Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CORTLAND BANCORP INC | |
Entity Central Index Key | 774,569 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,517,849 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 7,571 | $ 6,588 |
Interest-earning deposits | 1,773 | 3,981 |
Total cash and cash equivalents | 9,344 | 10,569 |
Investment securities available-for-sale (Note 3) | 159,501 | 162,247 |
Trading securities (Note 3) | 7,955 | 7,861 |
Loans held for sale | 2,774 | 632 |
Total loans (Note 4) | 357,873 | 360,185 |
Less allowance for loan losses (Note 4) | (5,454) | (5,202) |
Net loans | 352,419 | 354,983 |
Premises and equipment | 8,373 | 7,697 |
Bank-owned life insurance | 17,162 | 16,990 |
Other assets | 11,291 | 7,953 |
Total assets | 568,819 | 568,932 |
LIABILITIES | ||
Noninterest-bearing deposits | 94,115 | 94,731 |
Interest-bearing deposits | 353,258 | 362,030 |
Total deposits | 447,373 | 456,761 |
Short-term borrowings | 5,483 | 4,259 |
Federal Home Loan Bank advances - short term | 21,000 | 15,500 |
Federal Home Loan Bank advances - long term | 25,000 | 25,000 |
Subordinated debt (Note 7) | 5,155 | 5,155 |
Other liabilities | 8,353 | 6,405 |
Total liabilities | 512,364 | 513,080 |
SHAREHOLDERS’ EQUITY | ||
Common stock - $5.00 stated value - authorized 20,000,000 shares; issued 4,728,267 shares in 2015 and 2014; outstanding shares, 4,517,849 in 2015 and 4,527,848 in 2014 | 23,641 | 23,641 |
Additional paid-in capital | 20,833 | 20,833 |
Retained earnings | 16,076 | 14,555 |
Accumulated other comprehensive (loss) income | (388) | 376 |
Treasury stock, at cost, 210,418 shares in 2015 and 200,419 in 2014 | (3,707) | (3,553) |
Total shareholders’ equity | 56,455 | 55,852 |
Total liabilities and shareholders’ equity | $ 568,819 | $ 568,932 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
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 | 4,517,849 | 4,527,848 |
Treasury stock, shares | 210,418 | 200,419 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 4,185 | $ 3,961 | $ 8,265 | $ 8,049 |
Interest and dividends on investment securities: | ||||
Taxable interest | 548 | 681 | 1,218 | 1,364 |
Nontaxable interest | 434 | 441 | 868 | 854 |
Dividends | 35 | 35 | 63 | 63 |
Other interest income | 4 | 5 | 9 | 10 |
Total interest income | 5,206 | 5,123 | 10,423 | 10,340 |
INTEREST EXPENSE | ||||
Deposits | 400 | 414 | 815 | 845 |
Short-term borrowings | 1 | 2 | 1 | |
Federal Home Loan Bank advances - short term | 8 | 36 | 18 | 139 |
Federal Home Loan Bank advances - long term | 200 | 254 | 400 | 441 |
Subordinated debt | 22 | 22 | 44 | 44 |
Total interest expense | 631 | 726 | 1,279 | 1,470 |
Net interest income | 4,575 | 4,397 | 9,144 | 8,870 |
PROVISION FOR LOAN LOSSES | 130 | 150 | 290 | 300 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 4,445 | 4,247 | 8,854 | 8,570 |
NON-INTEREST INCOME | ||||
Fees for customer services | 486 | 484 | 969 | 943 |
Investment securities available-for-sale gains - net | 193 | |||
Trading security (losses) gains, net | (38) | 141 | (30) | 267 |
Mortgage banking gains, net | 160 | 117 | 345 | 198 |
Earnings on bank-owned life insurance | 86 | 88 | 172 | 161 |
Wealth management income | 117 | 84 | 307 | 165 |
Other non-interest income | 47 | 33 | 150 | 71 |
Total non-interest income | 858 | 947 | 1,913 | 1,998 |
NON-INTEREST EXPENSES | ||||
Salaries and employee benefits | 2,388 | 2,306 | 4,836 | 4,500 |
Net occupancy and equipment expense | 505 | 466 | 992 | 947 |
State and local taxes | 104 | 85 | 204 | 170 |
FDIC insurance expense | 83 | 83 | 166 | 158 |
Professional fees | 212 | 233 | 406 | 405 |
Other operating expenses | 895 | 736 | 1,577 | 1,352 |
Total non-interest expenses | 4,187 | 3,909 | 8,181 | 7,532 |
INCOME BEFORE FEDERAL INCOME TAX EXPENSE | 1,116 | 1,285 | 2,586 | 3,036 |
Federal income tax expense | 200 | 246 | 521 | 665 |
NET INCOME | $ 916 | $ 1,039 | $ 2,065 | $ 2,371 |
EARNINGS PER SHARE | $ 0.21 | $ 0.23 | $ 0.46 | $ 0.52 |
CASH DIVIDENDS DECLARED PER SHARE | $ 0.06 | $ 0.05 | $ 0.12 | $ 0.08 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 916 | $ 1,039 | $ 2,065 | $ 2,371 |
Securities available for sale: | ||||
Unrealized holding (losses) gains on available-for-sale securities | (1,767) | 1,923 | (1,088) | 4,487 |
Tax effect | 600 | (654) | 369 | (1,526) |
Reclassification adjustment for net gains realized in net income | (193) | |||
Tax effect | 66 | |||
Total securities available for sale | (1,167) | 1,269 | (719) | 2,834 |
Change in post-retirement obligations | (23) | 13 | (45) | 26 |
Total other comprehensive (loss) income | (1,190) | 1,282 | (764) | 2,860 |
Total comprehensive (loss) income | $ (274) | $ 2,321 | $ 1,301 | $ 5,231 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2013 | $ 49,535 | $ 23,641 | $ 20,833 | $ 11,502 | $ (2,888) | $ (3,553) |
Net income | 2,371 | 2,371 | ||||
Other comprehensive income (loss), net of tax | 2,860 | 2,860 | ||||
Cash dividend declared ($0.08 per share in 2014 $0.12 per share in 2015) | (363) | (363) | ||||
Ending balance at Jun. 30, 2014 | 54,403 | 23,641 | 20,833 | 13,510 | (28) | (3,553) |
Beginning balance at Dec. 31, 2014 | 55,852 | 23,641 | 20,833 | 14,555 | 376 | (3,553) |
Net income | 2,065 | 2,065 | ||||
Other comprehensive income (loss), net of tax | (764) | (764) | ||||
Cash dividend declared ($0.08 per share in 2014 $0.12 per share in 2015) | (544) | (544) | ||||
Ending balance at Jun. 30, 2015 | 56,455 | $ 23,641 | $ 20,833 | $ 16,076 | $ (388) | (3,707) |
Treasury shares purchased net of 1 share reissued (9,999 shares) | $ (154) | $ (154) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (Unaudited) - $ / shares | 6 Months Ended |
Jun. 30, 2015 | |
Statement Consolidated Statements Of Changes In Shareholders Equity Parenthetical Unaudited [Abstract] | |
Cash dividend declared per share | $ 0.12 |
Treasury shares reissued | 1 |
Treasury shares purchased shares, net of reissued | 9,999 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net cash flow from operating activities | ||
Net cash flow from operating activities | $ 114 | $ 4,370 |
Cash flow from investing activities | ||
Purchases of available-for-sale securities | (8,835) | (26,810) |
Proceeds from sale of securities | 10,237 | |
Proceeds from call, maturity and principal payments on securities | 9,590 | 10,173 |
Net decrease in loans made to customers | 2,274 | 30,279 |
Proceeds from sale of other real estate | 40 | 52 |
Purchases of bank-owned life insurance | (1,605) | |
Purchases of premises and equipment | (1,046) | (283) |
Net cash flow provided by investing activities | 2,023 | 22,043 |
Cash deficit from financing activities | ||
Net decrease in deposit accounts | (9,388) | (23,604) |
Net change in short term borrowings | 1,224 | (124) |
Net change in Federal Home Loan Bank advances - short term | 5,500 | (3,000) |
Repayments of Federal Home Loan Bank advances - long term | (4,000) | |
Purchase of Federal Home Loan Bank advances - long term | 4,000 | |
Dividends paid | (544) | (363) |
Treasury shares purchased | (154) | |
Net cash deficit used for financing activities | (3,362) | (27,091) |
Net change in cash and cash equivalents | (1,225) | (678) |
Cash and cash equivalents | ||
Beginning of period | 10,569 | 12,396 |
End of period | 9,344 | 11,718 |
Cash paid during the period for: | ||
Income taxes | 660 | |
Interest | $ 1,293 | 1,490 |
Transfer of loans to other real estate owned | $ 57 |
Basis of Presentation and Recla
Basis of Presentation and Reclassifications | 6 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Reclassifications | 1.) Basis of Presentation and Reclassifications: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These interim unaudited consolidated financial statements should be read in conjunction with our annual audited financial statements as of December 31, 2014, included in our Form 10-K for the year ended December 31, 2014, filed with the United States Securities and Exchange Commission. The accompanying consolidated balance sheet at December 31, 2014, has been derived from the audited consolidated balance sheet but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Certain items contained in the 2014 financial statements have been reclassified to conform to the presentation for 2015. Such reclassifications had no effect on the net results of operations or equity. |
Authoritative Accounting Guidan
Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Authoritative Accounting Guidance | 2.) Authoritative Accounting Guidance: In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. 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. . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures 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 In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements -Going Concern (Subtopic 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). In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) In April 2015, the FASB issued ASU 2015-04, Compensation-Retirement Benefits (Topic 715), In April 2015, the FASB issued ASU 2015-05, Intangible – Goodwill and Other Internal Use Software (Topic 350-40) In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. Earnings Per Share Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the FASB issued ASU 2015-08 , Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts Financial Services – Insurance In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 3.) 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 other non-interest income. 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. The following table is a summary of investment securities available-for-sale: (Amounts in thousands) June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 13,544 $ 104 $ 74 $ 13,574 Obligations of states and political subdivisions 49,667 1,168 438 50,397 U.S. Government-sponsored mortgage-backed securities 80,014 198 616 79,596 U.S. Government-sponsored collateralized mortgage obligations 12,121 6 80 12,047 Trust preferred securities 1,649 — 811 838 Total debt securities 156,995 1,476 2,019 156,452 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 $ 160,044 $ 1,476 $ 2,019 $ 159,501 (Amounts in thousands) December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 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 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 Bank is required to maintain a minimum investment in stock of the FHLB and 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 June 30, 2015. At both June 30, 2015 and December 31, 2014, trading securities of $8.0 million and $7.9 million, respectively, are an investment in obligations of states and political subdivisions and include cash equivalent investments for trading liquidity. Unrealized gains and losses on trading securities at June 30, 2015 were $42,000 and $1,000, respectively, compared to $39,000 and $4,000 respectively, at December 31, 2014. Total net unrealized gains of $41,000 and realized losses of $71,000 for the six months ended June 30, 2015 and unrealized gains of $44,100 and realized gains of $222,900 for the six months ended June 30, 2014 are included in the Consolidated Statement of Income. Total net unrealized losses of $4,000 and realized losses of $34,000 for the three months ended June 30, 2015 and unrealized gains of $53,000 and realized gains of $88,000 for the three months ended June 30, 2014 are included in the Consolidated Statement of Income. The amortized cost and fair value of debt securities at June 30, 2015, 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 $ 676 $ 679 Due after one year through five years 70 71 Due after five years through ten years 24,452 24,871 Due after ten years 39,662 39,188 Total 64,860 64,809 U.S. Government-sponsored mortgage-backed and related securities 92,135 91,643 Total debt securities $ 156,995 $ 156,452 The table below sets forth the proceeds and gains or losses realized on available for sale securities sold or called for the periods presented: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Proceeds on securities sold $ — $ — $ — $ 10,237 Gross realized gains — — — 637 Gross realized losses — — — 444 Investment securities with a carrying value of approximately $112.8 million at June 30, 2015 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 available for sale securities with unrealized losses and an aging of those unrealized losses at June 30, 2015: (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 $ 7,880 $ 16 $ 1,931 $ 58 $ 9,811 $ 74 Obligations of states and political subdivisions 10,653 337 2,119 101 12,772 438 U.S. Government-sponsored mortgage-backed securities 36,942 236 18,656 380 55,598 616 U.S. Government-sponsored collateralized mortgage obligations 10,069 80 — — 10,069 80 Trust preferred securities — — 838 811 838 811 Total $ 65,544 $ 669 $ 23,544 $ 1,350 $ 89,088 $ 2,019 The above table comprises 61 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, 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 securities 14,460 33 31,550 408 46,010 441 U.S. Government-sponsored collateralized mortgage obligations 2,273 30 3,145 34 5,418 64 Trust preferred securities — — 779 883 779 883 Total $ 19,524 $ 83 $ 41,543 $ 1,508 $ 61,067 $ 1,591 The above table comprises 37 investment securities where the fair 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 June 30, 2015. 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 9, 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, there was no impairment loss recognized in the three or six months ended June 30, 2015 and 2014. The following provides a cumulative rollforward of credit losses recognized in earnings for trust preferred securities held. (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ 140 $ 140 $ 140 $ 2,305 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 impairment has not been previously recognized — — — — Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized — — — — Sale of debt securities — — — (2,165 ) Ending balance $ 140 $ 140 $ 140 $ 140 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 comprises the various iTruPS securities owned by the Company. The disallowed iTruPS consisted of nine positions with an amortized cost of $10.5 million at December 31, 2013. Because the Company could no longer hold the securities until their anticipated recovery, an OTTI had to be 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 Consolidated Statements of Income in 2013. In February 2014, the Company completed the sale of all nine of the disallowed investments. At June 30, 2015 and December 31, 2014, there were $838,000 and $779,000, respectively, of investment securities considered to be in non-accrual status. This balance is comprised of two trust preferred securities at June 30, 2015. 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 Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 4.) 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) June 30, 2015 December 31, 2014 Balance % Balance % Commercial $ 57,495 16.1 $ 72,330 20.1 Commercial real estate 233,531 65.3 223,536 62.1 Residential real estate 40,607 11.3 38,875 10.8 Consumer - home equity 21,827 6.1 21,328 5.9 Consumer - other 4,413 1.2 4,116 1.1 Total loans $ 357,873 $ 360,185 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 Stable Concentrations of credit Stable The following factors are analyzed and applied to loans internally graded with higher credit risk in addition to the above factors for non-classified loans: Factor Considered: Risk Trend: Levels and trends in classification Stable Declining trends in financial performance Stable Structure and lack of performance measures Stable Migration between risk categories Stable 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 following is an analysis of changes in the allowance for loan losses for the periods ended: Three Months Ended (Amounts in thousands) June 30, 2015 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,990 $ 2,983 $ 231 $ 64 $ 97 $ 5,365 Loan charge-offs (2 ) (50 ) (3 ) — (23 ) (78 ) Recoveries 1 10 4 4 18 37 Net loan recoveries (charge-offs) (1 ) (40 ) 1 4 (5 ) (41 ) Provision charged to operations 126 10 (9 ) (5 ) 8 130 Balance at end of period $ 2,115 $ 2,953 $ 223 $ 63 $ 100 $ 5,454 (Amounts in thousands) June 30, 2014 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 684 $ 2,897 $ 293 $ 90 $ 87 $ 4,051 Loan charge-offs — — (19 ) (39 ) (34 ) (92 ) Recoveries — — 1 3 21 25 Net loan recoveries (charge-offs) — — (18 ) (36 ) (13 ) (67 ) Provision charged to operations 65 (6 ) 20 46 25 150 Balance at end of period $ 749 $ 2,891 $ 295 $ 100 $ 99 $ 4,134 Six Months Ended (Amounts in thousands) June 30, 2015 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 2,064 $ 2,754 $ 229 $ 60 $ 95 $ 5,202 Loan charge-offs (2 ) (50 ) (5 ) — (56 ) (113 ) Recoveries 2 10 15 9 39 75 Net loan recoveries (charge-offs) — (40 ) 10 9 (17 ) (38 ) Provision charged to operations 51 239 (16 ) (6 ) 22 290 Balance at end of period $ 2,115 $ 2,953 $ 223 $ 63 $ 100 $ 5,454 (Amounts in thousands) June 30, 2014 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 593 $ 2,638 $ 356 $ 88 $ 89 $ 3,764 Loan charge-offs (112 ) — (19 ) (39 ) (69 ) (239 ) Recoveries 262 — 2 8 37 309 Net loan recoveries (charge-offs) 150 — (17 ) (31 ) (32 ) 70 Provision charged to operations 6 253 (44 ) 43 42 300 Balance at end of period $ 749 $ 2,891 $ 295 $ 100 $ 99 $ 4,134 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 of the allowance for loan losses and the recorded investment in loans at June 30, 2015 and December 31, 2014: (Amounts in thousands) June 30, 2015 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,308 $ 203 $ — $ — $ — $ 1,511 Collectively evaluated for impairment 807 2,750 223 63 100 3,943 Total ending allowance balance $ 2,115 $ 2,953 $ 223 $ 63 $ 100 $ 5,454 Loan Portfolio: Individually evaluated for impairment $ 1,850 $ 5,396 $ — $ — $ — $ 7,246 Collectively evaluated for impairment 55,645 228,135 40,607 21,827 4,413 350,627 Total ending loans balance $ 57,495 $ 233,531 $ 40,607 $ 21,827 $ 4,413 $ 357,873 (Amounts in thousands) December 31, 2014 Commercial Commercial real estate Residential 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 The decrease in commercial loan balances from year-end was due in part to 60-day term commercial loans for a total of $22.6 million that closed in December 2014 and were fully secured by segregated deposit accounts with the Bank. The loans matured in the first quarter of 2015. The increase in the allowance for commercial real estate categories is due to increases in special mention loans as shown in the following tables and a change in the qualitative factor relating to trends in volume and terms. Along with the impact of classified loans, the amount of net charge-offs also impacts the provision charged to operations for the quarter and 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. The following tables represent credit exposures by internally assigned grades for June 30, 2015 and December 31, 2014. 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 table is a summary of credit quality indicators by internally assigned grades as of June 30, 2015 and December 31, 2014: (Amounts in thousands) Commercial Commercial real estate June 30, 2015 Pass $ 48,983 $ 216,892 Special Mention 6,650 10,969 Substandard 1,862 5,670 Doubtful — — Ending Balance $ 57,495 $ 233,531 (Amounts in thousands) Commercial Commercial real estate December 31, 2014 Pass $ 65,339 $ 205,890 Special Mention 4,963 10,209 Substandard 2,028 7,437 Doubtful — — Ending Balance $ 72,330 $ 223,536 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. Nonaccrual loans in these categories are evaluated for charge off or charge down, and the remaining balance has the same allowance factor as pooled loans. The following table is a summary of consumer credit exposure as of June 30, 2015 and December 31, 2014: (Amounts in thousands) Residential real estate Consumer - home equity Consumer - other June 30, 2015 Performing $ 39,442 $ 21,594 $ 4,412 Nonperforming 1,165 233 1 Total $ 40,607 $ 21,827 $ 4,413 (Amounts in thousands) Residential real estate Consumer - home equity Consumer - other December 31, 2014 Performing $ 37,544 $ 21,179 $ 4,110 Nonperforming 1,331 149 6 Total $ 38,875 $ 21,328 $ 4,116 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 deducted from interest income. Loans in foreclosure are considered nonperforming. The following table is a summary of classes of loans on non-accrual status as of June 30, 2015 and December 31, 2014: (Amounts in thousands) June 30, 2015 December 31, 2014 Commercial $ 1,670 $ 1,824 Commercial real estate 2,211 2,247 Residential real estate 1,165 1,331 Consumer: Consumer - home equity 233 149 Consumer - other 1 6 Total $ 5,280 $ 5,557 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 for the three and six months ended June 30, 2015 or June 30, 2014. None of the loans that were approved as TDR’s in 2013 or 2014 have subsequently defaulted in the three or six month periods ended June 30, 2014 and 2015. The following table is an aging analysis of the recorded investment of past due loans as of June 30, 2015 and December 31, 2014: (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing June 30, 2015 Commercial $ 42 $ — $ 1,670 $ 1,712 $ 55,783 $ 57,495 $ — Commercial real estate 487 116 1,679 2,282 231,249 233,531 — Residential real estate 114 105 1,053 1,272 39,335 40,607 — Consumer: Consumer - home equity 77 19 233 329 21,498 21,827 — Consumer - other 23 — 1 24 4,389 4,413 — Total $ 743 $ 240 $ 4,636 $ 5,619 $ 352,254 $ 357,873 $ — (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing December 31, 2014 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 $ — 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 allowance Any loan determined to be collateral dependent for repayment Loans classified as troubled debt restructuring Commercial loans and commercial real estate loans evaluated for impairment are 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 June 30, 2015 and December 31, 2014. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the three and six months ended June 30, 2015 and 2014. (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance June 30, 2015 With no related allowance recorded: Commercial $ 427 $ 427 $ — Commercial real estate 4,512 4,714 — With an allowance recorded: Commercial 1,423 1,423 1,308 Commercial real estate 884 884 203 Total: Commercial $ 1,850 $ 1,850 $ 1,308 Commercial real estate $ 5,396 $ 5,598 $ 203 (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2014 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) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2015 With no related allowance recorded: Commercial $ 341 $ 2 $ 348 $ 6 Commercial real estate 4,140 37 4,344 84 With an allowance recorded: Commercial 1,515 — 1,539 — Commercial real estate 1,272 29 1,246 44 Total: Commercial $ 1,856 $ 2 $ 1,887 $ 6 Commercial real estate $ 5,412 $ 66 $ 5,590 $ 128 (Amounts in thousands) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2014 With no related allowance recorded: Commercial $ 215 $ 4 $ 219 $ 10 Commercial real estate 4,030 43 3,849 88 With an allowance recorded: Commercial 73 — 84 — Commercial real estate 1,561 28 1,569 36 Total: Commercial $ 288 $ 4 $ 303 $ — Commercial real estate $ 5,591 $ 71 $ 5,418 $ 124 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | 5.) Legal Proceedings: The Company is involved in legal actions arising in the ordinary course of business. In the opinion of management, the outcomes from these matters, either individually or in the aggregate, are not expected to have any material effect on the Company. |
Earnings Per Share and Capital
Earnings Per Share and Capital Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Capital Transactions | 6.) Earnings Per Share and Capital Transactions: The Company currently maintains a simple capital structure; therefore, there are no dilutive effects to earnings per share. The following table sets forth the computation of earnings per common share. Earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the applicable period. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income (amounts in thousands) $ 916 $ 1,039 $ 2,065 $ 2,371 Weighted average common shares outstanding 4,525,322 4,527,848 4,526,578 4,527,848 Earnings per share $ 0.21 $ 0.23 $ 0.46 $ 0.52 |
Subordinated Debt
Subordinated Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | 7.) Subordinated Debt: In July 2007, a trust formed by 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 June 30, 2015 and December 31, 2014 were 1.74% and 1.69%, respectively. 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
Commitments | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | 8.) Commitments: 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 table is a summary of such contractual commitments: (Amounts in thousands) June 30, 2015 December 31, 2014 Commitments to extend credit: Fixed rate $ 13,950 $ 13,825 Variable rate 47,104 49,897 Standby letters of credit 2,277 608 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 Company 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 increase in commitments is in line with the Company’s increased focus on commercial and industrial lending, and specifically lines of credit. 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) June 30, 2015 December 31, 2014 Overdraft protection available on depositors' accounts $ 9,632 $ 9,632 Balance of overdrafts included in loans 100 108 Average daily balance of overdrafts 97 117 Average daily balance of overdrafts as a percentage of available 1.01 % 1.21 % Customer Derivatives - Interest Rates Swaps/Floors – The Company enters into interest rate swaps that allow our commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate into a fixed-rate. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are marked to market through their earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There was no effect on earnings in any periods presented. At June 30, 2015, the Company had $150,000 in cash pledged for collateral on its interest rate swap with the third party financial institution. Summary information regarding these derivatives is presented below: (Amounts in thousands) Fair Value June 30, Notional Amount Maturity Interest Rate Paid Interest Rate Received 2015 2014 Customer interest rate swap $ 6,052 2025 1 Mo. Libor + Margin Fixed $ 17 $ — Third party interest rate swap 6,052 2025 Fixed 1 Mo. Libor + Margin (17 ) — The following table presents the fair values of derivative instruments in the balance sheet. (Amounts in thousands) Assets Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value June 30, 2015 Interest rate derivatives Other assets $ 17 Other liabilities $ 17 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 9.) Fair Value of Assets and Liabilities: 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 June 30, 2015 and December 31, 2014 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 June 30, 2015 Using Description June 30, 2015 Quoted Prices in Active Markets Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) ASSETS U.S. Government agencies and corporations $ 13,574 $ — $ 13,574 $ — Obligations of states and political subdivisions 50,397 — 50,397 — U.S. Government-sponsored mortgage-backed securities 79,596 — 79,596 — U.S. Government-sponsored collateralized mortgage obligations 12,047 — 12,047 — Trust preferred securities 838 — — 838 Regulatory stock 3,049 3,049 — — Trading securities 7,955 — 7,955 — Loans held for sale 2,774 2,774 — — Interest rate derivatives 17 — 17 — LIABILITIES Interest rate derivatives $ 17 $ — $ 17 $ — (Amounts in thousands) Fair Value Measurements at December 31, 2014 Using Description December 31, 2014 Quoted Prices in Active Markets Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) 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 — — The following tables present the changes in the Level 3 fair value category for the three and six months ended June 30, 2015 and 2014. 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) Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Trust preferred securities Trust preferred securities Trust preferred securities Trust preferred securities Beginning balance $ 759 $ 743 $ 779 $ 10,136 Net realized/unrealized gains/(losses) included in: Noninterest income — — — — Other comprehensive income 87 (6 ) 72 730 Discount accretion (premium amortization) — — — 7 Sales — — — (10,044 ) Purchases, issuance, and settlements (8 ) (57 ) (13 ) (149 ) Ending balance $ 838 $ 680 $ 838 $ 680 Losses included in net income for the period relating 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 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) June 30, 2015 December 31, 2014 Total number of trust preferred securities 2 2 Par value $ 1,789 $ 1,802 Number not considered OTTI 1 1 Par value $ 789 $ 802 Number considered OTTI 1 1 Par value $ 1,000 $ 1,000 Life-to-date impairment recognized in earnings $ 140 $ 140 Life-to-date impairment recognized in other comprehensive income 811 883 Total life-to-date impairment $ 951 $ 1,023 The following table details the one debt security with other-than-temporary impairment, its credit rating at June 30, 2015 and the related losses recognized in earnings: (Amounts in thousands) Moody’s/Fitch Rating Amount of OTTI related to credit loss at January 1, 2015 Additions in QTD March 31, 2015 Additions in QTD June 30, 2015 Amount of OTTI related to credit loss at June 30, 2015 Trapeza IX B-1 Ca/CC $ 140 $ — $ — $ 140 Total $ 140 $ — $ — $ 140 The following table details the one debt security with other-than-temporary impairment, its credit ratings at June 30, 2014 and the related losses recognized in earnings: (Amounts in thousands) Moody’s/Fitch Rating Amount of OTTI related to credit loss at January 1, 2014 Additions in QTD March 31, 2014 Additions in QTD June 30, 2014 Amount of OTTI related to credit loss at June 30, 2014 Trapeza IX B-1 Ca/CC $ 140 $ — $ — $ 140 Total $ 140 $ — $ — $ 140 The following table provides additional information related to the Company’s trust preferred securities as of June 30, 2015 used to evaluate other-than-temporary impairments: (Amounts in thousands) Deal Class Amortized Cost Fair Unrealized Gain/(Loss) Moody’s/ Fitch Rating Number of Issuers Currently Performing Deferrals and Defaults as a % of Current Collateral Excess Subordination as % of Current Performing Collateral PreTSL XXIII C-2 $ 789 $ 351 $ (438 ) B2/C 92 23.4 % — % Trapeza IX B-1 860 487 (373 ) Ca/CC 32 18.3 — Total $ 1,649 $ 838 $ (811 ) 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 Unrealized Gain/(Loss) Moody’s/ Fitch Rating Number of Issuers Currently Performing Deferrals and Defaults as a % of Current Collateral Excess Subordination as % of Current 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 market for these securities at June 30, 2015 and December 31, 2014 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 June 30, 2015; 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 10.21% to 13.99% 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. T he following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of June 30, 2015 and December 31, 2014, 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. Other real estate owned is carried at the lower of cost or fair value less estimated costs to sell. (Amounts in thousands) June 30, 2015 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Impaired loans $ — $ — $ 5,735 $ 5,735 (Amounts in thousands) December 31, 2014 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 Financial Instruments The Company disclosures 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 have offered on best efforts commitments. 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. Interest rate derivatives – The fair value is based on settlement values adjusted for credit risks associated with the counter parties and the Company and observable market interest rate curves. 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. 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. FHLB advances - short term – Short term borrowings generally have an original term to maturity of one year or less. Advances of one month or less are considered to be at fair value. The fair value of notes with one to twelve month terms 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 - long term – 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. 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 June 30, 2015 and December 31, 2014 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 fair values of the Company’s financial instruments are as follows: (Amounts in thousands) June 30, 2015 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 9,344 $ 9,344 $ — $ — $ 9,344 Investment securities available-for-sale 159,501 3,049 155,614 838 159,501 Trading securities 7,955 — 7,955 — 7,955 Loans held for sale 2,774 2,774 — — 2,774 Loans, net of allowance for loan losses 352,419 — — 355,723 355,723 Bank-owned life insurance 17,162 17,162 — — 17,162 Accrued interest receivable 1,757 1,757 — — 1,757 Interest rate derivatives 17 — 17 — 17 LIABILITIES: Demand, savings and money market deposits $ 315,693 $ 315,693 $ — $ — $ 315,693 Time deposits 131,680 — — 134,288 134,288 Short term borrowings 5,483 5,483 — — 5,483 Federal Home Loan Bank advances - short term 21,000 14,500 — 6,498 20,998 Federal Home Loan Bank advances - long term 25,000 — — 25,977 25,977 Subordinated debt 5,155 — — 4,527 4,527 Accrued interest payable 234 234 — — 234 Interest rate derivatives 17 — 17 — 17 (Amounts in thousands) December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 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 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 June 30, 2015: (Amounts in thousands) Fair value at June 30, 2015 Valuation Technique Significant Unobservable Input Description of Inputs Trust preferred securities $ 838 Discounted Cash Flow Projected Prepayments 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. 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 Defaults 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 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 Recoveries 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. Discount Rates 1) Ranging from ~10.21% to ~13.99%, depending on each bond's seniority and remaining subordination after projected losses. Impaired loans 5,735 Appraisal of Collateral (1) Appraisal Adjustments (2) Range (0)% to (53)% Weighted average (28)% Liquidation Expenses (2) Range (0)% to (43)% Weighted average (6)% (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. 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 December 31, 2014 Valuation Technique Significant Unobservable Input Description of Inputs Trust preferred securities $ 779 Discounted Cash Flow Projected Prepayments 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. 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 Defaults 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 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 Recoveries 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. 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 Collateral (1) Appraisal Adjustments (2) Range (0)% to (40)% Weighted average (23)% Liquidation Expenses (2) Range (0)% to (33)% Weighted average (6)% Other real estate owned 40 Appraisal of Collateral (1), (3) Appraisal Adjustments (2) 0% (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 Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 10.) Accumulated Other Comprehensive Income (Loss): The following table presents the changes in accumulated other comprehensive income (loss) by component net of tax for the three and six months ended June 30, 2015 and 2014: (Amounts in thousands) Unrealized gains (losses) on available-for-sale securities (a) Change in pension and postretirement obligations Balance as of December 31, 2014 $ 359 $ 17 Other comprehensive income before reclassification 449 (23 ) Amount reclassified from accumulated other comprehensive loss — — Total other comprehensive income (loss) 449 (23 ) Balance as of March 31, 2015 808 (6 ) Other comprehensive income before reclassification (1,167 ) — Amount reclassified from accumulated other comprehensive loss — (23 ) Total other comprehensive income (1,167 ) (23 ) Balance as of June 30, 2015 $ (359 ) $ (29 ) (Amounts in thousands) Unrealized losses on available-for-sale securities (a) Change in pension and postretirement obligations Balance as of December 31, 2013 $ (2,860 ) $ (28 ) Other comprehensive income before reclassification 1,692 13 Amount reclassified from accumulated other comprehensive loss (127 ) — Total other comprehensive income 1,565 13 Balance as of March 31, 2014 (1,295 ) (15 ) Other comprehensive loss before reclassification 1,269 13 Amount reclassified from accumulated other comprehensive loss — — Total other comprehensive income 1,269 13 Balance as of June 30, 2014 $ (26 ) $ (2 ) The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014: (Amounts in thousands) Three Months Ended June 30, 2015 2014 Amount reclassified from accumulated other comprehensive income 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 $ — $ — Investment securities gains, net — — Federal income tax expense $ — $ — Net of tax (Amounts in thousands) Six Months Ended June 30, 2015 2014 Amount reclassified from accumulated other comprehensive loss 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 $ — $ (193 ) Investment securities gains, net — 66 Federal income tax expense $ — $ (127 ) Net of tax |
Post-Retirement Obligations
Post-Retirement Obligations | 6 Months Ended |
Jun. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Post-Retirement Obligations | 11.) Post-Retirement Obligations: The Company accrues for the monthly benefit expense of post-retirement cost of insurance for split dollar life insurance coverage. The following table presents the changes in the accumulated liability: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ 653 $ 600 $ 585 $ 614 Expense recorded 45 (1 ) 91 (2 ) Other comprehensive income recorded 23 (13 ) 45 (26 ) Ending balance $ 721 $ 586 $ 721 $ 586 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2015 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | 12.) Stock Repurchase Program: On March 24, 2015, the Company’s Board of Directors adopted a Stock Repurchase Program which permits the Company to repurchase up to 200,000 shares or approximately 4.4% of its 4,527,849 outstanding common shares in the open market or in privately negotiated transactions in accordance with applicable regulations of the Securities and Exchange Commission. Based on the value of the Company’s stock on March 24, 2015, the commitment to repurchase the stock during the program is approximately $3.1 million. The repurchase program will terminate on December 31, 2015 or upon the purchase of 200,000 shares, if earlier or any other time without prior notice. Repurchased shares are designated as treasury shares, available for general corporate purposes, including possible use in connection with the Company’s dividend reinvestment program, employee benefit plans, acquisitions or other distributions. As of June 30, 2015 the Company had repurchased 10,000 shares under the program to date. Based on the value of the Company’s stock on June 30, 2015, the commitment to repurchase the stock during the remainder of the program is approximately $2.7 million. |
Short-Term Borrowings
Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | 13.) Short-Term Borrowings: The following table provides additional detail regarding short-term borrowings: (Amounts in thousands) Repurchase Agreements (Sweep) Accounted for as Secured Borrowings At June 30, 2015 At December 31, 2014 Remaining Contractual Maturity of the Agreements Overnight and Continuous Overnight and Continuous Repurchase agreements: U.S. Government-sponsored mortgage-backed securities $ 8,267 $ 6,137 U.S. Government-sponsored collateralized mortgage obligations 1,230 1,361 Total collateral carrying value $ 9,497 $ 7,498 Total short-term borrowings $ 5,483 $ 4,259 |
Authoritative Accounting Guid22
Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Authoritative Accounting Guidance | 2.) Authoritative Accounting Guidance: In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. 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. . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures 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 In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements -Going Concern (Subtopic 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). In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. In January 2015, the FASB issued ASU 2015-01, Income Statement –Extraordinary and Unusual Items, In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) In April 2015, the FASB issued ASU 2015-04, Compensation-Retirement Benefits (Topic 715), In April 2015, the FASB issued ASU 2015-05, Intangible – Goodwill and Other Internal Use Software (Topic 350-40) In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. Earnings Per Share Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the FASB issued ASU 2015-08 , Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts Financial Services – Insurance In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | ERROR: Could not retrieve Word content for note block The following table presents the changes in accumulated other comprehensive income (loss) by component net of tax for the three and six months ended June 30, 2015 and 2014: (Amounts in thousands) Unrealized gains (losses) on available-for-sale securities (a) Change in pension and postretirement obligations Balance as of December 31, 2014 $ 359 $ 17 Other comprehensive income before reclassification 449 (23 ) Amount reclassified from accumulated other comprehensive loss — — Total other comprehensive income (loss) 449 (23 ) Balance as of March 31, 2015 808 (6 ) Other comprehensive income before reclassification (1,167 ) — Amount reclassified from accumulated other comprehensive loss — (23 ) Total other comprehensive income (1,167 ) (23 ) Balance as of June 30, 2015 $ (359 ) $ (29 ) (Amounts in thousands) Unrealized losses on available-for-sale securities (a) Change in pension and postretirement obligations Balance as of December 31, 2013 $ (2,860 ) $ (28 ) Other comprehensive income before reclassification 1,692 13 Amount reclassified from accumulated other comprehensive loss (127 ) — Total other comprehensive income 1,565 13 Balance as of March 31, 2014 (1,295 ) (15 ) Other comprehensive loss before reclassification 1,269 13 Amount reclassified from accumulated other comprehensive loss — — Total other comprehensive income 1,269 13 Balance as of June 30, 2014 $ (26 ) $ (2 ) |
Schedule of Reclassifications out of Each Component of Accumulated Other Comprehensive Income (Loss) | The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014: (Amounts in thousands) Three Months Ended June 30, 2015 2014 Amount reclassified from accumulated other comprehensive income 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 $ — $ — Investment securities gains, net — — Federal income tax expense $ — $ — Net of tax (Amounts in thousands) Six Months Ended June 30, 2015 2014 Amount reclassified from accumulated other comprehensive loss 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 $ — $ (193 ) Investment securities gains, net — 66 Federal income tax expense $ — $ (127 ) Net of tax |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investment Securities Available-for-Sale | The following table is a summary of investment securities available-for-sale: (Amounts in thousands) June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 13,544 $ 104 $ 74 $ 13,574 Obligations of states and political subdivisions 49,667 1,168 438 50,397 U.S. Government-sponsored mortgage-backed securities 80,014 198 616 79,596 U.S. Government-sponsored collateralized mortgage obligations 12,121 6 80 12,047 Trust preferred securities 1,649 — 811 838 Total debt securities 156,995 1,476 2,019 156,452 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 $ 160,044 $ 1,476 $ 2,019 $ 159,501 (Amounts in thousands) December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 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 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities at June 30, 2015, 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 $ 676 $ 679 Due after one year through five years 70 71 Due after five years through ten years 24,452 24,871 Due after ten years 39,662 39,188 Total 64,860 64,809 U.S. Government-sponsored mortgage-backed and related securities 92,135 91,643 Total debt securities $ 156,995 $ 156,452 |
Proceeds and Gains or Losses Realized on Available for Sale Securities Sold or Called | The table below sets forth the proceeds and gains or losses realized on available for sale securities sold or called for the periods presented: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Proceeds on securities sold $ — $ — $ — $ 10,237 Gross realized gains — — — 637 Gross realized losses — — — 444 |
Fair Value of Securities with Unrealized Losses and an Aging of those Unrealized Losses | The following is a summary of the fair value of available for sale securities with unrealized losses and an aging of those unrealized losses at June 30, 2015: (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 $ 7,880 $ 16 $ 1,931 $ 58 $ 9,811 $ 74 Obligations of states and political subdivisions 10,653 337 2,119 101 12,772 438 U.S. Government-sponsored mortgage-backed securities 36,942 236 18,656 380 55,598 616 U.S. Government-sponsored collateralized mortgage obligations 10,069 80 — — 10,069 80 Trust preferred securities — — 838 811 838 811 Total $ 65,544 $ 669 $ 23,544 $ 1,350 $ 89,088 $ 2,019 The above table comprises 61 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, 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 securities 14,460 33 31,550 408 46,010 441 U.S. Government-sponsored collateralized mortgage obligations 2,273 30 3,145 34 5,418 64 Trust preferred securities — — 779 883 779 883 Total $ 19,524 $ 83 $ 41,543 $ 1,508 $ 61,067 $ 1,591 |
Other than Temporary Impairment Credit Losses Recognized in Earnings | The following provides a cumulative rollforward of credit losses recognized in earnings for trust preferred securities held. (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ 140 $ 140 $ 140 $ 2,305 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 impairment has not been previously recognized — — — — Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized — — — — Sale of debt securities — — — (2,165 ) Ending balance $ 140 $ 140 $ 140 $ 140 |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Composition of the Loan Portfolio | The following represents the composition of the loan portfolio for the period ending: (Amounts in thousands) June 30, 2015 December 31, 2014 Balance % Balance % Commercial $ 57,495 16.1 $ 72,330 20.1 Commercial real estate 233,531 65.3 223,536 62.1 Residential real estate 40,607 11.3 38,875 10.8 Consumer - home equity 21,827 6.1 21,328 5.9 Consumer - other 4,413 1.2 4,116 1.1 Total loans $ 357,873 $ 360,185 |
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 Stable Concentrations of credit Stable |
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 credit risk in addition to the above factors for non-classified loans: Factor Considered: Risk Trend: Levels and trends in classification Stable Declining trends in financial performance Stable Structure and lack of performance measures Stable Migration between risk categories Stable |
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: Three Months Ended (Amounts in thousands) June 30, 2015 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,990 $ 2,983 $ 231 $ 64 $ 97 $ 5,365 Loan charge-offs (2 ) (50 ) (3 ) — (23 ) (78 ) Recoveries 1 10 4 4 18 37 Net loan recoveries (charge-offs) (1 ) (40 ) 1 4 (5 ) (41 ) Provision charged to operations 126 10 (9 ) (5 ) 8 130 Balance at end of period $ 2,115 $ 2,953 $ 223 $ 63 $ 100 $ 5,454 (Amounts in thousands) June 30, 2014 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 684 $ 2,897 $ 293 $ 90 $ 87 $ 4,051 Loan charge-offs — — (19 ) (39 ) (34 ) (92 ) Recoveries — — 1 3 21 25 Net loan recoveries (charge-offs) — — (18 ) (36 ) (13 ) (67 ) Provision charged to operations 65 (6 ) 20 46 25 150 Balance at end of period $ 749 $ 2,891 $ 295 $ 100 $ 99 $ 4,134 Six Months Ended (Amounts in thousands) June 30, 2015 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 2,064 $ 2,754 $ 229 $ 60 $ 95 $ 5,202 Loan charge-offs (2 ) (50 ) (5 ) — (56 ) (113 ) Recoveries 2 10 15 9 39 75 Net loan recoveries (charge-offs) — (40 ) 10 9 (17 ) (38 ) Provision charged to operations 51 239 (16 ) (6 ) 22 290 Balance at end of period $ 2,115 $ 2,953 $ 223 $ 63 $ 100 $ 5,454 (Amounts in thousands) June 30, 2014 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 593 $ 2,638 $ 356 $ 88 $ 89 $ 3,764 Loan charge-offs (112 ) — (19 ) (39 ) (69 ) (239 ) Recoveries 262 — 2 8 37 309 Net loan recoveries (charge-offs) 150 — (17 ) (31 ) (32 ) 70 Provision charged to operations 6 253 (44 ) 43 42 300 Balance at end of period $ 749 $ 2,891 $ 295 $ 100 $ 99 $ 4,134 |
Allowance for Loan Losses and the Recorded Investment in Loans | The following tables present a full breakdown by portfolio segment of the allowance for loan losses and the recorded investment in loans at June 30, 2015 and December 31, 2014: (Amounts in thousands) June 30, 2015 Commercial Commercial real estate Residential estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,308 $ 203 $ — $ — $ — $ 1,511 Collectively evaluated for impairment 807 2,750 223 63 100 3,943 Total ending allowance balance $ 2,115 $ 2,953 $ 223 $ 63 $ 100 $ 5,454 Loan Portfolio: Individually evaluated for impairment $ 1,850 $ 5,396 $ — $ — $ — $ 7,246 Collectively evaluated for impairment 55,645 228,135 40,607 21,827 4,413 350,627 Total ending loans balance $ 57,495 $ 233,531 $ 40,607 $ 21,827 $ 4,413 $ 357,873 (Amounts in thousands) December 31, 2014 Commercial Commercial real estate Residential 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 |
Summary of Credit Quality Indicators by Internally Assigned Grade | The following table is a summary of credit quality indicators by internally assigned grades as of June 30, 2015 and December 31, 2014: (Amounts in thousands) Commercial Commercial real estate June 30, 2015 Pass $ 48,983 $ 216,892 Special Mention 6,650 10,969 Substandard 1,862 5,670 Doubtful — — Ending Balance $ 57,495 $ 233,531 (Amounts in thousands) Commercial Commercial real estate December 31, 2014 Pass $ 65,339 $ 205,890 Special Mention 4,963 10,209 Substandard 2,028 7,437 Doubtful — — Ending Balance $ 72,330 $ 223,536 |
Summary of Consumer Credit Exposure | The following table is a summary of consumer credit exposure as of June 30, 2015 and December 31, 2014: (Amounts in thousands) Residential real estate Consumer - home equity Consumer - other June 30, 2015 Performing $ 39,442 $ 21,594 $ 4,412 Nonperforming 1,165 233 1 Total $ 40,607 $ 21,827 $ 4,413 (Amounts in thousands) Residential real estate Consumer - home equity Consumer - other December 31, 2014 Performing $ 37,544 $ 21,179 $ 4,110 Nonperforming 1,331 149 6 Total $ 38,875 $ 21,328 $ 4,116 |
Summary of Classes of Loans on Non-Accrual Status | The following table is a summary of classes of loans on non-accrual status as of June 30, 2015 and December 31, 2014: (Amounts in thousands) June 30, 2015 December 31, 2014 Commercial $ 1,670 $ 1,824 Commercial real estate 2,211 2,247 Residential real estate 1,165 1,331 Consumer: Consumer - home equity 233 149 Consumer - other 1 6 Total $ 5,280 $ 5,557 |
Aging Analysis of the Recorded Investment of Past Due Loans | The following table is an aging analysis of the recorded investment of past due loans as of June 30, 2015 and December 31, 2014: (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing June 30, 2015 Commercial $ 42 $ — $ 1,670 $ 1,712 $ 55,783 $ 57,495 $ — Commercial real estate 487 116 1,679 2,282 231,249 233,531 — Residential real estate 114 105 1,053 1,272 39,335 40,607 — Consumer: Consumer - home equity 77 19 233 329 21,498 21,827 — Consumer - other 23 — 1 24 4,389 4,413 — Total $ 743 $ 240 $ 4,636 $ 5,619 $ 352,254 $ 357,873 $ — (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing December 31, 2014 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 $ — |
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 June 30, 2015 and December 31, 2014. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the three and six months ended June 30, 2015 and 2014. (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance June 30, 2015 With no related allowance recorded: Commercial $ 427 $ 427 $ — Commercial real estate 4,512 4,714 — With an allowance recorded: Commercial 1,423 1,423 1,308 Commercial real estate 884 884 203 Total: Commercial $ 1,850 $ 1,850 $ 1,308 Commercial real estate $ 5,396 $ 5,598 $ 203 (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2014 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) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2015 With no related allowance recorded: Commercial $ 341 $ 2 $ 348 $ 6 Commercial real estate 4,140 37 4,344 84 With an allowance recorded: Commercial 1,515 — 1,539 — Commercial real estate 1,272 29 1,246 44 Total: Commercial $ 1,856 $ 2 $ 1,887 $ 6 Commercial real estate $ 5,412 $ 66 $ 5,590 $ 128 (Amounts in thousands) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2014 With no related allowance recorded: Commercial $ 215 $ 4 $ 219 $ 10 Commercial real estate 4,030 43 3,849 88 With an allowance recorded: Commercial 73 — 84 — Commercial real estate 1,561 28 1,569 36 Total: Commercial $ 288 $ 4 $ 303 $ — Commercial real estate $ 5,591 $ 71 $ 5,418 $ 124 |
Earnings Per Share and Capita26
Earnings Per Share and Capital Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic Earnings Per Common Share | The Company currently maintains a simple capital structure; therefore, there are no dilutive effects to earnings per share. The following table sets forth the computation of earnings per common share. Earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the applicable period. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income (amounts in thousands) $ 916 $ 1,039 $ 2,065 $ 2,371 Weighted average common shares outstanding 4,525,322 4,527,848 4,526,578 4,527,848 Earnings per share $ 0.21 $ 0.23 $ 0.46 $ 0.52 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Contractual Commitments | The following table is a summary of such contractual commitments: (Amounts in thousands) June 30, 2015 December 31, 2014 Commitments to extend credit: Fixed rate $ 13,950 $ 13,825 Variable rate 47,104 49,897 Standby letters of credit 2,277 608 |
Summary of Overdraft Protection | The following table is a summary of overdraft protection for the periods indicated: (Amounts in thousands) June 30, 2015 December 31, 2014 Overdraft protection available on depositors' accounts $ 9,632 $ 9,632 Balance of overdrafts included in loans 100 108 Average daily balance of overdrafts 97 117 Average daily balance of overdrafts as a percentage of available 1.01 % 1.21 % |
Summary of Information Regarding Derivatives | Summary information regarding these derivatives is presented below: (Amounts in thousands) Fair Value June 30, Notional Amount Maturity Interest Rate Paid Interest Rate Received 2015 2014 Customer interest rate swap $ 6,052 2025 1 Mo. Libor + Margin Fixed $ 17 $ — Third party interest rate swap 6,052 2025 Fixed 1 Mo. Libor + Margin (17 ) — |
Schedule of Fair Values of Derivative Instruments | The following table presents the fair values of derivative instruments in the balance sheet. (Amounts in thousands) Assets Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value June 30, 2015 Interest rate derivatives Other assets $ 17 Other liabilities $ 17 |
Fair Value of Assets and Liab28
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 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 June 30, 2015 Using Description June 30, 2015 Quoted Prices in Active Markets Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) ASSETS U.S. Government agencies and corporations $ 13,574 $ — $ 13,574 $ — Obligations of states and political subdivisions 50,397 — 50,397 — U.S. Government-sponsored mortgage-backed securities 79,596 — 79,596 — U.S. Government-sponsored collateralized mortgage obligations 12,047 — 12,047 — Trust preferred securities 838 — — 838 Regulatory stock 3,049 3,049 — — Trading securities 7,955 — 7,955 — Loans held for sale 2,774 2,774 — — Interest rate derivatives 17 — 17 — LIABILITIES Interest rate derivatives $ 17 $ — $ 17 $ — (Amounts in thousands) Fair Value Measurements at December 31, 2014 Using Description December 31, 2014 Quoted Prices in Active Markets Identical Assets (Level 1) Significant Other Observable (Level 2) Significant Unobservable (Level 3) 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 — — |
Changes in the Level 3 Fair Value Category | The following tables present the changes in the Level 3 fair value category for the three and six months ended June 30, 2015 and 2014. 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) Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Trust preferred securities Trust preferred securities Trust preferred securities Trust preferred securities Beginning balance $ 759 $ 743 $ 779 $ 10,136 Net realized/unrealized gains/(losses) included in: Noninterest income — — — — Other comprehensive income 87 (6 ) 72 730 Discount accretion (premium amortization) — — — 7 Sales — — — (10,044 ) Purchases, issuance, and settlements (8 ) (57 ) (13 ) (149 ) Ending balance $ 838 $ 680 $ 838 $ 680 Losses included in net income for the period relating 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) June 30, 2015 December 31, 2014 Total number of trust preferred securities 2 2 Par value $ 1,789 $ 1,802 Number not considered OTTI 1 1 Par value $ 789 $ 802 Number considered OTTI 1 1 Par value $ 1,000 $ 1,000 Life-to-date impairment recognized in earnings $ 140 $ 140 Life-to-date impairment recognized in other comprehensive income 811 883 Total life-to-date impairment $ 951 $ 1,023 |
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 June 30, 2015 and the related losses recognized in earnings: (Amounts in thousands) Moody’s/Fitch Rating Amount of OTTI related to credit loss at January 1, 2015 Additions in QTD March 31, 2015 Additions in QTD June 30, 2015 Amount of OTTI related to credit loss at June 30, 2015 Trapeza IX B-1 Ca/CC $ 140 $ — $ — $ 140 Total $ 140 $ — $ — $ 140 The following table details the one debt security with other-than-temporary impairment, its credit ratings at June 30, 2014 and the related losses recognized in earnings: (Amounts in thousands) Moody’s/Fitch Rating Amount of OTTI related to credit loss at January 1, 2014 Additions in QTD March 31, 2014 Additions in QTD June 30, 2014 Amount of OTTI related to credit loss at June 30, 2014 Trapeza IX B-1 Ca/CC $ 140 $ — $ — $ 140 Total $ 140 $ — $ — $ 140 |
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 June 30, 2015 used to evaluate other-than-temporary impairments: (Amounts in thousands) Deal Class Amortized Cost Fair Unrealized Gain/(Loss) Moody’s/ Fitch Rating Number of Issuers Currently Performing Deferrals and Defaults as a % of Current Collateral Excess Subordination as % of Current Performing Collateral PreTSL XXIII C-2 $ 789 $ 351 $ (438 ) B2/C 92 23.4 % — % Trapeza IX B-1 860 487 (373 ) Ca/CC 32 18.3 — Total $ 1,649 $ 838 $ (811 ) 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 Unrealized Gain/(Loss) Moody’s/ Fitch Rating Number of Issuers Currently Performing Deferrals and Defaults as a % of Current Collateral Excess Subordination as % of Current 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 ) |
Assets Measured on a Nonrecurring Basis on the Consolidated Balance Sheets at their Fair Value | T he following table presents the assets measured on a nonrecurring basis on the consolidated balance sheets at their fair value as of June 30, 2015 and December 31, 2014, 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. Other real estate owned is carried at the lower of cost or fair value less estimated costs to sell. (Amounts in thousands) June 30, 2015 Level 1 Level 2 Level 3 Total Assets measured on a nonrecurring basis: Impaired loans $ — $ — $ 5,735 $ 5,735 (Amounts in thousands) December 31, 2014 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 |
Carrying Amounts and Fair Values of the Company's Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments are as follows: (Amounts in thousands) June 30, 2015 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 9,344 $ 9,344 $ — $ — $ 9,344 Investment securities available-for-sale 159,501 3,049 155,614 838 159,501 Trading securities 7,955 — 7,955 — 7,955 Loans held for sale 2,774 2,774 — — 2,774 Loans, net of allowance for loan losses 352,419 — — 355,723 355,723 Bank-owned life insurance 17,162 17,162 — — 17,162 Accrued interest receivable 1,757 1,757 — — 1,757 Interest rate derivatives 17 — 17 — 17 LIABILITIES: Demand, savings and money market deposits $ 315,693 $ 315,693 $ — $ — $ 315,693 Time deposits 131,680 — — 134,288 134,288 Short term borrowings 5,483 5,483 — — 5,483 Federal Home Loan Bank advances - short term 21,000 14,500 — 6,498 20,998 Federal Home Loan Bank advances - long term 25,000 — — 25,977 25,977 Subordinated debt 5,155 — — 4,527 4,527 Accrued interest payable 234 234 — — 234 Interest rate derivatives 17 — 17 — 17 (Amounts in thousands) December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 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 |
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 June 30, 2015: (Amounts in thousands) Fair value at June 30, 2015 Valuation Technique Significant Unobservable Input Description of Inputs Trust preferred securities $ 838 Discounted Cash Flow Projected Prepayments 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. 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 Defaults 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 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 Recoveries 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. Discount Rates 1) Ranging from ~10.21% to ~13.99%, depending on each bond's seniority and remaining subordination after projected losses. Impaired loans 5,735 Appraisal of Collateral (1) Appraisal Adjustments (2) Range (0)% to (53)% Weighted average (28)% Liquidation Expenses (2) Range (0)% to (43)% Weighted average (6)% (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. 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 December 31, 2014 Valuation Technique Significant Unobservable Input Description of Inputs Trust preferred securities $ 779 Discounted Cash Flow Projected Prepayments 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. 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 Defaults 1) All deferring issuers that do not meet the criteria for curing, as described below, are projected to default immediately. 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 Recoveries 1) Zero for insurance companies, REITs and insolvent banks, and 10% for projected bank deferrals lagged 2 years. 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 Collateral (1) Appraisal Adjustments (2) Range (0)% to (40)% Weighted average (23)% Liquidation Expenses (2) Range (0)% to (33)% Weighted average (6)% Other real estate owned 40 Appraisal of Collateral (1), (3) Appraisal Adjustments (2) 0% (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. |
Post-Retirement Obligations (Ta
Post-Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Changes in Accumulated Liability | The following table presents the changes in the accumulated liability: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ 653 $ 600 $ 585 $ 614 Expense recorded 45 (1 ) 91 (2 ) Other comprehensive income recorded 23 (13 ) 45 (26 ) Ending balance $ 721 $ 586 $ 721 $ 586 |
Short-Term Borrowings (Table)
Short-Term Borrowings (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Additional Detail Regarding Short-Term Borrowings | The following table provides additional detail regarding short-term borrowings: (Amounts in thousands) Repurchase Agreements (Sweep) Accounted for as Secured Borrowings At June 30, 2015 At December 31, 2014 Remaining Contractual Maturity of the Agreements Overnight and Continuous Overnight and Continuous Repurchase agreements: U.S. Government-sponsored mortgage-backed securities $ 8,267 $ 6,137 U.S. Government-sponsored collateralized mortgage obligations 1,230 1,361 Total collateral carrying value $ 9,497 $ 7,498 Total short-term borrowings $ 5,483 $ 4,259 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | $ 160,044 | $ 161,703 |
Available-for-sale Securities, Gross Unrealized Gains | 1,476 | 2,135 |
Available-for-sale Securities, Gross Unrealized Losses | 2,019 | 1,591 |
Available-for-sale securities, Fair Value | 159,501 | 162,247 |
U.S.Treasury securities | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 100 | |
Available-for-sale Securities, Gross Unrealized Gains | 1 | |
Available-for-sale securities, Fair Value | 101 | |
U.S. Government agencies and corporations | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 13,544 | 8,640 |
Available-for-sale Securities, Gross Unrealized Gains | 104 | 88 |
Available-for-sale Securities, Gross Unrealized Losses | 74 | 80 |
Available-for-sale securities, Fair Value | 13,574 | 8,648 |
Obligations of states and political subdivisions | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 49,667 | 48,547 |
Available-for-sale Securities, Gross Unrealized Gains | 1,168 | 1,667 |
Available-for-sale Securities, Gross Unrealized Losses | 438 | 123 |
Available-for-sale securities, Fair Value | 50,397 | 50,091 |
U.S. Government-sponsored mortgage-backed securities | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 80,014 | 85,675 |
Available-for-sale Securities, Gross Unrealized Gains | 198 | 353 |
Available-for-sale Securities, Gross Unrealized Losses | 616 | 441 |
Available-for-sale securities, Fair Value | 79,596 | 85,587 |
U.S. Government-sponsored collateralized mortgage obligations | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 12,121 | 14,030 |
Available-for-sale Securities, Gross Unrealized Gains | 6 | 26 |
Available-for-sale Securities, Gross Unrealized Losses | 80 | 64 |
Available-for-sale securities, Fair Value | 12,047 | 13,992 |
Trust preferred securities | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 1,649 | 1,662 |
Available-for-sale Securities, Gross Unrealized Losses | 811 | 883 |
Available-for-sale securities, Fair Value | 838 | 779 |
Total debt securities | ||
Summary of investment securities | ||
Available-for-sale Securities, Amortized Cost | 156,995 | 158,654 |
Available-for-sale Securities, Gross Unrealized Gains | 1,476 | 2,135 |
Available-for-sale Securities, Gross Unrealized Losses | 2,019 | 1,591 |
Available-for-sale securities, Fair Value | 156,452 | 159,198 |
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) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2014Security | Jun. 30, 2015USD ($)Investment | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)SecurityInvestment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)Security | Dec. 31, 2013USD ($)Security | |
Schedule Of Available For Sale Securities [Line Items] | |||||||
Trading securities | $ 7,955,000 | $ 7,955,000 | $ 7,861,000 | ||||
Unrealized gains on trading securities | $ 53,000 | 42,000 | $ 44,100 | 39,000 | |||
Unrealized losses on trading securities | 1,000 | $ 4,000 | |||||
Net unrealized gains (losses) on trading securities | (4,000) | 41,000 | |||||
Realized losses on trading securities | 34,000 | 71,000 | |||||
Realized gains on trading securities | 88,000 | 222,900 | |||||
Carrying value of investment securities for pledge | 112,800,000 | $ 112,800,000 | |||||
Investment securities with fair value less than amortized cost | Security | 61 | 37 | |||||
Impairment loss recognized through impairment assessment process | 0 | $ 0 | $ 0 | $ 0 | |||
Minimum assets of trust preferred securities issued by institution | 15,000,000,000 | 15,000,000,000 | |||||
Available-for-sale Securities, Amortized Cost | 160,044,000 | 160,044,000 | $ 161,703,000 | ||||
Total debt securities, Fair Value | 159,501,000 | 159,501,000 | 162,247,000 | ||||
Non-accrual investment securities | $ 838,000 | $ 838,000 | $ 779,000 | ||||
Trust preferred securities in nonaccrual status | Investment | 2 | 2 | |||||
Estimated length of interest payment delays | 10 years | ||||||
iTruPS securities | |||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||
Number of securities owned by company | Security | 9 | ||||||
Available-for-sale Securities, Amortized Cost | $ 10,500,000 | ||||||
Total debt securities, Fair Value | 8,500,000 | ||||||
Net impairment losses recognized in earnings | $ 2,000,000 | ||||||
Number of securities sold by company | Security | 9 |
Investment Securities (Detail33
Investment Securities (Details 1) $ in Thousands | Jun. 30, 2015USD ($) |
Amortized cost and fair value of debt securities by contractual maturity | |
Amortized Cost, Total | $ 156,995 |
Total debt securities, Fair Value | 156,452 |
Available-for-sale Securities | |
Amortized cost and fair value of debt securities by contractual maturity | |
Amortized Cost, Due in one year or less | 676 |
Amortized Cost, Due after one year through five years | 70 |
Amortized Cost, Due after five years through ten years | 24,452 |
Amortized Cost, Due after ten years | 39,662 |
Amortized Cost, Total | 64,860 |
Fair Value, Due in one year or less | 679 |
Fair Value, Due after one year through five years | 71 |
Fair Value, Due after five years through ten years | 24,871 |
Fair Value, Due after ten years | 39,188 |
Fair Value, Total | 64,809 |
U.S. Government-sponsored mortgage-backed and related securities | |
Amortized cost and fair value of debt securities by contractual maturity | |
Amortized Cost, Total | 92,135 |
Total debt securities, Fair Value | $ 91,643 |
Investment Securities (Detail34
Investment Securities (Details 2) $ in Thousands | 6 Months Ended |
Jun. 30, 2014USD ($) | |
Proceeds, gains and losses realized on securities sold or called | |
Proceeds on securities sold | $ 10,237 |
Gross realized gains | 637 |
Gross realized losses | $ 444 |
Investment Securities (Detail35
Investment Securities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value | ||
Fair Value, Less than 12 Months | $ 65,544 | $ 19,524 |
Fair Value, 12 Months or More | 23,544 | 41,543 |
Fair Value, Total | 89,088 | 61,067 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 669 | 83 |
Unrealized Losses, 12 Months or More | 1,350 | 1,508 |
Unrealized Losses, Total | 2,019 | 1,591 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Fair Value, Less than 12 Months | 10,653 | 2,456 |
Fair Value, 12 Months or More | 2,119 | 4,159 |
Fair Value, Total | 12,772 | 6,615 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 337 | 18 |
Unrealized Losses, 12 Months or More | 101 | 105 |
Unrealized Losses, Total | 438 | 123 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Fair Value, Less than 12 Months | 36,942 | 14,460 |
Fair Value, 12 Months or More | 18,656 | 31,550 |
Fair Value, Total | 55,598 | 46,010 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 236 | 33 |
Unrealized Losses, 12 Months or More | 380 | 408 |
Unrealized Losses, Total | 616 | 441 |
U.S. Government-sponsored collateralized mortgage obligations | ||
Fair Value | ||
Fair Value, Less than 12 Months | 10,069 | 2,273 |
Fair Value, 12 Months or More | 3,145 | |
Fair Value, Total | 10,069 | 5,418 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 80 | 30 |
Unrealized Losses, 12 Months or More | 34 | |
Unrealized Losses, Total | 80 | 64 |
Trust preferred securities | ||
Fair Value | ||
Fair Value, 12 Months or More | 838 | 779 |
Fair Value, Total | 838 | 779 |
Unrealized Losses | ||
Unrealized Losses, 12 Months or More | 811 | 883 |
Unrealized Losses, Total | 811 | 883 |
U.S. Government agencies and corporations | ||
Fair Value | ||
Fair Value, Less than 12 Months | 7,880 | 335 |
Fair Value, 12 Months or More | 1,931 | 1,910 |
Fair Value, Total | 9,811 | 2,245 |
Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 16 | 2 |
Unrealized Losses, 12 Months or More | 58 | 78 |
Unrealized Losses, Total | $ 74 | $ 80 |
Investment Securities (Detail36
Investment Securities (Details 4) $ in Thousands | 6 Months Ended |
Jun. 30, 2014USD ($) | |
Cumulative roll forward of credit losses recognized in earnings for trust preferred securities | |
Beginning balance | $ 140 |
Ending balance | 140 |
Trust preferred securities | |
Cumulative roll forward of credit losses recognized in earnings for trust preferred securities | |
Beginning balance | 2,305 |
Sale of debt securities | (2,165) |
Ending balance | $ 140 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Composition of the loan portfolio | ||
Total loans | $ 357,873 | $ 360,185 |
Commercial | ||
Composition of the loan portfolio | ||
Total loans | $ 57,495 | $ 72,330 |
Percentage of loans | 16.10% | 20.10% |
Commercial real estate | ||
Composition of the loan portfolio | ||
Total loans | $ 233,531 | $ 223,536 |
Percentage of loans | 65.30% | 62.10% |
Residential real estate | ||
Composition of the loan portfolio | ||
Total loans | $ 40,607 | $ 38,875 |
Percentage of loans | 11.30% | 10.80% |
Consumer - home equity | ||
Composition of the loan portfolio | ||
Total loans | $ 21,827 | $ 21,328 |
Percentage of loans | 6.10% | 5.90% |
Consumer - other | ||
Composition of the loan portfolio | ||
Total loans | $ 4,413 | $ 4,116 |
Percentage of loans | 1.20% | 1.10% |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses (Details 1) | 6 Months Ended |
Jun. 30, 2015 | |
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 | Stable |
Concentrations of credit | Stable |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses (Details 2) | 6 Months Ended |
Jun. 30, 2015 | |
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 | Stable |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Analysis of changes in the allowance for loan losses | ||||
Balance at beginning of period | $ 5,365 | $ 4,051 | $ 5,202 | $ 3,764 |
Loan charge-offs | (78) | (92) | (113) | (239) |
Recoveries | 37 | 25 | 75 | 309 |
Net loan recoveries (charge-offs) | (41) | (67) | (38) | 70 |
Provision charged to operations | 130 | 150 | 290 | 300 |
Balance at end of period | 5,454 | 4,134 | 5,454 | 4,134 |
Commercial | ||||
Analysis of changes in the allowance for loan losses | ||||
Balance at beginning of period | 1,990 | 684 | 2,064 | 593 |
Loan charge-offs | (2) | (2) | (112) | |
Recoveries | 1 | 2 | 262 | |
Net loan recoveries (charge-offs) | (1) | 150 | ||
Provision charged to operations | 126 | 65 | 51 | 6 |
Balance at end of period | 2,115 | 749 | 2,115 | 749 |
Commercial real estate | ||||
Analysis of changes in the allowance for loan losses | ||||
Balance at beginning of period | 2,983 | 2,897 | 2,754 | 2,638 |
Loan charge-offs | (50) | (50) | ||
Recoveries | 10 | 10 | ||
Net loan recoveries (charge-offs) | (40) | (40) | ||
Provision charged to operations | 10 | (6) | 239 | 253 |
Balance at end of period | 2,953 | 2,891 | 2,953 | 2,891 |
Residential real estate | ||||
Analysis of changes in the allowance for loan losses | ||||
Balance at beginning of period | 231 | 293 | 229 | 356 |
Loan charge-offs | (3) | (19) | (5) | (19) |
Recoveries | 4 | 1 | 15 | 2 |
Net loan recoveries (charge-offs) | 1 | (18) | 10 | (17) |
Provision charged to operations | (9) | 20 | (16) | (44) |
Balance at end of period | 223 | 295 | 223 | 295 |
Consumer - home equity | ||||
Analysis of changes in the allowance for loan losses | ||||
Balance at beginning of period | 64 | 90 | 60 | 88 |
Loan charge-offs | (39) | (39) | ||
Recoveries | 4 | 3 | 9 | 8 |
Net loan recoveries (charge-offs) | 4 | (36) | 9 | (31) |
Provision charged to operations | (5) | 46 | (6) | 43 |
Balance at end of period | 63 | 100 | 63 | 100 |
Consumer - other | ||||
Analysis of changes in the allowance for loan losses | ||||
Balance at beginning of period | 97 | 87 | 95 | 89 |
Loan charge-offs | (23) | (34) | (56) | (69) |
Recoveries | 18 | 21 | 39 | 37 |
Net loan recoveries (charge-offs) | (5) | (13) | (17) | (32) |
Provision charged to operations | 8 | 25 | 22 | 42 |
Balance at end of period | $ 100 | $ 99 | $ 100 | $ 99 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | $ 1,511 | $ 1,464 | ||||
Collectively evaluated for impairment | 3,943 | 3,738 | ||||
Total ending allowance balance | 5,454 | $ 5,365 | 5,202 | $ 4,134 | $ 4,051 | $ 3,764 |
Loan Portfolio: | ||||||
Individually evaluated for impairment | 7,246 | 7,752 | ||||
Collectively evaluated for impairment | 350,627 | 352,433 | ||||
Total ending loans balance | 357,873 | 360,185 | ||||
Commercial | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 1,308 | 1,316 | ||||
Collectively evaluated for impairment | 807 | 748 | ||||
Total ending allowance balance | 2,115 | 1,990 | 2,064 | 749 | 684 | 593 |
Loan Portfolio: | ||||||
Individually evaluated for impairment | 1,850 | 2,023 | ||||
Collectively evaluated for impairment | 55,645 | 70,307 | ||||
Total ending loans balance | 57,495 | 72,330 | ||||
Commercial real estate | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 203 | 148 | ||||
Collectively evaluated for impairment | 2,750 | 2,606 | ||||
Total ending allowance balance | 2,953 | 2,983 | 2,754 | 2,891 | 2,897 | 2,638 |
Loan Portfolio: | ||||||
Individually evaluated for impairment | 5,396 | 5,729 | ||||
Collectively evaluated for impairment | 228,135 | 217,807 | ||||
Total ending loans balance | 233,531 | 223,536 | ||||
Residential real estate | ||||||
Ending allowance balance attributable to loans: | ||||||
Collectively evaluated for impairment | 223 | 229 | ||||
Total ending allowance balance | 223 | 231 | 229 | 295 | 293 | 356 |
Loan Portfolio: | ||||||
Collectively evaluated for impairment | 40,607 | 38,875 | ||||
Total ending loans balance | 40,607 | 38,875 | ||||
Consumer - home equity | ||||||
Ending allowance balance attributable to loans: | ||||||
Collectively evaluated for impairment | 63 | 60 | ||||
Total ending allowance balance | 63 | 64 | 60 | 100 | 90 | 88 |
Loan Portfolio: | ||||||
Collectively evaluated for impairment | 21,827 | 21,328 | ||||
Total ending loans balance | 21,827 | 21,328 | ||||
Consumer - other | ||||||
Ending allowance balance attributable to loans: | ||||||
Collectively evaluated for impairment | 100 | 95 | ||||
Total ending allowance balance | 100 | $ 97 | 95 | $ 99 | $ 87 | $ 89 |
Loan Portfolio: | ||||||
Collectively evaluated for impairment | 4,413 | 4,116 | ||||
Total ending loans balance | $ 4,413 | $ 4,116 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Loan | Jun. 30, 2014Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2014Loan | Dec. 31, 2014USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Current Loans | $ 352,254 | $ 352,254 | $ 352,174 | ||
Period after which loans considered nonperforming | 90 days | ||||
Number of loans modified as TDRs | Loan | 0 | 0 | |||
Number of loans approved as TDRs, subsequently defaulted | Loan | 0 | 0 | 0 | 0 | |
60-day term commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Current Loans | $ 22,600 | ||||
Financing receivables, maturity | First quarter of 2015 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of credit quality indicators by internally assigned grade | ||
Total loans | $ 357,873 | $ 360,185 |
Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 57,495 | 72,330 |
Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 233,531 | 223,536 |
Pass | Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 48,983 | 65,339 |
Pass | Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 216,892 | 205,890 |
Special Mention | Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 6,650 | 4,963 |
Special Mention | Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 10,969 | 10,209 |
Substandard | Commercial | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | 1,862 | 2,028 |
Substandard | Commercial real estate | ||
Summary of credit quality indicators by internally assigned grade | ||
Total loans | $ 5,670 | $ 7,437 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of consumer credit exposure | ||
Total loans | $ 357,873 | $ 360,185 |
Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 40,607 | 38,875 |
Consumer - home equity | ||
Summary of consumer credit exposure | ||
Total loans | 21,827 | 21,328 |
Consumer - other | ||
Summary of consumer credit exposure | ||
Total loans | 4,413 | 4,116 |
Performing | Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 39,442 | 37,544 |
Performing | Consumer - home equity | ||
Summary of consumer credit exposure | ||
Total loans | 21,594 | 21,179 |
Performing | Consumer - other | ||
Summary of consumer credit exposure | ||
Total loans | 4,412 | 4,110 |
Nonperforming | Residential real estate | ||
Summary of consumer credit exposure | ||
Total loans | 1,165 | 1,331 |
Nonperforming | Consumer - home equity | ||
Summary of consumer credit exposure | ||
Total loans | 233 | 149 |
Nonperforming | Consumer - other | ||
Summary of consumer credit exposure | ||
Total loans | $ 1 | $ 6 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of classes of loans on non-accrual status | ||
Total | $ 5,280 | $ 5,557 |
Commercial | ||
Summary of classes of loans on non-accrual status | ||
Total | 1,670 | 1,824 |
Commercial real estate | ||
Summary of classes of loans on non-accrual status | ||
Total | 2,211 | 2,247 |
Residential real estate | ||
Summary of classes of loans on non-accrual status | ||
Total | 1,165 | 1,331 |
Consumer - home equity | ||
Summary of classes of loans on non-accrual status | ||
Total | 233 | 149 |
Consumer - other | Consumer - other | ||
Summary of classes of loans on non-accrual status | ||
Total | $ 1 | $ 6 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | $ 743 | $ 826 |
60-89 Days Past Due | 240 | 2,229 |
90 Days Or Greater | 4,636 | 4,956 |
Total Past Due | 5,619 | 8,011 |
Current | 352,254 | 352,174 |
Total ending loans balance | 357,873 | 360,185 |
Recorded Investment >90 Days and Accruing | 0 | 0 |
Commercial | ||
Aging analysis of the recorded investment of past due loans | ||
30-59 Days Past Due | 42 | 54 |
60-89 Days Past Due | 282 | |
90 Days Or Greater | 1,670 | 1,542 |
Total Past Due | 1,712 | 1,878 |
Current | 55,783 | 70,452 |
Total ending loans balance | 57,495 | 72,330 |
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 | 487 | 574 |
60-89 Days Past Due | 116 | 1,774 |
90 Days Or Greater | 1,679 | 2,115 |
Total Past Due | 2,282 | 4,463 |
Current | 231,249 | 219,073 |
Total ending loans balance | 233,531 | 223,536 |
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 | 114 | 122 |
60-89 Days Past Due | 105 | 173 |
90 Days Or Greater | 1,053 | 1,144 |
Total Past Due | 1,272 | 1,439 |
Current | 39,335 | 37,436 |
Total ending loans balance | 40,607 | 38,875 |
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 | 77 | 61 |
60-89 Days Past Due | 19 | |
90 Days Or Greater | 233 | 149 |
Total Past Due | 329 | 210 |
Current | 21,498 | 21,118 |
Total ending loans balance | 21,827 | 21,328 |
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 | 23 | 15 |
90 Days Or Greater | 1 | 6 |
Total Past Due | 24 | 21 |
Current | 4,389 | 4,095 |
Total ending loans balance | 4,413 | 4,116 |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Commercial | |||||
Loans evaluated for impairment by loan segment | |||||
Recorded Investment, With no related allowance recorded | $ 427 | $ 427 | $ 457 | ||
Recorded Investment, With related allowance recorded | 1,423 | 1,423 | 1,566 | ||
Recorded Investment, Total | 1,850 | 1,850 | 2,023 | ||
Unpaid Principal Balance, with no related allowance | 427 | 427 | 457 | ||
Unpaid Principal Balance, with related allowance | 1,423 | 1,423 | 1,566 | ||
Unpaid Principal Balance, Total | 1,850 | 1,850 | 2,023 | ||
Related Allowance, with related allowance | 1,308 | 1,308 | 1,316 | ||
Related Allowance, Total | 1,308 | 1,308 | 1,316 | ||
Average Recorded Investment, with no related allowance recorded | 341 | $ 215 | 348 | $ 219 | |
Average Recorded Investment, with related allowance recorded | 1,515 | 73 | 1,539 | 84 | |
Average Recorded Investment, Total | 1,856 | 288 | 1,887 | 303 | |
Interest Income Recognized, with no related allowance | 2 | 4 | 6 | 10 | |
Interest Income Recognized, Total | 2 | 4 | 6 | ||
Commercial real estate | |||||
Loans evaluated for impairment by loan segment | |||||
Recorded Investment, With no related allowance recorded | 4,512 | 4,512 | 4,498 | ||
Recorded Investment, With related allowance recorded | 884 | 884 | 1,231 | ||
Recorded Investment, Total | 5,396 | 5,396 | 5,729 | ||
Unpaid Principal Balance, with no related allowance | 4,714 | 4,714 | 5,242 | ||
Unpaid Principal Balance, with related allowance | 884 | 884 | 1,231 | ||
Unpaid Principal Balance, Total | 5,598 | 5,598 | 6,473 | ||
Related Allowance, with related allowance | 203 | 203 | 148 | ||
Related Allowance, Total | 203 | 203 | $ 148 | ||
Average Recorded Investment, with no related allowance recorded | 4,140 | 4,030 | 4,344 | 3,849 | |
Average Recorded Investment, with related allowance recorded | 1,272 | 1,561 | 1,246 | 1,569 | |
Average Recorded Investment, Total | 5,412 | 5,591 | 5,590 | 5,418 | |
Interest Income Recognized, with no related allowance | 37 | 43 | 84 | 88 | |
Interest Income Recognized, with related allowance | 29 | 28 | 44 | 36 | |
Interest Income Recognized, Total | $ 66 | $ 71 | $ 128 | $ 124 |
Earnings Per Share and Capita48
Earnings Per Share and Capital Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Computation of basic earnings per common share | ||||
Net income | $ 916 | $ 1,039 | $ 2,065 | $ 2,371 |
Weighted average common shares outstanding | 4,525,322 | 4,527,848 | 4,526,578 | 4,527,848 |
Earnings per share | $ 0.21 | $ 0.23 | $ 0.46 | $ 0.52 |
Subordinated Debt (Details Text
Subordinated Debt (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2007 | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
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 | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Interest rate description | 3-month LIBOR rate plus 1.45% | ||
LIBOR Rate Points | 1.45% | ||
Interest rate | 1.74% | 1.69% |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Commitments to extend credit: | ||
Fixed rate | $ 13,950 | $ 13,825 |
Variable rate | 47,104 | 49,897 |
Standby letters of credit | $ 2,277 | $ 608 |
Commitments (Details 1)
Commitments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of overdraft protection | ||
Overdraft protection available on depositors' accounts | $ 9,632 | $ 9,632 |
Balance of overdrafts included in loans | 100 | 108 |
Average daily balance of overdrafts | $ 97 | $ 117 |
Average daily balance of overdrafts as a percentage of available | 1.01% | 1.21% |
Commitments (Details Textual)
Commitments (Details Textual) | Jun. 30, 2015USD ($) |
Third party interest rate swap | |
Commitments [Line Items] | |
Cash pledged for collateral | $ 150,000 |
Commitments (Details 2)
Commitments (Details 2) - Jun. 30, 2015 - USD ($) | Total |
Customer interest rate swap | |
Derivative [Line Items] | |
Notional Amount | $ 6,052,000 |
Maturity | 2,025 |
Interest Rate Paid | 1 Mo. Libor + Margin |
Interest Rate Received | Fixed |
Fair Value | $ 17,000 |
Third party interest rate swap | |
Derivative [Line Items] | |
Notional Amount | $ 6,052,000 |
Maturity | 2,025 |
Interest Rate Paid | Fixed |
Interest Rate Received | 1 Mo. Libor + Margin |
Fair Value | $ (17,000) |
Commitments (Details 3)
Commitments (Details 3) $ in Thousands | Jun. 30, 2015USD ($) |
Derivatives Fair Value [Line Items] | |
Assets, Fair Value | $ 17 |
Liabilities, Fair Value | 17 |
Other assets | |
Derivatives Fair Value [Line Items] | |
Assets, Fair Value | 17 |
Other liabilities | |
Derivatives Fair Value [Line Items] | |
Liabilities, Fair Value | $ 17 |
Fair Value of Assets and Liab55
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Total debt securities, Fair Value | $ 159,501 | $ 162,247 |
Regulatory stock | 3,049 | 3,049 |
Trading securities | 7,955 | 7,861 |
Loans held for sale | 2,774 | 632 |
Interest rate derivatives | 17 | |
LIABILITIES | ||
Interest rate derivatives | 17 | |
Trust preferred securities | ||
ASSETS | ||
Total debt securities, Fair Value | 838 | 779 |
Level 1 | ||
ASSETS | ||
Total debt securities, Fair Value | 3,049 | 3,049 |
Regulatory stock | 3,049 | 3,049 |
Loans held for sale | 2,774 | 632 |
Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | 155,614 | 158,419 |
Trading securities | 7,955 | 7,861 |
Interest rate derivatives | 17 | |
LIABILITIES | ||
Interest rate derivatives | 17 | |
Level 3 | ||
ASSETS | ||
Total debt securities, Fair Value | 838 | 779 |
Level 3 | Trust preferred securities | ||
ASSETS | ||
Total debt securities, Fair Value | 838 | 779 |
U.S. Government agencies and corporations | ||
ASSETS | ||
Total debt securities, Fair Value | 13,574 | 8,648 |
U.S. Government agencies and corporations | Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | 13,574 | 8,648 |
Obligations of states and political subdivisions | ||
ASSETS | ||
Total debt securities, Fair Value | 50,397 | 50,091 |
Obligations of states and political subdivisions | Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | 50,397 | 50,091 |
U.S. Government-sponsored mortgage-backed securities | ||
ASSETS | ||
Total debt securities, Fair Value | 79,596 | 85,587 |
U.S. Government-sponsored mortgage-backed securities | Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | 79,596 | 85,587 |
U.S. Government-sponsored collateralized mortgage obligations | ||
ASSETS | ||
Total debt securities, Fair Value | 12,047 | 13,992 |
U.S. Government-sponsored collateralized mortgage obligations | Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | $ 12,047 | 13,992 |
U.S.Treasury securities | ||
ASSETS | ||
Total debt securities, Fair Value | 101 | |
U.S.Treasury securities | Level 2 | ||
ASSETS | ||
Total debt securities, Fair Value | $ 101 |
Fair Value of Assets and Liab56
Fair Value of Assets and Liabilities (Details 1) - Trust preferred securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in the Level 3 fair value category | ||||
Beginning balance | $ 759 | $ 743 | $ 779 | $ 10,136 |
Net realized/unrealized gains/(losses) included in: | ||||
Other comprehensive income | 87 | (6) | 72 | 730 |
Discount accretion (premium amortization) | 7 | |||
Sales | (10,044) | |||
Purchases, issuance, and settlements | (8) | (57) | (13) | (149) |
Ending balance | $ 838 | $ 680 | $ 838 | $ 680 |
Fair Value of Assets and Liab57
Fair Value of Assets and Liabilities (Details Textual) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015Security | Jun. 30, 2014Security | Dec. 31, 2014Security | Dec. 31, 2013USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Number of debt securities with other-than-temporary impairment | 1 | 1 | ||
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 | 10.21% | |||
Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value input discount rate | 13.99% | |||
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 | |||
Number of debt securities with other-than-temporary impairment | 1 | 1 | ||
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 | 10.21% | 10.24% | ||
Trust preferred securities | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value input discount rate | 13.99% | 15.75% |
Fair Value of Assets and Liab58
Fair Value of Assets and Liabilities (Details 2) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015USD ($)Security | Jun. 30, 2014USD ($)Security | Dec. 31, 2014USD ($)Security | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Breakdown of trust preferred securities | ||||||
Number considered OTTI | Security | 1 | 1 | ||||
Life-to-date impairment recognized in earnings | $ 140 | $ 140 | $ 140 | $ 140 | ||
Life-to-date impairment recognized in other comprehensive income | $ 2,019 | $ 1,591 | ||||
Trust preferred securities | ||||||
Breakdown of trust preferred securities | ||||||
Total number of trust preferred securities | Security | 2 | 2 | ||||
Par value | $ 1,789 | $ 1,802 | ||||
Number not considered OTTI | Security | 1 | 1 | ||||
Par value | $ 789 | $ 802 | ||||
Number considered OTTI | Security | 1 | 1 | ||||
Par value | $ 1,000 | $ 1,000 | ||||
Life-to-date impairment recognized in earnings | 140 | $ 140 | 140 | $ 140 | $ 140 | $ 2,305 |
Life-to-date impairment recognized in other comprehensive income | 811 | 883 | ||||
Total life-to-date impairment | $ 951 | $ 1,023 |
Fair Value of Assets and Liab59
Fair Value of Assets and Liabilities (Details 3) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Losses recognized in earnings for trust preferred securities held | |
Beginning balance | $ 140 |
Ending balance | 140 |
Trapeza IX B-1 | |
Losses recognized in earnings for trust preferred securities held | |
Beginning balance | 140 |
Ending balance | $ 140 |
Moody’s/Fitch Rating | Ca/CC |
Fair Value of Assets and Liab60
Fair Value of Assets and Liabilities (Details 4) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)Issurers_Currently_Performing | Dec. 31, 2014USD ($)Issurers_Currently_Performing | |
Additional information related to the Company's trust preferred securities | ||
Available-for-sale Securities, Amortized Cost | $ 160,044 | $ 161,703 |
Total debt securities, Fair Value | $ 159,501 | 162,247 |
PreTSL XXIII | ||
Additional information related to the Company's trust preferred securities | ||
Class | C2 | |
Available-for-sale Securities, Amortized Cost | $ 789 | 802 |
Total debt securities, Fair Value | 351 | 313 |
Unrealized Gain/(Loss) | $ (438) | $ (489) |
Moody’s/Fitch Rating | B2/C | |
Number of Issuers Currently Performing | Issurers_Currently_Performing | 92 | 91 |
Deferrals and Defaults as a % of Current Collateral | 23.40% | 25.20% |
Trapeza IX | ||
Additional information related to the Company's trust preferred securities | ||
Class | B1 | |
Available-for-sale Securities, Amortized Cost | $ 860 | $ 860 |
Total debt securities, Fair Value | 487 | 466 |
Unrealized Gain/(Loss) | $ (373) | $ (394) |
Moody’s/Fitch Rating | Ca/CC | |
Number of Issuers Currently Performing | Issurers_Currently_Performing | 32 | 33 |
Deferrals and Defaults as a % of Current Collateral | 18.30% | 18.10% |
Trust preferred securities | ||
Additional information related to the Company's trust preferred securities | ||
Available-for-sale Securities, Amortized Cost | $ 1,649 | $ 1,662 |
Total debt securities, Fair Value | 838 | 779 |
Unrealized Gain/(Loss) | $ (811) | $ (883) |
Fair Value of Assets and Liab61
Fair Value of Assets and Liabilities (Details 5) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets measured on a nonrecurring basis: | ||
Impaired loans | $ 5,735 | $ 6,288 |
Other real estate owned | 40 | |
Level 3 | ||
Assets measured on a nonrecurring basis: | ||
Impaired loans | $ 5,735 | 6,288 |
Other real estate owned | $ 40 |
Fair Value of Assets and Liab62
Fair Value of Assets and Liabilities (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents, carrying value | $ 9,344 | $ 10,569 | $ 11,718 | $ 12,396 |
Investment securities available-for-sale, carrying value | 159,501 | 162,247 | ||
Trading securities, carrying value | 7,955 | 7,861 | ||
Loans held for sale | 2,774 | 632 | ||
Loans, net of allowance for loan losses, carrying value | 352,419 | 354,983 | ||
Bank-owned life insurance | 17,162 | 16,990 | ||
Accrued interest receivable, carrying value | 1,757 | 1,723 | ||
Interest rate derivatives, carrying value | 17 | |||
LIABILITIES | ||||
Demand, savings and money market deposits, carrying value | 315,693 | 326,554 | ||
Time deposits, carrying value | 131,680 | 130,207 | ||
Short-term borrowings | 5,483 | 4,259 | ||
Federal Home Loan Bank advances - short term, carrying value | 21,000 | 15,500 | ||
Federal Home Loan Bank advances - long term, carrying value | 25,000 | 25,000 | ||
Subordinated debt, carrying value | 5,155 | 5,155 | ||
Accrued interest payable, carrying value | 234 | 248 | ||
Interest rate derivatives, carrying value | 17 | |||
ASSETS: | ||||
Cash and cash equivalents, fair value | 9,344 | 10,569 | ||
Available-for-sale securities, Fair Value | 159,501 | 162,247 | ||
Trading securities | 7,955 | 7,861 | ||
Loans held for sale, fair value | 2,774 | 632 | ||
Loans, net of allowance for loan losses, fair value | 355,723 | 359,518 | ||
Bank-owned life insurance, fair value | 17,162 | 16,990 | ||
Accrued interest receivable, fair value | 1,757 | 1,723 | ||
Interest rate derivatives, fair value | 17 | |||
LIABILITIES: | ||||
Demand, savings and money market deposits, fair value | 315,693 | 326,554 | ||
Time deposits, fair value | 134,288 | 133,171 | ||
Short-term borrowings, fair value | 5,483 | 4,259 | ||
Federal Home Loan Bank advances - short term, fair value | 20,998 | 15,490 | ||
Federal Home Loan Bank advances - long term, fair value | 25,977 | 26,194 | ||
Subordinated debt, fair value | 4,527 | 4,573 | ||
Accrued interest payable, fair value | 234 | 248 | ||
Interest rate derivatives, fair value | 17 | |||
Level 1 | ||||
ASSETS | ||||
Loans held for sale | 2,774 | 632 | ||
ASSETS: | ||||
Cash and cash equivalents, fair value | 9,344 | 10,569 | ||
Available-for-sale securities, Fair Value | 3,049 | 3,049 | ||
Loans held for sale, fair value | 2,774 | 632 | ||
Bank-owned life insurance, fair value | 17,162 | 16,990 | ||
Accrued interest receivable, fair value | 1,757 | 1,723 | ||
LIABILITIES: | ||||
Demand, savings and money market deposits, fair value | 315,693 | 326,554 | ||
Short-term borrowings, fair value | 5,483 | 4,259 | ||
Federal Home Loan Bank advances - short term, fair value | 14,500 | 6,000 | ||
Accrued interest payable, fair value | 234 | 248 | ||
Level 2 | ||||
ASSETS: | ||||
Available-for-sale securities, Fair Value | 155,614 | 158,419 | ||
Trading securities | 7,955 | 7,861 | ||
Interest rate derivatives, fair value | 17 | |||
LIABILITIES: | ||||
Interest rate derivatives, fair value | 17 | |||
Level 3 | ||||
ASSETS: | ||||
Available-for-sale securities, Fair Value | 838 | 779 | ||
Loans, net of allowance for loan losses, fair value | 355,723 | 359,518 | ||
LIABILITIES: | ||||
Time deposits, fair value | 134,288 | 133,171 | ||
Federal Home Loan Bank advances - short term, fair value | 6,498 | 9,490 | ||
Federal Home Loan Bank advances - long term, fair value | 25,977 | 26,194 | ||
Subordinated debt, fair value | $ 4,527 | $ 4,573 |
Fair Value of Assets and Liab63
Fair Value of Assets and Liabilities (Details 7) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Total debt securities, Fair Value | $ 159,501 | $ 162,247 |
Minimum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 10.21% | |
Maximum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Fair value input discount rate | 13.99% | |
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 | $ 838 | $ 779 |
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 | 10.21% | 10.24% |
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 | 13.99% | 15.75% |
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 | $ 838 | $ 779 |
Impaired Loans | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Appraisal Adjustments | 28.00% | 23.00% |
Liquidation Expenses | 6.00% | 6.00% |
Impaired Loans | Minimum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Appraisal Adjustments | 0.00% | 0.00% |
Liquidation Expenses | 0.00% | 0.00% |
Impaired Loans | Maximum | ||
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis | ||
Appraisal Adjustments | 53.00% | 40.00% |
Liquidation Expenses | 43.00% | 33.00% |
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 | $ 5,735 | $ 6,288 |
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% | |
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 | $ 40 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning Balance | $ 376 | $ 376 | ||||
Total other comprehensive (loss) income | $ (1,190) | $ 1,282 | (764) | $ 2,860 | ||
Ending Balance | (388) | (388) | ||||
Accumulated Net Unrealized Investment Gain (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning Balance | 808 | 359 | (1,295) | $ (2,860) | 359 | (2,860) |
Other comprehensive income before reclassification | (1,167) | 449 | 1,269 | 1,692 | ||
Amount reclassified from accumulated other comprehensive loss | (127) | |||||
Total other comprehensive (loss) income | (1,167) | 449 | 1,269 | 1,565 | ||
Ending Balance | (359) | 808 | (26) | (1,295) | (359) | (26) |
Accumulated Defined Benefit Plans Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning Balance | (6) | 17 | (15) | (28) | 17 | (28) |
Other comprehensive income before reclassification | (23) | 13 | 13 | |||
Amount reclassified from accumulated other comprehensive loss | (23) | |||||
Total other comprehensive (loss) income | (23) | (23) | 13 | 13 | ||
Ending Balance | $ (29) | $ (6) | $ (2) | $ (15) | $ (29) | $ (2) |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (loss) (Details 1) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Unrealized gains on available-for-sale securities | ||||
Investment securities gains, net | $ (193) | |||
Federal income tax expense | $ (200) | $ (246) | $ (521) | (665) |
NET INCOME | $ 916 | $ 1,039 | $ 2,065 | 2,371 |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Unrealized gains on available-for-sale securities | ||||
Investment securities gains, net | (193) | |||
Federal income tax expense | 66 | |||
NET INCOME | $ (127) |
Post-Retirement Obligations (De
Post-Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Beginning balance | $ 653 | $ 600 | $ 585 | $ 614 |
Expense recorded | 45 | (1) | 91 | (2) |
Other comprehensive income recorded | 23 | (13) | 45 | (26) |
Ending balance | $ 721 | $ 586 | $ 721 | $ 586 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details Textual) - USD ($) | Mar. 24, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Equity Class Of Treasury Stock [Line Items] | |||
Percentage of shares authorized to be repurchased to common stock outstanding | 4.40% | ||
Common stock, shares outstanding | 4,527,849 | 4,517,849 | 4,527,848 |
Stock repurchase program, authorized amount | $ 3,100,000 | $ 2,700,000 | |
Stock repurchase program expiration date | Dec. 31, 2015 | ||
Stock repurchase program, shares repurchased | 10,000 | ||
Maximum | |||
Equity Class Of Treasury Stock [Line Items] | |||
Shares authorized to be repurchased | 200,000 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Short Term Debt [Line Items] | ||
Short-term borrowings | $ 5,483 | $ 4,259 |
Repurchase Agreements | ||
Short Term Debt [Line Items] | ||
Total collateral carrying value | 9,497 | 7,498 |
Repurchase Agreements | U.S. Government-sponsored mortgage-backed securities | ||
Short Term Debt [Line Items] | ||
Total collateral carrying value | 8,267 | 6,137 |
Repurchase Agreements | U.S. Government-sponsored collateralized mortgage obligations | ||
Short Term Debt [Line Items] | ||
Total collateral carrying value | $ 1,230 | $ 1,361 |
Uncategorized Items - cldb-2015
Label | Element | Value |
Trapeza Nine B One [Member] | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld | $ 140 |
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsCreditLossesOnDebtSecuritiesHeld | $ 140 |