borrowings | 4,259 | 4,259 | — | — | 4,259 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - short term | 15,500 | 6,000 | — | 9,490 | 15,490 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - long term | 25,000 | — | — | 26,194 | 26,194 | ||||||||||||||||||||||||
Subordinated debt | 5,155 | — | — | 4,573 | 4,573 | ||||||||||||||||||||||||
Accrued interest payable | 248 | 248 | — | — | 248 | ||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12,396 | $ | 12,396 | $ | — | $ | — | $ | 12,396 | |||||||||||||||||||
Investment securities available-for-sale | 160,886 | 3,049 | 147,701 | 10,136 | 160,886 | ||||||||||||||||||||||||
Trading securities | 7,247 | — | 7,247 | — | 7,247 | ||||||||||||||||||||||||
Loans held for sale | 656 | 656 | — | — | 656 | ||||||||||||||||||||||||
Loans, net of allowance for loan losses | 343,069 | — | — | 349,190 | 349,190 | ||||||||||||||||||||||||
Bank-owned life insurance | 15,049 | 15,049 | — | — | 15,049 | ||||||||||||||||||||||||
Accrued interest receivable | 1,675 | 1,675 | — | — | 1,675 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Demand, savings and money market deposits | $ | 316,708 | $ | 316,708 | $ | — | $ | — | $ | 316,708 | |||||||||||||||||||
Time deposits | 131,961 | — | — | 135,712 | 135,712 | ||||||||||||||||||||||||
Short-term borrowings | 3,804 | 3,804 | — | — | 3,804 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - short term | 8,100 | 8,100 | — | — | 8,100 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - long term | 34,500 | — | — | 36,646 | 36,646 | ||||||||||||||||||||||||
Subordinated debt | 5,155 | — | — | 4,694 | 4,694 | ||||||||||||||||||||||||
Accrued interest payable | 290 | 290 | — | — | 290 | ||||||||||||||||||||||||
The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2014. | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair value at | Valuation | Significant | Description of Inputs | ||||||||||||||||||||||||||
December 31, | Technique | Unobservable Input | |||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Trust preferred securities | $ | 779 | Discounted Cash Flow | Projected | 1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital. All fixed rate within one year; variable rate at increasing intervals depending on spread. | ||||||||||||||||||||||||
Prepayments | 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. | ||||||||||||||||||||||||||||
3) 1% annually for all other fixed rate issues and all variable rate issues. | |||||||||||||||||||||||||||||
4) Zero for collateral issued by REITs and 2% for insurance companies. | |||||||||||||||||||||||||||||
Projected | 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. | ||||||||||||||||||||||||||||
Defaults | 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. | ||||||||||||||||||||||||||||
3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings. | |||||||||||||||||||||||||||||
Projected Cures | 1) Deferring issuers that have definitive agreements to either be acquired or recapitalized. | ||||||||||||||||||||||||||||
Projected | 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. | ||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Discount Rates | 1) Ranging from ~10.24% to ~15.75%, depending on each bond's seniority and remaining subordination after projected losses. | ||||||||||||||||||||||||||||
Impaired loans | 6,288 | Appraisal of | Appraisal | Range (0)% to (40)% | |||||||||||||||||||||||||
Collateral (1) | Adjustments (2) | Weighted average (23)% | |||||||||||||||||||||||||||
Liquidation | Range (0)% to (33)% | ||||||||||||||||||||||||||||
Expenses (2) | Weighted average (6)% | ||||||||||||||||||||||||||||
Other real estate owned | 40 | Appraisal of | Appraisal | 0% | |||||||||||||||||||||||||
Collateral (1), (3) | Adjustments (2) | ||||||||||||||||||||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. | ||||||||||||||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal. | ||||||||||||||||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. | ||||||||||||||||||||||||||||
The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2013. | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair value at | Valuation Technique | Significant | Description of Inputs | ||||||||||||||||||||||||||
December 31, | Unobservable Input | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Trust preferred securities | $ | 10,136 | Discounted Cash Flow | Projected | 1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital. All fixed rate within one year; variable rate at increasing intervals depending on spread. | ||||||||||||||||||||||||
Prepayments | 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. | ||||||||||||||||||||||||||||
3) 1% annually for all other fixed rate issues and all variable rate issues. | |||||||||||||||||||||||||||||
4) Zero for collateral issued by REITs and 2% for insurance companies. | |||||||||||||||||||||||||||||
Projected | 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. | ||||||||||||||||||||||||||||
Defaults | 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. | ||||||||||||||||||||||||||||
3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings. | |||||||||||||||||||||||||||||
Projected Cures | 1) Deferring issuers that have definitive agreements to either be acquired or recapitalized. | ||||||||||||||||||||||||||||
Projected | 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. | ||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Discount Rates | 1) Ranging from ~5.65% to ~17.85%, depending on each bond's seniority and remaining subordination after projected losses. | ||||||||||||||||||||||||||||
Impaired loans | 5,251 | Appraisal of | Appraisal | Range (7)% to (30)% | |||||||||||||||||||||||||
Collateral (1) | Adjustments (2) | Weighted average (21)% | |||||||||||||||||||||||||||
Liquidation | Range (0)% to (26)% | ||||||||||||||||||||||||||||
Expenses (2) | Weighted average (6)% | ||||||||||||||||||||||||||||
Other real estate owned | 33 | Appraisal of | Appraisal | 0% | |||||||||||||||||||||||||
Collateral (1), (3) | Adjustments (2) | ||||||||||||||||||||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. | ||||||||||||||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal. | ||||||||||||||||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Equity [Abstract] | ||||||||
Accumulated Other Comprehensive Income | NOTE 12 - ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||
The following table presents the changes in accumulated other comprehensive loss by component net of tax for the years ended December 31, 2014 and 2013. | ||||||||
(Amounts in thousands) | ||||||||
Unrealized gains on available-for-sale securities (a) | Change in pension and postretirement obligations | |||||||
Balance as of December 31, 2012 | $ | (1,707 | ) | $ | — | |||
Other comprehensive income before reclassification | (2,090 | ) | (28 | ) | ||||
Amount reclassified from accumulated other comprehensive loss | 937 | — | ||||||
Total other comprehensive income | (1,153 | ) | (28 | ) | ||||
Balance as of December 31, 2013 | $ | (2,860 | ) | $ | (28 | ) | ||
Other comprehensive income before reclassification | 3,607 | 45 | ||||||
Amount reclassified from accumulated other comprehensive loss | (388 | ) | — | |||||
Total other comprehensive income | 3,219 | 45 | ||||||
Balance as of December 31, 2014 | $ | 359 | $ | 17 | ||||
(a)All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||
The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income for the years ended December 31, 2014 and 2013. | ||||||||
(Amounts in thousands) | ||||||||
31-Dec-14 | ||||||||
Amount reclassified from accumulated other comprehensive income | Affected line item in the statement where net income is presented | |||||||
Details about other comprehensive income or loss: | ||||||||
Unrealized gains on available-for-sale securities | $ | (588 | ) | Investment securities available-for-sale gains, net | ||||
200 | Federal income tax expense | |||||||
$ | (388 | ) | Net of tax | |||||
(Amounts in thousands) | ||||||||
31-Dec-13 | ||||||||
Amount reclassified from accumulated other comprehensive income | Affected line item in the statement where net income is presented | |||||||
Details about other comprehensive income or loss: | ||||||||
Unrealized gains on available-for-sale securities | $ | 1,954 | Net impairment losses recognized in earnings | |||||
(535 | ) | Investment securities available-for-sale gains, net | ||||||
(482 | ) | Federal income tax benefit | ||||||
$ | 937 | Net of tax | ||||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Banking And Thrift [Abstract] | ||||||||||||||||
Regulatory Matters | NOTE 13 - REGULATORY MATTERS | |||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the requirements for the Company to remain a financial holding company, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | ||||||||||||||||
At December 31, 2014, quantitative measures established by regulation to ensure capital adequacy require the Company to maintain: (1) a minimum ratio of 4% both for total Tier I risk-based capital to risk-weighted assets and for Tier I risk-based capital to average assets, and (2) a minimum ratio of 8% for total risk-based capital to risk-weighted assets. | ||||||||||||||||
Under the requirements for the Company to remain a financial holding company, the Company is categorized as well-capitalized, which requires minimum capital ratios of 10% for total risk-based capital to risk-weighted assets and 6% for Tier I risk-based capital to risk-weighted assets. Management believes that as of December 31, 2014, the Company meets all capital adequacy requirements to which it is subject. | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||
Total Risk-Based Capital | $ | 63,704 | $ | 58,774 | ||||||||||||
Ratio to Risk-Weighted Assets | 15.82 | % | 14.19 | % | ||||||||||||
Tier I Risk-Based Capital | $ | 58,705 | $ | 54,927 | ||||||||||||
Ratio to Risk-Weighted Assets | 14.58 | % | 13.26 | % | ||||||||||||
Ratio to Average Assets | 10.66 | % | 10.35 | % | ||||||||||||
Tier I risk-based capital is shareholders’ equity, noncumulative and cumulative perpetual preferred stock, qualifying trust preferred securities and non-controlling interests less intangibles, disallowed deferred tax assets and the unrealized market value adjustment of investment securities available-for-sale. Total risk-based capital is Tier I risk-based capital plus the qualifying portion of the allowance for loan losses. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Related Party Transactions [Abstract] | ||||
Related Party Transactions | NOTE 14 - RELATED PARTY TRANSACTIONS | |||
Certain directors, executive officers and companies with whom they are affiliated were loan customers during 2014. The following is an analysis of such loans: | ||||
(Amounts in thousands) | ||||
Total related-party loans at December 31, 2013 | $ | 2,873 | ||
New related-party loans | 3,034 | |||
Repayments or other | (1,742 | ) | ||
Total related-party loans at December 31, 2014 | $ | 4,165 | ||
Deposits from executive officers, directors, and their affiliates at December 31, 2014 and 2013 were $2.6 million and $2.4 million, respectively. | ||||
The banking relationships were made in the ordinary course of business with the Bank. |
Condensed_Financial_Informatio
Condensed Financial Information - Parent Company | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information - Parent Company | NOTE 15 - CONDENSED FINANCIAL INFORMATION – PARENT COMPANY | |||||||||||
Below is condensed financial information of Cortland Bancorp (parent company only). In this information, the Parent’s investment in subsidiaries is stated at cost, including equity in the undistributed earnings of the subsidiaries, adjusted for any unrealized gains or losses on available-for-sale securities. | ||||||||||||
BALANCE SHEETS | ||||||||||||
(Amounts in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
ASSETS | ||||||||||||
Cash | $ | 96 | $ | 204 | ||||||||
Investment in bank subsidiary | 52,082 | 45,813 | ||||||||||
Investment in non-bank subsidiary | 15 | 15 | ||||||||||
Subordinated note from subsidiary bank | 6,000 | 6,000 | ||||||||||
Other assets | 3,650 | 3,478 | ||||||||||
Total assets | $ | 61,843 | $ | 55,510 | ||||||||
LIABILITIES | ||||||||||||
Other liabilities | $ | 836 | $ | 820 | ||||||||
Subordinated debt (Note 7) | 5,155 | 5,155 | ||||||||||
Total liabilities | 5,991 | 5,975 | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
Common stock | 23,641 | 23,641 | ||||||||||
Additional paid-in capital | 20,833 | 20,833 | ||||||||||
Retained earnings | 14,555 | 11,502 | ||||||||||
Accumulated other comprehensive income (loss) | 376 | (2,888 | ) | |||||||||
Treasury stock | (3,553 | ) | (3,553 | ) | ||||||||
Total shareholders’ equity | 55,852 | 49,535 | ||||||||||
Total liabilities & shareholders’ equity | $ | 61,843 | $ | 55,510 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
(Amounts in thousands) | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividends from bank subsidiary | $ | 1,013 | $ | 544 | $ | 136 | ||||||
Interest and dividend income | 93 | 96 | 107 | |||||||||
Investment securities losses | — | — | (16 | ) | ||||||||
Other income | 62 | 99 | 113 | |||||||||
Interest on subordinated debt | (88 | ) | (90 | ) | (100 | ) | ||||||
Other expenses | (311 | ) | (380 | ) | (340 | ) | ||||||
Income (loss) before income tax and equity in undistributed earnings of subsidiaries | 769 | 269 | (100 | ) | ||||||||
Income tax benefit | 95 | 104 | 125 | |||||||||
Equity in undistributed earnings of subsidiaries | 3,005 | 1,411 | 2,888 | |||||||||
Net income | $ | 3,869 | $ | 1,784 | $ | 2,913 | ||||||
Comprehensive income | $ | 7,133 | $ | 603 | $ | 3,869 | ||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
(Amounts in thousands) | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flow (deficit) from operating activities | ||||||||||||
Net income | $ | 3,869 | $ | 1,784 | $ | 2,913 | ||||||
Adjustments to reconcile net income to net cash deficit from operating activities: | ||||||||||||
Equity in undistributed net income of subsidiaries | (3,005 | ) | (1,411 | ) | (2,888 | ) | ||||||
Deferred tax benefit | — | (6 | ) | (14 | ) | |||||||
Investment securities losses | — | — | 16 | |||||||||
Change in other assets and liabilities | (156 | ) | 113 | (180 | ) | |||||||
Net cash flow (deficit) from operating activities | 708 | 480 | (153 | ) | ||||||||
Cash flow from investing activities | ||||||||||||
Proceeds from sales of securities | — | — | 77 | |||||||||
Net cash flows from investing activities | — | — | 77 | |||||||||
Cash deficit from financing activities | ||||||||||||
Dividends paid | (816 | ) | (544 | ) | (136 | ) | ||||||
Treasury shares reissued | — | 24 | — | |||||||||
Net cash deficit from financing activities | (816 | ) | (520 | ) | (136 | ) | ||||||
Net change in cash | (108 | ) | (40 | ) | (212 | ) | ||||||
Cash | ||||||||||||
Beginning of year | 204 | 244 | 456 | |||||||||
End of year | $ | 96 | $ | 204 | $ | 244 | ||||||
Dividend_Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Dividend Restrictions | NOTE 16 - DIVIDEND RESTRICTIONS |
The Bank is subject to a dividend restriction that generally limits the amount of dividends that can be paid by an Ohio state-chartered bank. Under the Ohio Banking Code, cash dividends may not exceed net profits as defined for that year combined with retained net profits for the two preceding years less any required transfers to surplus. Under this formula, the amount available for payment of dividends in 2015 is $4.4 million plus 2015 profits retained up to the date of the dividend declaration. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation | NOTE 17 – LITIGATION |
The Bank is involved in legal actions arising in the ordinary course of business. In the opinion of management, the outcomes from these other matters, either individually or in the aggregate, are not expected to have any material effect on the Company. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, CSB Mortgage Company, Inc. and New Resources Leasing Co. All significant intercompany balances and transactions have been eliminated. |
Industry Segment Information | Industry Segment Information: The Company and its subsidiaries operate in the domestic banking industry which accounts for substantially all of the Company’s assets, revenues and operating income. The Company, through the Bank, grants residential, consumer, and commercial loans and offers a variety of saving plans to customers located primarily in the Northeastern Ohio and Western Pennsylvania area. Based on the analysis performed by the Company, management has determined that the Company only has one operating segment, which is commercial banking. The chief operating decision-makers use consolidated results to make operating and strategic decisions, and therefore are not required to disclose any additional segment information. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Balance Sheet and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Flow | Cash Flow: Cash and cash equivalents include cash on hand and amounts due from banks, both interest and non-interest bearing, but excludes the liquid portion of the securities trading account. The Company reports net cash flows for customer loan transactions, deposit transactions and deposits made with other financial institutions. |
Investment Securities | Investment Securities: Investments in debt and equity securities are classified as held-to-maturity, available-for-sale or trading. Securities classified as held-to-maturity are those that management has the positive intent and ability to hold to maturity. Securities classified as available-for-sale are those that could be sold for liquidity, investment management, or similar reasons, even though management has no present intentions to do so. Securities classified as trading are those that management has bought principally for the purpose of selling in the near term. The Company currently has no securities classified as held-to-maturity. |
Available-for-sale securities are carried at fair value with unrealized gains and losses recorded as a separate component of shareholders’ equity, net of tax. Realized gains or losses on dispositions are based on net proceeds and the adjusted carrying amount of securities sold, using the specific identification method. Interest income includes amortization of purchase premium or discount and is amortized on the level-yield method without anticipating payments, except for U.S. Government mortgage-backed and related securities where twelve months of historical prepayments are taken into consideration. Trading securities are carried at fair value with valuation adjustments included in non-interest income. | |
Other-than-Temporary Investment Security Impairment | Other-than-Temporary Investment Security Impairment: Securities are evaluated periodically to determine whether a decline in value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, along with the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline in value is permanent, but indicates that the prospect for a near-term recovery of value is not necessarily favorable and that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Unrealized losses on available-for-sale investments have not been recognized into income. However, once a decline in value is determined to be other-than-temporary, the credit related other-than-temporary impairment (OTTI) is recognized in earnings while the non-credit related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). Unrealized losses on trading securities are recognized in the Consolidated Statements of Income. |
Loans | Loans: Loans are stated at the principal amount outstanding net of the unamortized balance of deferred loan origination fees and costs. Deferred loan origination fees and costs are amortized as an adjustment to the related loan yield over the contractual life using the level-yield method. Interest income on loans is accrued over the term of the loans based on the amount of principal outstanding. The accrual of interest is discontinued on a loan when management determines that the collection of interest is doubtful. Generally, a loan is placed on non-accrual status once the borrower is 90 days past due on payments, or whenever sufficient information is received to question the collectability of the loan or any time legal proceedings are initiated involving a loan. Interest income accrued up to the date a loan is placed on non-accrual is reversed through interest income. Cash payments received while a loan is classified as non-accrual are recorded as a reduction to principal or reported as interest income according to management’s judgment as to the collectability of principal. A loan is returned to accrual status when either all of the principal and interest amounts contractually due are brought current and future payments are, in management’s judgment, collectable, or when it otherwise becomes well secured and in the process of collection. When a loan is charged-off, any interest accrued but not collected on the loan is charged against earnings. The same treatment is applied to impaired loans, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. |
Loans Held for Sale | Loans Held for Sale: The Company originates certain residential mortgage loans for sale in the secondary mortgage loan market. The Company concurrently sells the rights to service the related loans. These loans are classified as loans held for sale, and carried at the estimated fair value based on secondary market prices. Adjustments to the fair value of loans held for sale are included in “mortgage banking gains” in the Consolidated Statements of Income. Deferred fees and costs related to loans held for sale are not amortized, but included in the cost basis at the time of sale. |
Allowance for Loan Losses (ALLL) and Allowance for Losses on Lending Related Commitments | Allowance for Loan Losses (ALLL) and Allowance for Losses on Lending Related Commitments: Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. Commercial loans and commercial real estate loans are reviewed on a regular basis with a focus on larger loans, along with loans which have experienced past payment or financial deficiencies. Larger commercial loans and commercial real estate loans are evaluated for impairment in accordance with the Bank’s loan review policy. These loans are analyzed to determine if they are impaired. All loans that are delinquent 90 days and are placed on non-accrual status are evaluated on an individual basis. Allowances for loan losses on impaired loans are determined using the estimated future cash flows of the loan, discounted to their present value using the loan’s effective interest rate, or in most cases, the estimated fair value of the underlying collateral. If the analysis indicates a collection shortfall, a specific reserve is allocated to loans on an individual basis which are reviewed for impairment. The remaining loans are evaluated and classified as groups of loans with similar risk characteristics. |
Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Accordingly, the allowance is maintained by management at a level considered adequate to cover possible losses that are currently anticipated. Estimates of credit losses should reflect consideration of all significant factors that affect collectability of the portfolio. While historical loss experience provides a reasonable starting point, historical losses, or even recent trends in losses are not, by themselves, a sufficient basis to determine the appropriate level for the ALLL. Management will also consider any factors that are likely to cause estimated credit losses associated with the Bank’s current portfolio to differ from historical loss experience. Factors include, but are not limited to, changes in lending policies and procedures, including underwriting standards and collection, charge-offs, and recovery practices; changes in economic trends; changes in the nature and volume of the portfolio; changes in the experience and ability of lending management and the depth of staff; changes in the trend, volume and severity of past-due and classified loans, and trends in the volume of non-accrual loans; the existence and effect of any concentrations of credit and changes in the level of such concentrations; levels and trends in classification; declining trends in performance; structure and lack of performance measures and migration between risk classifications. | |
Key risk factors and assumptions are updated to reflect actual experience and changing circumstances. While management may periodically allocate portions of the ALLL for specific problem loans, the entire ALLL is available for any charge-offs that occur. | |
Certain collateral dependent loans are evaluated individually for impairment, based on management’s best estimate of discounted cash repayments and the anticipated proceeds from liquidating collateral. The actual timing and amount of repayments and the ultimate realizable value of the collateral may differ from management’s estimates. | |
The expected loss for certain other commercial credits utilizes internal risk ratings. These loss estimates are sensitive to changes in the customer’s risk profile, the realizable value of collateral, other risk factors and the related loss experience of other credits of similar risk. Consumer credits generally employ statistical loss factors, adjusted for other risk indicators, applied to pools of similar loans stratified by asset type. These loss estimates are sensitive to changes in delinquency status and shifts in the aggregate risk profile. | |
The Company maintains an allowance for losses on unfunded commercial lending commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for loan losses. This allowance is reported as a liability on the Consolidated Balance Sheets within other liabilities, while the corresponding provision for these losses is recorded as a component of other operating expense. | |
Loan Charge-off Policies | Loan Charge-off Policies: Consumer loans are generally fully or partially charged down to the fair value of collateral securing the asset prior to the loan becoming 180 days past due, unless the loan is well secured and in the process of collection. All other loans are generally charged down to the net realizable value when the loan is 90 days past due. |
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (TDR): A loan is classified as a TDR when management grants a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, except in situations of economic difficulties. Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches non-accrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. |
Premises and Equipment | Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed generally on the straight-line method over the estimated useful lives (5 to 40 years) of the various assets. Maintenance and repairs are expensed and major improvements are capitalized. |
Other Real Estate | Other Real Estate: Real estate acquired through foreclosure or deed-in-lieu of foreclosure is included in other assets on the Consolidated Balance Sheets. Such real estate is carried at the lower of cost or fair value less estimated costs to sell. Any reduction from the carrying value of the related loan to fair value at the time of acquisition is accounted for as a loan loss. Any subsequent reduction in fair market value is reflected as a valuation allowance through a charge to income. Costs of significant property improvements are capitalized, whereas costs relating to holding and maintaining the property are charged to expense. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance: Bank-owned life insurance (BOLI) represents life insurance on the lives of certain Company employees, officers and directors who have provided positive consent allowing the Company to be the co-beneficiary of such policies. Since the Company is the owner of the insurance policies, increases in the cash value of the policies, as well as its share of insurance proceeds received, are recorded in noninterest income, and are not subject to income taxes. The cash surrender value of the policies is included on the Consolidated Balance Sheets. The Company reviews the financial strength of the insurance carriers prior to the purchase of BOLI and quarterly thereafter. The amount of BOLI with any individual carrier is limited to 15% of Tier I Capital. The Company has purchased BOLI to provide a long-term asset to offset long-term benefit liabilities, while generating competitive investment yields. |
Endorsement Split-Dollar Life Insurance Arrangement | Endorsement Split-Dollar Life Insurance Arrangement: The Company maintains a liability for the death benefit promised under split-dollar life insurance arrangements. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities: To mitigate interest rate risk associated with commitments made to borrowers for mortgage loans that have not yet closed and that are intended for sale in the secondary markets, the Company may enter into commitments to sell loans or mortgage-backed securities, considered to be derivatives, to limit exposure to potential movements in market interest rates. The Company also enters into contracts for the future delivery of residential mortgage loans when interest rate locks are entered into in order to economically hedge potential adverse effects of changes in interest rates. These contracts are also derivative instruments. All derivative instruments are recognized as either other assets or other liabilities at fair value in the Consolidated Balance Sheets. Gains or losses are recorded as part of mortgage banking gains on the Consolidated Statements of Income. |
Advertising | Advertising: The Company expenses advertising costs as incurred. Advertising expense was $277,000 in 2014, $240,000 in 2013 and $191,000 in 2012. |
Income Taxes | Income Taxes: A deferred tax liability or asset is determined at each balance sheet date. It is measured by applying currently enacted tax laws to future amounts that result from differences in the financial statement and tax bases of assets and liabilities. |
Other Comprehensive Income | Other Comprehensive Income (Loss): Accumulated other comprehensive income (loss) for the Company is comprised of unrealized holding gains (losses) on available-for-sale securities, net of tax, and post-retirement obligations. |
Per Share Amounts | Per Share Amounts: Basic earnings per common share are based on weighted average shares outstanding. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Reclassifications | Reclassifications: Certain items in the financial statements for 2013 and 2012 have been reclassified to conform to the 2014 presentation. Such restrictions did not affect net income or shareholders’ equity. |
Authoritative Accounting Guidance | Authoritative Accounting Guidance: |
In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update. | |
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. | |
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This Update is not expected to have a significant impact on the Company’s financial statements. | |
In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update is not expected to have a significant impact on the Company’s financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements -Going Concern (Subtopic 205-40). The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements. | |
In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company’s financial statements. | |
In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity's most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company’s financial statements. | |
In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements. | |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Computation of Basic Earnings Per Common Share | The following table sets forth the computation of basic earnings per common share: | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income (amounts in thousands) | $ | 3,869 | $ | 1,784 | $ | 2,913 | ||||||
Weighted average common shares outstanding | 4,527,848 | 4,527,350 | 4,525,524 | |||||||||
Earnings per share | $ | 0.85 | $ | 0.39 | $ | 0.64 | ||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ||||||||||||||||||||||||
Summary of Investment Securities Available-for-Sale | The following is a summary of investment securities available-for-sale: | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
31-Dec-14 | Amortized Cost | Gross | Gross | Fair Value | ||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
U.S. Treasury securities | $ | 100 | $ | 1 | $ | — | $ | 101 | ||||||||||||||||
U.S. Government agencies and corporations | 8,640 | 88 | 80 | 8,648 | ||||||||||||||||||||
Obligations of states and political subdivisions | 48,547 | 1,667 | 123 | 50,091 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 85,675 | 353 | 441 | 85,587 | ||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 14,030 | 26 | 64 | 13,992 | ||||||||||||||||||||
Trust preferred securities | 1,662 | — | 883 | 779 | ||||||||||||||||||||
Total debt securities | 158,654 | 2,135 | 1,591 | 159,198 | ||||||||||||||||||||
Federal Home Loan Bank (FHLB) stock | 2,823 | — | — | 2,823 | ||||||||||||||||||||
Federal Reserve Bank (FRB) stock | 226 | — | — | 226 | ||||||||||||||||||||
Total regulatory stock | 3,049 | — | — | 3,049 | ||||||||||||||||||||
Total investment securities available-for-sale | $ | 161,703 | $ | 2,135 | $ | 1,591 | $ | 162,247 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
31-Dec-13 | Amortized Cost | Gross | Gross | Fair Value | ||||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
U.S. Treasury securities | $ | 107 | $ | 5 | $ | — | $ | 112 | ||||||||||||||||
U.S. Government agencies and corporations | 9,259 | — | 312 | 8,947 | ||||||||||||||||||||
Obligations of states and political subdivisions | 44,575 | 467 | 1,507 | 43,535 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 79,255 | 644 | 1,877 | 78,022 | ||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 17,120 | 105 | 140 | 17,085 | ||||||||||||||||||||
Trust preferred securities | 11,854 | — | 1,718 | 10,136 | ||||||||||||||||||||
Total debt securities | 162,170 | 1,221 | 5,554 | 157,837 | ||||||||||||||||||||
Federal Home Loan Bank (FHLB) stock | 2,823 | — | — | 2,823 | ||||||||||||||||||||
Federal Reserve Bank (FRB) stock | 226 | — | — | 226 | ||||||||||||||||||||
Total regulatory stock | 3,049 | — | — | 3,049 | ||||||||||||||||||||
Total investment securities available-for-sale | $ | 165,219 | $ | 1,221 | $ | 5,554 | $ | 160,886 | ||||||||||||||||
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities at December 31, 2014, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 474 | $ | 479 | ||||||||||||||||||||
Due after one year through five years | 375 | 378 | ||||||||||||||||||||||
Due after five years through ten years | 18,230 | 18,629 | ||||||||||||||||||||||
Due after ten years | 39,870 | 40,133 | ||||||||||||||||||||||
Total | 58,949 | 59,619 | ||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed and related securities | 99,705 | 99,579 | ||||||||||||||||||||||
Total debt securities | $ | 158,654 | $ | 159,198 | ||||||||||||||||||||
Proceeds, Gains and Losses Realized on Securities Sold or Called | The following table sets forth the proceeds, gains and losses realized on securities sold or called for each of the years ended December 31: | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Proceeds on securities sold | $ | 32,733 | $ | 29,338 | $ | 24,796 | ||||||||||||||||||
Gross realized gains | 1,170 | 658 | 1,198 | |||||||||||||||||||||
Gross realized losses | 582 | 123 | 1,188 | |||||||||||||||||||||
Proceeds on securities called | $ | 4,441 | $ | 7,153 | $ | 2,537 | ||||||||||||||||||
Gross realized gains | — | — | 8 | |||||||||||||||||||||
Gross realized losses | — | — | 4 | |||||||||||||||||||||
Fair Value of Securities with Unrealized Losses and an Aging of those Unrealized Losses | The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2014: | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
U.S. Government agencies and corporations | $ | 335 | $ | 2 | $ | 1,910 | $ | 78 | $ | 2,245 | $ | 80 | ||||||||||||
Obligations of states and political subdivisions | 2,456 | 18 | 4,159 | 105 | 6,615 | 123 | ||||||||||||||||||
U.S. Government-sponsored mortgage-backed | 14,460 | 33 | 31,550 | 408 | 46,010 | 441 | ||||||||||||||||||
securities | ||||||||||||||||||||||||
U.S. Government-sponsored collateralized | 2,273 | 30 | 3,145 | 34 | 5,418 | 64 | ||||||||||||||||||
mortgage obligations | ||||||||||||||||||||||||
Trust preferred securities | — | — | 779 | 883 | 779 | 883 | ||||||||||||||||||
Total | $ | 19,524 | $ | 83 | $ | 41,543 | $ | 1,508 | $ | 61,067 | $ | 1,591 | ||||||||||||
The above table represents 37 investment securities where the fair value is less than the related amortized cost. | ||||||||||||||||||||||||
The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2013: | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,144 | $ | 129 | $ | 1,803 | $ | 183 | $ | 8,947 | $ | 312 | ||||||||||||
Obligations of states and political subdivisions | 19,785 | 1,142 | 1,883 | 365 | 21,668 | 1,507 | ||||||||||||||||||
U.S. Government-sponsored mortgage-backed | 34,424 | 1,044 | 29,922 | 833 | 64,346 | 1,877 | ||||||||||||||||||
securities | ||||||||||||||||||||||||
U.S. Government-sponsored collateralized | 6,575 | 126 | 2,095 | 14 | 8,670 | 140 | ||||||||||||||||||
mortgage obligations | ||||||||||||||||||||||||
Trust preferred securities | — | — | 1,633 | 1,718 | 1,633 | 1,718 | ||||||||||||||||||
Total | $ | 67,928 | $ | 2,441 | $ | 37,336 | $ | 3,113 | $ | 105,264 | $ | 5,554 | ||||||||||||
Summary of Net Impairment Losses in Earnings and Impairment Losses Recognized in Other Comprehensive Income | The Company recorded impairment credit losses in earnings (before tax) and non-credit impairment losses in other comprehensive income (loss) (before tax) as indicated in the following table: | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||
Net impairment losses recognized in earnings (before tax) | $ | — | $ | 1,954 | $ | 171 | ||||||||||||||||||
Impairment losses recognized in other comprehensive | $ | — | $ | 3,595 | $ | 136 | ||||||||||||||||||
income (before tax) | ||||||||||||||||||||||||
Other than Temporary Impairment Credit Losses Recognized in Earnings | The following provides a cumulative roll forward of credit losses recognized in earnings for trust preferred securities held for the years ended: | |||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Beginning balance | $ | 2,305 | $ | 351 | $ | 10,674 | ||||||||||||||||||
Reduction for debt securities for which other-than-temporary | — | — | — | |||||||||||||||||||||
impairment has been previously recognized and there is no | ||||||||||||||||||||||||
related other comprehensive income | ||||||||||||||||||||||||
Credit losses on debt securities for which other-than-temporary | — | 1,954 | — | |||||||||||||||||||||
impairment has not been previously recognized | ||||||||||||||||||||||||
Additional credit losses on debt securities for which | — | — | 171 | |||||||||||||||||||||
other-than-temporary impairment was previously recognized | ||||||||||||||||||||||||
Sale of debt securities | (2,165 | ) | — | (10,494 | ) | |||||||||||||||||||
Ending balance | $ | 140 | $ | 2,305 | $ | 351 | ||||||||||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Composition of the Loan Portfolio | The following represents the composition of the loan portfolio for the period ending: | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Balance | % | Balance | % | |||||||||||||||||||||||||
Commercial | $ | 72,330 | 20.1 | $ | 73,643 | 21.2 | ||||||||||||||||||||||
Commercial real estate | 223,536 | 62.1 | 206,744 | 59.6 | ||||||||||||||||||||||||
Residential real estate | 38,875 | 10.8 | 42,288 | 12.2 | ||||||||||||||||||||||||
Consumer - home equity | 21,328 | 5.9 | 19,510 | 5.6 | ||||||||||||||||||||||||
Consumer - other | 4,116 | 1.1 | 4,648 | 1.4 | ||||||||||||||||||||||||
Total loans | $ | 360,185 | $ | 346,833 | ||||||||||||||||||||||||
Certain Qualitative Factors Considered in Measuring Risk Trends | These factors include, but are not limited to, the following: | |||||||||||||||||||||||||||
Factor Considered: | Risk Trend: | |||||||||||||||||||||||||||
Levels of and trends in charge-offs, classifications and non-accruals | Stable | |||||||||||||||||||||||||||
Trends in volume and terms | Increasing | |||||||||||||||||||||||||||
Changes in lending policies and procedures | Stable | |||||||||||||||||||||||||||
Experience, depth and ability of management | Stable | |||||||||||||||||||||||||||
Economic trends | Decreasing | |||||||||||||||||||||||||||
Concentrations of credit | Increasing | |||||||||||||||||||||||||||
Factors Analyzed and Applied to Loans Internally Graded with Higher Credit Risk | The following factors are analyzed and applied to loans internally graded with higher risk credit in addition to the above factors for non-classified loans: | |||||||||||||||||||||||||||
Risk Trend: | ||||||||||||||||||||||||||||
Factor Considered: | ||||||||||||||||||||||||||||
Levels and trends in classification | Stable | |||||||||||||||||||||||||||
Declining trends in financial performance | Stable | |||||||||||||||||||||||||||
Structure and lack of performance measures | Stable | |||||||||||||||||||||||||||
Migration between risk categories | Increasing | |||||||||||||||||||||||||||
Analysis of Changes in the Allowance for Loan Losses | The following is an analysis of changes in the allowance for loan losses for the periods ended: | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-14 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 593 | $ | 2,638 | $ | 356 | $ | 88 | $ | 89 | $ | 3,764 | ||||||||||||||||
Loan charge-offs | (123 | ) | (186 | ) | (93 | ) | (48 | ) | (144 | ) | (594 | ) | ||||||||||||||||
Recoveries | 274 | 3 | 16 | 24 | 77 | 394 | ||||||||||||||||||||||
Net loan recoveries (charge-offs) | 151 | (183 | ) | (77 | ) | (24 | ) | (67 | ) | (200 | ) | |||||||||||||||||
Provision charged to operations | 1,320 | 299 | (50 | ) | (4 | ) | 73 | 1,638 | ||||||||||||||||||||
Balance at end of period | $ | 2,064 | $ | 2,754 | $ | 229 | $ | 60 | $ | 95 | $ | 5,202 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 639 | $ | 2,616 | $ | 343 | $ | 123 | $ | 104 | $ | 3,825 | ||||||||||||||||
Loan charge-offs | (1 | ) | (782 | ) | (81 | ) | (12 | ) | (146 | ) | (1,022 | ) | ||||||||||||||||
Recoveries | 167 | 11 | 26 | 18 | 89 | 311 | ||||||||||||||||||||||
Net loan recoveries (charge-offs) | 166 | (771 | ) | (55 | ) | 6 | (57 | ) | (711 | ) | ||||||||||||||||||
Provision charged to operations | (212 | ) | 793 | 68 | (41 | ) | 42 | 650 | ||||||||||||||||||||
Balance at end of period | $ | 593 | $ | 2,638 | $ | 356 | $ | 88 | $ | 89 | $ | 3,764 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-12 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 565 | $ | 1,803 | $ | 470 | $ | 128 | $ | 92 | $ | 3,058 | ||||||||||||||||
Loan charge-offs | (1,937 | ) | (36 | ) | (231 | ) | (59 | ) | (152 | ) | (2,415 | ) | ||||||||||||||||
Recoveries | 9 | 37 | 46 | 13 | 57 | 162 | ||||||||||||||||||||||
Net loan recoveries (charge-offs) | (1,928 | ) | 1 | (185 | ) | (46 | ) | (95 | ) | (2,253 | ) | |||||||||||||||||
Provision charged to operations | 2,002 | 812 | 58 | 41 | 107 | 3,020 | ||||||||||||||||||||||
Balance at end of period | $ | 639 | $ | 2,616 | $ | 343 | $ | 123 | $ | 104 | $ | 3,825 | ||||||||||||||||
Allowance for Loan Losses and the Recorded Investment in Loans | The following tables present a full breakdown by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-14 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,316 | $ | 148 | $ | — | $ | — | $ | — | $ | 1,464 | ||||||||||||||||
Collectively evaluated for impairment | 748 | 2,606 | 229 | 60 | 95 | 3,738 | ||||||||||||||||||||||
Total ending allowance balance | $ | 2,064 | $ | 2,754 | $ | 229 | $ | 60 | $ | 95 | $ | 5,202 | ||||||||||||||||
Loan Portfolio: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,023 | $ | 5,729 | $ | — | $ | — | $ | — | $ | 7,752 | ||||||||||||||||
Collectively evaluated for impairment | 70,307 | 217,807 | 38,875 | 21,328 | 4,116 | 352,433 | ||||||||||||||||||||||
Total ending loans balance | $ | 72,330 | $ | 223,536 | $ | 38,875 | $ | 21,328 | $ | 4,116 | $ | 360,185 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Commercial real estate | Residential real estate | Consumer - home equity | Consumer - other | Total | ||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 50 | $ | 251 | $ | — | $ | — | $ | — | $ | 301 | ||||||||||||||||
Collectively evaluated for impairment | 543 | 2,387 | 356 | 88 | 89 | 3,463 | ||||||||||||||||||||||
Total ending allowance balance | $ | 593 | $ | 2,638 | $ | 356 | $ | 88 | $ | 89 | $ | 3,764 | ||||||||||||||||
Loan Portfolio: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 418 | $ | 5,134 | $ | — | $ | — | $ | — | $ | 5,552 | ||||||||||||||||
Collectively evaluated for impairment | 73,225 | 201,610 | 42,288 | 19,510 | 4,648 | 341,281 | ||||||||||||||||||||||
Total ending loans balance | $ | 73,643 | $ | 206,744 | $ | 42,288 | $ | 19,510 | $ | 4,648 | $ | 346,833 | ||||||||||||||||
Summary of Credit Quality Indicators by Internally Assigned Grade | The following is a summary of credit quality indicators by internally assigned grade as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Commercial | Commercial real estate | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Pass | $ | 65,339 | $ | 205,890 | ||||||||||||||||||||||||
Special Mention | 4,963 | 10,209 | ||||||||||||||||||||||||||
Substandard | 2,028 | 7,437 | ||||||||||||||||||||||||||
Doubtful | — | — | ||||||||||||||||||||||||||
Ending Balance | $ | 72,330 | $ | 223,536 | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Commercial | Commercial real estate | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Pass | $ | 72,562 | $ | 192,604 | ||||||||||||||||||||||||
Special Mention | 626 | 9,158 | ||||||||||||||||||||||||||
Substandard | 455 | 4,982 | ||||||||||||||||||||||||||
Doubtful | — | — | ||||||||||||||||||||||||||
Ending Balance | $ | 73,643 | $ | 206,744 | ||||||||||||||||||||||||
Summary of Consumer Credit Exposure | The following is a summary of consumer credit exposure as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Residential real estate | Consumer - home equity | Consumer- other | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Performing | $ | 37,544 | $ | 21,179 | $ | 4,110 | ||||||||||||||||||||||
Nonperforming | 1,331 | 149 | 6 | |||||||||||||||||||||||||
Total | $ | 38,875 | $ | 21,328 | $ | 4,116 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Residential real estate | Consumer - home equity | Consumer- other | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Performing | $ | 41,807 | $ | 19,438 | $ | 4,632 | ||||||||||||||||||||||
Nonperforming | 481 | 72 | 16 | |||||||||||||||||||||||||
Total | $ | 42,288 | $ | 19,510 | $ | 4,648 | ||||||||||||||||||||||
Summary of Classes of Loans on Non-Accrual Status | The following is a summary of classes of loans on non-accrual status as of: | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Commercial | $ | 1,824 | $ | 98 | ||||||||||||||||||||||||
Commercial real estate | 2,247 | 1,279 | ||||||||||||||||||||||||||
Residential real estate | 1,331 | 481 | ||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Consumer - home equity | 149 | 72 | ||||||||||||||||||||||||||
Consumer - other | 6 | 16 | ||||||||||||||||||||||||||
Total | $ | 5,557 | $ | 1,946 | ||||||||||||||||||||||||
Information Related to Loans Modified in a TDR | The following presents, by class, information related to loans modified in a TDR during the periods ended: | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Number of contracts | Pre-modification recorded investment | Post-modification recorded investment | Increase in the allowance | |||||||||||||||||||||||||
Commercial | 5 | $ | 438 | $ | 438 | $ | 20 | |||||||||||||||||||||
Commercial real estate | 7 | 2,348 | 2,348 | — | ||||||||||||||||||||||||
Total restructured loans | 12 | $ | 2,786 | $ | 2,786 | $ | 20 | |||||||||||||||||||||
Subsequently defaulted | — | $ | — | |||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
Number of contracts | Pre-modification recorded investment | Post-modification recorded investment | Increase in the allowance | |||||||||||||||||||||||||
Commercial real estate | 4 | $ | 1,734 | $ | 1,734 | $ | 148 | |||||||||||||||||||||
Total restructured loans | 4 | $ | 1,734 | $ | 1,734 | $ | 148 | |||||||||||||||||||||
Subsequently defaulted | — | $ | — | |||||||||||||||||||||||||
Aging Analysis of the Recorded Investment of Past Due Loans | The following is an aging analysis of the recorded investment of past due loans as of the periods ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | Recorded Investment > 90 Days and Accruing | ||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Commercial | $ | 54 | $ | 282 | $ | 1,542 | $ | 1,878 | $ | 70,452 | $ | 72,330 | $ | — | ||||||||||||||
Commercial real estate | 574 | 1,774 | 2,115 | 4,463 | 219,073 | 223,536 | — | |||||||||||||||||||||
Residential real estate | 122 | 173 | 1,144 | 1,439 | 37,436 | 38,875 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Consumer - home equity | 61 | — | 149 | 210 | 21,118 | 21,328 | — | |||||||||||||||||||||
Consumer - other | 15 | — | 6 | 21 | 4,095 | 4,116 | — | |||||||||||||||||||||
Total | $ | 826 | $ | 2,229 | $ | 4,956 | $ | 8,011 | $ | 352,174 | $ | 360,185 | $ | — | ||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | Recorded Investment > 90 Days and Accruing | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 30 | $ | 30 | $ | 73,613 | $ | 73,643 | $ | — | ||||||||||||||
Commercial real estate | — | — | 1,136 | 1,136 | 205,608 | 206,744 | — | |||||||||||||||||||||
Residential real estate | — | 201 | 380 | 581 | 41,707 | 42,288 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Consumer - home equity | — | 7 | 65 | 72 | 19,438 | 19,510 | — | |||||||||||||||||||||
Consumer - other | 29 | — | 16 | 45 | 4,603 | 4,648 | — | |||||||||||||||||||||
Total | $ | 29 | $ | 208 | $ | 1,627 | $ | 1,864 | $ | 344,969 | $ | 346,833 | $ | — | ||||||||||||||
Recorded Investment and Unpaid Principal Balances for Impaired Loans, Excluding Homogenous Loans for Which Impaired Analyses are Not Necessarily Performed | The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at December 31, 2014 and 2013. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 457 | $ | 457 | $ | — | ||||||||||||||||||||||
Commercial real estate | 4,498 | 5,242 | — | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 1,566 | 1,566 | 1,316 | |||||||||||||||||||||||||
Commercial real estate | 1,231 | 1,231 | 148 | |||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 2,023 | $ | 2,023 | $ | 1,316 | ||||||||||||||||||||||
Commercial real estate | $ | 5,729 | $ | 6,473 | $ | 148 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 320 | $ | 320 | $ | — | ||||||||||||||||||||||
Commercial real estate | 3,554 | 3,554 | — | |||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 98 | 98 | 50 | |||||||||||||||||||||||||
Commercial real estate | 1,580 | 1,580 | 251 | |||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 418 | $ | 418 | $ | 50 | ||||||||||||||||||||||
Commercial real estate | $ | 5,134 | $ | 5,134 | $ | 251 | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 257 | $ | 17 | ||||||||||||||||||||||||
Commercial real estate | 4,069 | 158 | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 311 | — | ||||||||||||||||||||||||||
Commercial real estate | 1,430 | 73 | ||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 568 | $ | 17 | ||||||||||||||||||||||||
Commercial real estate | $ | 5,499 | $ | 231 | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 123 | $ | 6 | ||||||||||||||||||||||||
Commercial real estate | 1,638 | 117 | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 73 | — | ||||||||||||||||||||||||||
Commercial real estate | 3,015 | 95 | ||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 196 | $ | 6 | ||||||||||||||||||||||||
Commercial real estate | $ | 4,653 | $ | 212 | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Commercial | $ | 17 | $ | — | ||||||||||||||||||||||||
Commercial real estate | 1,196 | 3 | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial | 58 | — | ||||||||||||||||||||||||||
Commercial real estate | 3,177 | 117 | ||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||
Commercial | $ | 75 | $ | — | ||||||||||||||||||||||||
Commercial real estate | $ | 4,373 | $ | 120 | ||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Summary of Premises and Equipment | The following is a summary of premises and equipment: | |||||||
(Amounts in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Land | $ | 2,673 | $ | 1,387 | ||||
Premises | 8,298 | 8,372 | ||||||
Equipment | 8,440 | 8,652 | ||||||
Leasehold improvements | 219 | 203 | ||||||
Total premises and equipment | 19,630 | 18,614 | ||||||
Less accumulated depreciation | 11,933 | 11,938 | ||||||
Net book value | $ | 7,697 | $ | 6,676 | ||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deposits [Abstract] | ||||||||||||
Summary of Interest-Bearing Deposits | The following is a summary of interest-bearing deposits: | |||||||||||
(Amounts in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Demand | $ | 33,146 | $ | 33,654 | ||||||||
Money market | 84,277 | 78,783 | ||||||||||
Savings | 114,400 | 114,366 | ||||||||||
Time: | ||||||||||||
In denominations under $250,000 | 91,802 | 94,277 | ||||||||||
In denominations of $250,000 or more | 38,405 | 37,684 | ||||||||||
Total | $ | 362,030 | $ | 358,764 | ||||||||
Stated Maturities of Time Deposits | Stated maturities of time deposits were as follows: | |||||||||||
(Amounts in thousands) | ||||||||||||
2014 | ||||||||||||
2015 | $ | 77,574 | ||||||||||
2016 | 17,261 | |||||||||||
2017 | 4,855 | |||||||||||
2018 | 3,633 | |||||||||||
2019 | 3,459 | |||||||||||
2020 and beyond | 23,425 | |||||||||||
Total | $ | 130,207 | ||||||||||
Summary of Time Deposits of One Hundred Thousand or More by Remaining Maturities | The following is a summary of time deposits of $100,000 or more by remaining maturities: | |||||||||||
(Amounts in thousands) | ||||||||||||
31-Dec-14 | ||||||||||||
Certificates of Deposit | Other Time Deposits | Total | ||||||||||
Three months or less | $ | 21,733 | $ | 1,468 | $ | 23,201 | ||||||
Three to six months | 9,802 | 472 | 10,274 | |||||||||
Six to twelve months | 12,225 | 108 | 12,333 | |||||||||
One through five years | 12,449 | 2,297 | 14,746 | |||||||||
Over five years | 5,690 | 2,698 | 8,388 | |||||||||
Total | $ | 61,899 | $ | 7,043 | $ | 68,942 | ||||||
Federal_Home_Loan_Bank_FHLB_Ad1
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Disclosure Federal Home Loan Bank Advances And Other Borrowings Details [Line Items] | |||||||||||||||
Summary of FHLB Advances and Other Short-Term Borrowings | The following is a summary of FHLB advances and other short term borrowings: | ||||||||||||||
(Amounts in thousands) | |||||||||||||||
December 31, | |||||||||||||||
Weighted Average Interest Rate | 2014 | 2013 | |||||||||||||
FHLB advances - long term: | |||||||||||||||
Fixed rate payable and convertible fixed rate FHLB advances, with monthly interest payments: | |||||||||||||||
Due in 2014 | $ | — | $ | 12,500 | |||||||||||
Due in 2015 | 2.93 | % | 4,000 | 4,000 | |||||||||||
Due in 2016 | 1.99 | % | 5,000 | 2,000 | |||||||||||
Due in 2017 | 4.12 | % | 16,000 | 16,000 | |||||||||||
Total FHLB advances - long term | 3.51 | % | 25,000 | 34,500 | |||||||||||
FHLB advances - short term: | |||||||||||||||
Short term | 0.29 | % | 9,500 | — | |||||||||||
Cash management | 0.17 | % | 6,000 | 8,100 | |||||||||||
Total FHLB advances - short term | 0.25 | % | 15,500 | 8,100 | |||||||||||
Total FHLB advances | 2.26 | % | 40,500 | 42,600 | |||||||||||
Other short term borrowings: | |||||||||||||||
Securities sold under repurchase agreements | 0.07 | % | 4,259 | 3,804 | |||||||||||
Total FHLB advances and other short term borrowings | 2.05 | % | $ | 44,759 | $ | 46,404 | |||||||||
Summary of Other Short Term Borrowings | The following is a summary of other short term borrowings: | ||||||||||||||
(Amounts in thousands) | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 4,141 | $ | 3,453 | $ | 4,559 | |||||||||
Average interest rate during the year | 0.07% | 0.09% | 0.11% | ||||||||||||
Maximum month-end balance during the year | $ | 5,795 | $ | 4,022 | $ | 5,550 | |||||||||
Weighted average interest rate at year end | 0.07% | 0.07% | 0.13% | ||||||||||||
Disclosure Federal Home Loan Bank F H L B Advances And Other Borrowings Details [Line Items] | |||||||||||||||
Summary of FHLB Advances and Other Short-Term Borrowings | The following is a summary of FHLB advances and other short term borrowings: | ||||||||||||||
(Amounts in thousands) | |||||||||||||||
December 31, | |||||||||||||||
Weighted Average Interest Rate | 2014 | 2013 | |||||||||||||
FHLB advances - long term: | |||||||||||||||
Fixed rate payable and convertible fixed rate FHLB advances, with monthly interest payments: | |||||||||||||||
Due in 2014 | $ | — | $ | 12,500 | |||||||||||
Due in 2015 | 2.93 | % | 4,000 | 4,000 | |||||||||||
Due in 2016 | 1.99 | % | 5,000 | 2,000 | |||||||||||
Due in 2017 | 4.12 | % | 16,000 | 16,000 | |||||||||||
Total FHLB advances - long term | 3.51 | % | 25,000 | 34,500 | |||||||||||
FHLB advances - short term: | |||||||||||||||
Short term | 0.29 | % | 9,500 | — | |||||||||||
Cash management | 0.17 | % | 6,000 | 8,100 | |||||||||||
Total FHLB advances - short term | 0.25 | % | 15,500 | 8,100 | |||||||||||
Total FHLB advances | 2.26 | % | 40,500 | 42,600 | |||||||||||
Other short term borrowings: | |||||||||||||||
Securities sold under repurchase agreements | 0.07 | % | 4,259 | 3,804 | |||||||||||
Total FHLB advances and other short term borrowings | 2.05 | % | $ | 44,759 | $ | 46,404 | |||||||||
Summary of Other Short Term Borrowings | The following is a summary of other short term borrowings: | ||||||||||||||
(Amounts in thousands) | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 4,141 | $ | 3,453 | $ | 4,559 | |||||||||
Average interest rate during the year | 0.07% | 0.09% | 0.11% | ||||||||||||
Maximum month-end balance during the year | $ | 5,795 | $ | 4,022 | $ | 5,550 | |||||||||
Weighted average interest rate at year end | 0.07% | 0.07% | 0.13% | ||||||||||||
Federal Home Loan Bank Advances | |||||||||||||||
Disclosure Federal Home Loan Bank Advances And Other Borrowings Details [Line Items] | |||||||||||||||
Summary of Other Short Term Borrowings | The following is a summary of FHLB short term borrowings: | ||||||||||||||
(Amounts in thousands) | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 17,537 | $ | 4,559 | $ | 6,750 | |||||||||
Average interest rate during the year | 0.89% | 0.16% | 1.17% | ||||||||||||
Maximum month-end balance during the year | $ | 22,500 | $ | 13,000 | $ | 14,500 | |||||||||
Weighted average interest rate at year end | 0.25% | 0.12% | 0.14% | ||||||||||||
Disclosure Federal Home Loan Bank F H L B Advances And Other Borrowings Details [Line Items] | |||||||||||||||
Summary of Other Short Term Borrowings | The following is a summary of FHLB short term borrowings: | ||||||||||||||
(Amounts in thousands) | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Average balance during the year | $ | 17,537 | $ | 4,559 | $ | 6,750 | |||||||||
Average interest rate during the year | 0.89% | 0.16% | 1.17% | ||||||||||||
Maximum month-end balance during the year | $ | 22,500 | $ | 13,000 | $ | 14,500 | |||||||||
Weighted average interest rate at year end | 0.25% | 0.12% | 0.14% | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||
Summary of Remaining Future Minimum Lease Payments | The following is a summary of remaining future minimum lease payments under current non-cancelable operating leases for office facilities: | |||||||
(Amounts in thousands) | ||||||||
Years ending: | ||||||||
31-Dec-15 | $ | 166 | ||||||
31-Dec-16 | 104 | |||||||
31-Dec-17 | 56 | |||||||
31-Dec-18 | 33 | |||||||
31-Dec-19 | — | |||||||
Later years | — | |||||||
Total | $ | 359 | ||||||
Summary of Contractual Commitments | The following is a summary of such contractual commitments: | |||||||
(Amounts in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Commitments to extend credit: | ||||||||
Fixed rate | $ | 13,825 | $ | 14,439 | ||||
Variable rate | 49,897 | 53,275 | ||||||
Standby letters of credit | 608 | 670 | ||||||
Summary of Overdraft Protection | The following table is a summary of overdraft protection for the periods indicated: | |||||||
(Amounts in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Overdraft protection available on depositors' accounts | $ | 9,632 | $ | 9,678 | ||||
Balance of overdrafts included in loans | 108 | 190 | ||||||
Average daily balance of overdrafts | 117 | 115 | ||||||
Average daily balance of overdrafts as a percentage of available | 1.21 | % | 1.19 | % | ||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation And Retirement Disclosure [Abstract] | ||||||||||||
Reconcilement of the Accumulated Liability for the Benefit Obligation | The following table reconciles the accumulated liability for the benefit obligation of these agreements: | |||||||||||
(Amounts in thousands) | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 2,396 | $ | 2,218 | $ | 2,049 | ||||||
Benefit expense | 308 | 327 | 303 | |||||||||
Benefit payments | (155 | ) | (149 | ) | (134 | ) | ||||||
Ending balance | $ | 2,549 | $ | 2,396 | $ | 2,218 | ||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Composition of income tax expense (benefit) | The composition of income tax expense is as follows: | |||||||||||
(Amounts in thousands) | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | $ | 451 | $ | (8 | ) | $ | (1,131 | ) | ||||
Deferred | 451 | 96 | 973 | |||||||||
Total | $ | 902 | $ | 88 | $ | (158 | ) | |||||
Summary of net deferred taxes included in other assets | ||||||||||||
The following is a summary of net deferred taxes included in other assets: | ||||||||||||
(Amounts in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Gross deferred tax assets: | ||||||||||||
Provision for loan and other real estate losses | $ | 1,769 | $ | 1,280 | ||||||||
Loan origination cost - net | 303 | 298 | ||||||||||
Impairment loss on securities | 48 | 784 | ||||||||||
Unrealized loss on available-for-sale securities | — | 1,473 | ||||||||||
Deferred compensation | 866 | 814 | ||||||||||
NOL carryforward | — | 385 | ||||||||||
AMT credit carryforward | 928 | 641 | ||||||||||
General business credit carryforward | — | 182 | ||||||||||
Other items | 809 | 727 | ||||||||||
Total gross deferred tax assets | 4,723 | 6,584 | ||||||||||
Valuation allowance | (94 | ) | (94 | ) | ||||||||
Total net deferred tax assets | 4,629 | 6,490 | ||||||||||
Gross deferred tax liabilities: | ||||||||||||
Unrealized gain on available-for-sale securities | (185 | ) | — | |||||||||
Depreciation | (494 | ) | (433 | ) | ||||||||
Other items | (595 | ) | (593 | ) | ||||||||
Total net deferred tax liabilities | (1,274 | ) | (1,026 | ) | ||||||||
Net deferred tax asset | $ | 3,355 | $ | 5,464 | ||||||||
Reconciliation between tax expense using the statutory tax rate of 34% and the income tax provision | The following is a reconciliation between tax expense using the statutory tax rate of 34% and the income tax provision: | |||||||||||
(Amounts in thousands) | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Statutory tax expense | $ | 1,622 | $ | 636 | $ | 937 | ||||||
Tax effect of non-taxable interest income | (609 | ) | (504 | ) | (512 | ) | ||||||
Tax effect of earnings on bank-owned life insurance-net | (114 | ) | (111 | ) | (129 | ) | ||||||
Tax effect of historical tax credit | — | — | (483 | ) | ||||||||
Tax effect of low income housing credit | (52 | ) | 13 | — | ||||||||
Tax effect of non-deductible expenses | 55 | 54 | 29 | |||||||||
Federal income tax expense (benefit) | $ | 902 | $ | 88 | $ | (158 | ) | |||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Assets Reported on Consolidated Balance Sheets at their Fair Value | The following table presents the assets reported on the consolidated balance sheets at their fair value as of December 31, 2014 and December 31, 2013 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||
2014 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 101 | $ | — | $ | 101 | $ | — | |||||||||||||||||||||
U.S. Government agencies and corporations | 8,648 | — | 8,648 | — | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 50,091 | — | 50,091 | — | |||||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 85,587 | — | 85,587 | — | |||||||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 13,992 | — | 13,992 | — | |||||||||||||||||||||||||
Trust preferred securities | 779 | — | — | 779 | |||||||||||||||||||||||||
Regulatory stock | 3,049 | 3,049 | — | — | |||||||||||||||||||||||||
Trading securities | 7,861 | — | 7,861 | — | |||||||||||||||||||||||||
Loans held for sale | 632 | 632 | — | — | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||||||
2013 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 112 | $ | — | $ | 112 | $ | — | |||||||||||||||||||||
U.S. Government agencies and corporations | 8,947 | — | 8,947 | — | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 43,535 | — | 43,535 | — | |||||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 78,022 | — | 78,022 | — | |||||||||||||||||||||||||
U.S. Government-sponsored collateralized mortgage obligations | 17,085 | — | 17,085 | — | |||||||||||||||||||||||||
Trust preferred securities | 10,136 | — | — | 10,136 | |||||||||||||||||||||||||
Regulatory stock | 3,049 | 3,049 | — | — | |||||||||||||||||||||||||
Trading securities | 7,247 | — | 7,247 | — | |||||||||||||||||||||||||
Loans held for sale | 656 | 656 | — | — | |||||||||||||||||||||||||
Changes in the Level 3 Fair Value Category | The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2014, 2013 and 2012. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Trust preferred | Trust preferred | Trust preferred securities | |||||||||||||||||||||||||||
securities | securities | ||||||||||||||||||||||||||||
Beginning balance | $ | 10,136 | $ | 7,612 | $ | 9,145 | |||||||||||||||||||||||
Net realized/unrealized gains/(losses) included in: | |||||||||||||||||||||||||||||
Noninterest income | — | (1,954 | ) | (171 | ) | ||||||||||||||||||||||||
Other comprehensive income | 835 | 4,553 | 2,183 | ||||||||||||||||||||||||||
Discount accretion (premium amortization) | 7 | 8 | 2 | ||||||||||||||||||||||||||
Sales | (10,044 | ) | — | (3,531 | ) | ||||||||||||||||||||||||
Purchases, issuance, and settlements | (155 | ) | (83 | ) | (16 | ) | |||||||||||||||||||||||
Ending balance | $ | 779 | $ | 10,136 | $ | 7,612 | |||||||||||||||||||||||
Losses included in net income for the period relating | $ | — | $ | (1,954 | ) | $ | (90 | ) | |||||||||||||||||||||
to assets held at period end | |||||||||||||||||||||||||||||
Breakdown of Trust Preferred Securities | The following table details the breakdown of trust preferred securities for the periods indicated: | ||||||||||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Total number of trust preferred securities | 2 | 12 | |||||||||||||||||||||||||||
Par value | $ | 1,802 | $ | 14,366 | |||||||||||||||||||||||||
Number not considered OTTI | 1 | 1 | |||||||||||||||||||||||||||
Par value | $ | 802 | $ | 956 | |||||||||||||||||||||||||
Number considered OTTI | 1 | 11 | |||||||||||||||||||||||||||
Par value | $ | 1,000 | $ | 13,410 | |||||||||||||||||||||||||
Life-to-date impairment recognized in earnings | $ | 140 | $ | 2,305 | |||||||||||||||||||||||||
Life-to-date impairment recognized in other | 883 | 1,718 | |||||||||||||||||||||||||||
comprehensive income | |||||||||||||||||||||||||||||
Total life-to-date impairment | $ | 1,023 | $ | 4,023 | |||||||||||||||||||||||||
Trust Preferred Securities with OTTI, their Credit Ratings at Period End and Related Losses Recognized in Earnings | The following table details the one debt security with other-than-temporary impairment, its credit rating at December 31, 2014 and the related loss recognized in earnings: | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Moody’s/Fitch | Amount of | Additions in QTD March 31, | Additions in QTD June 30, | Additions in QTD September 30, | Additions in QTD December 31, | Amount of | |||||||||||||||||||||||
Rating | OTTI | 2014 | 2014 | 2014 | 2014 | OTTI | |||||||||||||||||||||||
related to | related to | ||||||||||||||||||||||||||||
credit loss at | credit loss at | ||||||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||||||||
Trapeza IX B-1 | Ca/CC | $ | 140 | $ | — | $ | — | $ | — | $ | — | $ | 140 | ||||||||||||||||
Total | $ | 140 | $ | — | $ | — | $ | — | $ | — | $ | 140 | |||||||||||||||||
The following table details the 11 debt securities with other-than-temporary impairment, their credit ratings at December 31, 2013 and the related losses recognized in earnings: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Moody’s/Fitch | Amount of | Additions in QTD March 31, | Additions in QTD June 30, | Additions in QTD September 30, | Additions in QTD December 31, | Amount of | |||||||||||||||||||||||
Rating | OTTI | 2013 | 2013 | 2013 | 2013 | OTTI | |||||||||||||||||||||||
related to | related to | ||||||||||||||||||||||||||||
credit loss at | credit loss at | ||||||||||||||||||||||||||||
January 1, | December 31, | ||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||
PreTSL XXIII Class C-FP | Ca/C | $ | 211 | $ | — | $ | — | $ | — | $ | — | $ | 211 | ||||||||||||||||
I-PreTSL I | NR/CCC | — | — | — | — | 216 | 216 | ||||||||||||||||||||||
I-PreTSL I | NR/CCC | — | — | — | — | 230 | 230 | ||||||||||||||||||||||
I-PreTSL I | NR/CCC | — | — | — | — | 230 | 230 | ||||||||||||||||||||||
I-PreTSL II | NR/B | — | — | — | — | 291 | 291 | ||||||||||||||||||||||
I-PreTSL III | Ba3/CCC | — | — | — | — | 130 | 130 | ||||||||||||||||||||||
I-PreTSL III | NR/CCC | — | — | — | — | 380 | 380 | ||||||||||||||||||||||
I-PreTSL IV | Ba2/B | — | — | — | — | 140 | 140 | ||||||||||||||||||||||
I-PreTSL IV | Ba2/B | — | — | — | — | 140 | 140 | ||||||||||||||||||||||
I-PreTSL IV | Caa1/CCC | — | — | — | — | 197 | 197 | ||||||||||||||||||||||
Trapeza IX B-1 | Ca/CC | 140 | — | — | — | — | 140 | ||||||||||||||||||||||
Total | $ | 351 | $ | — | $ | — | $ | — | $ | 1,954 | $ | 2,305 | |||||||||||||||||
Additional Information Related to the Company's Trust Preferred Securities | The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2014 used to evaluate other-than-temporary impairments: | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Deal | Class | Amortized Cost | Fair Value | Unrealized | Moody’s/ | Number of | Deferrals and | Excess | |||||||||||||||||||||
Gain/(Loss) | Fitch Rating | Issuers | Defaults as a % | Subordination as a | |||||||||||||||||||||||||
Currently | of Current | % of Current | |||||||||||||||||||||||||||
Performing | Collateral | Performing | |||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
PreTSL XXIII | C-2 | $ | 802 | $ | 313 | $ | (489 | ) | B2/C | 91 | 25.2 | % | — | % | |||||||||||||||
Trapeza IX | B-1 | 860 | 466 | (394 | ) | Ca/CC | 33 | 18.1 | — | ||||||||||||||||||||
Total | $ | 1,662 | $ | 779 | $ | (883 | ) | ||||||||||||||||||||||
The following table provides additional information related to the Company’s trust preferred securities as of December 31, 2013 used to evaluate other-than-temporary impairments: | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Deal | Class | Amortized Cost | Fair Value | Unrealized | Moody’s/ | Number of | Deferrals and | Excess | |||||||||||||||||||||
Gain/(Loss) | Fitch Rating | Issuers | Defaults as a % | Subordination as a | |||||||||||||||||||||||||
Currently | of Current | % of Current | |||||||||||||||||||||||||||
Performing | Collateral | Performing | |||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
PreTSL XXIII | C-2 | $ | 956 | $ | 392 | $ | (564 | ) | Ca/C | 93 | 24.2 | % | — | % | |||||||||||||||
PreTSL XXIII | C-FP | 1,535 | 811 | (724 | ) | Ca/C | 93 | 24.2 | — | ||||||||||||||||||||
I-PreTSL I | B-1 | 770 | 770 | — | NR/CCC | 14 | 17.3 | 7.78 | |||||||||||||||||||||
I-PreTSL I | B-2 | 770 | 770 | — | NR/CCC | 14 | 17.3 | 7.78 | |||||||||||||||||||||
I-PreTSL I | B-3 | 770 | 770 | — | NR/CCC | 14 | 17.3 | 7.78 | |||||||||||||||||||||
I-PreTSL II | B-3 | 2,700 | 2,700 | — | NR/B | 21 | 8 | 18.03 | |||||||||||||||||||||
I-PreTSL III | B-2 | 870 | 870 | — | Ba3/CCC | 20 | 14.1 | 14.74 | |||||||||||||||||||||
I-PreTSL III | C | 620 | 620 | — | NR/CCC | 20 | 14.1 | 4.7 | |||||||||||||||||||||
I-PreTSL IV | B-1 | 860 | 860 | — | Ba2/B | 30 | — | 17.67 | |||||||||||||||||||||
I-PreTSL IV | B-2 | 860 | 860 | — | Ba2/B | 30 | — | 17.67 | |||||||||||||||||||||
I-PreTSL IV | C | 283 | 283 | — | Caa1/CCC | 30 | — | 11.16 | |||||||||||||||||||||
Trapeza IX | B-1 | 860 | 430 | (430 | ) | Ca/CC | 32 | 20.9 | — | ||||||||||||||||||||
Total | $ | 11,854 | $ | 10,136 | $ | (1,718 | ) | ||||||||||||||||||||||
Assets Measured on a Nonrecurring Basis on the Consolidated Balance Sheets at their Fair Value | The following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of December 31, 2014 and December 31, 2013, by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include: quoted market prices for identical assets classified as Level 1 inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level 2 inputs. In cases where valuation techniques include inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level 3 inputs. | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets measured on a nonrecurring basis: | |||||||||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 6,288 | $ | 6,288 | |||||||||||||||||||||
Other real estate owned | $ | — | $ | — | $ | 40 | $ | 40 | |||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Assets measured on a nonrecurring basis: | |||||||||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,251 | $ | 5,251 | |||||||||||||||||||||
Other real estate owned | $ | — | $ | — | $ | 33 | $ | 33 | |||||||||||||||||||||
Carrying Amounts and Estimated Fair Values of the Company's Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Amount | Fair Value | ||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,569 | $ | 10,569 | $ | — | $ | — | $ | 10,569 | |||||||||||||||||||
Investment securities available-for-sale | 162,247 | 3,049 | 158,419 | 779 | 162,247 | ||||||||||||||||||||||||
Trading securities | 7,861 | — | 7,861 | — | 7,861 | ||||||||||||||||||||||||
Loans held for sale | 632 | 632 | — | — | 632 | ||||||||||||||||||||||||
Loans, net of allowance for loan losses | 354,983 | — | — | 359,518 | 359,518 | ||||||||||||||||||||||||
Bank-owned life insurance | 16,990 | 16,990 | — | — | 16,990 | ||||||||||||||||||||||||
Accrued interest receivable | 1,723 | 1,723 | — | — | 1,723 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Demand, savings and money market deposits | $ | 326,554 | $ | 326,554 | $ | — | $ | — | $ | 326,554 | |||||||||||||||||||
Time deposits | 130,207 | — | — | 133,171 | 133,171 | ||||||||||||||||||||||||
Short-term borrowings | 4,259 | 4,259 | — | — | 4,259 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - short term | 15,500 | 6,000 | — | 9,490 | 15,490 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - long term | 25,000 | — | — | 26,194 | 26,194 | ||||||||||||||||||||||||
Subordinated debt | 5,155 | — | — | 4,573 | 4,573 | ||||||||||||||||||||||||
Accrued interest payable | 248 | 248 | — | — | 248 | ||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12,396 | $ | 12,396 | $ | — | $ | — | $ | 12,396 | |||||||||||||||||||
Investment securities available-for-sale | 160,886 | 3,049 | 147,701 | 10,136 | 160,886 | ||||||||||||||||||||||||
Trading securities | 7,247 | — | 7,247 | — | 7,247 | ||||||||||||||||||||||||
Loans held for sale | 656 | 656 | — | — | 656 | ||||||||||||||||||||||||
Loans, net of allowance for loan losses | 343,069 | — | — | 349,190 | 349,190 | ||||||||||||||||||||||||
Bank-owned life insurance | 15,049 | 15,049 | — | — | 15,049 | ||||||||||||||||||||||||
Accrued interest receivable | 1,675 | 1,675 | — | — | 1,675 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Demand, savings and money market deposits | $ | 316,708 | $ | 316,708 | $ | — | $ | — | $ | 316,708 | |||||||||||||||||||
Time deposits | 131,961 | — | — | 135,712 | 135,712 | ||||||||||||||||||||||||
Short-term borrowings | 3,804 | 3,804 | — | — | 3,804 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - short term | 8,100 | 8,100 | — | — | 8,100 | ||||||||||||||||||||||||
Federal Home Loan Bank advances - long term | 34,500 | — | — | 36,646 | 36,646 | ||||||||||||||||||||||||
Subordinated debt | 5,155 | — | — | 4,694 | 4,694 | ||||||||||||||||||||||||
Accrued interest payable | 290 | 290 | — | — | 290 | ||||||||||||||||||||||||
Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2014. | ||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair value at | Valuation | Significant | Description of Inputs | ||||||||||||||||||||||||||
December 31, | Technique | Unobservable Input | |||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Trust preferred securities | $ | 779 | Discounted Cash Flow | Projected | 1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital. All fixed rate within one year; variable rate at increasing intervals depending on spread. | ||||||||||||||||||||||||
Prepayments | 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. | ||||||||||||||||||||||||||||
3) 1% annually for all other fixed rate issues and all variable rate issues. | |||||||||||||||||||||||||||||
4) Zero for collateral issued by REITs and 2% for insurance companies. | |||||||||||||||||||||||||||||
Projected | 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. | ||||||||||||||||||||||||||||
Defaults | 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. | ||||||||||||||||||||||||||||
3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings. | |||||||||||||||||||||||||||||
Projected Cures | 1) Deferring issuers that have definitive agreements to either be acquired or recapitalized. | ||||||||||||||||||||||||||||
Projected | 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. | ||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Discount Rates | 1) Ranging from ~10.24% to ~15.75%, depending on each bond's seniority and remaining subordination after projected losses. | ||||||||||||||||||||||||||||
Impaired loans | 6,288 | Appraisal of | Appraisal | Range (0)% to (40)% | |||||||||||||||||||||||||
Collateral (1) | Adjustments (2) | Weighted average (23)% | |||||||||||||||||||||||||||
Liquidation | Range (0)% to (33)% | ||||||||||||||||||||||||||||
Expenses (2) | Weighted average (6)% | ||||||||||||||||||||||||||||
Other real estate owned | 40 | Appraisal of | Appraisal | 0% | |||||||||||||||||||||||||
Collateral (1), (3) | Adjustments (2) | ||||||||||||||||||||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. | ||||||||||||||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal. | ||||||||||||||||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. | ||||||||||||||||||||||||||||
The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31, 2013. | |||||||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||
Fair value at | Valuation Technique | Significant | Description of Inputs | ||||||||||||||||||||||||||
December 31, | Unobservable Input | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Trust preferred securities | $ | 10,136 | Discounted Cash Flow | Projected | 1) Trust preferred securities issued by banks subject to Dodd-Frank's phase-out of trust preferred securities from Tier 1 Capital. All fixed rate within one year; variable rate at increasing intervals depending on spread. | ||||||||||||||||||||||||
Prepayments | 2) Trust preferred securities issued by healthy, well capitalized banks that have fixed rate coupons greater than 8%. | ||||||||||||||||||||||||||||
3) 1% annually for all other fixed rate issues and all variable rate issues. | |||||||||||||||||||||||||||||
4) Zero for collateral issued by REITs and 2% for insurance companies. | |||||||||||||||||||||||||||||
Projected | 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. | ||||||||||||||||||||||||||||
Defaults | 2) Banks with high, near team default risk are identified using a CAMELS model, and projected to default immediately. Healthy banks are projected to default at a rate of 2% annually for 2 years, and 0.36% annually thereafter. | ||||||||||||||||||||||||||||
3) Insurance and REIT defaults are projected according to the historical default rates exhibited by companies with the same credit ratings. Historical default rates are doubled in each of the first two years of the projection to account for current economic conditions. Unrated issuers are assumed to have CCC- ratings. | |||||||||||||||||||||||||||||
Projected Cures | 1) Deferring issuers that have definitive agreements to either be acquired or recapitalized. | ||||||||||||||||||||||||||||
Projected | 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. | ||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Discount Rates | 1) Ranging from ~5.65% to ~17.85%, depending on each bond's seniority and remaining subordination after projected losses. | ||||||||||||||||||||||||||||
Impaired loans | 5,251 | Appraisal of | Appraisal | Range (7)% to (30)% | |||||||||||||||||||||||||
Collateral (1) | Adjustments (2) | Weighted average (21)% | |||||||||||||||||||||||||||
Liquidation | Range (0)% to (26)% | ||||||||||||||||||||||||||||
Expenses (2) | Weighted average (6)% | ||||||||||||||||||||||||||||
Other real estate owned | 33 | Appraisal of | Appraisal | 0% | |||||||||||||||||||||||||
Collateral (1), (3) | Adjustments (2) | ||||||||||||||||||||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. | ||||||||||||||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal. | ||||||||||||||||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accumulated Comprehensive Income [Abstract] | ||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss by component net of tax for the years ended December 31, 2014 and 2013. | |||||||
(Amounts in thousands) | ||||||||
Unrealized gains on available-for-sale securities (a) | Change in pension and postretirement obligations | |||||||
Balance as of December 31, 2012 | $ | (1,707 | ) | $ | — | |||
Other comprehensive income before reclassification | (2,090 | ) | (28 | ) | ||||
Amount reclassified from accumulated other comprehensive loss | 937 | — | ||||||
Total other comprehensive income | (1,153 | ) | (28 | ) | ||||
Balance as of December 31, 2013 | $ | (2,860 | ) | $ | (28 | ) | ||
Other comprehensive income before reclassification | 3,607 | 45 | ||||||
Amount reclassified from accumulated other comprehensive loss | (388 | ) | — | |||||
Total other comprehensive income | 3,219 | 45 | ||||||
Balance as of December 31, 2014 | $ | 359 | $ | 17 | ||||
(a)All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||
Schedule of Reclassifications out of Each Component of Accumulated Other Comprehensive Income | The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income for the years ended December 31, 2014 and 2013. | |||||||
(Amounts in thousands) | ||||||||
31-Dec-14 | ||||||||
Amount reclassified from accumulated other comprehensive income | Affected line item in the statement where net income is presented | |||||||
Details about other comprehensive income or loss: | ||||||||
Unrealized gains on available-for-sale securities | $ | (588 | ) | Investment securities available-for-sale gains, net | ||||
200 | Federal income tax expense | |||||||
$ | (388 | ) | Net of tax | |||||
(Amounts in thousands) | ||||||||
31-Dec-13 | ||||||||
Amount reclassified from accumulated other comprehensive income | Affected line item in the statement where net income is presented | |||||||
Details about other comprehensive income or loss: | ||||||||
Unrealized gains on available-for-sale securities | $ | 1,954 | Net impairment losses recognized in earnings | |||||
(535 | ) | Investment securities available-for-sale gains, net | ||||||
(482 | ) | Federal income tax benefit | ||||||
$ | 937 | Net of tax | ||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||
Schedule of Regulatory Capital Requirement | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||
Total Risk-Based Capital | $ | 63,704 | $ | 58,774 | ||||||||||||
Ratio to Risk-Weighted Assets | 15.82 | % | 14.19 | % | ||||||||||||
Tier I Risk-Based Capital | $ | 58,705 | $ | 54,927 | ||||||||||||
Ratio to Risk-Weighted Assets | 14.58 | % | 13.26 | % | ||||||||||||
Ratio to Average Assets | 10.66 | % | 10.35 | % | ||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Related Party Transactions [Abstract] | ||||
Schedule of Analysis of Related Party Loan | Certain directors, executive officers and companies with whom they are affiliated were loan customers during 2014. The following is an analysis of such loans: | |||
(Amounts in thousands) | ||||
Total related-party loans at December 31, 2013 | $ | 2,873 | ||
New related-party loans | 3,034 | |||
Repayments or other | (1,742 | ) | ||
Total related-party loans at December 31, 2014 | $ | 4,165 | ||
Condensed_Financial_Informatio1
Condensed Financial Information Parent Company (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||||||||||||
Balance Sheets | BALANCE SHEETS | |||||||||||
(Amounts in thousands) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
ASSETS | ||||||||||||
Cash | $ | 96 | $ | 204 | ||||||||
Investment in bank subsidiary | 52,082 | 45,813 | ||||||||||
Investment in non-bank subsidiary | 15 | 15 | ||||||||||
Subordinated note from subsidiary bank | 6,000 | 6,000 | ||||||||||
Other assets | 3,650 | 3,478 | ||||||||||
Total assets | $ | 61,843 | $ | 55,510 | ||||||||
LIABILITIES | ||||||||||||
Other liabilities | $ | 836 | $ | 820 | ||||||||
Subordinated debt (Note 7) | 5,155 | 5,155 | ||||||||||
Total liabilities | 5,991 | 5,975 | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
Common stock | 23,641 | 23,641 | ||||||||||
Additional paid-in capital | 20,833 | 20,833 | ||||||||||
Retained earnings | 14,555 | 11,502 | ||||||||||
Accumulated other comprehensive income (loss) | 376 | (2,888 | ) | |||||||||
Treasury stock | (3,553 | ) | (3,553 | ) | ||||||||
Total shareholders’ equity | 55,852 | 49,535 | ||||||||||
Total liabilities & shareholders’ equity | $ | 61,843 | $ | 55,510 | ||||||||
Condensed Statement of Comprehensive Income | STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(Amounts in thousands) | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividends from bank subsidiary | $ | 1,013 | $ | 544 | $ | 136 | ||||||
Interest and dividend income | 93 | 96 | 107 | |||||||||
Investment securities losses | — | — | (16 | ) | ||||||||
Other income | 62 | 99 | 113 | |||||||||
Interest on subordinated debt | (88 | ) | (90 | ) | (100 | ) | ||||||
Other expenses | (311 | ) | (380 | ) | (340 | ) | ||||||
Income (loss) before income tax and equity in undistributed earnings of subsidiaries | 769 | 269 | (100 | ) | ||||||||
Income tax benefit | 95 | 104 | 125 | |||||||||
Equity in undistributed earnings of subsidiaries | 3,005 | 1,411 | 2,888 | |||||||||
Net income | $ | 3,869 | $ | 1,784 | $ | 2,913 | ||||||
Comprehensive income | $ | 7,133 | $ | 603 | $ | 3,869 | ||||||
Statements of Cash Flows | STATEMENTS OF CASH FLOWS | |||||||||||
(Amounts in thousands) | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flow (deficit) from operating activities | ||||||||||||
Net income | $ | 3,869 | $ | 1,784 | $ | 2,913 | ||||||
Adjustments to reconcile net income to net cash deficit from operating activities: | ||||||||||||
Equity in undistributed net income of subsidiaries | (3,005 | ) | (1,411 | ) | (2,888 | ) | ||||||
Deferred tax benefit | — | (6 | ) | (14 | ) | |||||||
Investment securities losses | — | — | 16 | |||||||||
Change in other assets and liabilities | (156 | ) | 113 | (180 | ) | |||||||
Net cash flow (deficit) from operating activities | 708 | 480 | (153 | ) | ||||||||
Cash flow from investing activities | ||||||||||||
Proceeds from sales of securities | — | — | 77 | |||||||||
Net cash flows from investing activities | — | — | 77 | |||||||||
Cash deficit from financing activities | ||||||||||||
Dividends paid | (816 | ) | (544 | ) | (136 | ) | ||||||
Treasury shares reissued | — | 24 | — | |||||||||
Net cash deficit from financing activities | (816 | ) | (520 | ) | (136 | ) | ||||||
Net change in cash | (108 | ) | (40 | ) | (212 | ) | ||||||
Cash | ||||||||||||
Beginning of year | 204 | 244 | 456 | |||||||||
End of year | $ | 96 | $ | 204 | $ | 244 | ||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Number of operating segment | 1 | ||
Loan is placed on non-accrual status | 90 days | ||
Loans delinquent period for impairment evaluation | 90 days | ||
Number of days before charge down/charge off for consumer loans | 180 days | ||
Charge off period for loans other than consumer | 90 days | ||
Bank owned life insurance to tier one capital percentage | 15.00% | ||
Advertising Expense | $277,000 | $240,000 | $191,000 |
Securities classified as held-to-maturity | $0 | ||
Minimum | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Estimated useful lives | 5 years | ||
Maximum | |||
Summary of Significant Accounting Policies (Textual) [Abstract] | |||
Estimated useful lives | 40 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Computation of basic earnings per common share | |||
Net income | $3,869 | $1,784 | $2,913 |
Weighted average common shares outstanding | 4,527,848 | 4,527,350 | 4,525,524 |
Earnings per share | $0.85 | $0.39 | $0.64 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | $161,703 | $10,000 | $165,219 |
Available-for-sale Securities ,Gross Unrealized Gains | 2,135 | 1,221 | |
Available-for-sale Securities, Gross Unrealized Losses | 1,591 | 5,554 | |
Available-for-sale securities, Fair Value | 162,247 | 160,886 | |
U.S.Treasury securities | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 100 | 107 | |
Available-for-sale Securities ,Gross Unrealized Gains | 1 | 5 | |
Available-for-sale securities, Fair Value | 101 | 112 | |
U.S. Government agencies and corporations | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 8,640 | 9,259 | |
Available-for-sale Securities ,Gross Unrealized Gains | 88 | ||
Available-for-sale Securities, Gross Unrealized Losses | 80 | 312 | |
Available-for-sale securities, Fair Value | 8,648 | 8,947 | |
Obligations of states and political subdivisions | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 48,547 | 44,575 | |
Available-for-sale Securities ,Gross Unrealized Gains | 1,667 | 467 | |
Available-for-sale Securities, Gross Unrealized Losses | 123 | 1,507 | |
Available-for-sale securities, Fair Value | 50,091 | 43,535 | |
U.S. Government-sponsored mortgage-backed securities | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 85,675 | 79,255 | |
Available-for-sale Securities ,Gross Unrealized Gains | 353 | 644 | |
Available-for-sale Securities, Gross Unrealized Losses | 441 | 1,877 | |
Available-for-sale securities, Fair Value | 85,587 | 78,022 | |
U.S. Government-sponsored collateralized mortgage obligations | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 14,030 | 17,120 | |
Available-for-sale Securities ,Gross Unrealized Gains | 26 | 105 | |
Available-for-sale Securities, Gross Unrealized Losses | 64 | 140 | |
Available-for-sale securities, Fair Value | 13,992 | 17,085 | |
Trust preferred securities | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 1,662 | 11,854 | |
Available-for-sale Securities, Gross Unrealized Losses | 883 | 1,718 | |
Available-for-sale securities, Fair Value | 779 | 10,136 | |
Total debt securities | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 158,654 | 162,170 | |
Available-for-sale Securities ,Gross Unrealized Gains | 2,135 | 1,221 | |
Available-for-sale Securities, Gross Unrealized Losses | 1,591 | 5,554 | |
Available-for-sale securities, Fair Value | 159,198 | 157,837 | |
Federal Home Loan Bank (FHLB) stock | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 2,823 | 2,823 | |
Available-for-sale securities, Fair Value | 2,823 | 2,823 | |
Federal Reserve Bank (FRB) stock | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 226 | 226 | |
Available-for-sale securities, Fair Value | 226 | 226 | |
Total regulatory stock | |||
Summary of investment securities | |||
Available-for-sale Securities, Amortized Cost | 3,049 | 3,049 | |
Available-for-sale securities, Fair Value | $3,049 | $3,049 |
Investment_Securities_Details_
Investment Securities (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||
Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Security | Security | Position | |||
Investment | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Trading securities | $7,861,000 | $7,247,000 | |||
Unrealized gains on trading securities | 39,000 | 52,000 | |||
Unrealized losses on trading securities | 4,000 | 3,000 | |||
Net unrealized gains (losses) on trading securities | 34,000 | 49,000 | |||
Realized gains on trading securities | 293,000 | 137,000 | |||
Carrying value of investment securities for pledge | 116,600,000 | 108,500,000 | |||
Investment securities with fair value less than amortized cost | 37 | 83 | |||
Minimum assets of trust preferred securities issued by institution | 15,000,000,000 | ||||
Available-for-sale Securities, Amortized Cost | 10,000,000 | 161,703,000 | 165,219,000 | ||
Total debt securities, Fair Value | 162,247,000 | 160,886,000 | |||
Net impairment losses recognized in earnings | 1,954,000 | 171,000 | |||
Proceeds from sale of securities | 10,200,000 | 32,733,000 | 29,338,000 | 24,796,000 | |
Pre-tax gain from sale of trust preferred securities | 200,000 | 1,170,000 | 658,000 | 1,198,000 | |
Non-accrual investment securities | 779,000 | ||||
Trust preferred securities in nonaccrual status | 2 | ||||
Estimated length of interest payment delays | 10 years | ||||
iTruPS securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Available-for-sale Securities, Amortized Cost | 10,500,000 | ||||
Total debt securities, Fair Value | 8,500,000 | ||||
Net impairment losses recognized in earnings | 1,954,000 | ||||
Number of securities owned by company | 9 | ||||
Trust preferred securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Available-for-sale Securities, Amortized Cost | 1,662,000 | 11,854,000 | |||
Total debt securities, Fair Value | 779,000 | 10,136,000 | |||
Net impairment losses recognized in earnings | 1,954,000 | 171,000 | |||
Number of securities sold | the Company sold 19 of the 22 bank collateralized positions | ||||
Sale of collateralized positions | 19 | ||||
Total number of collateralized positions | 22 | ||||
Non material bank collateralized positions | 3 | ||||
Non material insurance collateralized positions | 9 | ||||
Loss on sale of securities | 164,000 | ||||
Private-label mortgage-backed securities | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Loss on sale of securities | $288,000 |
Investment_Securities_Details_1
Investment Securities (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Available-for-sale Securities | |
Amortized cost and fair value of debt securities by contractual maturity | |
Amortized Cost, Due in one year or less | $474 |
Amortized Cost, Due after one year through five years | 375 |
Amortized Cost, Due after five years through ten years | 18,230 |
Amortized Cost, Due after ten years | 39,870 |
Amortized Cost, Total | 58,949 |
Fair Value, Due in one year or less | 479 |
Fair Value, Due after one year through five years | 378 |
Fair Value, Due after five years through ten years | 18,629 |
Fair Value, Due after ten years | 40,133 |
Fair Value, Total | 59,619 |
U.S. Government-sponsored mortgage-backed and related securities | |
Amortized cost and fair value of debt securities by contractual maturity | |
Amortized Cost, Total | 99,705 |
Total debt securities, Fair Value | 99,579 |
Total debt securities | |
Amortized cost and fair value of debt securities by contractual maturity | |
Amortized Cost, Total | 158,654 |
Total debt securities, Fair Value | $159,198 |
Investment_Securities_Details_2
Investment Securities (Details 2) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Proceeds, gains and losses realized on securities sold or called | ||||
Proceeds on securities sold | $10,200 | $32,733 | $29,338 | $24,796 |
Gross realized gains | 200 | 1,170 | 658 | 1,198 |
Gross realized losses | 582 | 123 | 1,188 | |
Proceeds on securities called | 4,441 | 7,153 | 2,537 | |
Gross realized gains | 8 | |||
Gross realized losses | $4 |
Investment_Securities_Details_3
Investment Securities (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value | ||
Fair Value, Less than 12 Months | $19,524 | $67,928 |
Fair Value, 12 Months or More | 41,543 | 37,336 |
Fair Value, Total | 61,067 | 105,264 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 83 | 2,441 |
Unrealized Losses, 12 Months or More | 1,508 | 3,113 |
Unrealized Losses, Total | 1,591 | 5,554 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Fair Value, Less than 12 Months | 2,456 | 19,785 |
Fair Value, 12 Months or More | 4,159 | 1,883 |
Fair Value, Total | 6,615 | 21,668 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 18 | 1,142 |
Unrealized Losses, 12 Months or More | 105 | 365 |
Unrealized Losses, Total | 123 | 1,507 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Fair Value, Less than 12 Months | 14,460 | 34,424 |
Fair Value, 12 Months or More | 31,550 | 29,922 |
Fair Value, Total | 46,010 | 64,346 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 33 | 1,044 |
Unrealized Losses, 12 Months or More | 408 | 833 |
Unrealized Losses, Total | 441 | 1,877 |
U.S. Government-sponsored collateralized mortgage obligations | ||
Fair Value | ||
Fair Value, Less than 12 Months | 2,273 | 6,575 |
Fair Value, 12 Months or More | 3,145 | 2,095 |
Fair Value, Total | 5,418 | 8,670 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 30 | 126 |
Unrealized Losses, 12 Months or More | 34 | 14 |
Unrealized Losses, Total | 64 | 140 |
Trust preferred securities | ||
Fair Value | ||
Fair Value, 12 Months or More | 779 | 1,633 |
Fair Value, Total | 779 | 1,633 |
Unrealized Losses | ||
Unrealized Losses, 12 Months or More | 883 | 1,718 |
Unrealized Losses, Total | 883 | 1,718 |
U.S. Government agencies and corporations | ||
Fair Value | ||
Fair Value, Less than 12 Months | 335 | 7,144 |
Fair Value, 12 Months or More | 1,910 | 1,803 |
Fair Value, Total | 2,245 | 8,947 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 2 | 129 |
Unrealized Losses, 12 Months or More | 78 | 183 |
Unrealized Losses, Total | $80 | $312 |
Investment_Securities_Details_4
Investment Securities (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Trust preferred securities: | ||
Net impairment losses recognized in earnings (before tax) | $1,954 | $171 |
Impairment losses recognized in other comprehensive income (before tax) | 3,595 | 136 |
Trust preferred securities | ||
Trust preferred securities: | ||
Net impairment losses recognized in earnings (before tax) | 1,954 | 171 |
Impairment losses recognized in other comprehensive income (before tax) | $3,595 | $136 |
Investment_Securities_Details_5
Investment Securities (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cumulative roll forward of credit losses recognized in earnings for trust preferred securities | |||
Beginning balance | $351 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 1,954 | ||
Ending balance | 2,305 | ||
Trust preferred securities | |||
Cumulative roll forward of credit losses recognized in earnings for trust preferred securities | |||
Beginning balance | 2,305 | 351 | 10,674 |
Reduction for debt securities for which other-than-temporary impairment has been previously recognized and there is no related other comprehensive income | 0 | 0 | 0 |
Credit losses on debt securities for which other-than-temporary impairment has not been previously recognized | 0 | 1,954 | 0 |
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 0 | 0 | 171 |
Sale of debt securities | -2,165 | 0 | -10,494 |
Ending balance | $140 | $2,305 | $351 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Composition of the loan portfolio | ||
Total loans | $360,185 | $346,833 |
Commercial | ||
Composition of the loan portfolio | ||
Total loans | 72,330 | 73,643 |
Percentage of loans | 20.10% | 21.20% |
Commercial real estate | ||
Composition of the loan portfolio | ||
Total loans | 223,536 | 206,744 |
Percentage of loans | 62.10% | 59.60% |
Residential real estate | ||
Composition of the loan portfolio | ||
Total loans | 38,875 | 42,288 |
Percentage of loans | 10.80% | 12.20% |
Consumer - home equity | ||
Composition of the loan portfolio | ||
Total loans | 21,328 | 19,510 |
Percentage of loans | 5.90% | 5.60% |
Consumer - other | ||
Composition of the loan portfolio | ||
Total loans | $4,116 | $4,648 |
Percentage of loans | 1.10% | 1.40% |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses (Details 1) | 12 Months Ended |
Dec. 31, 2014 | |
Factor Considered: | |
Levels of and trends in charge-offs, classifications and non-accruals | Stable |
Trends in volume and terms | Increasing |
Changes in lending policies and procedures | Stable |
Experience, depth and ability of management | Stable |
Economic trends | Decreasing |
Concentrations of credit | Increasing |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses (Details 2) | 12 Months Ended |
Dec. 31, 2014 | |
Factor Considered: | |
Levels and trends in classification | Stable |
Declining trends in financial performance | Stable |
Structure and lack of performance measures | Stable |
Migration between risk categories | Increasing |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable Impaired [Line Items] | |||
Provision for loan losses | $1,638 | $650 | $3,020 |
Period after which loans considered nonperforming | 90 days | ||
Gross income on nonaccrual loans | 351 | 147 | 207 |
Actual interest on nonaccrual loans | 149 | 38 | 55 |
Interest rate | 6.50% | ||
Interest rate changes | 5.00% | ||
Loans to one related group | |||
Financing Receivable Impaired [Line Items] | |||
Provision for loan losses | $1,300 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | $3,764 | $3,825 | $3,058 |
Loan charge-offs | -594 | -1,022 | -2,415 |
Recoveries | 394 | 311 | 162 |
Net loan recoveries (charge-offs) | -200 | -711 | -2,253 |
Provision charged to operations | 1,638 | 650 | 3,020 |
Balance at end of period | 5,202 | 3,764 | 3,825 |
Commercial | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 593 | 639 | 565 |
Loan charge-offs | -123 | -1 | -1,937 |
Recoveries | 274 | 167 | 9 |
Net loan recoveries (charge-offs) | 151 | 166 | -1,928 |
Provision charged to operations | 1,320 | -212 | 2,002 |
Balance at end of period | 2,064 | 593 | 639 |
Commercial real estate | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 2,638 | 2,616 | 1,803 |
Loan charge-offs | -186 | -782 | -36 |
Recoveries | 3 | 11 | 37 |
Net loan recoveries (charge-offs) | -183 | -771 | 1 |
Provision charged to operations | 299 | 793 | 812 |
Balance at end of period | 2,754 | 2,638 | 2,616 |
Residential real estate | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 356 | 343 | 470 |
Loan charge-offs | -93 | -81 | -231 |
Recoveries | 16 | 26 | 46 |
Net loan recoveries (charge-offs) | -77 | -55 | -185 |
Provision charged to operations | -50 | 68 | 58 |
Balance at end of period | 229 | 356 | 343 |
Consumer - home equity | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 88 | 123 | 128 |
Loan charge-offs | -48 | -12 | -59 |
Recoveries | 24 | 18 | 13 |
Net loan recoveries (charge-offs) | -24 | 6 | -46 |
Provision charged to operations | -4 | -41 | 41 |
Balance at end of period | 60 | 88 | 123 |
Consumer - other | |||
Analysis of changes in the allowance for loan losses | |||
Balance at beginning of period | 89 | 104 | 92 |
Loan charge-offs | -144 | -146 | -152 |
Recoveries | 77 | 89 | 57 |
Net loan recoveries (charge-offs) | -67 | -57 | -95 |
Provision charged to operations | 73 | 42 | 107 |
Balance at end of period | $95 | $89 | $104 |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $1,464 | $301 | ||
Collectively evaluated for impairment | 3,738 | 3,463 | ||
Total ending allowance balance | 5,202 | 3,764 | 3,825 | 3,058 |
Loan Portfolio: | ||||
Individually evaluated for impairment | 7,752 | 5,552 | ||
Collectively evaluated for impairment | 352,433 | 341,281 | ||
Total ending loans balance | 360,185 | 346,833 | ||
Commercial | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 1,316 | 50 | ||
Collectively evaluated for impairment | 748 | 543 | ||
Total ending allowance balance | 2,064 | 593 | 639 | 565 |
Loan Portfolio: | ||||
Individually evaluated for impairment | 2,023 | 418 | ||
Collectively evaluated for impairment | 70,307 | 73,225 | ||
Total ending loans balance | 72,330 | 73,643 | ||
Commercial real estate | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 148 | 251 | ||
Collectively evaluated for impairment | 2,606 | 2,387 | ||
Total ending allowance balance | 2,754 | 2,638 | 2,616 | 1,803 |
Loan Portfolio: | ||||
Individually evaluated for impairment | 5,729 | 5,134 | ||
Collectively evaluated for impairment | 217,807 | 201,610 | ||
Total ending loans balance | 223,536 | 206,744 | ||
Residential real estate | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 229 | 356 | ||
Total ending allowance balance | 229 | 356 | 343 | 470 |
Loan Portfolio: | ||||
Collectively evaluated for impairment | 38,875 | 42,288 | ||
Total ending loans balance | 38,875 | 42,288 | ||
Consumer - home equity | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 60 | 88 | ||
Total ending allowance balance | 60 | 88 | 123 | 128 |
Loan Portfolio: | ||||
Collectively evaluated for impairment | 21,328 | 19,510 | ||
Total ending loans balance | 21,328 | 19,510 | ||
Consumer - other | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 95 | 89 | ||
Total ending allowance balance | 95 | 89 | 104 | 92 |
Loan Portfolio: | ||||
Collectively evaluated for impairment | 4,116 | 4,648 | ||
Total ending loans balance | $4,116 | $4,648 |
Loans_and_Allowance_for_Loan_L8
Loans and Allowance for Loan Losses (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | $360,185 | $346,833 |
Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 72,330 | 73,643 |
Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 223,536 | 206,744 |
Pass | Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 65,339 | 72,562 |
Pass | Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 205,890 | 192,604 |
Special Mention | Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 4,963 | 626 |
Special Mention | Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 10,209 | 9,158 |
Substandard | Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 2,028 | 455 |
Substandard | Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | $7,437 | $4,982 |
Loans_and_Allowance_for_Loan_L9
Loans and Allowance for Loan Losses (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of consumer credit exposure | ||
Total loans | $360,185 | $346,833 |
Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 38,875 | 42,288 |
Consumer - home equity | ||
Summary of consumer credit exposure | ||
Total loans | 21,328 | 19,510 |
Consumer - other | ||
Summary of consumer credit exposure | ||
Total loans | 4,116 | 4,648 |
Performing | Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 37,544 | 41,807 |
Performing | Consumer - home equity | ||
Summary of consumer credit exposure | ||
Total loans | 21,179 | 19,438 |
Performing | Consumer - other | ||
Summary of consumer credit exposure | ||
Total loans | 4,110 | 4,632 |
Nonperforming | Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 1,331 | 481 |
Nonperforming | Consumer - home equity | ||
Summary of consumer credit exposure | ||
Total loans | 149 | 72 |
Nonperforming | Consumer - other | ||
Summary of consumer credit exposure | ||
Total loans | $6 | $16 |
Recovered_Sheet1
Loans and Allowance for Loan Losses (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of classes of loans on non-accrual status | ||
Total | $5,557 | $1,946 |
Commercial | ||
Summary of classes of loans on non-accrual status | ||
Total | 1,824 | 98 |
Commercial real estate | ||
Summary of classes of loans on non-accrual status | ||
Total | 2,247 | 1,279 |
Residential real estate | ||
Summary of classes of loans on non-accrual status | ||
Total | 1,331 | 481 |
Consumer - home equity | ||
Summary of classes of loans on non-accrual status | ||
Total | 149 | 72 |
Consumer - other | Consumer - other | ||
Summary of classes of loans on non-accrual status | ||
Total | $6 | $16 |
Recovered_Sheet2
Loans and Allowance for Loan Losses (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Contract | |
Commercial | ||
Information related to loans modified in a TDR | ||
Number of contracts | 5 | |
Pre-modification recorded investment | $438 | |
Post-modification recorded investment | 438 | |
Increase in the allowance | 20 | |
Commercial real estate | ||
Information related to loans modified in a TDR | ||
Number of contracts | 7 | 4 |
Pre-modification recorded investment | 2,348 | 1,734 |
Post-modification recorded investment | 2,348 | 1,734 |
Increase in the allowance | 148 | |
Restructured Loans | ||
Information related to loans modified in a TDR | ||
Number of contracts | 12 | 4 |
Pre-modification recorded investment | 2,786 | 1,734 |
Post-modification recorded investment | 2,786 | 1,734 |
Increase in the allowance | $20 | $148 |
Recovered_Sheet3
Loans and Allowance for Loan Losses (Details 9) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | $826 | $29 |
60-89 Days Past Due | 2,229 | 208 |
90 Days Or Greater | 4,956 | 1,627 |
Total Past Due | 8,011 | 1,864 |
Current | 352,174 | 344,969 |
Total ending loans balance | 360,185 | 346,833 |
Recorded Investment >90 Days and Accruing | 0 | 0 |
Commercial | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | 54 | 0 |
60-89 Days Past Due | 282 | 0 |
90 Days Or Greater | 1,542 | 30 |
Total Past Due | 1,878 | 30 |
Current | 70,452 | 73,613 |
Total ending loans balance | 72,330 | 73,643 |
Recorded Investment >90 Days and Accruing | 0 | 0 |
Commercial real estate | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | 574 | 0 |
60-89 Days Past Due | 1,774 | 0 |
90 Days Or Greater | 2,115 | 1,136 |
Total Past Due | 4,463 | 1,136 |
Current | 219,073 | 205,608 |
Total ending loans balance | 223,536 | 206,744 |
Recorded Investment >90 Days and Accruing | 0 | 0 |
Residential real estate | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | 122 | 0 |
60-89 Days Past Due | 173 | 201 |
90 Days Or Greater | 1,144 | 380 |
Total Past Due | 1,439 | 581 |
Current | 37,436 | 41,707 |
Total ending loans balance | 38,875 | 42,288 |
Recorded Investment >90 Days and Accruing | 0 | 0 |
Consumer - home equity | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | 61 | 0 |
60-89 Days Past Due | 0 | 7 |
90 Days Or Greater | 149 | 65 |
Total Past Due | 210 | 72 |
Current | 21,118 | 19,438 |
Total ending loans balance | 21,328 | 19,510 |
Recorded Investment >90 Days and Accruing | 0 | 0 |
Consumer - other | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | 15 | 29 |
60-89 Days Past Due | 0 | 0 |
90 Days Or Greater | 6 | 16 |
Total Past Due | 21 | 45 |
Current | 4,095 | 4,603 |
Total ending loans balance | 4,116 | 4,648 |
Recorded Investment >90 Days and Accruing | $0 | $0 |
Recovered_Sheet4
Loans and Allowance for Loan Losses (Details 10) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial | |||
Loans evaluated for impairment by loan segment | |||
Recorded Investment, With no related allowance recorded | $457 | $320 | |
Recorded Investment, With related allowance recorded | 1,566 | 98 | |
Recorded Investment, Total | 2,023 | 418 | |
Unpaid Principal Balance, with no related allowance | 457 | 320 | |
Unpaid Principal Balance, with related allowance | 1,566 | 98 | |
Unpaid Principal Balance, Total | 2,023 | 418 | |
Related Allowance, with no related allowance | 0 | 0 | |
Related Allowance, with related allowance | 1,316 | 50 | |
Related Allowance, Total | 1,316 | 50 | |
Average Recorded Investment, with no related allowance recorded | 257 | 123 | 17 |
Average Recorded Investment, with related allowance recorded | 311 | 73 | 58 |
Average Recorded Investment, Total | 568 | 196 | 75 |
Interest Income Recognized, with no related allowance | 17 | 6 | 0 |
Interest Income Recognized, with related allowance | 0 | 0 | 0 |
Interest Income Recognized, Total | 17 | 6 | 0 |
Commercial real estate | |||
Loans evaluated for impairment by loan segment | |||
Recorded Investment, With no related allowance recorded | 4,498 | 3,554 | |
Recorded Investment, With related allowance recorded | 1,231 | 1,580 | |
Recorded Investment, Total | 5,729 | 5,134 | |
Unpaid Principal Balance, with no related allowance | 5,242 | 3,554 | |
Unpaid Principal Balance, with related allowance | 1,231 | 1,580 | |
Unpaid Principal Balance, Total | 6,473 | 5,134 | |
Related Allowance, with no related allowance | 0 | 0 | |
Related Allowance, with related allowance | 148 | 251 | |
Related Allowance, Total | 148 | 251 | |
Average Recorded Investment, with no related allowance recorded | 4,069 | 1,638 | 1,196 |
Average Recorded Investment, with related allowance recorded | 1,430 | 3,015 | 3,177 |
Average Recorded Investment, Total | 5,499 | 4,653 | 4,373 |
Interest Income Recognized, with no related allowance | 158 | 117 | 3 |
Interest Income Recognized, with related allowance | 73 | 95 | 117 |
Interest Income Recognized, Total | $231 | $212 | $120 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of premises and equipment | ||
Total premises and equipment | $19,630 | $18,614 |
Less accumulated depreciation | 11,933 | 11,938 |
Net book value | 7,697 | 6,676 |
Land | ||
Summary of premises and equipment | ||
Total premises and equipment | 2,673 | 1,387 |
Premises | ||
Summary of premises and equipment | ||
Total premises and equipment | 8,298 | 8,372 |
Equipment | ||
Summary of premises and equipment | ||
Total premises and equipment | 8,440 | 8,652 |
Leasehold Improvements | ||
Summary of premises and equipment | ||
Total premises and equipment | $219 | $203 |
Premises_and_Equipment_Details1
Premises and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premises and Equipment (Textual) [Abstract] | |||
Depreciation expense | $715 | $713 | $640 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of interest-bearing deposits: | ||
Demand | $33,146 | $33,654 |
Money market | 84,277 | 78,783 |
Savings | 114,400 | 114,366 |
Time: | ||
In denominations under $250,000 | 91,802 | 94,277 |
In denominations of $250,000 or more | 38,405 | 37,684 |
Interest bearing deposits total | $362,030 | $358,764 |
Deposits_Details_1
Deposits (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Stated maturities of time deposits | |
2015 | $77,574 |
2016 | 17,261 |
2017 | 4,855 |
2018 | 3,633 |
2019 | 3,459 |
2020 and beyond | 23,425 |
Total Stated maturities of time deposits | $130,207 |
Deposits_Details_2
Deposits (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Summary of time deposits of $100,000 or more by remaining maturities | |
Three months or less | $23,201 |
Three to six months | 10,274 |
Six to twelve months | 12,333 |
One through five years | 14,746 |
Over five years | 8,388 |
Total | 68,942 |
Certificates of Deposit | |
Summary of time deposits of $100,000 or more by remaining maturities | |
Three months or less | 21,733 |
Three to six months | 9,802 |
Six to twelve months | 12,225 |
One through five years | 12,449 |
Over five years | 5,690 |
Total | 61,899 |
Other Time Deposits | |
Summary of time deposits of $100,000 or more by remaining maturities | |
Three months or less | 1,468 |
Three to six months | 472 |
Six to twelve months | 108 |
One through five years | 2,297 |
Over five years | 2,698 |
Total | $7,043 |
Federal_Home_Loan_Bank_FHLB_Ad2
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fixed-rate payable and convertible fixed-rate FHLB advances, with monthly interest payments: | |||
Due in 2014 | $15,500 | $8,100 | |
Total FHLB advances - long term | 25,000 | 34,500 | |
FHLB advances - short term: | |||
Total FHLB advances - short term | 15,500 | 8,100 | |
Other short term borrowings: | |||
Securities sold under repurchase agreements, Weighted Average Interest Rate | 0.07% | 0.07% | 0.13% |
Long-term Debt | |||
Fixed-rate payable and convertible fixed-rate FHLB advances, with monthly interest payments: | |||
Due in 2014 | 12,500 | ||
Due in 2015 | 4,000 | 4,000 | |
Due in 2016 | 5,000 | 2,000 | |
Due in 2017 | 16,000 | 16,000 | |
Total FHLB advances - long term | 25,000 | 34,500 | |
Weighted Average Interest Rate Due in 2015 | 2.93% | ||
Weighted Average Interest Rate Due in 2016 | 1.99% | ||
Weighted Average Interest Rate Due in 2017 | 4.12% | ||
Weighted Average Interest Rate, Total FHLB advances - long term | 3.51% | ||
FHLB advances - short term: | |||
Total FHLB advances - short term | 12,500 | ||
Short-term Debt | |||
Fixed-rate payable and convertible fixed-rate FHLB advances, with monthly interest payments: | |||
Due in 2014 | 15,500 | 8,100 | |
FHLB advances - short term: | |||
Short term | 9,500 | ||
Cash management | 6,000 | 8,100 | |
Total FHLB advances - short term | 15,500 | 8,100 | |
Weighted Average Interest Rate Short term | 0.29% | ||
Weighted Average Interest Rate Cash management | 0.17% | ||
Total FHLB advances - short term, Weighted Average Interest Rate | 0.25% | ||
Total FHLB advances, Weighted Average Interest Rate | 2.26% | ||
Total FHLB advances | 40,500 | 42,600 | |
Other short term borrowings: | |||
Securities sold under repurchase agreements | 4,259 | 3,804 | |
Total FHLB advances and other short term borrowings | $44,759 | $46,404 | |
Securities sold under repurchase agreements, Weighted Average Interest Rate | 0.07% | ||
Total FHLB advances and other short-term borrowings, Weighted Average Interest Rate | 2.05% |
Federal_Home_Loan_Bank_FHLB_Ad3
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of FHLB and Other Short Term Borrowings | |||
Average balance during the year | $4,141 | $3,453 | $4,559 |
Average interest rate during the year | 0.07% | 0.09% | 0.11% |
Maximum month-end balance during the year | 5,795 | 4,022 | 5,550 |
Weighted average interest rate at year end | 0.07% | 0.07% | 0.13% |
Federal Home Loan Bank Advances | |||
Summary of FHLB and Other Short Term Borrowings | |||
Average balance during the year | 17,537 | 4,559 | 6,750 |
Average interest rate during the year | 0.89% | 0.16% | 1.17% |
Maximum month-end balance during the year | $22,500 | $13,000 | $14,500 |
Weighted average interest rate at year end | 0.25% | 0.12% | 0.14% |
Federal_Home_Loan_Bank_FHLB_Ad4
Federal Home Loan Bank (FHLB) Advances and Other Short-Term Borrowings (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Federal Home Loan Bank Advances and Other Short-Term Borrowings (Additional Textual) [Abstract] | ||
Securities allocated under repurchase agreement, value | $7.50 | $7.60 |
Carrying value of owned FHLB Stock | 2.8 | 2.8 |
Maximum borrowing capacity from FHLB | 53.4 | 50 |
FHLB fixed rate advances | 22 | 28.5 |
Federal Home Loan Bank Advances and Other Short-Term Borrowings (Textual) [Abstract] | ||
Qualified mortgage loan portfolio | 25.6 | 26.4 |
Blanket lien against collateralized mortgage obligations | 5 | |
Blanket lien against mortgage backed securities | $31.60 | $24 |
Subordinated_Debt_Details_Text
Subordinated Debt (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ||
Floating rate trust preferred securities issued | $5,000,000 | |
Maturity date of floating rate trust preferred securities | 2037-12 | |
Investment in common securities issued by trust | $155,000 | |
Interest rate description | 3-month LIBOR rate plus 1.45% | |
LIBOR Rate Points | 1.45% | |
Interest rate | 1.69% | 1.69% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies (Textual) [Abstract] | |||
Operating leases extending | 2018 | ||
Rental and lease expense | $139,000 | $181,000 | $147,000 |
Aggregate cash reserves for federal regulatory requirements | $6,500,000 | ||
Percentage of unsecured loans | 1.00% | 1.00% | |
Minimum | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Operating leases renewal period | 5 years | ||
Maximum | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Operating leases renewal period | 10 years |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Summary of remaining future minimum lease payments | |
31-Dec-15 | $166 |
31-Dec-16 | 104 |
31-Dec-17 | 56 |
31-Dec-18 | 33 |
31-Dec-19 | 0 |
Later years | 0 |
Total | $359 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit: | ||
Fixed rate | $13,825 | $14,439 |
Variable rate | 49,897 | 53,275 |
Standby letters of credit | $608 | $670 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of overdraft protection | ||
Overdraft protection available on depositors' accounts | $9,632 | $9,678 |
Balance of overdrafts included in loans | 108 | 190 |
Average daily balance of overdrafts | $117 | $115 |
Average daily balance of overdrafts as a percentage of available | 1.21% | 1.19% |
Benefit_Plans_Details_Textual
Benefit Plans (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | $2,549,000 | $2,396,000 | $2,218,000 | $2,049,000 |
Other comprehensive (income) loss, postretirement cost of insurance | -45,000 | 28,000 | ||
Benefit Plans (Additional Textual) [Abstract] | ||||
Maximum percentage of employer match for employee voluntary contributions | 5.00% | |||
Maximum allowable amount of voluntary contributions by participants for 2014 | 17,500 | |||
Additional catch-up deferral for plan participants over the age of 50 | 5,500 | |||
Total expense under the contribution retirement plan | 284,000 | 296,000 | 265,000 | |
Officer's Plan | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | 2,000,000 | |||
Director's Plan | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | 507,000 | |||
Term of age | ||||
Benefit Plans (Textual) [Abstract] | ||||
Minimum Age Requirement for Additional Allowable Contributions | 50 years | |||
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | 2,500,000 | |||
Supplemental Employee Retirement Plans, Defined Benefit | Directors and Officers | ||||
Benefit Plans (Textual) [Abstract] | ||||
Post-retirement benefits plan duration | 15 years | |||
Director Retirement Agreements annual benefit | 10,000 | |||
Director retirement benefits plan duration | 10 years | |||
Supplemental Employee Retirement Plans, Defined Benefit | Executive Officer | ||||
Benefit Plans (Textual) [Abstract] | ||||
Expected benefit expense as specified in the agreements for the entire year 2015 | 305,000 | |||
Benefits expected to be paid in 2015 approximately | 158,000 | |||
Other Postretirement Benefit Plans, Defined Benefit | ||||
Benefit Plans (Textual) [Abstract] | ||||
Accumulated liability for retirement benefits plan | 585,000 | 614,000 | ||
Expected total benefit expense of postretirement cost of insurance | 15,000 | |||
Benefit expense of postretirement cost of insurance | 16,000 | 56,000 | 22,000 | |
Other comprehensive (income) loss, postretirement cost of insurance | ($45,000) | $28,000 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciles the accumulated liability for the benefit obligation | |||
Beginning balance | $2,396 | $2,218 | $2,049 |
Benefit expense | 308 | 327 | 303 |
Benefit payments | -155 | -149 | -134 |
Ending balance | $2,549 | $2,396 | $2,218 |
Federal_Income_Taxes_Details
Federal Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Composition of income tax expense (benefit) | |||
Current | $451 | ($8) | ($1,131) |
Deferred | 451 | 96 | 973 |
Federal income tax expense (benefit) | $902 | $88 | ($158) |
Federal_Income_Taxes_Details_T
Federal Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Federal Income Taxes (Textual) [Abstract] | |||
Valuation allowance | $94,000 | $94,000 | |
AMT credit carryforward | 928,000 | 641,000 | |
NOL carryforward | 385,000 | ||
General business credit carryforward | 182,000 | ||
Capital loss carryforwards | 94,000 | 94,000 | |
Period of Net Operating Loss Carryforward General Business Credit Carryforwards | 20 years | ||
Valuation Allowance Related to Corporations Ability to Carryforward Taxes | 0 | ||
Period of Capital Loss Carryforwards | 5 years | ||
Expiry of Capital Loss Carryforwards | 2017 | ||
Percentage of Valuation Allowance | 100.00% | ||
Capital loss carryforwards valuation Allowance | 94,000 | ||
Statutory federal income tax | 34.00% | ||
Income tax expense on investment securities gains | 311,000 | 245,000 | 4,000 |
Expected increase in unrecognized tax benefits | 0 | ||
Interest or penalties incurred | 0 | ||
Liability for uncertain tax position | $0 | ||
Unrecognized tax benefits | 0 |
Federal_Income_Taxes_Details_1
Federal Income Taxes (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Gross deferred tax assets: | ||
Provision for loan and other real estate losses | $1,769 | $1,280 |
Loan origination cost - net | 303 | 298 |
Impairment loss on securities | 48 | 784 |
Unrealized loss on available-for-sale securities | 1,473 | |
Deferred compensation | 866 | 814 |
NOL carryforward | 385 | |
AMT credit carryforward | 928 | 641 |
General business credit carryforward | 182 | |
Other items | 809 | 727 |
Total gross deferred tax assets | 4,723 | 6,584 |
Valuation allowance | -94 | -94 |
Total net deferred tax assets | 4,629 | 6,490 |
Gross deferred tax liabilities: | ||
Unrealized gain on available-for-sale securities | -185 | |
Depreciation | -494 | -433 |
Other items | -595 | -593 |
Total net deferred tax liabilities | -1,274 | -1,026 |
Net deferred tax asset | $3,355 | $5,464 |
Federal_Income_Taxes_Details_2
Federal Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation between (tax -benefit) expense | |||
Statutory tax expense | $1,622 | $636 | $937 |
Tax effect of non-taxable interest income | -609 | -504 | -512 |
Tax effect of earnings on bank-owned life insurance-net | -114 | -111 | -129 |
Tax effect of historical tax credit | -483 | ||
Tax effect of low income housing credit | -52 | 13 | |
Tax effect of non-deductible expenses | 55 | 54 | 29 |
Federal income tax expense (benefit) | $902 | $88 | ($158) |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Total debt securities, Fair Value | $162,247 | $160,886 |
Regulatory stock | 3,049 | 3,049 |
Trading securities | 7,861 | 7,247 |
Loans held for sale | 632 | 656 |
Trust preferred securities | ||
ASSETS | ||
Total debt securities, Fair Value | 779 | 10,136 |
U.S.Treasury securities | ||
ASSETS | ||
Total debt securities, Fair Value | 101 | 112 |
U.S. Government agencies and corporations | ||
ASSETS | ||
Total debt securities, Fair Value | 8,648 | 8,947 |
Obligations of states and political subdivisions | ||
ASSETS | ||
Total debt securities, Fair Value | 50,091 | 43,535 |
U.S. Government-sponsored mortgage-backed securities | ||
ASSETS | ||
Total debt securities, Fair Value | 85,587 | 78,022 |
U.S. Government-sponsored collateralized mortgage obligations | ||
ASSETS | ||
Total debt securities, Fair Value | 13,992 | 17,085 |
Level 1 | ||
ASSETS | ||
Total debt securities, Fair Value | 3,049 | 3,049 |
Regulatory stock | 3,049 | 3,049 |
Loans held for sale | 632 | 656 |
Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | 158,419 | 147,701 |
Trading securities | 7,861 | 7,247 |
Level 2 | U.S.Treasury securities | ||
ASSETS | ||
Total debt securities, Fair Value | 101 | 112 |
Level 2 | U.S. Government agencies and corporations | ||
ASSETS | ||
Total debt securities, Fair Value | 8,648 | 8,947 |
Level 2 | Obligations of states and political subdivisions | ||
ASSETS | ||
Total debt securities, Fair Value | 50,091 | 43,535 |
Level 2 | U.S. Government-sponsored mortgage-backed securities | ||
ASSETS | ||
Total debt securities, Fair Value | 85,587 | 78,022 |
Level 2 | U.S. Government-sponsored collateralized mortgage obligations | ||
ASSETS | ||
Total debt securities, Fair Value | 13,992 | 17,085 |
Level 3 | ||
ASSETS | ||
Total debt securities, Fair Value | 779 | 10,136 |
Level 3 | Trust preferred securities | ||
ASSETS | ||
Total debt securities, Fair Value | $779 | $10,136 |
Fair_Value_Details_1
Fair Value (Details 1) (Trust preferred securities, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Trust preferred securities | |||
Changes in the Level 3 fair value category | |||
Beginning balance | $10,136 | $7,612 | $9,145 |
Net realized/unrealized gains/(losses) included in: | |||
Noninterest income | -1,954 | -171 | |
Other comprehensive income | 835 | 4,553 | 2,183 |
Discount accretion (premium amortization) | 7 | 8 | 2 |
Sales | -10,044 | -3,531 | |
Purchases, issuance, and settlements | -155 | -83 | -16 |
Ending balance | 779 | 10,136 | 7,612 |
Losses included in net income for the period relating to assets held at period end | ($1,954) | ($90) |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Security | Security | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of debt securities with other-than-temporary impairment | 1 | 11 |
Minimum assets of trust preferred securities issued by institution | $15,000,000,000 | |
Maturity period of short-term borrowings | one year or less | |
Period of swap rate | 25 years | |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 10.24% | |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 15.75% | |
Trust preferred securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
OTTI recognized value reflecting the estimated fair value of the securities | 2,000,000 | |
Number of debt securities with other-than-temporary impairment | 1 | 11 |
Period frequency of projected prepayment rate | 1 year | 1 year |
Projected Prepayments, minimum fixed rate coupons | 8.00% | 8.00% |
Projected Prepayments, percentage of fair value input for banks | 1.00% | 1.00% |
Projected prepayment, percentage of fair value for collateral by REITs | 0.00% | 0.00% |
Projected prepayment, percentage of fair value for collateral for insurance companies | 2.00% | 2.00% |
Annually projected defaults percentage for healthy banks | 2.00% | 2.00% |
Period frequency of projected default rate | 2 years | 2 years |
Projected defaults rate for healthy banks | 0.36% | 0.36% |
Projected Recoveries, percentage for insurance companies, REITs and insolvent banks | 0.00% | 0.00% |
Projected recovery, percentage for projected bank deferrals | 10.00% | 10.00% |
Projected Bank Deferrals lagged | 2 years | 2 years |
Trust preferred securities | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 10.24% | 5.65% |
Trust preferred securities | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value input discount rate | 15.75% | 17.85% |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Security | Security | |||
Breakdown of trust preferred securities | ||||
Number considered OTTI | 1 | 11 | ||
Life-to-date impairment recognized in earnings | $2,305 | $351 | ||
Life-to-date impairment recognized in other comprehensive income | 1,591 | 5,554 | ||
Trust preferred securities | ||||
Breakdown of trust preferred securities | ||||
Total number of trust preferred securities | 2 | 12 | ||
Par value | 1,802 | 14,366 | ||
Number not considered OTTI | 1 | 1 | ||
Par value | 802 | 956 | ||
Number considered OTTI | 1 | 11 | ||
Par value | 1,000 | 13,410 | ||
Life-to-date impairment recognized in earnings | 140 | 2,305 | 351 | 10,674 |
Life-to-date impairment recognized in other comprehensive income | 883 | 1,718 | ||
Total life-to-date impairment | $1,023 | $4,023 |
Fair_Value_Details_3
Fair Value (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Losses recognized in earnings for trust preferred securities held | |||
Beginning balance | $351 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 1,954 | ||
Ending balance | 2,305 | ||
I-PreTSL I | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | NR/CCC | ||
Beginning balance | 216 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 216 | ||
Ending balance | 216 | ||
I-PreTSL I | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | NR/CCC | ||
Beginning balance | 230 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 230 | ||
Ending balance | 230 | ||
I-PreTSL I | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | NR/CCC | ||
Beginning balance | 230 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 230 | ||
Ending balance | 230 | ||
I-PreTSL II | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | NR/B | ||
Beginning balance | 291 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 291 | ||
Ending balance | 291 | ||
I-PreTSL III | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | Ba3/CCC | ||
Beginning balance | 130 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 130 | ||
Ending balance | 130 | ||
I-PreTSL III | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | NR/CCC | ||
Beginning balance | 380 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 380 | ||
Ending balance | 380 | ||
I-PreTSL IV | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | Ba2/B | ||
Beginning balance | 140 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 140 | ||
Ending balance | 140 | ||
I-PreTSL IV | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | Ba2/B | ||
Beginning balance | 140 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 140 | ||
Ending balance | 140 | ||
I-PreTSL IV | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | Caa1/CCC | ||
Beginning balance | 197 | ||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 197 | ||
Ending balance | 197 | ||
Trapeza IX B-1 | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | Ca/CC | ||
Beginning balance | 140 | 140 | |
Ending balance | 140 | 140 | |
PreTSL XXIII Class C-FP | |||
Losses recognized in earnings for trust preferred securities held | |||
Moody's/Fitch Rating | Ca/C | ||
Beginning balance | 211 | 211 | |
Ending balance | $211 |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 |
Issurers_Currently_Performing | |||
Additional information related to the Company's trust preferred securities | |||
Available-for-sale Securities, Amortized Cost | $161,703 | $10,000 | $165,219 |
Total debt securities, Fair Value | 162,247 | 160,886 | |
PreTSL XXIII | |||
Additional information related to the Company's trust preferred securities | |||
Class | C-2 | ||
Available-for-sale Securities, Amortized Cost | 802 | 956 | |
Total debt securities, Fair Value | 313 | 392 | |
Unrealized Gain/(Loss) | -489 | -564 | |
Moody's/Fitch Rating | B2/C | ||
Number of Issuers Currently Performing | 91 | 93 | |
Deferrals and Defaults as a % of Current Collateral | 25.20% | 24.20% | |
Trapeza IX | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-1 | ||
Available-for-sale Securities, Amortized Cost | 860 | 860 | |
Total debt securities, Fair Value | 466 | 430 | |
Unrealized Gain/(Loss) | -394 | -430 | |
Moody's/Fitch Rating | Ca/CC | ||
Number of Issuers Currently Performing | 33 | 32 | |
Deferrals and Defaults as a % of Current Collateral | 18.10% | 20.90% | |
Trust preferred securities | |||
Additional information related to the Company's trust preferred securities | |||
Available-for-sale Securities, Amortized Cost | 1,662 | 11,854 | |
Total debt securities, Fair Value | 779 | 10,136 | |
Unrealized Gain/(Loss) | -883 | -1,718 | |
PreTSL XXIII | |||
Additional information related to the Company's trust preferred securities | |||
Class | C-FP | ||
Available-for-sale Securities, Amortized Cost | 1,535 | ||
Total debt securities, Fair Value | 811 | ||
Unrealized Gain/(Loss) | -724 | ||
Moody's/Fitch Rating | Ca/C | ||
Number of Issuers Currently Performing | 93 | ||
Deferrals and Defaults as a % of Current Collateral | 24.20% | ||
I-PreTSL I | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-1 | ||
Available-for-sale Securities, Amortized Cost | 770 | ||
Total debt securities, Fair Value | 770 | ||
Moody's/Fitch Rating | NR/CCC | ||
Number of Issuers Currently Performing | 14 | ||
Deferrals and Defaults as a % of Current Collateral | 17.30% | ||
Excess Subordination as a % of Current Performing Collateral | 7.78% | ||
I-PreTSL I | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-2 | ||
Available-for-sale Securities, Amortized Cost | 770 | ||
Total debt securities, Fair Value | 770 | ||
Moody's/Fitch Rating | NR/CCC | ||
Number of Issuers Currently Performing | 14 | ||
Deferrals and Defaults as a % of Current Collateral | 17.30% | ||
Excess Subordination as a % of Current Performing Collateral | 7.78% | ||
I-PreTSL I | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-3 | ||
Available-for-sale Securities, Amortized Cost | 770 | ||
Total debt securities, Fair Value | 770 | ||
Moody's/Fitch Rating | NR/CCC | ||
Number of Issuers Currently Performing | 14 | ||
Deferrals and Defaults as a % of Current Collateral | 17.30% | ||
Excess Subordination as a % of Current Performing Collateral | 7.78% | ||
I-PreTSL II | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-3 | ||
Available-for-sale Securities, Amortized Cost | 2,700 | ||
Total debt securities, Fair Value | 2,700 | ||
Moody's/Fitch Rating | NR/B | ||
Number of Issuers Currently Performing | 21 | ||
Deferrals and Defaults as a % of Current Collateral | 8.00% | ||
Excess Subordination as a % of Current Performing Collateral | 18.03% | ||
I-PreTSL III | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-2 | ||
Available-for-sale Securities, Amortized Cost | 870 | ||
Total debt securities, Fair Value | 870 | ||
Moody's/Fitch Rating | Ba3/CCC | ||
Number of Issuers Currently Performing | 20 | ||
Deferrals and Defaults as a % of Current Collateral | 14.10% | ||
Excess Subordination as a % of Current Performing Collateral | 14.74% | ||
I-PreTSL III | |||
Additional information related to the Company's trust preferred securities | |||
Class | C | ||
Available-for-sale Securities, Amortized Cost | 620 | ||
Total debt securities, Fair Value | 620 | ||
Moody's/Fitch Rating | NR/CCC | ||
Number of Issuers Currently Performing | 20 | ||
Deferrals and Defaults as a % of Current Collateral | 14.10% | ||
Excess Subordination as a % of Current Performing Collateral | 4.70% | ||
I-PreTSL IV | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-1 | ||
Available-for-sale Securities, Amortized Cost | 860 | ||
Total debt securities, Fair Value | 860 | ||
Moody's/Fitch Rating | Ba2/B | ||
Number of Issuers Currently Performing | 30 | ||
Excess Subordination as a % of Current Performing Collateral | 17.67% | ||
I-PreTSL IV | |||
Additional information related to the Company's trust preferred securities | |||
Class | B-2 | ||
Available-for-sale Securities, Amortized Cost | 860 | ||
Total debt securities, Fair Value | 860 | ||
Moody's/Fitch Rating | Ba2/B | ||
Number of Issuers Currently Performing | 30 | ||
Excess Subordination as a % of Current Performing Collateral | 17.67% | ||
I-PreTSL IV | |||
Additional information related to the Company's trust preferred securities | |||
Class | C | ||
Available-for-sale Securities, Amortized Cost | 283 | ||
Total debt securities, Fair Value | $283 | ||
Moody's/Fitch Rating | Caa1/CCC | ||
Number of Issuers Currently Performing | 30 | ||
Excess Subordination as a % of Current Performing Collateral | 11.16% |
Fair_Value_Details_5
Fair Value (Details 5) (Fair Value, Measurements, Nonrecurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets measured on a nonrecurring basis: | ||
Impaired loans | $6,288 | $5,251 |
Other real estate owned | 40 | 33 |
Level 3 | ||
Assets measured on a nonrecurring basis: | ||
Impaired loans | 6,288 | 5,251 |
Other real estate owned | $40 | $33 |
Fair_Value_Details_6
Fair Value (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS: | ||
Available-for-sale securities, Fair Value | $162,247 | $160,886 |
Trading securities | 7,861 | 7,247 |
Bank-owned life insurance | 16,990 | 15,049 |
LIABILITIES: | ||
Short-term borrowings | 4,259 | 3,804 |
Federal Home Loan Bank advances - short term (Note 6) | 15,500 | 8,100 |
Federal Home Loan Bank advances - long term | 25,000 | 34,500 |
Subordinated debt | 5,155 | 5,155 |
Level 1 | ||
ASSETS: | ||
Cash and cash equivalents | 10,569 | 12,396 |
Available-for-sale securities, Fair Value | 3,049 | 3,049 |
Loans held for sale | 632 | 656 |
Bank-owned life insurance | 16,990 | 15,049 |
Accrued interest receivable | 1,723 | 1,675 |
LIABILITIES: | ||
Demand, savings and money market deposits | 326,554 | 316,708 |
Short-term borrowings | 4,259 | 3,804 |
Federal Home Loan Bank advances - short term (Note 6) | 6,000 | 8,100 |
Accrued interest payable | 248 | 290 |
Level 2 | ||
ASSETS: | ||
Available-for-sale securities, Fair Value | 158,419 | 147,701 |
Trading securities | 7,861 | 7,247 |
Level 3 | ||
ASSETS: | ||
Available-for-sale securities, Fair Value | 779 | 10,136 |
Loans, net of allowance for loan losses | 359,518 | 349,190 |
LIABILITIES: | ||
Time deposits | 133,171 | 135,712 |
Federal Home Loan Bank advances - short term (Note 6) | 9,490 | |
Federal Home Loan Bank advances - long term | 26,194 | 36,646 |
Subordinated debt | 4,573 | 4,694 |
Carrying Amount | ||
ASSETS: | ||
Cash and cash equivalents | 10,569 | 12,396 |
Available-for-sale securities, Fair Value | 162,247 | 160,886 |
Trading securities | 7,861 | 7,247 |
Loans held for sale | 632 | 656 |
Loans, net of allowance for loan losses | 354,983 | 343,069 |
Bank-owned life insurance | 16,990 | 15,049 |
Accrued interest receivable | 1,723 | 1,675 |
LIABILITIES: | ||
Demand, savings and money market deposits | 326,554 | 316,708 |
Time deposits | 130,207 | 131,961 |
Short-term borrowings | 4,259 | 3,804 |
Federal Home Loan Bank advances - short term (Note 6) | 15,500 | 8,100 |
Federal Home Loan Bank advances - long term | 25,000 | 34,500 |
Subordinated debt | 5,155 | 5,155 |
Accrued interest payable | 248 | 290 |
Fair Value | ||
ASSETS: | ||
Cash and cash equivalents | 10,569 | 12,396 |
Available-for-sale securities, Fair Value | 162,247 | 160,886 |
Trading securities | 7,861 | 7,247 |
Loans held for sale | 632 | 656 |
Loans, net of allowance for loan losses | 359,518 | 349,190 |
Bank-owned life insurance | 16,990 | 15,049 |
Accrued interest receivable | 1,723 | 1,675 |
LIABILITIES: | ||
Demand, savings and money market deposits | 326,554 | 316,708 |
Time deposits | 133,171 | 135,712 |
Short-term borrowings | 4,259 | 3,804 |
Federal Home Loan Bank advances - short term (Note 6) | 15,490 | 8,100 |
Federal Home Loan Bank advances - long term | 26,194 | 36,646 |
Subordinated debt | 4,573 | 4,694 |
Accrued interest payable | $248 | $290 |
Fair_Value_Details_7
Fair Value (Details 7) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Total debt securities, Fair Value | 162,247 | 160,886 | ||
Minimum | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Fair value input discount rate | 10.24% | |||
Maximum | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Fair value input discount rate | 15.75% | |||
Trust preferred securities | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Total debt securities, Fair Value | 779 | 10,136 | ||
Trust preferred securities | Minimum | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Fair value input discount rate | 10.24% | 5.65% | ||
Trust preferred securities | Maximum | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Fair value input discount rate | 15.75% | 17.85% | ||
Trust preferred securities | Discounted Cash Flow | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Total debt securities, Fair Value | 10,136 | 10,136 | ||
Impaired Loans | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Appraisal Adjustments | 23.00% | [1] | 21.00% | [1] |
Liquidation Expenses | 6.00% | [1] | 6.00% | [1] |
Impaired Loans | Minimum | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Appraisal Adjustments | 0.00% | [1] | 7.00% | [1] |
Liquidation Expenses | 0.00% | [1] | 0.00% | [1] |
Impaired Loans | Maximum | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Appraisal Adjustments | 40.00% | [1] | 30.00% | [1] |
Liquidation Expenses | 33.00% | [1] | 26.00% | [1] |
Impaired Loans | Appraisal Of Collateral | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Total debt securities, Fair Value | 5,251 | 5,251 | ||
Other Real Estate Owned | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Appraisal Adjustments | 0.00% | [1] | 0.00% | [1] |
Other Real Estate Owned | Appraisal Of Collateral | ||||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||||
Total debt securities, Fair Value | 33 | 33 | ||
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses are presented as a percent of the appraisal. The adjustment of appraised value is measured as the effect on fair value as a percentage of unpaid principal. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Beginning Balance | ($2,888) | ||||
Total other comprehensive income (loss) | 3,264 | -1,181 | 956 | ||
Ending Balance | 376 | -2,888 | |||
Accumulated Net Unrealized Investment Gain (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Beginning Balance | -2,860 | [1] | -1,707 | [1] | |
Other comprehensive income before reclassification | 3,607 | [1] | -2,090 | [1] | |
Amount reclassified from accumulated other comprehensive loss | -388 | [1] | 937 | [1] | |
Total other comprehensive income (loss) | 3,219 | [1] | -1,153 | [1] | |
Ending Balance | 359 | [1] | -2,860 | [1] | |
Accumulated Defined Benefit Plans Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Beginning Balance | -28 | 0 | |||
Other comprehensive income before reclassification | 45 | -28 | |||
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | |||
Total other comprehensive income (loss) | 45 | -28 | |||
Ending Balance | $17 | ($28) | |||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized gains on available-for-sale securities | |||
Federal income tax expense (benefit) (Note 10) | $902 | $88 | ($158) |
NET INCOME | 3,869 | 1,784 | 2,913 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | |||
Unrealized gains on available-for-sale securities | |||
Net impairment losses recognized in earnings | 1,954 | ||
Reclassification adjustment for net gains realized in net income | -588 | -535 | |
Federal income tax expense (benefit) (Note 10) | 200 | -482 | |
NET INCOME | ($388) | $937 |
Regulatory_Matters_Details_Tex
Regulatory Matters (Details Textual) | Dec. 31, 2014 |
Regulatory Matters (Textual) [Abstract] | |
Minimum Tier I risk-based capital to risk-weighted assets ratio | 4.00% |
Minimum Tier I risk-based capital to average assets ratio | 4.00% |
Minimum total risk-based capital to risk-weighted assets ratio | 8.00% |
Minimum capital ratio for total risk-based capital to risk-weighted assets | 10.00% |
Minimum capital ratio for Tier I risk-based capital to risk-weighted assets | 6.00% |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of regulatory capital requirement | ||
Total Risk-Based Capital | $63,704 | $58,774 |
Ratio to Risk-Weighted Assets | 15.82% | 14.19% |
Tier I Risk-Based Capital | $58,705 | $54,927 |
Ratio to Risk-Weighted Assets | 14.58% | 13.26% |
Ratio to Average Assets | 10.66% | 10.35% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Management, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Management | |
Schedule of analysis of related party loan | |
Total related-party loans at December 31, 2013 | $2,873 |
New related-party loans | 3,034 |
Repayments or other | -1,742 |
Total related-party loans at December 31, 2014 | $4,165 |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textual) (Management, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Management | ||
Related Party Transaction [Line Items] | ||
Deposits from executive officers, directors, and their affiliates | $2.60 | $2.40 |
Condensed_Financial_Informatio2
Condensed Financial Information Parent Company (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash | $10,569 | $12,396 | $27,577 | $16,176 |
Other assets | 7,953 | 10,939 | ||
Total assets | 568,932 | 556,918 | ||
LIABILITIES | ||||
Other liabilities | 6,405 | 7,155 | ||
Subordinated debt | 5,155 | 5,155 | ||
Total liabilities | 513,080 | 507,383 | ||
SHAREHOLDERS’ EQUITY | ||||
Common stock | 23,641 | 23,641 | ||
Additional paid-in capital (Note 1) | 20,833 | 20,833 | ||
Retained earnings | 14,555 | 11,502 | ||
Accumulated other comprehensive income (loss) | 376 | -2,888 | ||
Treasury stock, at cost, 200,419 shares in 2014 and 2013 | -3,553 | -3,553 | ||
Total shareholders’ equity | 55,852 | 49,535 | 49,452 | 45,719 |
Total liabilities and shareholders’ equity | 568,932 | 556,918 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 96 | 204 | 244 | 456 |
Investment in bank subsidiary | 52,082 | 45,813 | ||
Investment in non-bank subsidiary | 15 | 15 | ||
Subordinated note from subsidiary bank | 6,000 | 6,000 | ||
Other assets | 3,650 | 3,478 | ||
Total assets | 61,843 | 55,510 | ||
LIABILITIES | ||||
Other liabilities | 836 | 820 | ||
Subordinated debt | 5,155 | 5,155 | ||
Total liabilities | 5,991 | 5,975 | ||
SHAREHOLDERS’ EQUITY | ||||
Common stock | 23,641 | 23,641 | ||
Additional paid-in capital (Note 1) | 20,833 | 20,833 | ||
Retained earnings | 14,555 | 11,502 | ||
Accumulated other comprehensive income (loss) | 376 | -2,888 | ||
Treasury stock, at cost, 200,419 shares in 2014 and 2013 | -3,553 | -3,553 | ||
Total shareholders’ equity | 55,852 | 49,535 | ||
Total liabilities and shareholders’ equity | $61,843 | $55,510 |
Condensed_Financial_Informatio3
Condensed Financial Information Parent Company (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statements Of Comprehensive Income | |||
Dividends from bank subsidiary | $126 | $131 | $139 |
Interest on subordinated debt | -88 | -90 | -100 |
INCOME BEFORE FEDERAL INCOME TAX EXPENSE (BENEFIT) | 4,771 | 1,872 | 2,755 |
Income tax benefit | -902 | -88 | 158 |
NET INCOME | 3,869 | 1,784 | 2,913 |
Comprehensive income | 7,133 | 603 | 3,869 |
Parent Company | |||
Statements Of Comprehensive Income | |||
Dividends from bank subsidiary | 1,013 | 544 | 136 |
Interest and dividend income | 93 | 96 | 107 |
Investment securities losses | -16 | ||
Other income | 62 | 99 | 113 |
Interest on subordinated debt | -88 | -90 | -100 |
Other expenses | -311 | -380 | -340 |
INCOME BEFORE FEDERAL INCOME TAX EXPENSE (BENEFIT) | 769 | 269 | -100 |
Income tax benefit | 95 | 104 | 125 |
Equity in undistributed earnings of subsidiaries | 3,005 | 1,411 | 2,888 |
NET INCOME | 3,869 | 1,784 | 2,913 |
Comprehensive income | $7,133 | $603 | $3,869 |
Condensed_Financial_Informatio4
Condensed Financial Information Parent Company (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flow (deficit) from operating activities | |||
Net income | $3,869 | $1,784 | $2,913 |
Adjustments to reconcile net income to net cash deficit from operating activities: | |||
Deferred taxes | 451 | 96 | 973 |
Net cash flow (deficit) from operating activities | 7,206 | 26,900 | -14,911 |
Cash flow from investing activities | |||
Net cash flows from investing activities | -14,664 | -13,682 | -31,466 |
Cash deficit from financing activities | |||
Dividends paid | -816 | -544 | -136 |
Treasury shares reissued | 24 | ||
Net cash deficit from financing activities | 5,631 | -28,399 | 57,778 |
Net change in cash | -1,827 | -15,181 | 11,401 |
Cash | |||
Beginning of period | 12,396 | 27,577 | 16,176 |
End of period | 10,569 | 12,396 | 27,577 |
Parent Company | |||
Cash flow (deficit) from operating activities | |||
Net income | 3,869 | 1,784 | 2,913 |
Adjustments to reconcile net income to net cash deficit from operating activities: | |||
Equity in undistributed net income of subsidiaries | -3,005 | -1,411 | -2,888 |
Deferred taxes | -6 | -14 | |
Investment securities losses | 16 | ||
Change in other assets and liabilities | -156 | 113 | -180 |
Net cash flow (deficit) from operating activities | 708 | 480 | -153 |
Cash flow from investing activities | |||
Proceeds from sales of securities | 77 | ||
Net cash flows from investing activities | 77 | ||
Cash deficit from financing activities | |||
Dividends paid | -816 | -544 | -136 |
Treasury shares reissued | 24 | ||
Net cash deficit from financing activities | -816 | -520 | -136 |
Net change in cash | -108 | -40 | -212 |
Cash | |||
Beginning of period | 204 | 244 | 456 |
End of period | $96 | $204 | $244 |
Dividend_Restrictions_Details_
Dividend Restrictions (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Equity [Abstract] | |
Payment of dividends | $4.40 |
Dividend restriction description | Under the Ohio Banking Code, cash dividends may not exceed net profits as defined for that year combined with retained net profits for the two preceding years less any required transfers to surplus. Under this formula, the amount available for payment of dividends in 2015 is $4.4 million plus 2015 profits retained up to the date of the dividend declaration. |
Litigation_Details_Textual
Litigation (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |
Management assessment of legal actions on financial statement description | The Bank is involved in legal actions arising in the ordinary course of business. In the opinion of management, the outcomes from these other matters, either individually or in the aggregate, are not expected to have any material effect on the Company. |