Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ORRSTOWN FINANCIAL SERVICES INC | ||
Entity Central Index Key | 826,154 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ORRF | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 8,412,247 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 180.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 21,734 | $ 16,072 |
Interest-bearing deposits with banks | 8,073 | 14,201 |
Cash and cash equivalents | 29,807 | 30,273 |
Restricted investments in bank stocks | 9,997 | 7,970 |
Securities available for sale | 415,308 | 400,154 |
Loans held for sale | 6,089 | 2,768 |
Loans | 1,010,012 | 883,391 |
Less: Allowance for loan losses | (12,796) | (12,775) |
Net loans | 997,216 | 870,616 |
Premises and equipment, net | 34,809 | 34,871 |
Cash surrender value of life insurance | 33,570 | 32,102 |
Accrued interest receivable | 5,048 | 4,672 |
Other assets | 27,005 | 31,078 |
Total assets | 1,558,849 | 1,414,504 |
Deposits: | ||
Noninterest-bearing | 162,343 | 150,747 |
Interest-bearing | 1,057,172 | 1,001,705 |
Total deposits | 1,219,515 | 1,152,452 |
Short-term borrowings | 93,576 | 87,864 |
Long-term debt | 83,815 | 24,163 |
Accrued interest and other liabilities | 17,178 | 15,166 |
Total liabilities | 1,414,084 | 1,279,645 |
Shareholders’ Equity | ||
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, no par value—$0.05205 stated value per share 50,000,000 shares authorized; 8,347,856 and 8,343,435 shares issued; 8,347,039 and 8,285,733 shares outstanding | 435 | 437 |
Additional paid—in capital | 125,458 | 124,935 |
Retained earnings | 16,042 | 11,669 |
Accumulated other comprehensive income (loss) | 2,845 | (1,165) |
Treasury stock—common, 817 and 57,702 shares, at cost | (15) | (1,017) |
Total shareholders’ equity | 144,765 | 134,859 |
Total liabilities and shareholders’ equity | $ 1,558,849 | $ 1,414,504 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, stated value (in dollars per share) | $ 0.05205 | $ 0.05205 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 8,347,856 | 8,343,435 |
Common stock, shares outstanding | 8,347,039 | 8,285,733 |
Treasury stock, shares | 817 | 57,702 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income | |||
Interest and fees on loans | $ 40,185 | $ 33,916 | $ 30,798 |
Interest and dividends on investment securities | |||
Taxable | 7,478 | 6,012 | 6,697 |
Tax-exempt | 3,134 | 1,826 | 1,059 |
Short term investments | 218 | 208 | 81 |
Total interest and dividend income | 51,015 | 41,962 | 38,635 |
Interest expense | |||
Interest on deposits | 6,134 | 4,811 | 3,606 |
Interest on short-term borrowings | 784 | 187 | 295 |
Interest on long-term debt | 726 | 419 | 400 |
Total interest expense | 7,644 | 5,417 | 4,301 |
Net interest income | 43,371 | 36,545 | 34,334 |
Provision for loan losses | 1,000 | 250 | (603) |
Net interest income after provision for loan losses | 42,371 | 36,295 | 34,937 |
Noninterest income | |||
Service charges on deposit accounts | 5,675 | 5,445 | 5,226 |
Other service charges, commissions and fees | 1,008 | 994 | 1,223 |
Trust and investment management income | 6,400 | 5,091 | 4,598 |
Brokerage income | 1,896 | 1,933 | 2,025 |
Mortgage banking activities | 2,919 | 3,412 | 2,747 |
Earnings on life insurance | 1,109 | 1,099 | 1,025 |
Other income | 190 | 345 | 410 |
Investment securities gains | 1,190 | 1,420 | 1,924 |
Total noninterest income | 20,387 | 19,739 | 19,178 |
Noninterest expenses | |||
Salaries and employee benefits | 30,145 | 26,370 | 24,056 |
Occupancy | 2,806 | 2,491 | 2,221 |
Furniture and equipment | 3,434 | 3,335 | 3,061 |
Data processing | 2,271 | 2,378 | 2,026 |
Telephone and communication | 647 | 740 | 692 |
Automated teller and interchange fees | 767 | 748 | 798 |
Advertising and bank promotions | 1,600 | 1,717 | 1,564 |
FDIC insurance | 606 | 775 | 859 |
Legal fees | 802 | 850 | 1,440 |
Other professional services | 1,571 | 1,332 | 1,262 |
Directors' compensation | 996 | 969 | 737 |
Collection and problem loan | 186 | 238 | 447 |
Real estate owned | 69 | 239 | 162 |
Taxes other than income | 866 | 767 | 916 |
Regulatory settlement | 0 | 1,000 | 0 |
Other operating expenses | 3,564 | 4,191 | 4,366 |
Total noninterest expenses | 50,330 | 48,140 | 44,607 |
Income before income tax expense | 12,428 | 7,894 | 9,508 |
Income tax expense | 4,338 | 1,266 | 1,634 |
Net income | $ 8,090 | $ 6,628 | $ 7,874 |
Per share information: | |||
Basic earnings per share (in dollars per share) | $ 1 | $ 0.82 | $ 0.97 |
Diluted earnings per share (in dollars per share) | 0.98 | 0.81 | 0.97 |
Dividends per share (in dollars per share) | $ 0.42 | $ 0.35 | $ 0.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 8,090 | $ 6,628 | $ 7,874 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) on securities available for sale arising during the period | 6,557 | (2,190) | 1,345 |
Reclassification adjustment for gains realized in net income | (1,190) | (1,420) | (1,924) |
Net unrealized gains (losses) | 5,367 | (3,610) | (579) |
Tax effect | (1,586) | 1,246 | 202 |
Total other comprehensive income (loss), net of tax and reclassification adjustments | 3,781 | (2,364) | (377) |
Total comprehensive income | $ 11,871 | $ 4,264 | $ 7,497 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2014 | $ 127,265 | $ 430 | $ 123,392 | $ 1,887 | $ 1,576 | $ (20) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 7,874 | 0 | 0 | 7,874 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | (377) | 0 | 0 | 0 | (377) | 0 |
Cash dividends | (1,822) | 0 | 0 | (1,822) | 0 | 0 |
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 840 | 5 | 835 | 0 | 0 | 0 |
Issuance of stock through dividend reinvestment plan | 90 | 0 | 90 | 0 | 0 | 0 |
Acquisition of treasury stock | (809) | 0 | 0 | 0 | 0 | (809) |
Ending balance at Dec. 31, 2015 | 133,061 | 435 | 124,317 | 7,939 | 1,199 | (829) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 6,628 | 0 | 0 | 6,628 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | (2,364) | 0 | 0 | 0 | (2,364) | 0 |
Cash dividends | (2,898) | 0 | 0 | (2,898) | 0 | 0 |
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 1,063 | 2 | 618 | 0 | 0 | 443 |
Acquisition of treasury stock | (631) | 0 | 0 | 0 | 0 | (631) |
Ending balance at Dec. 31, 2016 | 134,859 | 437 | 124,935 | 11,669 | (1,165) | (1,017) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 8,090 | 0 | 0 | 8,090 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 3,781 | 0 | 0 | 0 | 3,781 | 0 |
Cash dividends | (3,488) | 0 | 0 | (3,488) | 0 | |
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 1,523 | (2) | 523 | 0 | 0 | 1,002 |
Ending balance at Dec. 31, 2017 | 144,765 | 435 | 125,458 | 16,042 | 2,845 | (15) |
Increase (Decrease) in Stockholders' Equity | ||||||
Reclassification of disproportionate tax effects from accumulated other comprehensive income (loss) to retained earnings | $ 0 | $ 0 | $ 0 | $ (229) | $ 229 | $ 0 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in usd per share) | $ 0.42 | $ 0.35 | $ 0.22 |
Issuance of stock including compensation expense (in shares) | 4,421 | 22,956 | 50,686 |
Issuance of stock, compensation expense | $ 1,386 | $ 958 | $ 740 |
Issuance of treasury stock, shares | 56,885 | 25,834 | 0 |
Issuance of stock through dividend reinvestment plan (in shares) | 0 | 0 | 5,239 |
Acquisition of treasury stock (in shares) | 0 | 35,648 | 47,077 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 8,090 | $ 6,628 | $ 7,874 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of premiums on securities available for sale | 4,034 | 5,295 | 6,033 |
Depreciation and amortization | 3,265 | 2,951 | 2,907 |
Provision for loan losses | 1,000 | 250 | (603) |
Share-based compensation | 1,386 | 958 | 740 |
Gain on sales of loans originated for sale | (2,447) | (2,998) | (2,344) |
Mortgage loans originated for sale | (104,512) | (108,632) | (85,995) |
Proceeds from sales of loans originated for sale | 103,131 | 114,139 | 85,116 |
Gain on sale of portfolio loans | (32) | 0 | 0 |
Net gain on disposal of other real estate owned | (18) | (182) | (234) |
Writedown of other real estate owned | 4 | 183 | 45 |
Net (gain) loss on disposal of premises and equipment | (18) | 147 | 0 |
Deferred income taxes | 3,078 | (232) | 797 |
Investment securities gains | (1,190) | (1,420) | (1,924) |
Earnings on cash surrender value of life insurance | (1,109) | (1,099) | (1,025) |
Increase in accrued interest receivable | (376) | (827) | (748) |
Increase in accrued interest payable and other liabilities | 2,012 | 561 | 2,017 |
Other, net | 52 | (135) | (498) |
Net cash provided by operating activities | 16,350 | 15,587 | 12,158 |
Cash flows from investing activities | |||
Proceeds from sales of available for sale securities | 162,320 | 64,742 | 65,611 |
Maturities, repayments and calls of available for sale securities | 28,768 | 30,192 | 32,251 |
Purchases of available for sale securities | (203,719) | (108,448) | (120,475) |
Net (purchases) redemptions of restricted investments in bank stocks | (2,027) | 750 | (370) |
Net increase in loans | (130,791) | (108,509) | (78,776) |
Proceeds from sales of portfolio loans | 2,195 | 5,100 | 0 |
Investment in affordable housing limited partnerships | 0 | 0 | (2,205) |
Purchases of bank premises and equipment | (2,653) | (13,369) | (1,471) |
Improvements to other real estate owned | (9) | 0 | 0 |
Proceeds from disposal of other real estate owned | 541 | 1,090 | 1,839 |
Proceeds from disposal of bank premises and equipment | 83 | 0 | 0 |
Purchases of bank owned life insurance | (600) | 0 | (3,750) |
Other | 0 | (439) | 0 |
Net cash used in investing activities | (145,892) | (128,891) | (107,346) |
Cash flows from financing activities | |||
Net increase in deposits | 67,063 | 120,285 | 82,463 |
Net increase (decrease) in short-term borrowings | 5,712 | (1,292) | 2,414 |
Proceeds from long-term debt | 80,000 | 0 | 20,000 |
Payments on long-term debt | (20,348) | (332) | (10,317) |
Dividends paid | (3,488) | (2,898) | (1,822) |
Net proceeds from issuance of common stock | 0 | 105 | 190 |
Acquisition of treasury stock | 0 | (631) | (809) |
Net proceeds from issuance of treasury stock | 137 | 0 | 0 |
Net cash provided by financing activities | 129,076 | 115,237 | 92,119 |
Net increase (decrease) in cash and cash equivalents | (466) | 1,933 | (3,069) |
Cash and cash equivalents at beginning of year | 30,273 | 28,340 | 31,409 |
Cash and cash equivalents at end of year | 29,807 | 30,273 | 28,340 |
Cash paid during the year for: | |||
Interest | 7,586 | 5,346 | 4,208 |
Income taxes | 1,638 | 1,300 | 800 |
Supplemental schedule of noncash investing and financing activities: | |||
Other real estate acquired in settlement of loans | $ 1,007 | $ 688 | $ 1,428 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES See the Glossary of Defined Terms at the beginning of this Report for terms used throughout the consolidated financial statements and related notes of this Form 10-K. Nature of Operations – Orrstown Financial Services, Inc. and subsidiaries is a financial holding company that operates Orrstown Bank, a commercial bank with banking and financial advisory offices in Berks, Cumberland, Dauphin, Franklin, Lancaster and Perry Counties of Pennsylvania and in Washington County, Maryland and Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster, Pennsylvania, and which was acquired in December 2016. The Bank engages in lending activities including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending. Deposit services include checking, savings, time, and money market deposits. The Bank also provides investment and brokerage services through its OFA division. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by such regulatory authorities. Basis of Presentation – The accompanying consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiaries, the Bank and Wheatland. The accounting and reporting policies of the Company conform to GAAP and, where applicable, to accounting and reporting guidelines prescribed by bank regulatory authorities. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications have been made to prior year amounts to conform with current year classifications. In December 2016, the Company acquired Wheatland. The results of operations or assets acquired and liabilities assumed are included only from the date of acquisition. Pro forma financial information for the acquisition has not been included because the acquisition was not material. The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's consolidated financial statements and notes as required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ALL and income taxes. Concentration of Credit Risk – The Company grants commercial, residential, construction, municipal, and various forms of consumer lending to customers primarily in its market area of Berks, Cumberland, Dauphin, Franklin, Lancaster, and Perry Counties of Pennsylvania and in Washington County, Maryland. Therefore the Company's exposure to credit risk is significantly affected by changes in the economy in those areas. Although the Company maintains a diversified loan portfolio, a significant portion of its customers’ ability to honor their contracts is dependent upon economic sectors for commercial real estate, including office space, retail strip centers, sales finance, sub-dividers and developers, and multi-family, hospitality, and residential building operators. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if collateral is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but generally includes real estate and equipment. The types of securities the Company invests in are included in Note 3, Securities Available for Sale, and the type of lending the Company engages in are included in Note 4, Loans and Allowance for Loan Losses. Cash and Cash Equivalents – Cash and cash equivalents include cash, balances due from banks, federal funds sold and interest bearing deposits due on demand, all of which have original maturities of 90 days or less. Net cash flows are reported for customer loan and deposit transactions, loans held for sale, redemption (purchases) of restricted investments in bank stocks, and short-term borrowings. Restricted Investments in Bank Stocks – Restricted investments in bank stocks consist of Federal Reserve Bank of Philadelphia stock, FHLB of Pittsburgh stock and Atlantic Community Bankers Bank stock. Federal law requires a member institution of the district Federal Reserve Bank and FHLB to hold stock according to predetermined formulas. Atlantic Community Bankers Bank requires its correspondent banking institutions to hold stock as a condition of membership. The restricted investment in bank stocks is carried at cost. Quarterly, management evaluates the bank stocks for impairment based on assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as operating performance, liquidity, funding and capital positions, stock repurchase history, dividend history and impact of legislative and regulatory changes. Securities – The Company classifies debt and marketable equity securities as available for sale on the date of purchase. At December 31, 2017 and 2016 the Company had no held to maturity or trading securities. AFS securities are reported at fair value. Interest income and dividends are recognized in interest income on an accrual basis. Purchase premiums and discounts on debt securities are amortized to interest income using the interest method over the terms of the securities and approximate the level yield method. Changes in unrealized gains and losses, net of related deferred taxes, for AFS securities are recorded in AOCI. Realized gains and losses on securities are recorded on the trade date using the specific identification method and are included in noninterest income. AFS securities include investments that management intends to use as part of its asset/liability management strategy. Securities may be sold in response to changes in interest rates, changes in prepayment rates and other factors. The Company does not have the intent to sell any of its AFS securities that are in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components: OTTI related to other factors, which is recognized in OCI, and the remaining OTTI, which is recognized in earnings. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. The Company’s securities are exposed to various risks, such as interest rate risk, market risk, and credit risk. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term would materially affect investment assets reported in the consolidated financial statements. Loans Held for Sale – Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value. Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income. Loans – The Company grants commercial loans; residential, commercial and construction mortgage loans; and various forms of consumer loans to its customers located principally in south central Pennsylvania and northern Maryland. The ability of the Company’s debtors to honor their contracts is dependent largely upon the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the ALL, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a yield adjustment over the respective term of the loan. For purchased loans that are not deemed impaired at the acquisition date, premiums and discounts are amortized or accreted as adjustments to interest income using the effective yield method. For all classes of loans, the accrual of interest income on loans, including impaired loans, ceases when principal or interest is past due 90 days or more or immediately if, in the opinion of management, full collection is unlikely. Interest will continue to accrue on loans past due 90 days or more if the collateral is adequate to cover principal and interest, and the loan is in the process of collection. Interest accrued, but not collected, at the date of placement on nonaccrual status, is reversed and charged against current interest income, unless fully collateralized. Subsequent payments received are either applied to the outstanding principal balance or recorded as interest income, depending upon management’s assessment of the ultimate collectability of principal. Loans are returned to accrual status, for all loan classes, when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms of the note for a reasonable period of time, generally six months , and the ultimate collectability of the total contractual principal and interest is reasonably assured. Past due status is based on contractual terms of the loan. Loans, the terms of which are modified, are classified as TDRs if a concession was granted in connection with the modification, for legal or economic reasons, related to the debtor’s financial difficulties. Concessions granted under a TDR typically involve a temporary deferral of scheduled loan payments, an extension of a loan’s stated maturity date, a temporary reduction in interest rates, or granting of an interest rate below market rates given the risk of the transaction. If a modification occurs while the loan is on accruing status, it will continue to accrue interest under the modified terms. Nonaccrual TDRs may be restored to accrual status if scheduled principal and interest payments, under the modified terms, are current for six months after modification, and the borrower continues to demonstrate its ability to meet the modified terms. TDRs are evaluated individually for impairment on a quarterly basis including monitoring of performance according to their modified terms. Allowance for Loan Losses – The ALL is evaluated on a quarterly basis, as losses are estimated to be probable and incurred, and, if deemed necessary, is increased through a provision for loan losses charged to earnings. Loan losses are charged against the ALL when management determines that all or a portion of the loan is uncollectible. Recoveries on previously charged-off loans are credited to the ALL when received. The ALL is allocated to loan portfolio classes on a quarterly basis, but the entire balance is available to cover losses from any of the portfolio classes when those losses are confirmed. Management uses internal policies and bank regulatory guidance in periodically evaluating loans for collectability and incorporates historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. See Note 4, Loans and Allowance for Loan Losses, for additional information. Loan Commitments and Related Financial Instruments – Financial instruments include off-balance sheet credit commitments issued to meet customer financing needs, such as commitments to make loans and commercial letters of credit. These financial instruments are recorded when they are funded. The face amount represents the exposure to loss, before considering customer collateral or ability to repay. The Company maintains a reserve for probable losses on off-balance sheet commitments which is included in Other Liabilities. Loans Serviced – The Bank administers secondary market mortgage programs available through the FHLB and the Federal National Mortgage Association and offers residential mortgage products and services to customers. The Bank originates single-family residential mortgage loans for immediate sale in the secondary market and retains the servicing of those loans. At December 31, 2017 and 2016 , the balance of loans serviced for others totaled $334,802,000 and $328,701,000 . Transfers of Financial Assets – Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Cash Surrender Value of Life Insurance – The Company has purchased life insurance policies on certain employees. Life insurance is recorded at the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Premises and Equipment – Buildings, improvements, equipment, furniture and fixtures are carried at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation and amortization has been provided generally on the straight-line method and is computed over the estimated useful lives of the various assets as follows: buildings and improvements, including leasehold improvements – 10 to 40 years; and furniture and equipment – 3 to 15 years. Leasehold improvements are amortized over the shorter of the lease term or the indicated life. Repairs and maintenance are charged to operations as incurred, while major additions and improvements are capitalized. Gain or loss on retirement or disposal of individual assets is recorded as income or expense in the period of retirement or disposal. Goodwill and Other Intangible Assets – Goodwill is calculated as the purchase premium, if any, after adjusting for the fair value of net assets acquired in purchase transactions. Goodwill is not amortized but is reviewed for potential impairment on at least an annual basis, with testing between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit. Other intangible assets represent purchased assets that can be distinguished from goodwill because of contractual or other legal rights. The Company’s other intangible assets have finite lives and are amortized on either the sum of the years digits or straight line bases over their estimated lives, generally 10 years for deposit premiums and 10 to 15 years for customer lists. Mortgage Servicing Rights – The estimated fair value of MSRs related to loans sold and serviced by the Company is recorded as an asset upon the sale of such loans. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are evaluated periodically for impairment by comparing the carrying amount to estimated fair value. Fair value is determined periodically through a discounted cash flows valuation performed by a third party. Significant inputs to the valuation include expected servicing income, net of expense, the discount rate and the expected life of the underlying loans. To the extent the amortized cost of the MSRs exceeds their estimated fair values, a valuation allowance is established for such impairment through a charge against servicing income on the consolidated statements of income. If the Company determines, based on subsequent valuations, that the impairment no longer exists or is reduced, the valuation allowance is reduced through a credit to earnings. MSRs totaled $2,897,000 and $2,835,000 at December 31, 2017 and December 31, 2016 , and are included in Other Assets. Foreclosed Real Estate – Real estate property acquired through foreclosure or other means is initially recorded at the fair value of the related real estate collateral at the transfer date less estimated selling costs, and subsequently at the lower of its carrying value or fair value less estimated costs to sell. Fair value is usually determined based on an independent third party appraisal of the property or occasionally on a recent sales offer. Costs to maintain foreclosed real estate are expensed as incurred. Costs that significantly improve the value of the properties are capitalized. Foreclosed real estate totaled $961,000 and $346,000 at December 31, 2017 and 2016 and is included in Other Assets. Investments in Real Estate Partnerships – The Company has a 99% limited partner interest in several real estate partnerships in central Pennsylvania. These investments are affordable housing projects which entitle the Company to tax deductions and credits that expire through 2025. The Company accounts for its investments in affordable housing projects under the proportional amortization method when criteria are met, which is limited to one investment entered into in 2015. Other investments are accounted for under the equity method of accounting. The investment in these real estate partnerships, included in Other Assets, totaled $4,416,000 and $4,909,000 at December 31, 2017 and 2016 , of which $1,776,000 and $1,993,000 are accounted for under the proportional amortization method. Equity method losses totaled $277,000 , $350,000 and $384,000 for the years ended December 31, 2017 , 2016 and 2015 and are included in other noninterest income. Proportional amortization method losses totaled of $217,000 , $191,000 and $22,000 for the years ended December 31, 2017 , 2016 and 2015 and are included in income tax expense. During 2017 , 2016 and 2015 , the Company recognized federal tax credits from these projects totaling $1,010,000 , $736,000 and $475,000 , which are included in income tax expense. Advertising – The Company expenses advertising as incurred. Advertising expense totaled $631,000 , $763,000 and $723,000 for the years ended December 31, 2017 , 2016 and 2015 . Repurchase Agreements – The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities which are included in short-term borrowings. Under these agreements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these Repurchase Agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated balance sheets, while the securities underlying the Repurchase Agreements remaining are reflected in AFS securities. The repurchase obligation and underlying securities are not offset or netted. The Company does not enter into reverse Repurchase Agreements, so there is no offsetting to be performed with Repurchase Agreements. The right of setoff for a Repurchase Agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the Repurchase Agreement should the Company be in default (e.g., fail to make an interest payment to the counterparty). For the Repurchase Agreements, the collateral is held by the Company in a segregated custodial account under a third party agreement. Repurchase agreements are secured by GSE MBSs and mature overnight. Share Compensation Plans – The Company has share compensation plans that cover employees and non-employee directors. Compensation expense relating to share-based payment transactions is measured based on the grant date fair value of the share award, including a Black-Scholes model for stock options. Compensation expense for all share awards is calculated and recognized over the employees’ or non-employee directors' service period, generally defined as the vesting period. Income Taxes – Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense. Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Treasury Stock – Common stock shares repurchased are recorded as treasury stock at cost. Earnings Per Share – Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Restricted stock awards are included in weighted average common shares outstanding as they are earned. Diluted earnings per share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. Comprehensive Income – Comprehensive income consists of net income and OCI. OCI is limited to unrealized gains (losses) on securities available for sale for all years presented. Unrealized gains (losses) on securities available for sale, net of tax, was the sole component of AOCI at December 31, 2017 and 2016 and totaled $2,845,000 and $(1,165,000) . Fair Value – Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 17, Fair Value. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Segment Reporting – The Company operates in one significant segment – Community Banking. The Company’s non-banking activities are insignificant to the consolidated financial statements. Recent Accounting Pronouncements - ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. A substantial portion of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of ASU 2014-09. The Company's evaluation of the impact of changes for in-scope items within noninterest income, including service charges on deposit accounts and trust and investment management income, has not identified any significant impact on our consolidated financial statements. ASU 2014-09 was effective for the Company on January 1, 2018 and did not have a significant impact on our consolidated financial statements. ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-01 was effective for the Company on January 1, 2018 and did not have a significant impact on our consolidated financial statements. ASU 2016-02, Leases (Topic 842). ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Notwithstanding the foregoing, in January 2018, the FASB issued a proposal to provide an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company anticipates that the impact on its consolidated balance sheet will result in an increase in assets and liabilities for its right of use assets and related lease liabilities for those leases that are outstanding at the date of adoption, however, it does not anticipate it will have a material impact on its results of operations. Management is evaluating other effects of this standard on the Company's consolidated financial position and regulatory capital. ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). ASU 2016-09 requires recognition of the income tax effects of share-based awards in the income statement when the awards vest or are settled, eliminating additional paid-in capital pools. The adoption of these changes by the Company on January 1, 2017 did not have a material impact on our financial position or results of operations. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2016-13 on our consolidated financial statements. In that regard, the Company has formed a cross-functional working group, under the direction of the Chief Financial Officer and the Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology. We are currently developing an implementation plan to include, but not limited to, an assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs. We have selected a third-party vendor solution to assist us in the application of ASU 2016-13. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of the Company's loan and securities portfolios as well as the prevailing economic conditions and forecasts at the adoption date. ASU 2016-15, Statement of Cash Flows (Topic 230) - Restricted Cash . ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be in |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | RESTRICTIONS ON CASH AND DUE FROM BANKS Cash on hand or on deposit with the Federal Reserve Bank or other correspondent banks, totaling $1,395,000 and $4,371,000 at December 31, 2017 and 2016 , was required to meet regulatory reserve and clearing requirements. Balances with correspondent banks may, at times, exceed federally insured limits; however the Company considers this to be a normal business risk. The Company reviews correspondent banks' financial condition on a quarterly basis. |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE | SECURITIES AVAILABLE FOR SALE The following table summarizes amortized cost and fair value of AFS securities at December 31, 2017 and 2016 and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At December 31, 2017 and 2016 all investment securities were classified as AFS. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 States and political subdivisions $ 153,803 $ 6,133 $ 478 $ 159,458 GSE residential MBSs 48,600 930 0 49,530 GSE residential CMOs 113,658 296 2,835 111,119 Private label residential CMOs 999 4 0 1,003 Private label commercial CMOs 7,809 0 156 7,653 Asset-backed 86,787 69 425 86,431 Total debt securities 411,656 7,432 3,894 415,194 Equity securities 50 64 0 114 Totals $ 411,706 $ 7,496 $ 3,894 $ 415,308 December 31, 2016 U.S. Government Agencies $ 39,569 $ 147 $ 124 $ 39,592 States and political subdivisions 163,677 1,782 1,177 164,282 GSE residential MBSs 116,022 928 6 116,944 GSE residential CMOs 72,411 240 3,268 69,383 GSE commercial CMOs 5,148 0 292 4,856 Private label residential CMOs 5,042 0 36 5,006 Total debt securities 401,869 3,097 4,903 400,063 Equity securities 50 41 0 91 Totals $ 401,919 $ 3,138 $ 4,903 $ 400,154 The following table summarizes AFS securities with unrealized losses at December 31, 2017 and 2016 , aggregated by major security type and length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total (Dollars in thousands) # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses December 31, 2017 States and political subdivisions 7 $ 24,577 $ 473 1 $ 5,585 $ 5 8 $ 30,162 $ 478 GSE residential CMOs 4 25,155 914 5 37,459 1,921 9 62,614 2,835 Private label commercial CMOs 2 7,653 156 0 0 0 2 7,653 156 Asset-backed 6 60,006 425 0 0 0 6 60,006 425 Totals 19 $ 117,391 $ 1,968 6 $ 43,044 $ 1,926 25 $ 160,435 $ 3,894 December 31, 2016 U.S. Government Agencies 6 $ 10,710 $ 23 2 $ 13,531 $ 101 8 $ 24,241 $ 124 States and political subdivisions 25 58,924 610 1 5,075 567 26 63,999 1,177 GSE residential MBSs 1 5,034 6 0 0 0 1 5,034 6 GSE residential CMOs 6 59,534 3,264 1 634 4 7 60,168 3,268 GSE commercial CMOs 1 4,856 292 0 0 0 1 4,856 292 Private label residential CMOs 0 0 0 3 5,005 36 3 5,005 36 Totals 39 $ 139,058 $ 4,195 7 $ 24,245 $ 708 46 $ 163,303 $ 4,903 U.S. Government Agencies and GSE Securities. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at December 31, 2017 or at December 31, 2016 . State and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time these securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is OTTI. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at December 31, 2017 or at December 31, 2016 . Private Label Residential CMOs. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time the securities were purchased. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at December 31, 2017 or at December 31, 2016 . Private Label Commercial CMOs and Asset-backed. The unrealized losses presented in the table above have been caused by the bid ask spread, widening of spreads and/or a rise in interest rates from the time the securities were purchased. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at December 31, 2017 or at December 31, 2016 . The following table summarizes amortized cost and fair value of AFS securities at December 31, 2017 by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available for Sale (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 0 $ 0 Due after one year through five years 8,712 8,929 Due after five years through ten years 49,958 51,188 Due after ten years 95,133 99,341 MBSs and CMOs 171,066 169,305 Asset-backed 86,787 86,431 Total debt securities 411,656 415,194 Equity securities 50 114 Totals $ 411,706 $ 415,308 The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the years ended December 31, 2017 , 2016 , and 2015 . Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Proceeds from sale of AFS securities $ 162,320 $ 64,742 $ 65,611 Gross gains 1,477 1,468 1,948 Gross losses 287 48 24 AFS securities with a fair value of $319,907,000 and $317,282,000 at December 31, 2017 and December 31, 2016 were pledged to secure public funds and for other purposes as required or permitted by law. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio is grouped into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Consistent with ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, the segments are further broken down into classes to allow for differing risk characteristics within a segment. The risks associated with lending activities differ among the various loan classes and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact both the borrower’s ability to repay its loans and associated collateral. The Company has various types of commercial real estate loans which have differing levels of credit risk. Owner-occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner-occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner-occupied loans mentioned above. Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including the guarantors of the project or other collateral securing the loan. Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the creditworthiness of the borrower and, to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility. The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner-occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the creditworthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance. Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to-value ratios of no greater than 90% of the value of the real estate taken as collateral. The creditworthiness of the borrower is considered including credit scores and debt-to-income ratios. Installment and other loans’ credit risk are mitigated through prudent underwriting standards, including evaluation of the creditworthiness of the borrower through credit scores and debt-to-income ratios and, if secured, the collateral value of the assets. These loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, and may present a greater risk to the Company than 1-4 family residential loans. The following table presents the loan portfolio, excluding residential LHFS, broken out by classes at December 31, 2017 and December 31, 2016 . (Dollars in thousands) 2017 2016 Commercial real estate: Owner-occupied $ 116,811 $ 112,295 Non-owner occupied 244,491 206,358 Multi-family 53,634 47,681 Non-owner occupied residential 77,980 62,533 Acquisition and development: 1-4 family residential construction 11,730 4,663 Commercial and land development 19,251 26,085 Commercial and industrial 115,663 88,465 Municipal 42,065 53,741 Residential mortgage: First lien 162,509 139,851 Home equity – term 11,784 14,248 Home equity – lines of credit 132,192 120,353 Installment and other loans 21,902 7,118 $ 1,010,012 $ 883,391 In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including "Special Mention," "Substandard," "Doubtful" or "Loss." The Special Mention category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank's position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. Substandard loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as Loss is deferred. Loss loans are considered uncollectible, as the borrowers are often in bankruptcy, have suspended debt repayments, or have ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’s principal or interest and it is charged-off. The Company has a loan review policy and program which is designed to identify and monitor risk in the lending function. The ERM Committee, comprised of executive officers and loan department personnel, is charged with the oversight of overall credit quality and risk exposure of the Company's loan portfolio. This includes the monitoring of the lending activities of all Company personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. A loan review program provides the Company with an independent review of the loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event. Internal loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $500,000 , which includes confirmation of risk rating by an independent credit officer. In addition, all relationships greater than $250,000 rated Substandard, Doubtful or Loss are reviewed quarterly and corresponding risk ratings are reaffirmed by the Company's Problem Loan Committee, with subsequent reporting to the ERM Committee. The following summarizes the Company’s loan portfolio ratings based on its internal risk rating system at December 31, 2017 and 2016 : (Dollars in thousands) Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful Total December 31, 2017 Commercial real estate: Owner-occupied $ 113,240 $ 413 $ 1,921 $ 1,237 $ 0 $ 116,811 Non-owner occupied 235,919 0 4,507 4,065 0 244,491 Multi-family 48,603 4,113 753 165 0 53,634 Non-owner occupied residential 76,373 142 1,084 381 0 77,980 Acquisition and development: 1-4 family residential construction 11,238 0 0 492 0 11,730 Commercial and land development 18,635 5 611 0 0 19,251 Commercial and industrial 113,162 2,151 0 350 0 115,663 Municipal 42,065 0 0 0 0 42,065 Residential mortgage: First lien 158,673 0 0 3,836 0 162,509 Home equity – term 11,762 0 0 22 0 11,784 Home equity – lines of credit 131,585 80 60 467 0 132,192 Installment and other loans 21,891 0 0 11 0 21,902 $ 983,146 $ 6,904 $ 8,936 $ 11,026 $ 0 $ 1,010,012 December 31, 2016 Commercial real estate: Owner-occupied $ 103,652 $ 5,422 $ 2,151 $ 1,070 $ 0 $ 112,295 Non-owner occupied 190,726 4,791 10,105 736 0 206,358 Multi-family 42,473 4,222 787 199 0 47,681 Non-owner occupied residential 59,982 949 1,150 452 0 62,533 Acquisition and development: 1-4 family residential construction 4,560 103 0 0 0 4,663 Commercial and land development 25,435 10 639 1 0 26,085 Commercial and industrial 87,588 251 32 594 0 88,465 Municipal 53,741 0 0 0 0 53,741 Residential mortgage: First lien 135,558 0 0 4,293 0 139,851 Home equity – term 14,155 0 0 93 0 14,248 Home equity – lines of credit 119,681 82 61 529 0 120,353 Installment and other loans 7,112 0 0 6 0 7,118 $ 844,663 $ 15,830 $ 14,925 $ 7,973 $ 0 $ 883,391 For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios and any TDRs are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the impairment analysis in the next reporting period. Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value; the loan has been identified as uncollectible; and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two , and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant. At December 31, 2017 and 2016 , nearly all of the Company’s impaired loans’ extent of impairment were measured based on the estimated fair value of the collateral securing the loan, except for TDRs. By definition, TDRs are considered impaired. All restructured loans’ impairment were determined based on discounted cash flows for those loans classified as TDRs and still accruing interest. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it could also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral. Updated appraisals are generally required every 18 months for classified commercial loans in excess of $250,000 . The “as is" value provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances dictate that another value provided by the appraiser is more appropriate. Generally, impaired commercial loans secured by real estate, other than performing TDRs, are measured at fair value using certified real estate appraisals that had been completed within the last 18 months . Appraised values are discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on one or a combination of approaches. In those situations in which a combination of approaches is considered, the factor that carries the most consideration will be the one management believes is warranted. The approaches are: • Original appraisal – if the original appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the original certified appraised value may be used. Discounts as deemed appropriate for selling costs are factored into the appraised value in arriving at fair value. • Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches. Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable agings or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies. The Company distinguishes Substandard loans on both an impaired and nonimpaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. A Substandard classification does not automatically meet the definition of impaired. Loss potential, while existing in the aggregate amount of Substandard loans, does not have to exist in individual extensions of credit classified Substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and development and commercial and industrial loans rated Substandard to be collectively, as opposed to individually, evaluated for impairment. Although the Company believes these loans meet the definition of Substandard, they are generally performing and management has concluded that it is likely we will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Generally, the Company does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The following table summarizes impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at December 31, 2017 and 2016 . The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and a partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance (Dollars in thousands) Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) December 31, 2017 Commercial real estate: Owner-occupied $ 0 $ 0 $ 0 $ 1,237 $ 2,479 Non-owner occupied 0 0 0 4,065 4,856 Multi-family 0 0 0 165 352 Non-owner occupied residential 0 0 0 381 669 Acquisition and development: 1-4 family residential construction 0 0 0 492 492 Commercial and industrial 0 0 0 350 495 Residential mortgage: First lien 872 872 42 2,964 3,706 Home equity—term 0 0 0 22 27 Home equity—lines of credit 0 0 0 467 628 Installment and other loans 9 9 9 2 33 $ 881 $ 881 $ 51 $ 10,145 $ 13,737 December 31, 2016 Commercial real estate: Owner-occupied $ 0 $ 0 $ 0 $ 1,070 $ 2,236 Non-owner occupied 0 0 0 736 1,323 Multi-family 0 0 0 199 368 Non-owner occupied residential 0 0 0 452 706 Acquisition and development: Commercial and land development 0 0 0 1 16 Commercial and industrial 0 0 0 594 715 Residential mortgage: First lien 643 643 43 3,650 4,399 Home equity—term 0 0 0 93 103 Home equity—lines of credit 0 0 0 529 659 Installment and other loans 0 0 0 6 34 $ 643 $ 643 $ 43 $ 7,330 $ 10,559 The following table summarizes the average recorded investment in impaired loans and related recognized interest income for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 (Dollars in thousands) Average Impaired Balance Interest Income Recognized Average Impaired Balance Interest Income Recognized Average Impaired Balance Interest Income Recognized Commercial real estate: Owner-occupied $ 1,000 $ 6 $ 1,758 $ 0 $ 2,613 $ 0 Non-owner occupied 392 0 6,831 0 3,470 0 Multi-family 182 0 216 0 402 0 Non-owner occupied residential 418 0 645 0 1,020 0 Acquisition and development: 1-4 family residential construction 154 0 0 0 0 0 Commercial and land development 0 0 3 0 266 137 Commercial and industrial 413 0 575 0 1,208 0 Residential mortgage: First lien 4,012 58 4,525 33 4,644 37 Home equity – term 61 0 98 0 130 0 Home equity – lines of credit 488 2 455 0 571 0 Installment and other loans 10 0 12 0 22 0 $ 7,130 $ 66 $ 15,118 $ 33 $ 14,346 $ 174 The following table presents impaired loans that are TDRs, with the recorded investment at December 31, 2017 and December 31, 2016 . 2017 2016 (Dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Accruing: Commercial real estate: Owner-occupied 1 $ 52 0 $ 0 Residential mortgage: First lien 11 1,102 8 896 Home equity - lines of credit 1 29 1 34 13 1,183 9 930 Nonaccruing: Commercial real estate: Owner-occupied 1 57 0 0 Residential mortgage: First lien 8 715 12 1,035 Installment and other loans 1 3 1 6 10 775 13 1,041 23 $ 1,958 22 $ 1,971 There were no restructured loans for the years ended December 31, 2017 , 2016 , and 2015 that were modified as TDRs within the previous 12 months which were in payment default. The following table presents the number of loans modified, and their pre-modification and post-modification investment balances for the years ended December 31, 2017 , 2016 , and 2015 : (Dollars in thousands) Number of Contracts Pre- Modification Investment Balance Post- Modification Investment Balance December 31, 2017 Commercial real estate: Owner occupied 2 $ 119 $ 119 December 31, 2016 Commercial real estate: Non-owner occupied 1 $ 6,095 $ 6,095 Residential mortgage: First lien 2 265 265 Home equity - lines of credit 1 34 34 4 $ 6,394 $ 6,394 December 31, 2015 Residential mortgage: First lien 1 $ 59 $ 59 The loans presented in the table above were considered TDRs a result of the Company agreeing to below market interest rates given the risk of the transaction; allowing the loan to remain on interest only status; or a reduction in interest rates, in order to give the borrowers an opportunity to improve their cash flows. For TDRs in default of their modified terms, impairment is generally determined on a collateral dependent approach, except for accruing residential mortgage TDRs, which are generally on the discounted cash flow approach. Certain loans modified during a period may no longer be outstanding at the end of the period if the loan was paid off. No additional commitments have been made to borrowers whose loans are considered TDRs. Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at December 31, 2017 and 2016 : Days Past Due Current 30-59 60-89 90+ (still accruing) Total Past Due Non- Accrual Total Loans December 31, 2017 Commercial real estate: Owner-occupied $ 115,605 $ 4 $ 17 $ 0 $ 21 $ 1,185 $ 116,811 Non-owner occupied 240,426 0 0 0 0 4,065 244,491 Multi-family 53,469 0 0 0 0 165 53,634 Non-owner occupied residential 77,454 145 0 0 145 381 77,980 Acquisition and development: 1-4 family residential construction 11,238 0 0 0 0 492 11,730 Commercial and land development 19,226 25 0 0 25 0 19,251 Commercial and industrial 115,312 1 0 0 1 350 115,663 Municipal 42,065 0 0 0 0 0 42,065 Residential mortgage: First lien 155,387 3,333 1,055 0 4,388 2,734 162,509 Home equity – term 11,753 9 0 0 9 22 11,784 Home equity – lines of credit 131,208 474 72 0 546 438 132,192 Installment and other loans 21,749 141 1 0 142 11 21,902 $ 994,892 $ 4,132 $ 1,145 $ 0 $ 5,277 $ 9,843 $ 1,010,012 December 31, 2016 Commercial real estate: Owner-occupied $ 111,225 $ 0 $ 0 $ 0 $ 0 $ 1,070 $ 112,295 Non-owner occupied 205,622 0 0 0 0 736 206,358 Multi-family 47,482 0 0 0 0 199 47,681 Non-owner occupied residential 62,081 0 0 0 0 452 62,533 Acquisition and development: 1-4 family residential construction 4,548 115 0 0 115 0 4,663 Commercial and land development 26,084 0 0 0 0 1 26,085 Commercial and industrial 87,871 0 0 0 0 594 88,465 Municipal 53,741 0 0 0 0 0 53,741 Residential mortgage: First lien 135,499 628 328 0 956 3,396 139,851 Home equity – term 14,155 0 0 0 0 93 14,248 Home equity – lines of credit 119,733 125 0 0 125 495 120,353 Installment and other loans 7,090 20 2 0 22 6 7,118 $ 875,131 $ 888 $ 330 $ 0 $ 1,218 $ 7,042 $ 883,391 The Company maintains its ALL at a level management believes adequate for probable incurred credit losses. The ALL is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the ALL utilizing a defined methodology which considers specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes its approach properly addresses relevant accounting guidance for loans individually identified as impaired and for loans collectively evaluated for impairment, and other bank regulatory guidance. In connection with its quarterly evaluation of the adequacy of the ALL, management reviews its methodology to determine if it properly addresses the current risk in the loan portfolio. For each loan class, general allowances based on quantitative factors, principally historical loss trends, are provided for loans that are collectively evaluated for impairment. An adjustment to historical loss factors may be incorporated for delinquency and other potential risk not elsewhere defined within the ALL methodology. In addition to this quantitative analysis, adjustments to the ALL requirements are allocated on loans collectively evaluated for impairment based on additional qualitative factors, including: Nature and Volume of Loans – including loan growth in the current and subsequent quarters based on the Company’s targeted growth and strategic plan, coupled with the types of loans booked based on risk management and credit culture; the number of exceptions to loan policy; and supervisory loan to value exceptions. Concentrations of Credit and Changes within Credit Concentrations – including the composition of the Company’s overall portfolio makeup and management's evaluation related to concentration risk management and the inherent risk associated with the concentrations identified. Underwriting Standards and Recovery Practices – including changes to underwriting standards and perceived impact on anticipated losses; trends in the number of exceptions to loan policy; supervisory loan to value exceptions; and administration of loan recovery practices. Delinquency Trends – including delinquency percentages noted in the portfolio relative to economic conditions; severity of the delinquencies; and whether the ratios are trending upwards or downwards. Classified Loans Trends – including internal loan ratings of the portfolio; severity of the ratings; whether the loan segment’s ratings show a more favorable or less favorable trend; and underlying market conditions and impact on the collateral values securing the loans. Experience, Ability and Depth of Management/Lending staff – including the years’ experience of senior and middle management and the lending staff; turnover of the staff; and instances of repeat criticisms of ratings. Quality of Loan Review – including the years of experience of the loan review staff; in-house versus outsourced provider of review; turnover of staff and the perceived quality of their work in relation to other external information. National and Local Economic Conditions – including trends in the consumer price index, unemployment rates, the housing price index, housing statistics compared to the prior year, bankruptcy rates, regulatory and legal environment risks and competition. The following table presents activity in the ALL for the years ended December 31, 2017 , 2016 and 2015 . Commercial Consumer (Dollars in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Municipal Total Residential Mortgage Installment and Other Total Unallocated Total December 31, 2017 Balance, beginning of year $ 7,530 $ 580 $ 1,074 $ 54 $ 9,238 $ 2,979 $ 144 $ 3,123 $ 414 $ 12,775 Provision for loan losses 38 (167 ) 333 30 234 531 174 705 61 1,000 Charge-offs (835 ) 0 (85 ) 0 (920 ) (180 ) (166 ) (346 ) 0 (1,266 ) Recoveries 30 4 124 0 158 70 59 129 0 287 Balance, end of year $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 December 31, 2016 Balance, beginning of year $ 7,883 $ 850 $ 1,012 $ 58 $ 9,803 $ 2,870 $ 121 $ 2,991 $ 774 $ 13,568 Provision for loan losses 107 (270 ) 129 (4 ) (38 ) 532 116 648 (360 ) 250 Charge-offs (872 ) 0 (79 ) 0 (951 ) (577 ) (194 ) (771 ) 0 (1,722 ) Recoveries 412 0 12 0 424 154 101 255 0 679 Balance, end of year $ 7,530 $ 580 $ 1,074 $ 54 $ 9,238 $ 2,979 $ 144 $ 3,123 $ 414 $ 12,775 December 31, 2015 Balance, beginning of year $ 9,462 $ 697 $ 806 $ 183 $ 11,148 $ 2,262 $ 119 $ 2,381 $ 1,218 $ 14,747 Provision for loan losses (1,020 ) (440 ) 249 (125 ) (1,336 ) 1,122 55 1,177 (444 ) (603 ) Charge-offs (711 ) (22 ) (115 ) 0 (848 ) (592 ) (62 ) (654 ) 0 (1,502 ) Recoveries 152 615 72 0 839 78 9 87 0 926 Balance, end of year $ 7,883 $ 850 $ 1,012 $ 58 $ 9,803 $ 2,870 $ 121 $ 2,991 $ 774 $ 13,568 The following table summarizes the ending loan balances individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at December 31, 2017 and 2016 : Commercial Consumer (Dollars in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Municipal Total Residential Mortgage Installment and Other Total Unallocated Total December 31, 2017 Loans allocated by: Individually evaluated for impairment $ 5,848 $ 492 $ 350 $ 0 $ 6,690 $ 4,325 $ 11 $ 4,336 $ 0 $ 11,026 Collectively evaluated for impairment 487,068 30,489 115,313 42,065 674,935 302,160 21,891 324,051 0 998,986 $ 492,916 $ 30,981 $ 115,663 $ 42,065 $ 681,625 $ 306,485 $ 21,902 $ 328,387 $ 0 $ 1,010,012 Allowance for loan losses allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 42 $ 9 $ 51 $ 0 $ 51 Collectively evaluated for impairment 6,763 417 1,446 84 8,710 3,358 202 3,560 475 12,745 $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 December 31, 2016 Loans allocated by: Individually evaluated for impairment $ 2,457 $ 1 $ 594 $ 0 $ 3,052 $ 4,915 $ 6 $ 4,921 $ 0 $ 7,973 Collectively evaluated for impairment 426,410 30,747 87,871 53,741 598,769 269,537 7,112 276,649 0 875,418 $ 428,867 $ 30,748 $ 88,465 $ 53,741 $ 601,821 $ 274,452 $ 7,118 $ 281,570 $ 0 $ 883,391 Allowance for loan losses allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 43 $ 0 $ 43 $ 0 $ 43 Collectively evaluated for impairment 7,530 580 1,074 54 9,238 2,936 144 3,080 414 12,732 $ 7,530 $ 580 $ 1,074 $ 54 $ 9,238 $ 2,979 $ 144 $ 3,123 $ 414 $ 12,775 During the year ended December 31, 2016 , the Company sold one note of classified loan relationships with an aggregate carrying balance of $5,946,000 to a third party. Cash proceeds totaled $5,100,000 . The $846,000 difference between the carrying balances of the note sold and the cash received was recorded as a charge-off to the ALL. |
LOANS TO RELATED PARTIES
LOANS TO RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
LOANS TO RELATED PARTIES | LOANS TO RELATED PARTIES Certain directors and executive officers of the Company, including their immediate families and companies in which they have a direct or indirect material interest, were indebted to the Bank. The Company considers these loans to be within the normal course of business. The Company relies on the directors and executive officers for the identification of their associates. The following table presents activity in loans to related parties during 2017 . (Dollars in thousands) Balance, beginning of year $ 677 New loans 311 Repayments (315 ) Balance, end of year $ 673 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT The following table summarizes premises and equipment at December 31. (Dollars in thousands) 2017 2016 Land $ 7,664 $ 7,717 Buildings and improvements 31,154 30,626 Leasehold improvements 2,482 1,719 Furniture and equipment 22,023 21,032 Construction in progress 89 68 63,412 61,162 Less accumulated depreciation and amortization 28,603 26,291 $ 34,809 $ 34,871 Depreciation expense totaled $2,650,000 , $2,311,000 , and $2,310,000 for the years ended December 31, 2017 , 2016 and 2015 . During 2016, $5,600,000 of premises and equipment, predominantly furniture and equipment, was identified as retired from active use. The Company recorded a loss of $147,000 in connection with this retirement. The Company leases land and building space associated with certain branch offices, remote automated teller machines, and certain equipment under operating lease agreements which expire at various times through 2027. Rent expense charged to operations in connection with these leases totaled $639,000 , $601,000 and $435,000 for the years ended December 31, 2017 , 2016 and 2015 . The following table summarizes minimum rental commitments under operating leases with maturities in excess of one year at December 31, 2017 . Due in Years Ending December 31 (Dollars in thousands) 2018 $ 574 2019 528 2020 496 2021 334 2022 230 Thereafter 474 $ 2,636 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company files income tax returns in the U.S. federal jurisdiction, the Commonwealth of Pennsylvania and the State of Maryland. The Company is no longer subject to tax examination by tax authorities for years before 2014 . The following table summarizes income tax expense for years ended December 31. (Dollars in thousands) 2017 2016 2015 Current expense $ 1,260 $ 1,498 $ 837 Deferred expense (benefit) 443 (232 ) 797 Expense due to enactment of federal tax reform legislation 2,635 0 0 Income tax expense $ 4,338 $ 1,266 $ 1,634 The following table reconciles the effective income tax rate to the statutory federal rate for years ended December 31. 2017 2016 2015 Statutory federal tax rate 34.0 % 34.0 % 35.0 % Increase (decrease) resulting from: Tax exempt interest income (13.0 )% (16.0 )% (11.3 )% Earnings from life insurance (2.4 )% (4.7 )% (3.8 )% Disallowed interest expense 1.0 % 1.0 % 0.4 % Low-income housing credits and related expense (4.6 )% (7.2 )% (5.0 )% Regulatory settlement 0.0 % 4.3 % 0.0 % Change in statutory federal tax rate 0.0 % 2.3 % 0.0 % Expense due to enactment of federal tax reform legislation 21.2 % 0.0 % 0.0 % Other (1.3 )% 2.3 % 1.9 % Effective income tax rate 34.9 % 16.0 % 17.2 % Income tax expense includes $405,000 , $483,000 and $673,000 related to net security gains for the years ended December 31, 2017 , 2016 , and 2015 . Effective January 1, 2016, the Company changed its statutory federal tax rate from 35% to 34% to reflect its assessment that it will not be in the higher tax bracket. As a result, income tax expense for 2016 increased $185,000 due to the application of the new rate to existing deferred balances. On December 22, 2017, federal tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), was enacted. Among other things, the Tax Act reduced the Company's statutory federal tax rate from 34% to 21% effective January 1, 2018. As a result, we were required to remeasure, through income tax expense, certain deferred tax assets and liabilities using the enacted rate at which we expect them to be recovered or settled. The remeasurement of our net deferred tax asset resulted in additional federal deferred tax expense of $2,635,000 , which is included in total tax expense for 2017. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provided for a measurement period that should not extend beyond one year from the Tax Act's enactment date for companies to complete the accounting under ASC 740, Income Taxes. In remeasuring our net deferred tax asset, we estimated the income in 2017 for our limited partnership investments in affordable housing real estate partnerships and interest income on nonperforming loans. Any adjustment between our estimates and the actual amounts determined during the measurement period are not expected to have a material impact to the consolidated financial statements. The Company's deferred tax assets related to low-income housing credit and alternative minimum tax credit carryforwards were not impacted by the change in statutory tax rate, as they are treated as payments on future federal income taxes due and are not subject to remeasurement. However, the Tax Act did change alternative minimum tax credit carryforwards to be refundable credits. To reflect this change, the Company reclassed its alternative minimum tax credit carryforwards, totaling $5,343,000 at December 31, 2017, from deferred tax assets to other assets in the consolidated balance sheets. There were no penalties or interest related to income taxes recorded in the income statement for the years ended December 31, 2017, 2016 and 2015 and no amounts accrued for penalties as of December 31, 2017 and 2016. The following table summarizes deferred tax assets and liabilities at December 31. (Dollars in thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 2,919 $ 4,725 Deferred compensation 355 545 Retirement plans and salary continuation 1,301 1,942 Share-based compensation 597 583 Off-balance sheet reserves 207 313 Nonaccrual loan interest 258 370 Net unrealized losses on securities available for sale 0 600 Goodwill 39 92 Bonus accrual 25 236 Low-income housing credit carryforward 2,313 1,983 Alternative minimum tax credit carryforward 0 4,048 Net operating loss carryforward 0 2,520 Other 390 479 Total deferred tax assets 8,404 18,436 Deferred tax liabilities: Depreciation 488 771 Net unrealized gains on securities available for sale 757 0 Mortgage servicing rights 536 777 Purchase accounting adjustments 251 435 Other 122 195 Total deferred tax liabilities 2,154 2,178 Net deferred tax asset, included in Other Assets $ 6,250 $ 16,258 At December 31, 2017 , the Company has low-income housing credit carryforwards that expire through 2037 . Deferred tax assets are recognized for these carryforwards because the benefit is more likely than not to be realized. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS The Company maintains a 401(k) profit-sharing plan for employees who meet the plan's eligibility requirements. Substantially all of the Company’s employees are covered by the plan, which contains limited match or safe harbor provisions. Employer contributions to the plan are based on the performance of the Company and are at the discretion of the Board of Directors. Employer contribution expense totaled $432,000 , $334,000 and $361,000 for the years ended December 31, 2017 , 2016 , and 2015 . The Company has deferred compensation agreements with certain present and former directors, whereby a director or his beneficiaries will receive a monthly retirement benefit beginning at age 65 . The arrangement is funded by an amount of life insurance on the participating director, which is calculated to meet the Company’s obligations under the compensation agreement. The cash value of the life insurance policies is an unrestricted asset of the Company. The estimated present value of future benefits to be paid totaled $94,000 and $105,000 at December 31, 2017 and 2016 . Expense for this plan totaled $11,000 , $12,000 and $12,000 for the years ended December 31, 2017 , 2016 , and 2015 . The Company also has supplemental discretionary deferred compensation plans for directors and executive officers. The plans are funded annually with director fees and salary reductions which are either placed in a trust account invested by the Bank’s OFA division or recognized as a liability. The trust account balance totaled $1,571,000 and $1,483,000 at December 31, 2017 and 2016 and is offset by other liabilities in the same amount. Expense for these plans totaled $10,000 , $15,000 and $30,000 , for the years ended December 31, 2017 , 2016 , and 2015 . In addition, the Company has two supplemental retirement and salary continuation plans for directors and executive officers. These plans are funded with single premium life insurance on the plan participants. The cash value of the life insurance policies is an unrestricted asset of the Company. The estimated present value of future benefits to be paid totaled $6,109,000 and $5,662,000 at December 31, 2017 and 2016 . Expense for these plans totaled $739,000 , $727,000 and $626,000 , for the years ended December 31, 2017 , 2016 , and 2015 . The Company has promised a continuation of life insurance coverage to certain persons post-retirement. The estimated present value of future benefits to be paid totaled $937,000 and $860,000 at December 31, 2017 and 2016 . Expense for this plan totaled $77,000 , $61,000 and $129,000 for the years ended December 31, 2017 , 2016 , and 2015 . Life insurance policy cash values and trust account balances, and estimated present values of future benefits and deferred compensation liabilities, noted above are included in other assets and other liabilities, respectively, on the consolidated balance sheets. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The Company maintains share-based compensation plans under its shareholder-approved 2011 Plan. The purpose of the share-based compensation plans is to provide officers, employees, and non-employee members of the Board of Directors of the Company with additional incentive to further the success of the Company. Under the Plan, 381,920 shares of the common stock of the Company were reserved to be issued. At December 31, 2017 , 82,277 shares were available to be issued. The 2011 Plan incentive awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. All employees of the Company and its present or future subsidiaries, and members of the Board of Directors of the Company or any subsidiary of the Company, are eligible to participate in the 2011 Plan. The 2011 Plan allows for the Compensation Committee of the Board of Directors to determine the type of incentive to be awarded, its term, manner of exercise, vesting of awards and restrictions on shares. Generally, awards are nonqualified under the IRC, unless the awards are deemed to be incentive awards to employees at the Compensation Committee’s discretion. The following table presents a summary of nonvested restricted shares activity for 2017 . Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 227,337 $ 16.88 Granted 67,753 22.52 Forfeited (13,079 ) 18.36 Vested (13,600 ) 17.95 Nonvested shares, end of year 268,411 $ 18.18 The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested for the years ended December 31, 2017 , 2016 , and 2015 . Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Restricted share award expense $ 1,369 $ 941 $ 732 Restricted share award tax benefit 465 320 256 Fair value of shares vested 303 237 43 At December 31, 2017 and 2016 , unrecognized compensation expense related to the share awards totaled $2,035,000 , and $2,169,000 . The unrecognized compensation expense at December 31, 2017 is expected to be recognized over a weighted-average period of 1.8 years . The following table presents a summary of outstanding stock options activity for 2017 . Shares Weighted Average Exercise Price Outstanding, beginning of year 80,370 $ 27.37 Forfeited (1,300 ) 21.14 Expired (19,487 ) 32.33 Options outstanding and exercisable, end of year 59,583 $ 25.89 The exercise price of each option equals the market price of the Company’s stock on the grant date. An option’s maximum term is ten years. All options are fully vested upon issuance. The following table presents information pertaining to options outstanding and exercisable at December 31, 2017 . Range of Exercise Prices Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $21.14 - $24.99 33,699 2.36 $ 21.49 $25.00 - $29.99 2,792 2.25 25.76 $30.00 - $34.99 15,744 0.47 30.10 $35.00 - $37.59 7,348 1.52 37.08 $21.14 - $37.59 59,583 1.75 $ 25.89 Outstanding and exercisable options had an intrinsic value of $127,000 at December 31, 2017 and $39,000 at December 31, 2016 . The Company maintains an employee stock purchase plan to provide employees of the Company an opportunity to purchase Company common stock. Eligible employees may purchase shares in an amount that does not exceed 10% of their annual salary at the lower of 95% of the fair market value of the shares on the semi-annual offering date, or related purchase date. The Company reserved 350,000 shares of its common stock to be issued under the employee stock purchase plan. At December 31, 2017 , 179,372 shares were available to be issued. The following table presents information for the employee stock purchase plan for the years ended December 31, 2017, 2016 and 2015. Years Ended December 31, (Dollars in thousands except share information) 2017 2016 2015 Shares purchased 6,632 6,334 6,305 Weighted average price of shares purchased $ 20.57 $ 16.64 $ 15.83 Compensation expense recognized 17 17 8 Tax benefits 6 6 3 The Company issues new shares or treasury shares, depending on market conditions, in its share-based compensation plans. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS The following table summarizes deposits by type at December 31. 2017 2016 (Dollars in thousands) Noninterest-bearing $ 162,343 $ 150,747 NOW and money market 687,936 613,232 Savings 95,148 91,706 Time (less than $250,000) 252,200 277,899 Time ($250,000 or more) 21,888 18,868 Total $ 1,219,515 $ 1,152,452 The following table summarizes scheduled maturities of time deposits for years ending December 31. (Dollars in thousands) 2018 $ 107,765 2019 88,028 2020 71,149 2021 4,547 2022 1,722 Thereafter 877 $ 274,088 Brokered time deposits totaled $96,368,000 and $85,994,000 at December 31, 2017 and 2016 . Management evaluates brokered deposits as a funding option, taking into consideration regulatory views on such deposits as non-core funding sources. Time deposits that meet or exceed the FDIC limit of $250,000 at December 31, 2017 totaled $21,888,000 . The Company accepts deposits of officers and directors of the Company on the same terms, including interest rates, as those prevailing at the time for comparable transactions with unrelated persons. Deposits of officers and directors and their related interests totaled $3,723,000 and $2,826,000 at December 31, 2017 and 2016 . |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS The Company has short-term borrowing capability, including short-term borrowings from the FHLB, federal funds purchased and the FRB discount window. The following table summarizes the use of these short-term borrowings at and for the years ended December 31. (Dollars in thousands) 2017 2016 2015 Balance at year-end $ 50,000 $ 52,000 $ 60,000 Weighted average interest rate at year-end 1.21 % 0.76 % 0.53 % Average balance during the year $ 54,610 $ 17,841 $ 55,106 Average interest rate during the year 1.08 % 0.61 % 0.43 % Maximum month-end balance during the year $ 72,000 $ 52,000 $ 83,500 In addition, the Company has repurchase agreements with certain of its deposit customers. The Company is required to hold U.S. Treasury, U.S. Agency or U.S. GSE securities as underlying securities for Repurchase Agreements. The following table summarizes the use of securities sold under agreements to repurchase at and for the years ended December 31. (Dollars in thousands) 2017 2016 2015 Balance at year-end $ 43,576 $ 35,864 $ 29,156 Weighted average interest rate at year-end 0.56 % 0.20 % 0.20 % Average balance during the year $ 43,205 $ 38,546 $ 30,156 Average interest rate during the year 0.45 % 0.20 % 0.20 % Maximum month-end balance during the year $ 55,270 $ 52,693 $ 37,558 Fair value of securities underlying the agreements at year-end 53,485 56,201 35,470 Federal funds purchased and securities sold under agreements to repurchase generally mature within one day from the transaction date. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT At December 31, the Company’s long-term debt consisted of the following: Amount Weighted Average rate (Dollars in thousands) 2017 2016 2017 2016 FHLB fixed rate advances maturing: 2017 $ 0 $ 20,000 0.00 % 1.00 % 2019 40,000 0 1.86 % 0.00 % 2020 40,350 350 1.76 % 7.40 % 80,350 20,350 1.81 % 1.11 % FHLB amortizing advance requiring monthly principal and interest payments, maturing: 2025 3,465 3,813 4.74 % 4.74 % Total FHLB Advances $ 83,815 $ 24,163 1.93 % 1.68 % Except for amortizing advances, interest only is paid on a quarterly basis. The following table summarizes the aggregate amount of future principal payments required on these borrowings at December 31, 2017 : Years Ending December 31, (Dollars in thousands) 2018 $ 365 2019 40,382 2020 40,751 2021 421 2022 441 Thereafter 1,455 $ 83,815 The Bank is a member of the FHLB of Pittsburgh and has available the FHLB program of overnight and term advances. Under terms of a blanket collateral agreement for advances, lines and letters of credit from the FHLB, collateral for all outstanding advances, lines and letters of credit consisted of 1-4 family mortgage loans and other real estate secured loans totaling $517,257,000 at December 31, 2017 . The Bank had additional availability of $381,892,000 at the FHLB on December 31, 2017 based on its qualifying collateral, net of short-term borrowings and long-term debt detailed above, and non-deposit letters of credit totaling $1,550,000 at December 31, 2017. The Bank has available unsecured lines of credit, with interest based on the daily Federal Funds rate, with two correspondent banks totaling $30,000,000 , at December 31, 2017 . The Company also has a $5,000,000 unsecured line of credit, with a bank, at the prime rate of interest, at December 31, 2017 . There were no borrowings under these lines of credit at December 31, 2017 and 2016 . |
SHAREHOLDERS_ EQUITY AND REGULA
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL | SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL The Company maintains a stockholder dividend reinvestment and stock purchase plan. Under the plan, shareholders may purchase additional shares of the Company’s common stock at the prevailing market prices with reinvestment dividends and voluntary cash payments. The Company reserved 1,045,000 shares of its common stock to be issued under the dividend reinvestment and stock purchase plan. At December 31, 2017 , approximately 665,000 shares were available to be issued under the plan. On January 19, 2016, the Company filed a shelf registration statement on Form S-3 with the SEC that provides for up to an aggregate of $100,000,000 , through the sale of common stock, preferred stock, warrants, debt securities, and units. To date, the Company has not issued any securities under this shelf registration statement. Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision's capital guidelines for U.S. Banks ("Basel III rules"), the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The required capital conservation buffer for the Company was 0.625% for 2016 and 1.25% for 2017, and will be 1.875% for 2018 and 2.50% for 2019 under phase-in rules. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes the Company and the Bank met all applicable capital adequacy requirements at December 31, 2017 . Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2017 and 2016 , the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category. The following table presents capital amounts and ratios at December 31, 2017 and December 31, 2016 . Actual For Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Total Capital to risk weighted assets Consolidated $ 152,386 13.3 % $ 106,040 9.250 % n/a n/a Bank 148,997 13.0 % 105,747 9.250 % $ 114,321 10.0 % Tier 1 Capital to risk weighted assets Consolidated 138,774 12.1 % 83,112 7.250 % n/a n/a Bank 135,385 11.8 % 82,883 7.250 % 91,457 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 138,774 12.1 % 65,917 5.750 % n/a n/a Bank 135,385 11.8 % 65,734 5.750 % 74,308 6.5 % Tier 1 Capital to average assets Consolidated 138,774 8.9 % 62,042 4.0 % n/a n/a Bank 135,385 8.7 % 62,066 4.0 % 77,582 5.0 % December 31, 2016 Total Capital to risk weighted assets Consolidated $ 139,033 14.6 % $ 82,391 8.625 % n/a n/a Bank 126,408 13.2 % 82,328 8.625 % $ 95,453 10.0 % Tier 1 Capital to risk weighted assets Consolidated 127,033 13.3 % 63,286 6.625 % n/a n/a Bank 114,417 12.0 % 63,238 6.625 % 76,363 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 127,033 13.3 % 48,957 5.125 % n/a n/a Bank 114,417 12.0 % 48,920 5.125 % 62,045 6.5 % Tier 1 Capital to average assets Consolidated 127,033 9.3 % 54,453 4.0 % n/a n/a Bank 114,417 8.4 % 54,500 4.0 % 68,126 5.0 % In September 2015, the Board of Directors of the Company authorized a share repurchase program under which the Company may repurchase up to 5% of the Company's outstanding shares of common stock, or approximately 416,000 shares, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. When and if appropriate, repurchases may be made in open market or privately negotiated transactions, depending on market conditions, regulatory requirements and other corporate considerations, as determined by management. Share repurchases may not occur and may be discontinued at any time. At December 31, 2017 , 82,725 shares had been repurchased under the program at a total cost of $1,438,000 , or $17.38 per share. On January 24, 2018 , the Board declared a cash dividend of $0.12 per common share, which was paid on February 9, 2018 . |
RESTRICTIONS ON DIVIDENDS, LOAN
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES | RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES The Parent Company's principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid from the Bank to the Parent Company without prior approval of regulatory agencies. Accordingly, at December 31, 2017 , $15,875,000 was available for dividend distribution from the Bank to the Parent Company in 2018 . Under current Federal Reserve regulations, the Bank is limited in the amount it may lend to the Parent Company and its nonbank subsidiary. Loans to a single affiliate may not exceed 10%, and loans to all affiliates may not exceed 20% of the bank’s capital stock, surplus, and undivided profits, plus the ALL (as defined by regulation). Loans from the Bank to nonbank affiliates, including the Parent Company, are also required to be collateralized according to regulatory guidelines. At December 31, 2017 , the maximum amount the Bank has available to loan nonbank affiliates was $14,900,000 . At December 31, 2017 , there were no loans from the Bank to any nonbank affiliate, including the Parent Company. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share for the years ended December 31, were as follows: (In thousands, except per share data) 2017 2016 2015 Net income $ 8,090 $ 6,628 $ 7,874 Weighted average shares outstanding - basic 8,070 8,059 8,107 Dilutive effect of share-based compensation 156 86 35 Weighted average shares outstanding - diluted 8,226 8,145 8,142 Per share information: Basic earnings per share $ 1.00 $ 0.82 $ 0.97 Diluted earnings per share 0.98 0.81 0.97 Average outstanding stock options of 42,000 , 90,000 and 109,000 for the years ended December 31, 2017 , 2016 and 2015 were not included in the computation of earnings per share because the effect was antidilutive, due to the exercise price exceeding the average market price. The dilutive effect of share-based compensation in each year above relates principally to restricted stock awards. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company 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 and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table presents these contract, or notional, amounts. December 31, (Dollars in thousands) 2017 2016 Commitments to fund: Home equity lines of credit $ 139,281 $ 126,811 1-4 family residential construction loans 11,420 7,820 Commercial real estate, construction and land development loans 44,592 43,830 Commercial, industrial and other loans 145,394 111,884 Standby letters of credit 12,273 7,097 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. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit-worthiness 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 customer. Collateral varies but may include accounts receivable, inventory, equipment, residential real estate, and income-producing commercial properties. Standby letters of credit and financial guarantees written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company holds collateral supporting those commitments when deemed necessary by management. The liability, at December 31, 2017 and 2016 , for guarantees under standby letters of credit issued was not material. The Company currently maintains a reserve, based on historical loss experience of the related loan class, for off-balance sheet credit exposures that currently are not funded, in other liabilities. This reserve totaled $816,000 and $784,000 at December 31, 2017 and 2016 . The following table presents the net amount expensed (recovered) for this off-balance sheet credit exposures reserve. For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Off-balance sheet credit exposures expense (recovery) $ 32 $ 312 $ (13 ) The Company sells loans to the FHLB of Chicago as part of its MPF Program. Under the terms of the MPF Program, there is limited recourse back to the Company for loans that do not perform in accordance with the terms of the loan agreement. Each loan that is sold under the program is “credit enhanced” such that the individual loan’s rating is raised to a minimum “BBB,” as determined by the FHLB of Chicago. Outstanding loans sold under the MPF Program totaled $31,977,000 and $35,678,000 at December 31, 2017 and 2016 , with limited recourse back to the Company on these loans of $1,135,000 and $1,029,000 , respectively. Many of the loans sold under the MPF Program have primary mortgage insurance, which reduces the Company’s overall exposure. The net amount expensed or recovered for the Company's estimate of losses under its recourse exposure for loans foreclosed, or in the process of foreclosure, is recorded in other expenses. The following table presents the net amounts expensed. For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 MPF program recourse loss expense $ 25 $ 18 $ 127 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are : Level 1 – quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date. Level 2 – significant other observable inputs other than Level 1 prices such as prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – at least one significant unobservable input that reflects a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value for instruments measured on a recurring basis: Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, securities are classified within Level 2 and fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flow. Level 2 securities include U.S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. All of the Company’s securities are classified as available for sale. The Company had no fair value liabilities measured on a recurring basis at December 31, 2017 or 2016 . The following table summarizes assets measured at fair value on a recurring basis at December 31, 2017 and December 31, 2016 . (Dollars in Thousands) Level 1 Level 2 Level 3 Total Fair Value Measurements December 31, 2017 AFS Securities: States and political subdivisions $ 0 $ 159,458 $ 0 $ 159,458 GSE residential MBSs 0 49,530 0 49,530 GSE residential CMOs 0 111,119 0 111,119 Private label residential CMOs 0 1,003 0 1,003 Private label commercial CMOs 0 7,653 0 7,653 Asset-backed 0 86,431 0 86,431 Total debt securities 0 415,194 0 415,194 Equity securities 0 114 0 114 Totals $ 0 $ 415,308 $ 0 $ 415,308 December 31, 2016 AFS Securities: U.S. Government Agencies $ 0 $ 39,592 $ 0 $ 39,592 States and political subdivisions 0 164,282 0 164,282 GSE residential MBSs 0 116,944 0 116,944 GSE residential CMOs 0 69,383 0 69,383 GSE commercial CMOs 0 4,856 0 4,856 Private label residential CMOs 0 5,006 0 5,006 Total debt securities 0 400,063 0 400,063 Equity securities 0 91 0 91 Totals $ 0 $ 400,154 $ 0 $ 400,154 Certain financial assets are measured at fair value on a nonrecurring basis. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The Company used the following methods and significant assumptions to estimate fair value for these financial assets. Impaired Loans Loans are designated as impaired when, in the judgment of management and based on current information and events, it is probable that all amounts due, according to the contractual terms of the loan agreement, will not be collected. The measurement of loss associated with impaired loans for all loan classes can be based on either the observable market price of the loan, the fair value of the collateral, or discounted cash flows based on a market rate of interest for performing TDRs. For collateral-dependent loans, fair value is measured based on the value of the collateral securing the loan, less estimated costs to sell. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The value of the real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, or if management adjusts the appraisal value, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal, if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level 3). Impaired loans with an allocation to the ALL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the consolidated statements of income. Specific allocations to the ALL or partial charge-offs totaled $2,266,000 and $1,967,000 at December 31, 2017 and 2016 . Changes in the fair value of impaired loans for those still held at December 31 considered in the determination as to the provision for loan losses, totaled $867,000 , $268,000 and $888,000 for the years ended December 31, 2017 , 2016 , and 2015 . Foreclosed Real Estate OREO property acquired through foreclosure is initially recorded at the fair value of the property at the transfer date less estimated selling cost. Subsequently, OREO is carried at the lower of its carrying value or the fair value less estimated selling cost. Fair value is usually determined based upon an independent third-party appraisal of the property or occasionally upon a recent sales offer. Specific charges to value OREO at the lower of cost or fair value on properties held at December 31, 2017 and 2016 were $0 and $43,000 . Changes in the fair value of foreclosed real estate for those still held at December 31 charged to OREO totaled $0 , $43,000 , and $32,000 for the years ending December 31, 2017 , 2016 , and 2015 . The following table summarizes assets measured at fair value on a nonrecurring basis at December 31, 2017 and December 31, 2016 . (Dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value Measurements December 31, 2017 Impaired Loans Commercial real estate: Owner-occupied $ 0 $ 0 $ 430 $ 430 Non-owner occupied 0 0 4,066 4,066 Multi-family 0 0 165 165 Non-owner occupied residential 0 0 344 344 Commercial and industrial 0 0 53 53 Residential mortgage: First lien 0 0 1,951 1,951 Home equity - lines of credit 0 0 161 161 Installment and other loans 0 0 3 3 Total impaired loans $ 0 $ 0 $ 7,173 $ 7,173 December 31, 2016 Impaired loans Commercial real estate: Owner-occupied $ 0 $ 0 $ 777 $ 777 Non-owner occupied 0 0 736 736 Multi-family 0 0 199 199 Non-owner occupied residential 0 0 409 409 Acquisition and development: Commercial and land development 0 0 1 1 Commercial and industrial 0 0 66 66 Residential mortgage: First lien 0 0 1,994 1,994 Home equity - lines of credit 0 0 162 162 Installment and other loans 0 0 6 6 Total impaired loans $ 0 $ 0 $ 4,350 $ 4,350 Foreclosed real estate Residential $ 0 $ 0 $ 88 $ 88 The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value. Fair Value Valuation Techniques Unobservable Input Range December 31, 2017 Impaired loans $ 7,173 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 7% - 75% discount - Management adjustments for liquidation expenses 0% - 20% discount December 31, 2016 Impaired loans $ 4,350 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 10% - 75% discount - Management adjustments for liquidation expenses 0% - 41% discount Foreclosed real estate 88 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 13% - 17% discount - Management adjustments for liquidation expenses 10% - 18% discount Fair values of financial instruments In addition to those disclosed above, the Company used the following methods and significant assumptions to estimate fair value for the indicated instruments: Cash and Due from Banks and Interest-Bearing Deposits with Banks The carrying amounts of cash and due from banks and interest-bearing deposits with banks approximate fair value. Loans Held for Sale LHFS are carried at the lower of cost or fair value. These loans typically consist of one-to-four family residential loans originated for sale into the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale. Loans For variable rate loans that reprice frequently and have no significant change in credit risk, fair value is based on carrying value. Fair value for fixed rate loans is estimated using discounted cash flow analyses, using interest rates currently being offered in the market for loans with similar terms to borrowers of similar credit quality. Restricted Investments in Bank Stocks These investments are carried at cost. The Company is required to maintain minimum investment balances in these stocks, which are not actively traded and therefore have no readily determinable market value. Deposits The fair value disclosed for demand deposits is, by definition, equal to the amount payable on demand at the reporting date (that is, the carrying amount). The carrying amount of variable rate, fixed-term money market accounts and certificates of deposit approximates fair value at the reporting date. Fair value for fixed rate certificates of deposits and IRAs are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market to a schedule of aggregated expected maturities on time deposits. Short-Term Borrowings The carrying amounts of federal funds purchased; borrowings under Repurchase Agreements; and other short-term borrowings maturing within 90 days approximates fair value. Fair value of other short-term borrowings is estimated using discounted cash flow analysis based on the Company’s current borrowing rates for similar types of borrowing arrangements. Long-Term Debt Fair value of the Company’s fixed rate long-term borrowings is estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. The carrying amounts of variable rate long-term borrowings approximates fair value at the reporting date. Accrued Interest The carrying amounts of accrued interest receivable and payable approximate their fair value. Off-Balance Sheet Instruments The Company generally does not charge commitment fees. Fees for standby letters of credit and other off-balance sheet instruments are not significant. The following table presents estimated fair values of the Company’s financial instruments at December 31. (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 December 31, 2017 Financial Assets Cash and due from banks $ 21,734 $ 21,734 $ 21,734 $ 0 $ 0 Interest-bearing deposits with banks 8,073 8,073 8,073 0 0 Restricted investments in bank stock 9,997 n/a n/a n/a n/a Securities available for sale 415,308 415,308 0 415,308 0 Loans held for sale 6,089 6,272 0 6,272 0 Loans, net of allowance for loan losses 997,216 994,617 0 0 994,617 Accrued interest receivable 5,048 5,048 0 2,580 2,468 Financial Liabilities Deposits 1,219,515 1,213,288 0 1,213,288 0 Short-term borrowings 93,576 93,576 0 93,576 0 Long-term debt 83,815 83,949 0 83,949 0 Accrued interest payable 495 495 0 495 0 Off-balance sheet instruments 0 0 0 0 0 December 31, 2016 Financial Assets Cash and due from banks $ 16,072 $ 16,072 $ 16,072 $ 0 $ 0 Interest-bearing deposits with banks 14,201 14,201 14,201 0 0 Restricted investments in bank stock 7,970 n/a n/a n/a n/a Securities available for sale 400,154 400,154 0 400,154 0 Loans held for sale 2,768 2,843 0 2,843 0 Loans, net of allowance for loan losses 870,616 870,470 0 0 870,470 Accrued interest receivable 4,672 4,672 0 2,643 2,029 Financial Liabilities Deposits 1,152,452 1,149,727 0 1,149,727 0 Short-term borrowings 87,864 87,864 0 87,864 0 Long-term debt 24,163 24,966 0 24,966 0 Accrued interest payable 437 437 0 437 0 Off-balance sheet instruments 0 0 0 0 0 |
ORRSTOWN FINANCIAL SERVICES, IN
ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION | ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION Condensed Balance Sheets December 31, (Dollars in thousands) 2017 2016 Assets Cash in Orrstown Bank $ 703 $ 10,263 Deposits with other banks 214 307 Total cash 917 10,570 Securities available for sale 114 91 Investment in Orrstown Bank 140,429 121,362 Other assets 3,953 3,519 Total assets $ 145,413 $ 135,542 Liabilities $ 648 $ 683 Shareholders’ Equity Common stock 435 437 Additional paid-in capital 125,458 124,935 Retained earnings 16,042 11,669 Accumulated other comprehensive income (loss) 2,845 (1,165 ) Treasury stock (15 ) (1,017 ) Total shareholders’ equity 144,765 134,859 Total liabilities and shareholders’ equity $ 145,413 $ 135,542 Condensed Statements of Income For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Income Dividends from subsidiaries $ 0 $ 2,200 $ 17,900 Other interest and dividend income 15 38 3 Other income 61 62 35 Total income 76 2,300 17,938 Expenses Share-based compensation 247 216 135 Management fee to Bank 501 504 500 Other expenses 1,116 2,152 1,720 Total expenses 1,864 2,872 2,355 Income (loss) before income tax benefit and equity in undistributed income (distributions in excess of income) of subsidiaries (1,788 ) (572 ) 15,583 Income tax benefit (596 ) (606 ) (831 ) Income (loss) before equity in undistributed income (distributions in excess of income) of subsidiaries (1,192 ) 34 16,414 Equity in undistributed income (distributions in excess of income) of subsidiaries 9,282 6,594 (8,540 ) Net income $ 8,090 $ 6,628 $ 7,874 Condensed Statements of Cash Flows For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 8,090 $ 6,628 $ 7,874 Adjustments to reconcile net income to cash provided by (used in) operating activities: Deferred income taxes 16 4 (53 ) Equity in (undistributed income) distributions in excess of income of subsidiaries (9,282 ) (6,594 ) 8,540 Share-based compensation 247 216 135 Net change in other liabilities (35 ) (6 ) 17 Other, net (377 ) (849 ) (712 ) Net cash provided by (used in) operating activities (1,341 ) (601 ) 15,801 Cash flows from investing activities: Capital contributed to subsidiaries (6,100 ) 0 0 Other, net 0 (500 ) 0 Net cash used in investing activities (6,100 ) (500 ) 0 Cash flows from financing activities: Dividends paid (3,488 ) (2,898 ) (1,822 ) Proceeds from issuance of common stock 1,276 847 794 Payments to repurchase common stock 0 (631 ) (809 ) Net cash used in financing activities (2,212 ) (2,682 ) (1,837 ) Net increase (decrease) in cash (9,653 ) (3,783 ) 13,964 Cash, beginning 10,570 14,353 389 Cash, ending $ 917 $ 10,570 $ 14,353 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The nature of the Company’s business generates a certain amount of litigation involving matters arising out of the ordinary course of business. Except as described below, in the opinion of management, there are no legal proceedings that might have a material effect on the results of operations, liquidity, or the financial position of the Company at this time. On May 25, 2012, SEPTA filed a putative class action complaint in the U.S. District Court for the Middle District of Pennsylvania against the Company, the Bank and certain current and former directors and executive officers (collectively, the “Defendants”). The complaint alleges, among other things, that (i) in connection with the Company’s Registration Statement on Form S-3 dated February 23, 2010 and its Prospectus Supplement dated March 23, 2010, and (ii) during the purported class period of March 24, 2010 through October 27, 2011, the Company issued materially false and misleading statements regarding the Company’s lending practices and financial results, including misleading statements concerning the stringent nature of the Bank’s credit practices and underwriting standards, the quality of its loan portfolio, and the intended use of the proceeds from the Company’s March 2010 public offering of common stock. The complaint asserts claims under Sections 11, 12(a) and 15 of the Securities Act of 1933, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks class certification, unspecified money damages, interest, costs, fees and equitable or injunctive relief. Under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), motions for appointment of Lead Plaintiff in this case were due by July 24, 2012. SEPTA was the sole movant and the Court appointed SEPTA Lead Plaintiff on August 20, 2012. Pursuant to the PSLRA and the Court’s September 27, 2012 Order, SEPTA was given until October 26, 2012 to file an amended complaint and the Defendants until December 7, 2012 to file a motion to dismiss the amended complaint. SEPTA’s opposition to the Defendant’s motion to dismiss was originally due January 11, 2013. Under the PSLRA, discovery and all other proceedings in the case were stayed pending the Court’s ruling on the motion to dismiss. The September 27, 2012 Order specified that if the motion to dismiss were denied, the Court would schedule a conference to address discovery and the filing of a motion for class certification. On October 26, 2012, SEPTA filed an unopposed motion for enlargement of time to file its amended complaint in order to permit the parties and new defendants to be named in the amended complaint time to discuss plaintiff’s claims and defendants’ defenses. On October 26, 2012, the Court granted SEPTA’s motion, mooting its September 27, 2012 scheduling Order, and requiring SEPTA to file its amended complaint on or before January 16, 2013 or otherwise advise the Court of circumstances that require a further enlargement of time. On January 14, 2013, the Court granted SEPTA’s second unopposed motion for enlargement of time to file an amended complaint on or before March 22, 2013. On March 4, 2013, SEPTA filed an amended complaint. The amended complaint expands the list of defendants in the action to include the Company’s independent registered public accounting firm and the underwriters of the Company’s March 2010 public offering of common stock. In addition, among other things, the amended complaint extends the purported 1934 Exchange Act class period from March 15, 2010 through April 5, 2012. Pursuant to the Court’s March 28, 2013 Second Scheduling Order, on May 28, 2013 all defendants filed their motions to dismiss the amended complaint, and on July 22, 2013 SEPTA filed its “omnibus” opposition to all of the defendants’ motions to dismiss. On August 23, 2013, all defendants filed reply briefs in further support of their motions to dismiss. On December 5, 2013, the Court ordered oral argument on the Orrstown Defendants’ motion to dismiss the amended complaint to be heard on February 7, 2014. Oral argument on the pending motions to dismiss SEPTA’s amended complaint was held on April 29, 2014. The Second Scheduling Order stayed all discovery in the case pending the outcome of the motions to dismiss, and informed the parties that, if required, a telephonic conference to address discovery and the filing of SEPTA’s motion for class certification would be scheduled after the Court’s ruling on the motions to dismiss. On April 10, 2015, pursuant to Court order, all parties filed supplemental briefs addressing the impact of the U.S. Supreme Court’s March 24, 2015 decision in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund on defendants’ motions to dismiss the amended complaint. On June 22, 2015, in a 96-page Memorandum, the Court dismissed without prejudice SEPTA’s amended complaint against all defendants, finding that SEPTA failed to state a claim under either the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. The Court ordered that, within 30 days, SEPTA either seek leave to amend its amended complaint, accompanied by the proposed amendment, or file a notice of its intention to stand on the amended complaint. On July 22, 2015, SEPTA filed a motion for leave to amend under Local Rule 15.1, and attached a copy of its proposed second amended complaint to its motion. Many of the allegations of the proposed second amended complaint are essentially the same or similar to the allegations of the dismissed amended complaint. The proposed second amended complaint also alleges that the Orrstown Defendants did not publicly disclose certain alleged failures of internal controls over loan underwriting, risk management, and financial reporting during the period 2009 to 2012, in violation of the federal securities laws. On February 8, 2016, the Court granted SEPTA’s motion for leave to amend and SEPTA filed its second amended complaint that same day. On February 25, 2016, the Court issued a scheduling Order directing: all defendants to file any motions to dismiss by March 18, 2016; SEPTA to file an omnibus opposition to defendants’ motions to dismiss by April 8, 2016; and all defendants to file reply briefs in support of their motions to dismiss by April 22, 2016. Defendants timely filed their motions to dismiss the second amended complaint and the parties filed their briefs in accordance with the Court-ordered schedule, above. The February 25, 2016 Order stays all discovery and other deadlines in the case (including the filing of SEPTA’s motion for class certification) pending the outcome of the motions to dismiss. The allegations of SEPTA’s proposed second amended complaint disclosed the existence of a confidential, non-public, fact-finding inquiry regarding the Company being conducted by the Commission. As disclosed in the Company’s Form 8-K filed on September 27, 2016, on that date the Company entered into a settlement agreement with the Commission resolving the investigation of accounting and related matters at the Company for the periods ended June 30, 2010, to December 31, 2011. As part of the settlement of the Commission’s administrative proceedings and pursuant to the cease-and-desist order, without admitting or denying the Commission’s findings, the Company, its Chief Executive Officer, its former Chief Financial Officer, its former Executive Vice President and Chief Credit Officer, and its Chief Accounting Officer, agreed to pay civil money penalties to the Commission. The Company agreed to pay a civil money penalty of $1,000,000 . The Company had previously established a reserve for that amount which was expensed in the second fiscal quarter of 2016. In the settlement agreement with the Commission, the Company also agreed to cease and desist from committing or causing any violations and any future violations of Securities Act Sections 17(a)(2) and 17(a)(3) and Exchange Act Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B), and Rules 12b-20, 13a-1 and 13a-13 promulgated thereunder. On September 27, 2016, the Orrstown Defendants filed with the Court a Notice of Subsequent Event in Further Support of their Motion to Dismiss the Second Amended Complaint, regarding the settlement with the SEC. The Notice attached a copy of the SEC’s cease-and-desist order and briefly described what the Company believed were the most salient terms of the neither-admit-nor-deny settlement. On September 29, 2016, SEPTA filed a Response to the Notice, in which SEPTA argued that the settlement with the SEC did not support dismissal of the second amended complaint. On December 7, 2016, the Court issued an Order and Memorandum granting in part and denying in part defendants’ motions to dismiss SEPTA’s second amended complaint. The Court granted the motions to dismiss the Securities Act claims against all defendants, and granted the motions to dismiss the Exchange Act section 10(b) and Rule 10b-5 claims against all defendants except Orrstown Financial Services, Inc., Orrstown Bank, Thomas R. Quinn, Jr., Bradley S. Everly, and Jeffrey W. Embly. The Court also denied the motions to dismiss the Exchange Act section 20(a) claims against Quinn, Everly, and Embly. On January 31, 2017, the Court entered a Case Management Order establishing the schedule for the litigation and, on August 15, 2017, it entered a revised Order that, among other things, set the following deadlines: all fact discovery closes on March 1, 2018, and SEPTA’s motion for class certification is due the same day; expert merits discovery closes May 30, 2018; summary judgment motions are due by June 26, 2018; the mandatory pretrial and settlement conference is set for December 11, 2018; and trial is scheduled to begin on January 7, 2019. Document discovery has begun in the case and is ongoing. To date, one deposition, of a non-party, has been concluded. On December 15, 2017, the Orrstown Defendants and SEPTA exchanged expert reports in opposition to and in support of class certification, respectively. On January 15, 2018, the parties exchanged expert rebuttal reports. SEPTA’s motion for class certification was due March 1, 2018, with the Orrstown Defendants’ opposition due April 2, 2018, and SEPTA’s reply due April 23, 2018. On February 9, 2018, SEPTA filed a Status Report and Request for a Telephonic Status Conference asking the Court to convene a conference to discuss the status of discovery in the case and possible revisions to the case schedule. On February 12, 2018, the Orrstown Defendants filed their status report to provide the Court with a summary of document discovery in the case to date. On February 27, 2018, SEPTA filed an unopposed motion for a continuance of the existing case deadlines pending a status conference with the Court or the issuance of a revised case schedule. On February 28, 2018, the Court issued an Order continuing all case management deadlines until further order of the Court. The Company believes that the allegations of SEPTA’s second amended complaint are without merit and intends to vigorously defend itself against those claims. It is not possible at this time to estimate reasonably possible losses, or even a range of reasonably possible losses, in connection with the litigation. The Company incurred indemnification costs totaling $645,000 for the year ended December 31, 2017 , with several professional service providers in connection with the SEPTA litigation. These costs are included in legal fees in the consolidated statements of income. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Orrstown Financial Services, Inc. and subsidiaries is a financial holding company that operates Orrstown Bank, a commercial bank with banking and financial advisory offices in Berks, Cumberland, Dauphin, Franklin, Lancaster and Perry Counties of Pennsylvania and in Washington County, Maryland and Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster, Pennsylvania, and which was acquired in December 2016. The Bank engages in lending activities including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending. Deposit services include checking, savings, time, and money market deposits. The Bank also provides investment and brokerage services through its OFA division. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by such regulatory authorities. |
Basis of Presentation | Basis of Presentation – The accompanying consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiaries, the Bank and Wheatland. The accounting and reporting policies of the Company conform to GAAP and, where applicable, to accounting and reporting guidelines prescribed by bank regulatory authorities. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications have been made to prior year amounts to conform with current year classifications. In December 2016, the Company acquired Wheatland. The results of operations or assets acquired and liabilities assumed are included only from the date of acquisition. Pro forma financial information for the acquisition has not been included because the acquisition was not material. The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's consolidated financial statements and notes as required by GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ALL and income taxes. |
Concentration of Credit Risk | Concentration of Credit Risk – The Company grants commercial, residential, construction, municipal, and various forms of consumer lending to customers primarily in its market area of Berks, Cumberland, Dauphin, Franklin, Lancaster, and Perry Counties of Pennsylvania and in Washington County, Maryland. Therefore the Company's exposure to credit risk is significantly affected by changes in the economy in those areas. Although the Company maintains a diversified loan portfolio, a significant portion of its customers’ ability to honor their contracts is dependent upon economic sectors for commercial real estate, including office space, retail strip centers, sales finance, sub-dividers and developers, and multi-family, hospitality, and residential building operators. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if collateral is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but generally includes real estate and equipment. Concentration of Credit Risk – The Company grants commercial, residential, construction, municipal, and various forms of consumer lending to customers primarily in its market area of Berks, Cumberland, Dauphin, Franklin, Lancaster, and Perry Counties of Pennsylvania and in Washington County, Maryland. Therefore the Company's exposure to credit risk is significantly affected by changes in the economy in those areas. Although the Company maintains a diversified loan portfolio, a significant portion of its customers’ ability to honor their contracts is dependent upon economic sectors for commercial real estate, including office space, retail strip centers, sales finance, sub-dividers and developers, and multi-family, hospitality, and residential building operators. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if collateral is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but generally includes real estate and equipment. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include cash, balances due from banks, federal funds sold and interest bearing deposits due on demand, all of which have original maturities of 90 days or less. Net cash flows are reported for customer loan and deposit transactions, loans held for sale, redemption (purchases) of restricted investments in bank stocks, and short-term borrowings. |
Restricted Investments in Bank Stocks | Restricted Investments in Bank Stocks – Restricted investments in bank stocks consist of Federal Reserve Bank of Philadelphia stock, FHLB of Pittsburgh stock and Atlantic Community Bankers Bank stock. Federal law requires a member institution of the district Federal Reserve Bank and FHLB to hold stock according to predetermined formulas. Atlantic Community Bankers Bank requires its correspondent banking institutions to hold stock as a condition of membership. The restricted investment in bank stocks is carried at cost. Quarterly, management evaluates the bank stocks for impairment based on assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as operating performance, liquidity, funding and capital positions, stock repurchase history, dividend history and impact of legislative and regulatory changes. |
Securities | Securities – The Company classifies debt and marketable equity securities as available for sale on the date of purchase. At December 31, 2017 and 2016 the Company had no held to maturity or trading securities. AFS securities are reported at fair value. Interest income and dividends are recognized in interest income on an accrual basis. Purchase premiums and discounts on debt securities are amortized to interest income using the interest method over the terms of the securities and approximate the level yield method. Changes in unrealized gains and losses, net of related deferred taxes, for AFS securities are recorded in AOCI. Realized gains and losses on securities are recorded on the trade date using the specific identification method and are included in noninterest income. AFS securities include investments that management intends to use as part of its asset/liability management strategy. Securities may be sold in response to changes in interest rates, changes in prepayment rates and other factors. The Company does not have the intent to sell any of its AFS securities that are in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components: OTTI related to other factors, which is recognized in OCI, and the remaining OTTI, which is recognized in earnings. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. The Company’s securities are exposed to various risks, such as interest rate risk, market risk, and credit risk. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term would materially affect investment assets reported in the consolidated financial statements. |
Loans Held for Sale | Loans Held for Sale – Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value. Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income. |
Loans | Loans – The Company grants commercial loans; residential, commercial and construction mortgage loans; and various forms of consumer loans to its customers located principally in south central Pennsylvania and northern Maryland. The ability of the Company’s debtors to honor their contracts is dependent largely upon the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the ALL, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a yield adjustment over the respective term of the loan. For purchased loans that are not deemed impaired at the acquisition date, premiums and discounts are amortized or accreted as adjustments to interest income using the effective yield method. For all classes of loans, the accrual of interest income on loans, including impaired loans, ceases when principal or interest is past due 90 days or more or immediately if, in the opinion of management, full collection is unlikely. Interest will continue to accrue on loans past due 90 days or more if the collateral is adequate to cover principal and interest, and the loan is in the process of collection. Interest accrued, but not collected, at the date of placement on nonaccrual status, is reversed and charged against current interest income, unless fully collateralized. Subsequent payments received are either applied to the outstanding principal balance or recorded as interest income, depending upon management’s assessment of the ultimate collectability of principal. Loans are returned to accrual status, for all loan classes, when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms of the note for a reasonable period of time, generally six months , and the ultimate collectability of the total contractual principal and interest is reasonably assured. Past due status is based on contractual terms of the loan. Loans, the terms of which are modified, are classified as TDRs if a concession was granted in connection with the modification, for legal or economic reasons, related to the debtor’s financial difficulties. Concessions granted under a TDR typically involve a temporary deferral of scheduled loan payments, an extension of a loan’s stated maturity date, a temporary reduction in interest rates, or granting of an interest rate below market rates given the risk of the transaction. If a modification occurs while the loan is on accruing status, it will continue to accrue interest under the modified terms. Nonaccrual TDRs may be restored to accrual status if scheduled principal and interest payments, under the modified terms, are current for six months after modification, and the borrower continues to demonstrate its ability to meet the modified terms. TDRs are evaluated individually for impairment on a quarterly basis including monitoring of performance according to their modified terms. |
Allowance for Loan Losses | Allowance for Loan Losses – The ALL is evaluated on a quarterly basis, as losses are estimated to be probable and incurred, and, if deemed necessary, is increased through a provision for loan losses charged to earnings. Loan losses are charged against the ALL when management determines that all or a portion of the loan is uncollectible. Recoveries on previously charged-off loans are credited to the ALL when received. The ALL is allocated to loan portfolio classes on a quarterly basis, but the entire balance is available to cover losses from any of the portfolio classes when those losses are confirmed. Management uses internal policies and bank regulatory guidance in periodically evaluating loans for collectability and incorporates historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments – Financial instruments include off-balance sheet credit commitments issued to meet customer financing needs, such as commitments to make loans and commercial letters of credit. These financial instruments are recorded when they are funded. The face amount represents the exposure to loss, before considering customer collateral or ability to repay. The Company maintains a reserve for probable losses on off-balance sheet commitments which is included in Other Liabilities. |
Loans Serviced | Loans Serviced – The Bank administers secondary market mortgage programs available through the FHLB and the Federal National Mortgage Association and offers residential mortgage products and services to customers. The Bank originates single-family residential mortgage loans for immediate sale in the secondary market and retains the servicing of those loans. |
Transfers of Financial Assets | Transfers of Financial Assets – Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance – The Company has purchased life insurance policies on certain employees. Life insurance is recorded at the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Premises and Equipment | Premises and Equipment – Buildings, improvements, equipment, furniture and fixtures are carried at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation and amortization has been provided generally on the straight-line method and is computed over the estimated useful lives of the various assets as follows: buildings and improvements, including leasehold improvements – 10 to 40 years; and furniture and equipment – 3 to 15 years. Leasehold improvements are amortized over the shorter of the lease term or the indicated life. Repairs and maintenance are charged to operations as incurred, while major additions and improvements are capitalized. Gain or loss on retirement or disposal of individual assets is recorded as income or expense in the period of retirement or disposal. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill is calculated as the purchase premium, if any, after adjusting for the fair value of net assets acquired in purchase transactions. Goodwill is not amortized but is reviewed for potential impairment on at least an annual basis, with testing between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit. Other intangible assets represent purchased assets that can be distinguished from goodwill because of contractual or other legal rights. The Company’s other intangible assets have finite lives and are amortized on either the sum of the years digits or straight line bases over their estimated lives, generally 10 years for deposit premiums and 10 to 15 years for customer lists. |
Mortgage Servicing Rights | Mortgage Servicing Rights – The estimated fair value of MSRs related to loans sold and serviced by the Company is recorded as an asset upon the sale of such loans. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are evaluated periodically for impairment by comparing the carrying amount to estimated fair value. Fair value is determined periodically through a discounted cash flows valuation performed by a third party. Significant inputs to the valuation include expected servicing income, net of expense, the discount rate and the expected life of the underlying loans. To the extent the amortized cost of the MSRs exceeds their estimated fair values, a valuation allowance is established for such impairment through a charge against servicing income on the consolidated statements of income. If the Company determines, based on subsequent valuations, that the impairment no longer exists or is reduced, the valuation allowance is reduced through a credit to earnings. |
Foreclosed Real Estate | Foreclosed Real Estate – Real estate property acquired through foreclosure or other means is initially recorded at the fair value of the related real estate collateral at the transfer date less estimated selling costs, and subsequently at the lower of its carrying value or fair value less estimated costs to sell. Fair value is usually determined based on an independent third party appraisal of the property or occasionally on a recent sales offer. Costs to maintain foreclosed real estate are expensed as incurred. Costs that significantly improve the value of the properties are capitalized. |
Investments in Real Estate Partnerships | Investments in Real Estate Partnerships – The Company has a 99% limited partner interest in several real estate partnerships in central Pennsylvania. These investments are affordable housing projects which entitle the Company to tax deductions and credits that expire through 2025. The Company accounts for its investments in affordable housing projects under the proportional amortization method when criteria are met, which is limited to one investment entered into in 2015. Other investments are accounted for under the equity method of accounting. |
Advertising | Advertising – The Company expenses advertising as incurred. |
Repurchase Agreements | Repurchase Agreements – The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities which are included in short-term borrowings. Under these agreements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these Repurchase Agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated balance sheets, while the securities underlying the Repurchase Agreements remaining are reflected in AFS securities. The repurchase obligation and underlying securities are not offset or netted. The Company does not enter into reverse Repurchase Agreements, so there is no offsetting to be performed with Repurchase Agreements. The right of setoff for a Repurchase Agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the Repurchase Agreement should the Company be in default (e.g., fail to make an interest payment to the counterparty). For the Repurchase Agreements, the collateral is held by the Company in a segregated custodial account under a third party agreement. Repurchase agreements are secured by GSE MBSs and mature overnight. |
Share Compensation Plans | Share Compensation Plans – The Company has share compensation plans that cover employees and non-employee directors. Compensation expense relating to share-based payment transactions is measured based on the grant date fair value of the share award, including a Black-Scholes model for stock options. Compensation expense for all share awards is calculated and recognized over the employees’ or non-employee directors' service period, generally defined as the vesting period. |
Income Taxes | Income Taxes – Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense. |
Loss Contingencies | Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Treasury Stock | Treasury Stock – Common stock shares repurchased are recorded as treasury stock at cost. |
Earnings Per Share | Earnings Per Share – Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the period. Restricted stock awards are included in weighted average common shares outstanding as they are earned. Diluted earnings per share includes additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury shares are not deemed outstanding for earnings per share calculations. |
Comprehensive Income | Comprehensive Income – Comprehensive income consists of net income and OCI. OCI is limited to unrealized gains (losses) on securities available for sale for all years presented. |
Fair Value | Fair Value – Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 17, Fair Value. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Segment Reporting | Segment Reporting – The Company operates in one significant segment – Community Banking. The Company’s non-banking activities are insignificant to the consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. A substantial portion of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of ASU 2014-09. The Company's evaluation of the impact of changes for in-scope items within noninterest income, including service charges on deposit accounts and trust and investment management income, has not identified any significant impact on our consolidated financial statements. ASU 2014-09 was effective for the Company on January 1, 2018 and did not have a significant impact on our consolidated financial statements. ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-01 was effective for the Company on January 1, 2018 and did not have a significant impact on our consolidated financial statements. ASU 2016-02, Leases (Topic 842). ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Notwithstanding the foregoing, in January 2018, the FASB issued a proposal to provide an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company anticipates that the impact on its consolidated balance sheet will result in an increase in assets and liabilities for its right of use assets and related lease liabilities for those leases that are outstanding at the date of adoption, however, it does not anticipate it will have a material impact on its results of operations. Management is evaluating other effects of this standard on the Company's consolidated financial position and regulatory capital. ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). ASU 2016-09 requires recognition of the income tax effects of share-based awards in the income statement when the awards vest or are settled, eliminating additional paid-in capital pools. The adoption of these changes by the Company on January 1, 2017 did not have a material impact on our financial position or results of operations. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2016-13 on our consolidated financial statements. In that regard, the Company has formed a cross-functional working group, under the direction of the Chief Financial Officer and the Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology. We are currently developing an implementation plan to include, but not limited to, an assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs. We have selected a third-party vendor solution to assist us in the application of ASU 2016-13. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of the Company's loan and securities portfolios as well as the prevailing economic conditions and forecasts at the adoption date. ASU 2016-15, Statement of Cash Flows (Topic 230) - Restricted Cash . ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 was effective for the Company on January 1, 2018 and did have a significant impact on our consolidated financial statements. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 will be effective for the Company on January 1, 2020, with earlier adoption permitted, and is not expected to have a material impact on the Company's consolidated financial statements. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20). ASU 2017-08 shortens the amortization period of certain callable debt securities held at a premium to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 will be effective for the Company on January 1, 2019, with early adoption permitted. Management does not anticipate ASU 2017-08 will have a material impact on the Company's consolidated financial statements. ASU 2017-09, Compensation - Stock Compensation (Topic 718). ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award's fair value, (ii) the award's vesting conditions and (iii) the award's classification as an equity or liability instrument. ASU 2017-09 was effective for the Company on January 1, 2018 and did not have a significant impact on our consolidated financial statements. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 allows entities to reclassify from AOCI to retained earnings the 'stranded' tax effects of accounting for income tax rate changes on items accounted for in AOCI which were impacted by tax reform enacted in December 2017. The impact of tax rate changes is recorded in income and items accounted for in AOCI could be left with such a stranded tax effect that could have those items appear to not reflect the appropriate tax rate. The FASB's changes are intended to improve the usefulness of information reported to financial statement users. The changes are effective for years beginning after December 31, 2018, with early adoption permitted. We elected to adopt the changes in December 2017. The amount transferred from AOCI to retained earnings totaled $229,000 and represented the impact of the Tax Law rate change to 21% at the date of enactment for the unrealized gains and losses on securities accounted for in AOCI. |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value and Corresponding Amounts of Gross Unrealized Gains and Losses | The following table summarizes amortized cost and fair value of AFS securities at December 31, 2017 and 2016 and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At December 31, 2017 and 2016 all investment securities were classified as AFS. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 States and political subdivisions $ 153,803 $ 6,133 $ 478 $ 159,458 GSE residential MBSs 48,600 930 0 49,530 GSE residential CMOs 113,658 296 2,835 111,119 Private label residential CMOs 999 4 0 1,003 Private label commercial CMOs 7,809 0 156 7,653 Asset-backed 86,787 69 425 86,431 Total debt securities 411,656 7,432 3,894 415,194 Equity securities 50 64 0 114 Totals $ 411,706 $ 7,496 $ 3,894 $ 415,308 December 31, 2016 U.S. Government Agencies $ 39,569 $ 147 $ 124 $ 39,592 States and political subdivisions 163,677 1,782 1,177 164,282 GSE residential MBSs 116,022 928 6 116,944 GSE residential CMOs 72,411 240 3,268 69,383 GSE commercial CMOs 5,148 0 292 4,856 Private label residential CMOs 5,042 0 36 5,006 Total debt securities 401,869 3,097 4,903 400,063 Equity securities 50 41 0 91 Totals $ 401,919 $ 3,138 $ 4,903 $ 400,154 |
Summary of Securities Available For Sale With Unrealized Losses | The following table summarizes AFS securities with unrealized losses at December 31, 2017 and 2016 , aggregated by major security type and length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total (Dollars in thousands) # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses December 31, 2017 States and political subdivisions 7 $ 24,577 $ 473 1 $ 5,585 $ 5 8 $ 30,162 $ 478 GSE residential CMOs 4 25,155 914 5 37,459 1,921 9 62,614 2,835 Private label commercial CMOs 2 7,653 156 0 0 0 2 7,653 156 Asset-backed 6 60,006 425 0 0 0 6 60,006 425 Totals 19 $ 117,391 $ 1,968 6 $ 43,044 $ 1,926 25 $ 160,435 $ 3,894 December 31, 2016 U.S. Government Agencies 6 $ 10,710 $ 23 2 $ 13,531 $ 101 8 $ 24,241 $ 124 States and political subdivisions 25 58,924 610 1 5,075 567 26 63,999 1,177 GSE residential MBSs 1 5,034 6 0 0 0 1 5,034 6 GSE residential CMOs 6 59,534 3,264 1 634 4 7 60,168 3,268 GSE commercial CMOs 1 4,856 292 0 0 0 1 4,856 292 Private label residential CMOs 0 0 0 3 5,005 36 3 5,005 36 Totals 39 $ 139,058 $ 4,195 7 $ 24,245 $ 708 46 $ 163,303 $ 4,903 |
Summary of Amortized Cost and Fair Value by Contractual Maturity | The following table summarizes amortized cost and fair value of AFS securities at December 31, 2017 by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available for Sale (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 0 $ 0 Due after one year through five years 8,712 8,929 Due after five years through ten years 49,958 51,188 Due after ten years 95,133 99,341 MBSs and CMOs 171,066 169,305 Asset-backed 86,787 86,431 Total debt securities 411,656 415,194 Equity securities 50 114 Totals $ 411,706 $ 415,308 |
Summary of Proceeds from Sale of Available for Sale Securities | The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the years ended December 31, 2017 , 2016 , and 2015 . Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Proceeds from sale of AFS securities $ 162,320 $ 64,742 $ 65,611 Gross gains 1,477 1,468 1,948 Gross losses 287 48 24 |
LOANS AND ALLOWANCE FOR LOAN 30
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale | The following table presents the loan portfolio, excluding residential LHFS, broken out by classes at December 31, 2017 and December 31, 2016 . (Dollars in thousands) 2017 2016 Commercial real estate: Owner-occupied $ 116,811 $ 112,295 Non-owner occupied 244,491 206,358 Multi-family 53,634 47,681 Non-owner occupied residential 77,980 62,533 Acquisition and development: 1-4 family residential construction 11,730 4,663 Commercial and land development 19,251 26,085 Commercial and industrial 115,663 88,465 Municipal 42,065 53,741 Residential mortgage: First lien 162,509 139,851 Home equity – term 11,784 14,248 Home equity – lines of credit 132,192 120,353 Installment and other loans 21,902 7,118 $ 1,010,012 $ 883,391 |
Summary of Ratings Based On Internal Risk Rating System | The following summarizes the Company’s loan portfolio ratings based on its internal risk rating system at December 31, 2017 and 2016 : (Dollars in thousands) Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful Total December 31, 2017 Commercial real estate: Owner-occupied $ 113,240 $ 413 $ 1,921 $ 1,237 $ 0 $ 116,811 Non-owner occupied 235,919 0 4,507 4,065 0 244,491 Multi-family 48,603 4,113 753 165 0 53,634 Non-owner occupied residential 76,373 142 1,084 381 0 77,980 Acquisition and development: 1-4 family residential construction 11,238 0 0 492 0 11,730 Commercial and land development 18,635 5 611 0 0 19,251 Commercial and industrial 113,162 2,151 0 350 0 115,663 Municipal 42,065 0 0 0 0 42,065 Residential mortgage: First lien 158,673 0 0 3,836 0 162,509 Home equity – term 11,762 0 0 22 0 11,784 Home equity – lines of credit 131,585 80 60 467 0 132,192 Installment and other loans 21,891 0 0 11 0 21,902 $ 983,146 $ 6,904 $ 8,936 $ 11,026 $ 0 $ 1,010,012 December 31, 2016 Commercial real estate: Owner-occupied $ 103,652 $ 5,422 $ 2,151 $ 1,070 $ 0 $ 112,295 Non-owner occupied 190,726 4,791 10,105 736 0 206,358 Multi-family 42,473 4,222 787 199 0 47,681 Non-owner occupied residential 59,982 949 1,150 452 0 62,533 Acquisition and development: 1-4 family residential construction 4,560 103 0 0 0 4,663 Commercial and land development 25,435 10 639 1 0 26,085 Commercial and industrial 87,588 251 32 594 0 88,465 Municipal 53,741 0 0 0 0 53,741 Residential mortgage: First lien 135,558 0 0 4,293 0 139,851 Home equity – term 14,155 0 0 93 0 14,248 Home equity – lines of credit 119,681 82 61 529 0 120,353 Installment and other loans 7,112 0 0 6 0 7,118 $ 844,663 $ 15,830 $ 14,925 $ 7,973 $ 0 $ 883,391 |
Summary of Impaired Loans by Class | The following table summarizes impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at December 31, 2017 and 2016 . The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and a partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance (Dollars in thousands) Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) December 31, 2017 Commercial real estate: Owner-occupied $ 0 $ 0 $ 0 $ 1,237 $ 2,479 Non-owner occupied 0 0 0 4,065 4,856 Multi-family 0 0 0 165 352 Non-owner occupied residential 0 0 0 381 669 Acquisition and development: 1-4 family residential construction 0 0 0 492 492 Commercial and industrial 0 0 0 350 495 Residential mortgage: First lien 872 872 42 2,964 3,706 Home equity—term 0 0 0 22 27 Home equity—lines of credit 0 0 0 467 628 Installment and other loans 9 9 9 2 33 $ 881 $ 881 $ 51 $ 10,145 $ 13,737 December 31, 2016 Commercial real estate: Owner-occupied $ 0 $ 0 $ 0 $ 1,070 $ 2,236 Non-owner occupied 0 0 0 736 1,323 Multi-family 0 0 0 199 368 Non-owner occupied residential 0 0 0 452 706 Acquisition and development: Commercial and land development 0 0 0 1 16 Commercial and industrial 0 0 0 594 715 Residential mortgage: First lien 643 643 43 3,650 4,399 Home equity—term 0 0 0 93 103 Home equity—lines of credit 0 0 0 529 659 Installment and other loans 0 0 0 6 34 $ 643 $ 643 $ 43 $ 7,330 $ 10,559 |
Summary of Average Recorded Investment in Impaired Loans and Related Interest Income | The following table summarizes the average recorded investment in impaired loans and related recognized interest income for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 (Dollars in thousands) Average Impaired Balance Interest Income Recognized Average Impaired Balance Interest Income Recognized Average Impaired Balance Interest Income Recognized Commercial real estate: Owner-occupied $ 1,000 $ 6 $ 1,758 $ 0 $ 2,613 $ 0 Non-owner occupied 392 0 6,831 0 3,470 0 Multi-family 182 0 216 0 402 0 Non-owner occupied residential 418 0 645 0 1,020 0 Acquisition and development: 1-4 family residential construction 154 0 0 0 0 0 Commercial and land development 0 0 3 0 266 137 Commercial and industrial 413 0 575 0 1,208 0 Residential mortgage: First lien 4,012 58 4,525 33 4,644 37 Home equity – term 61 0 98 0 130 0 Home equity – lines of credit 488 2 455 0 571 0 Installment and other loans 10 0 12 0 22 0 $ 7,130 $ 66 $ 15,118 $ 33 $ 14,346 $ 174 |
Schedule of Impaired Loans That Are TDRs | The following table presents impaired loans that are TDRs, with the recorded investment at December 31, 2017 and December 31, 2016 . 2017 2016 (Dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Accruing: Commercial real estate: Owner-occupied 1 $ 52 0 $ 0 Residential mortgage: First lien 11 1,102 8 896 Home equity - lines of credit 1 29 1 34 13 1,183 9 930 Nonaccruing: Commercial real estate: Owner-occupied 1 57 0 0 Residential mortgage: First lien 8 715 12 1,035 Installment and other loans 1 3 1 6 10 775 13 1,041 23 $ 1,958 22 $ 1,971 |
Schedule of Number of Loans Modified | The following table presents the number of loans modified, and their pre-modification and post-modification investment balances for the years ended December 31, 2017 , 2016 , and 2015 : (Dollars in thousands) Number of Contracts Pre- Modification Investment Balance Post- Modification Investment Balance December 31, 2017 Commercial real estate: Owner occupied 2 $ 119 $ 119 December 31, 2016 Commercial real estate: Non-owner occupied 1 $ 6,095 $ 6,095 Residential mortgage: First lien 2 265 265 Home equity - lines of credit 1 34 34 4 $ 6,394 $ 6,394 December 31, 2015 Residential mortgage: First lien 1 $ 59 $ 59 |
Schedule of Classes of Loan Portfolio Summarized by Aging Categories | The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at December 31, 2017 and 2016 : Days Past Due Current 30-59 60-89 90+ (still accruing) Total Past Due Non- Accrual Total Loans December 31, 2017 Commercial real estate: Owner-occupied $ 115,605 $ 4 $ 17 $ 0 $ 21 $ 1,185 $ 116,811 Non-owner occupied 240,426 0 0 0 0 4,065 244,491 Multi-family 53,469 0 0 0 0 165 53,634 Non-owner occupied residential 77,454 145 0 0 145 381 77,980 Acquisition and development: 1-4 family residential construction 11,238 0 0 0 0 492 11,730 Commercial and land development 19,226 25 0 0 25 0 19,251 Commercial and industrial 115,312 1 0 0 1 350 115,663 Municipal 42,065 0 0 0 0 0 42,065 Residential mortgage: First lien 155,387 3,333 1,055 0 4,388 2,734 162,509 Home equity – term 11,753 9 0 0 9 22 11,784 Home equity – lines of credit 131,208 474 72 0 546 438 132,192 Installment and other loans 21,749 141 1 0 142 11 21,902 $ 994,892 $ 4,132 $ 1,145 $ 0 $ 5,277 $ 9,843 $ 1,010,012 December 31, 2016 Commercial real estate: Owner-occupied $ 111,225 $ 0 $ 0 $ 0 $ 0 $ 1,070 $ 112,295 Non-owner occupied 205,622 0 0 0 0 736 206,358 Multi-family 47,482 0 0 0 0 199 47,681 Non-owner occupied residential 62,081 0 0 0 0 452 62,533 Acquisition and development: 1-4 family residential construction 4,548 115 0 0 115 0 4,663 Commercial and land development 26,084 0 0 0 0 1 26,085 Commercial and industrial 87,871 0 0 0 0 594 88,465 Municipal 53,741 0 0 0 0 0 53,741 Residential mortgage: First lien 135,499 628 328 0 956 3,396 139,851 Home equity – term 14,155 0 0 0 0 93 14,248 Home equity – lines of credit 119,733 125 0 0 125 495 120,353 Installment and other loans 7,090 20 2 0 22 6 7,118 $ 875,131 $ 888 $ 330 $ 0 $ 1,218 $ 7,042 $ 883,391 |
Schedule of Activity in Allowance for Loan Losses | The following table presents activity in the ALL for the years ended December 31, 2017 , 2016 and 2015 . Commercial Consumer (Dollars in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Municipal Total Residential Mortgage Installment and Other Total Unallocated Total December 31, 2017 Balance, beginning of year $ 7,530 $ 580 $ 1,074 $ 54 $ 9,238 $ 2,979 $ 144 $ 3,123 $ 414 $ 12,775 Provision for loan losses 38 (167 ) 333 30 234 531 174 705 61 1,000 Charge-offs (835 ) 0 (85 ) 0 (920 ) (180 ) (166 ) (346 ) 0 (1,266 ) Recoveries 30 4 124 0 158 70 59 129 0 287 Balance, end of year $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 December 31, 2016 Balance, beginning of year $ 7,883 $ 850 $ 1,012 $ 58 $ 9,803 $ 2,870 $ 121 $ 2,991 $ 774 $ 13,568 Provision for loan losses 107 (270 ) 129 (4 ) (38 ) 532 116 648 (360 ) 250 Charge-offs (872 ) 0 (79 ) 0 (951 ) (577 ) (194 ) (771 ) 0 (1,722 ) Recoveries 412 0 12 0 424 154 101 255 0 679 Balance, end of year $ 7,530 $ 580 $ 1,074 $ 54 $ 9,238 $ 2,979 $ 144 $ 3,123 $ 414 $ 12,775 December 31, 2015 Balance, beginning of year $ 9,462 $ 697 $ 806 $ 183 $ 11,148 $ 2,262 $ 119 $ 2,381 $ 1,218 $ 14,747 Provision for loan losses (1,020 ) (440 ) 249 (125 ) (1,336 ) 1,122 55 1,177 (444 ) (603 ) Charge-offs (711 ) (22 ) (115 ) 0 (848 ) (592 ) (62 ) (654 ) 0 (1,502 ) Recoveries 152 615 72 0 839 78 9 87 0 926 Balance, end of year $ 7,883 $ 850 $ 1,012 $ 58 $ 9,803 $ 2,870 $ 121 $ 2,991 $ 774 $ 13,568 |
Summary of Ending Loan Balance Individually Evaluated for Impairment | The following table summarizes the ending loan balances individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at December 31, 2017 and 2016 : Commercial Consumer (Dollars in thousands) Commercial Real Estate Acquisition and Development Commercial and Industrial Municipal Total Residential Mortgage Installment and Other Total Unallocated Total December 31, 2017 Loans allocated by: Individually evaluated for impairment $ 5,848 $ 492 $ 350 $ 0 $ 6,690 $ 4,325 $ 11 $ 4,336 $ 0 $ 11,026 Collectively evaluated for impairment 487,068 30,489 115,313 42,065 674,935 302,160 21,891 324,051 0 998,986 $ 492,916 $ 30,981 $ 115,663 $ 42,065 $ 681,625 $ 306,485 $ 21,902 $ 328,387 $ 0 $ 1,010,012 Allowance for loan losses allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 42 $ 9 $ 51 $ 0 $ 51 Collectively evaluated for impairment 6,763 417 1,446 84 8,710 3,358 202 3,560 475 12,745 $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 December 31, 2016 Loans allocated by: Individually evaluated for impairment $ 2,457 $ 1 $ 594 $ 0 $ 3,052 $ 4,915 $ 6 $ 4,921 $ 0 $ 7,973 Collectively evaluated for impairment 426,410 30,747 87,871 53,741 598,769 269,537 7,112 276,649 0 875,418 $ 428,867 $ 30,748 $ 88,465 $ 53,741 $ 601,821 $ 274,452 $ 7,118 $ 281,570 $ 0 $ 883,391 Allowance for loan losses allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 43 $ 0 $ 43 $ 0 $ 43 Collectively evaluated for impairment 7,530 580 1,074 54 9,238 2,936 144 3,080 414 12,732 $ 7,530 $ 580 $ 1,074 $ 54 $ 9,238 $ 2,979 $ 144 $ 3,123 $ 414 $ 12,775 |
LOANS TO RELATED PARTIES (Table
LOANS TO RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents activity in loans to related parties during 2017 . (Dollars in thousands) Balance, beginning of year $ 677 New loans 311 Repayments (315 ) Balance, end of year $ 673 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The following table summarizes premises and equipment at December 31. (Dollars in thousands) 2017 2016 Land $ 7,664 $ 7,717 Buildings and improvements 31,154 30,626 Leasehold improvements 2,482 1,719 Furniture and equipment 22,023 21,032 Construction in progress 89 68 63,412 61,162 Less accumulated depreciation and amortization 28,603 26,291 $ 34,809 $ 34,871 |
Schedule of Minimum Rental Commitments | The following table summarizes minimum rental commitments under operating leases with maturities in excess of one year at December 31, 2017 . Due in Years Ending December 31 (Dollars in thousands) 2018 $ 574 2019 528 2020 496 2021 334 2022 230 Thereafter 474 $ 2,636 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense (Benefit) | The following table summarizes income tax expense for years ended December 31. (Dollars in thousands) 2017 2016 2015 Current expense $ 1,260 $ 1,498 $ 837 Deferred expense (benefit) 443 (232 ) 797 Expense due to enactment of federal tax reform legislation 2,635 0 0 Income tax expense $ 4,338 $ 1,266 $ 1,634 |
Reconciliation of Effective Income Tax Rate to Statutory Federal Rate | The following table reconciles the effective income tax rate to the statutory federal rate for years ended December 31. 2017 2016 2015 Statutory federal tax rate 34.0 % 34.0 % 35.0 % Increase (decrease) resulting from: Tax exempt interest income (13.0 )% (16.0 )% (11.3 )% Earnings from life insurance (2.4 )% (4.7 )% (3.8 )% Disallowed interest expense 1.0 % 1.0 % 0.4 % Low-income housing credits and related expense (4.6 )% (7.2 )% (5.0 )% Regulatory settlement 0.0 % 4.3 % 0.0 % Change in statutory federal tax rate 0.0 % 2.3 % 0.0 % Expense due to enactment of federal tax reform legislation 21.2 % 0.0 % 0.0 % Other (1.3 )% 2.3 % 1.9 % Effective income tax rate 34.9 % 16.0 % 17.2 % |
Summary of Deferred Tax Assets and Liabilities | The following table summarizes deferred tax assets and liabilities at December 31. (Dollars in thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 2,919 $ 4,725 Deferred compensation 355 545 Retirement plans and salary continuation 1,301 1,942 Share-based compensation 597 583 Off-balance sheet reserves 207 313 Nonaccrual loan interest 258 370 Net unrealized losses on securities available for sale 0 600 Goodwill 39 92 Bonus accrual 25 236 Low-income housing credit carryforward 2,313 1,983 Alternative minimum tax credit carryforward 0 4,048 Net operating loss carryforward 0 2,520 Other 390 479 Total deferred tax assets 8,404 18,436 Deferred tax liabilities: Depreciation 488 771 Net unrealized gains on securities available for sale 757 0 Mortgage servicing rights 536 777 Purchase accounting adjustments 251 435 Other 122 195 Total deferred tax liabilities 2,154 2,178 Net deferred tax asset, included in Other Assets $ 6,250 $ 16,258 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Nonvested Restricted Shares Activity | The following table presents a summary of nonvested restricted shares activity for 2017 . Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 227,337 $ 16.88 Granted 67,753 22.52 Forfeited (13,079 ) 18.36 Vested (13,600 ) 17.95 Nonvested shares, end of year 268,411 $ 18.18 |
Schedule of Restricted Shares Compensation Expense | The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested for the years ended December 31, 2017 , 2016 , and 2015 . Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Restricted share award expense $ 1,369 $ 941 $ 732 Restricted share award tax benefit 465 320 256 Fair value of shares vested 303 237 43 |
Summary of Outstanding Stock Options Activity | The following table presents a summary of outstanding stock options activity for 2017 . Shares Weighted Average Exercise Price Outstanding, beginning of year 80,370 $ 27.37 Forfeited (1,300 ) 21.14 Expired (19,487 ) 32.33 Options outstanding and exercisable, end of year 59,583 $ 25.89 |
Schedule of Information Pertaining to Options Outstanding and Exercisable | The following table presents information pertaining to options outstanding and exercisable at December 31, 2017 . Range of Exercise Prices Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $21.14 - $24.99 33,699 2.36 $ 21.49 $25.00 - $29.99 2,792 2.25 25.76 $30.00 - $34.99 15,744 0.47 30.10 $35.00 - $37.59 7,348 1.52 37.08 $21.14 - $37.59 59,583 1.75 $ 25.89 |
Employee Stock Ownership Plan | The following table presents information for the employee stock purchase plan for the years ended December 31, 2017, 2016 and 2015. Years Ended December 31, (Dollars in thousands except share information) 2017 2016 2015 Shares purchased 6,632 6,334 6,305 Weighted average price of shares purchased $ 20.57 $ 16.64 $ 15.83 Compensation expense recognized 17 17 8 Tax benefits 6 6 3 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Summary of Composition of Deposits | The following table summarizes deposits by type at December 31. 2017 2016 (Dollars in thousands) Noninterest-bearing $ 162,343 $ 150,747 NOW and money market 687,936 613,232 Savings 95,148 91,706 Time (less than $250,000) 252,200 277,899 Time ($250,000 or more) 21,888 18,868 Total $ 1,219,515 $ 1,152,452 |
Scheduled Maturities of Time Deposits | The following table summarizes scheduled maturities of time deposits for years ending December 31. (Dollars in thousands) 2018 $ 107,765 2019 88,028 2020 71,149 2021 4,547 2022 1,722 Thereafter 877 $ 274,088 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of the Use of Short-Term Borrowings | The following table summarizes the use of these short-term borrowings at and for the years ended December 31. (Dollars in thousands) 2017 2016 2015 Balance at year-end $ 50,000 $ 52,000 $ 60,000 Weighted average interest rate at year-end 1.21 % 0.76 % 0.53 % Average balance during the year $ 54,610 $ 17,841 $ 55,106 Average interest rate during the year 1.08 % 0.61 % 0.43 % Maximum month-end balance during the year $ 72,000 $ 52,000 $ 83,500 |
Summary of the Use of Securities Sold Under Agreements to Repurchase | The following table summarizes the use of securities sold under agreements to repurchase at and for the years ended December 31. (Dollars in thousands) 2017 2016 2015 Balance at year-end $ 43,576 $ 35,864 $ 29,156 Weighted average interest rate at year-end 0.56 % 0.20 % 0.20 % Average balance during the year $ 43,205 $ 38,546 $ 30,156 Average interest rate during the year 0.45 % 0.20 % 0.20 % Maximum month-end balance during the year $ 55,270 $ 52,693 $ 37,558 Fair value of securities underlying the agreements at year-end 53,485 56,201 35,470 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At December 31, the Company’s long-term debt consisted of the following: Amount Weighted Average rate (Dollars in thousands) 2017 2016 2017 2016 FHLB fixed rate advances maturing: 2017 $ 0 $ 20,000 0.00 % 1.00 % 2019 40,000 0 1.86 % 0.00 % 2020 40,350 350 1.76 % 7.40 % 80,350 20,350 1.81 % 1.11 % FHLB amortizing advance requiring monthly principal and interest payments, maturing: 2025 3,465 3,813 4.74 % 4.74 % Total FHLB Advances $ 83,815 $ 24,163 1.93 % 1.68 % |
Summary of Future Principal Payments Required | The following table summarizes the aggregate amount of future principal payments required on these borrowings at December 31, 2017 : Years Ending December 31, (Dollars in thousands) 2018 $ 365 2019 40,382 2020 40,751 2021 421 2022 441 Thereafter 1,455 $ 83,815 |
SHAREHOLDERS_ EQUITY AND REGU38
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | The following table presents capital amounts and ratios at December 31, 2017 and December 31, 2016 . Actual For Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Total Capital to risk weighted assets Consolidated $ 152,386 13.3 % $ 106,040 9.250 % n/a n/a Bank 148,997 13.0 % 105,747 9.250 % $ 114,321 10.0 % Tier 1 Capital to risk weighted assets Consolidated 138,774 12.1 % 83,112 7.250 % n/a n/a Bank 135,385 11.8 % 82,883 7.250 % 91,457 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 138,774 12.1 % 65,917 5.750 % n/a n/a Bank 135,385 11.8 % 65,734 5.750 % 74,308 6.5 % Tier 1 Capital to average assets Consolidated 138,774 8.9 % 62,042 4.0 % n/a n/a Bank 135,385 8.7 % 62,066 4.0 % 77,582 5.0 % December 31, 2016 Total Capital to risk weighted assets Consolidated $ 139,033 14.6 % $ 82,391 8.625 % n/a n/a Bank 126,408 13.2 % 82,328 8.625 % $ 95,453 10.0 % Tier 1 Capital to risk weighted assets Consolidated 127,033 13.3 % 63,286 6.625 % n/a n/a Bank 114,417 12.0 % 63,238 6.625 % 76,363 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 127,033 13.3 % 48,957 5.125 % n/a n/a Bank 114,417 12.0 % 48,920 5.125 % 62,045 6.5 % Tier 1 Capital to average assets Consolidated 127,033 9.3 % 54,453 4.0 % n/a n/a Bank 114,417 8.4 % 54,500 4.0 % 68,126 5.0 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share for the years ended December 31, were as follows: (In thousands, except per share data) 2017 2016 2015 Net income $ 8,090 $ 6,628 $ 7,874 Weighted average shares outstanding - basic 8,070 8,059 8,107 Dilutive effect of share-based compensation 156 86 35 Weighted average shares outstanding - diluted 8,226 8,145 8,142 Per share information: Basic earnings per share $ 1.00 $ 0.82 $ 0.97 Diluted earnings per share 0.98 0.81 0.97 |
FINANCIAL INSTRUMENTS WITH OF40
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Commitments and Conditional Obligations | The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table presents these contract, or notional, amounts. December 31, (Dollars in thousands) 2017 2016 Commitments to fund: Home equity lines of credit $ 139,281 $ 126,811 1-4 family residential construction loans 11,420 7,820 Commercial real estate, construction and land development loans 44,592 43,830 Commercial, industrial and other loans 145,394 111,884 Standby letters of credit 12,273 7,097 |
Schedule of Net Amount Expensed (Recovered) For This Off- Balance Sheet Credit Exposures Reserve | The following table presents the net amount expensed (recovered) for this off-balance sheet credit exposures reserve. For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Off-balance sheet credit exposures expense (recovery) $ 32 $ 312 $ (13 ) |
Schedule of MPF Program Recourse Loss Expense | The following table presents the net amounts expensed. For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 MPF program recourse loss expense $ 25 $ 18 $ 127 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis at December 31, 2017 and December 31, 2016 . (Dollars in Thousands) Level 1 Level 2 Level 3 Total Fair Value Measurements December 31, 2017 AFS Securities: States and political subdivisions $ 0 $ 159,458 $ 0 $ 159,458 GSE residential MBSs 0 49,530 0 49,530 GSE residential CMOs 0 111,119 0 111,119 Private label residential CMOs 0 1,003 0 1,003 Private label commercial CMOs 0 7,653 0 7,653 Asset-backed 0 86,431 0 86,431 Total debt securities 0 415,194 0 415,194 Equity securities 0 114 0 114 Totals $ 0 $ 415,308 $ 0 $ 415,308 December 31, 2016 AFS Securities: U.S. Government Agencies $ 0 $ 39,592 $ 0 $ 39,592 States and political subdivisions 0 164,282 0 164,282 GSE residential MBSs 0 116,944 0 116,944 GSE residential CMOs 0 69,383 0 69,383 GSE commercial CMOs 0 4,856 0 4,856 Private label residential CMOs 0 5,006 0 5,006 Total debt securities 0 400,063 0 400,063 Equity securities 0 91 0 91 Totals $ 0 $ 400,154 $ 0 $ 400,154 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes assets measured at fair value on a nonrecurring basis at December 31, 2017 and December 31, 2016 . (Dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value Measurements December 31, 2017 Impaired Loans Commercial real estate: Owner-occupied $ 0 $ 0 $ 430 $ 430 Non-owner occupied 0 0 4,066 4,066 Multi-family 0 0 165 165 Non-owner occupied residential 0 0 344 344 Commercial and industrial 0 0 53 53 Residential mortgage: First lien 0 0 1,951 1,951 Home equity - lines of credit 0 0 161 161 Installment and other loans 0 0 3 3 Total impaired loans $ 0 $ 0 $ 7,173 $ 7,173 December 31, 2016 Impaired loans Commercial real estate: Owner-occupied $ 0 $ 0 $ 777 $ 777 Non-owner occupied 0 0 736 736 Multi-family 0 0 199 199 Non-owner occupied residential 0 0 409 409 Acquisition and development: Commercial and land development 0 0 1 1 Commercial and industrial 0 0 66 66 Residential mortgage: First lien 0 0 1,994 1,994 Home equity - lines of credit 0 0 162 162 Installment and other loans 0 0 6 6 Total impaired loans $ 0 $ 0 $ 4,350 $ 4,350 Foreclosed real estate Residential $ 0 $ 0 $ 88 $ 88 |
Schedule of Additional Qualitative Information | The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value. Fair Value Valuation Techniques Unobservable Input Range December 31, 2017 Impaired loans $ 7,173 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 7% - 75% discount - Management adjustments for liquidation expenses 0% - 20% discount December 31, 2016 Impaired loans $ 4,350 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 10% - 75% discount - Management adjustments for liquidation expenses 0% - 41% discount Foreclosed real estate 88 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 13% - 17% discount - Management adjustments for liquidation expenses 10% - 18% discount |
Schedule of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments at December 31. (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 December 31, 2017 Financial Assets Cash and due from banks $ 21,734 $ 21,734 $ 21,734 $ 0 $ 0 Interest-bearing deposits with banks 8,073 8,073 8,073 0 0 Restricted investments in bank stock 9,997 n/a n/a n/a n/a Securities available for sale 415,308 415,308 0 415,308 0 Loans held for sale 6,089 6,272 0 6,272 0 Loans, net of allowance for loan losses 997,216 994,617 0 0 994,617 Accrued interest receivable 5,048 5,048 0 2,580 2,468 Financial Liabilities Deposits 1,219,515 1,213,288 0 1,213,288 0 Short-term borrowings 93,576 93,576 0 93,576 0 Long-term debt 83,815 83,949 0 83,949 0 Accrued interest payable 495 495 0 495 0 Off-balance sheet instruments 0 0 0 0 0 December 31, 2016 Financial Assets Cash and due from banks $ 16,072 $ 16,072 $ 16,072 $ 0 $ 0 Interest-bearing deposits with banks 14,201 14,201 14,201 0 0 Restricted investments in bank stock 7,970 n/a n/a n/a n/a Securities available for sale 400,154 400,154 0 400,154 0 Loans held for sale 2,768 2,843 0 2,843 0 Loans, net of allowance for loan losses 870,616 870,470 0 0 870,470 Accrued interest receivable 4,672 4,672 0 2,643 2,029 Financial Liabilities Deposits 1,152,452 1,149,727 0 1,149,727 0 Short-term borrowings 87,864 87,864 0 87,864 0 Long-term debt 24,163 24,966 0 24,966 0 Accrued interest payable 437 437 0 437 0 Off-balance sheet instruments 0 0 0 0 0 |
ORRSTOWN FINANCIAL SERVICES, 42
ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets December 31, (Dollars in thousands) 2017 2016 Assets Cash in Orrstown Bank $ 703 $ 10,263 Deposits with other banks 214 307 Total cash 917 10,570 Securities available for sale 114 91 Investment in Orrstown Bank 140,429 121,362 Other assets 3,953 3,519 Total assets $ 145,413 $ 135,542 Liabilities $ 648 $ 683 Shareholders’ Equity Common stock 435 437 Additional paid-in capital 125,458 124,935 Retained earnings 16,042 11,669 Accumulated other comprehensive income (loss) 2,845 (1,165 ) Treasury stock (15 ) (1,017 ) Total shareholders’ equity 144,765 134,859 Total liabilities and shareholders’ equity $ 145,413 $ 135,542 |
Condensed Statements of Income | Condensed Statements of Income For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Income Dividends from subsidiaries $ 0 $ 2,200 $ 17,900 Other interest and dividend income 15 38 3 Other income 61 62 35 Total income 76 2,300 17,938 Expenses Share-based compensation 247 216 135 Management fee to Bank 501 504 500 Other expenses 1,116 2,152 1,720 Total expenses 1,864 2,872 2,355 Income (loss) before income tax benefit and equity in undistributed income (distributions in excess of income) of subsidiaries (1,788 ) (572 ) 15,583 Income tax benefit (596 ) (606 ) (831 ) Income (loss) before equity in undistributed income (distributions in excess of income) of subsidiaries (1,192 ) 34 16,414 Equity in undistributed income (distributions in excess of income) of subsidiaries 9,282 6,594 (8,540 ) Net income $ 8,090 $ 6,628 $ 7,874 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 8,090 $ 6,628 $ 7,874 Adjustments to reconcile net income to cash provided by (used in) operating activities: Deferred income taxes 16 4 (53 ) Equity in (undistributed income) distributions in excess of income of subsidiaries (9,282 ) (6,594 ) 8,540 Share-based compensation 247 216 135 Net change in other liabilities (35 ) (6 ) 17 Other, net (377 ) (849 ) (712 ) Net cash provided by (used in) operating activities (1,341 ) (601 ) 15,801 Cash flows from investing activities: Capital contributed to subsidiaries (6,100 ) 0 0 Other, net 0 (500 ) 0 Net cash used in investing activities (6,100 ) (500 ) 0 Cash flows from financing activities: Dividends paid (3,488 ) (2,898 ) (1,822 ) Proceeds from issuance of common stock 1,276 847 794 Payments to repurchase common stock 0 (631 ) (809 ) Net cash used in financing activities (2,212 ) (2,682 ) (1,837 ) Net increase (decrease) in cash (9,653 ) (3,783 ) 13,964 Cash, beginning 10,570 14,353 389 Cash, ending $ 917 $ 10,570 $ 14,353 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Maturity of interest bearing deposits | 90 days |
Evaluation period to return non accrual TDRs to accrual status | 6 months |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Serviced (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Balance of loans serviced for others | $ 334,802 | $ 328,701 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings and improvements, including leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Buildings and improvements, including leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Deposit premiums | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 10 years |
Minimum | Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 10 years |
Maximum | Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Balance of mortgage servicing rights | $ 2,897 | $ 2,835 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreclosed Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Foreclosed real estate | $ 961 | $ 346 |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Real Estate Partnerships (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)investment | |
Accounting Policies [Abstract] | |||
Limited partner interest (as a percent) | 99.00% | ||
Number of investments accounted for under the proportional amortization method | investment | 1 | ||
Recorded investment in real estate partnerships | $ 4,416 | $ 4,909 | |
Investments accounted for under proportional amortization method | 1,776 | 1,993 | |
Losses accounted for under the equity method | 277 | 350 | $ 384 |
Losses on investments accounted for under proportional amortization method | 217 | 191 | 22,000 |
Federal tax credits | $ 1,010 | $ 736 | $ 475 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 631 | $ 763 | $ 723 |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Unrealized gains (losses) on securities available for sale, net of tax | $ 2,845 | $ (1,165) |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Accounting Policies [Abstract] | |
Number of significant segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Retained Earnings Adjustments [Line Items] | |
Reclassification from accumulated other comprehensive income to retained earnings tax effect | $ 0 |
AOCI Attributable to Parent | |
Retained Earnings Adjustments [Line Items] | |
Reclassification from accumulated other comprehensive income to retained earnings tax effect | (229) |
Retained Earnings | |
Retained Earnings Adjustments [Line Items] | |
Reclassification from accumulated other comprehensive income to retained earnings tax effect | $ 229 |
RESTRICTIONS ON CASH AND DUE 54
RESTRICTIONS ON CASH AND DUE FROM BANKS (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Average balances | $ 1,395 | $ 4,371 |
SECURITIES AVAILABLE FOR SALE -
SECURITIES AVAILABLE FOR SALE - Summary of Amortized Cost and Fair Value and Corresponding Amounts of Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Total debt securities | $ 411,656 | |
Equity securities | 50 | |
Totals | 411,706 | $ 401,919 |
Gross Unrealized Gains | ||
Totals | 7,496 | 3,138 |
Gross Unrealized Losses | ||
Totals | 3,894 | 4,903 |
Fair Value | ||
Total debt securities | 415,194 | |
Equity securities | 114 | |
Totals | 415,308 | 400,154 |
Debt securities | ||
Amortized Cost | ||
Total debt securities | 411,656 | 401,869 |
Gross Unrealized Gains | ||
Total debt securities | 7,432 | 3,097 |
Gross Unrealized Losses | ||
Total debt securities | 3,894 | 4,903 |
Fair Value | ||
Total debt securities | 415,194 | 400,063 |
Debt securities | U.S. Government Agencies | ||
Amortized Cost | ||
Total debt securities | 39,569 | |
Gross Unrealized Gains | ||
Total debt securities | 147 | |
Gross Unrealized Losses | ||
Total debt securities | 124 | |
Fair Value | ||
Total debt securities | 39,592 | |
Debt securities | States and political subdivisions | ||
Amortized Cost | ||
Total debt securities | 153,803 | 163,677 |
Gross Unrealized Gains | ||
Total debt securities | 6,133 | 1,782 |
Gross Unrealized Losses | ||
Total debt securities | 478 | 1,177 |
Fair Value | ||
Total debt securities | 159,458 | 164,282 |
Debt securities | GSE residential MBSs | ||
Amortized Cost | ||
Total debt securities | 48,600 | 116,022 |
Gross Unrealized Gains | ||
Total debt securities | 930 | 928 |
Gross Unrealized Losses | ||
Total debt securities | 0 | 6 |
Fair Value | ||
Total debt securities | 49,530 | 116,944 |
Debt securities | GSE residential CMOs | ||
Amortized Cost | ||
Total debt securities | 113,658 | 72,411 |
Gross Unrealized Gains | ||
Total debt securities | 296 | 240 |
Gross Unrealized Losses | ||
Total debt securities | 2,835 | 3,268 |
Fair Value | ||
Total debt securities | 111,119 | 69,383 |
Debt securities | GSE commercial CMOs | ||
Amortized Cost | ||
Total debt securities | 5,148 | |
Gross Unrealized Gains | ||
Total debt securities | 0 | |
Gross Unrealized Losses | ||
Total debt securities | 292 | |
Fair Value | ||
Total debt securities | 4,856 | |
Debt securities | Private label residential CMOs | ||
Amortized Cost | ||
Total debt securities | 999 | 5,042 |
Gross Unrealized Gains | ||
Total debt securities | 4 | 0 |
Gross Unrealized Losses | ||
Total debt securities | 0 | 36 |
Fair Value | ||
Total debt securities | 1,003 | 5,006 |
Debt securities | Private label commercial CMOs | ||
Amortized Cost | ||
Total debt securities | 7,809 | |
Gross Unrealized Gains | ||
Total debt securities | 0 | |
Gross Unrealized Losses | ||
Total debt securities | 156 | |
Fair Value | ||
Total debt securities | 7,653 | |
Debt securities | Asset-backed | ||
Amortized Cost | ||
Total debt securities | 86,787 | |
Gross Unrealized Gains | ||
Total debt securities | 69 | |
Gross Unrealized Losses | ||
Total debt securities | 425 | |
Fair Value | ||
Total debt securities | 86,431 | |
Equity securities | ||
Amortized Cost | ||
Equity securities | 50 | 50 |
Gross Unrealized Gains | ||
Equity securities | 64 | 41 |
Gross Unrealized Losses | ||
Equity securities | 0 | 0 |
Fair Value | ||
Equity securities | $ 114 | $ 91 |
SECURITIES AVAILABLE FOR SALE56
SECURITIES AVAILABLE FOR SALE - Summary of Securities Available For Sale With Unrealized Losses (Detail) $ in Thousands | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Number of Securities | ||
Less Than 12 Months | security | 19 | 39 |
12 Months or More | security | 6 | 7 |
Total | security | 25 | 46 |
Fair Value | ||
Less Than 12 Months | $ 117,391 | $ 139,058 |
12 Months or More | 43,044 | 24,245 |
Total | 160,435 | 163,303 |
Unrealized Losses | ||
Less Than 12 Months | 1,968 | 4,195 |
12 Months or More | 1,926 | 708 |
Total | $ 3,894 | $ 4,903 |
U.S. Government Agencies | ||
Number of Securities | ||
Less Than 12 Months | security | 6 | |
12 Months or More | security | 2 | |
Total | security | 8 | |
Fair Value | ||
Less Than 12 Months | $ 10,710 | |
12 Months or More | 13,531 | |
Total | 24,241 | |
Unrealized Losses | ||
Less Than 12 Months | 23 | |
12 Months or More | 101 | |
Total | $ 124 | |
States and political subdivisions | ||
Number of Securities | ||
Less Than 12 Months | security | 7 | 25 |
12 Months or More | security | 1 | 1 |
Total | security | 8 | 26 |
Fair Value | ||
Less Than 12 Months | $ 24,577 | $ 58,924 |
12 Months or More | 5,585 | 5,075 |
Total | 30,162 | 63,999 |
Unrealized Losses | ||
Less Than 12 Months | 473 | 610 |
12 Months or More | 5 | 567 |
Total | $ 478 | $ 1,177 |
GSE residential MBSs | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | |
12 Months or More | security | 0 | |
Total | security | 1 | |
Fair Value | ||
Less Than 12 Months | $ 5,034 | |
12 Months or More | 0 | |
Total | 5,034 | |
Unrealized Losses | ||
Less Than 12 Months | 6 | |
12 Months or More | 0 | |
Total | $ 6 | |
GSE residential CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 4 | 6 |
12 Months or More | security | 5 | 1 |
Total | security | 9 | 7 |
Fair Value | ||
Less Than 12 Months | $ 25,155 | $ 59,534 |
12 Months or More | 37,459 | 634 |
Total | 62,614 | 60,168 |
Unrealized Losses | ||
Less Than 12 Months | 914 | 3,264 |
12 Months or More | 1,921 | 4 |
Total | $ 2,835 | $ 3,268 |
GSE commercial CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | |
12 Months or More | security | 0 | |
Total | security | 1 | |
Fair Value | ||
Less Than 12 Months | $ 4,856 | |
12 Months or More | 0 | |
Total | 4,856 | |
Unrealized Losses | ||
Less Than 12 Months | 292 | |
12 Months or More | 0 | |
Total | $ 292 | |
Private label commercial CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 2 | |
12 Months or More | security | 0 | |
Total | security | 2 | |
Fair Value | ||
Less Than 12 Months | $ 7,653 | |
12 Months or More | 0 | |
Total | 7,653 | |
Unrealized Losses | ||
Less Than 12 Months | 156 | |
12 Months or More | 0 | |
Total | $ 156 | |
Asset-backed | ||
Number of Securities | ||
Less Than 12 Months | security | 6 | |
12 Months or More | security | 0 | |
Total | security | 6 | |
Fair Value | ||
Less Than 12 Months | $ 60,006 | |
12 Months or More | 0 | |
Total | 60,006 | |
Unrealized Losses | ||
Less Than 12 Months | 425 | |
12 Months or More | 0 | |
Total | $ 425 | |
Private label residential CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 0 | |
12 Months or More | security | 3 | |
Total | security | 3 | |
Fair Value | ||
Less Than 12 Months | $ 0 | |
12 Months or More | 5,005 | |
Total | 5,005 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or More | 36 | |
Total | $ 36 |
SECURITIES AVAILABLE FOR SALE57
SECURITIES AVAILABLE FOR SALE - Summary of Amortized Cost and Fair Value by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 8,712 | |
Due after five years through ten years | 49,958 | |
Due after ten years | 95,133 | |
MBSs and CMOs | 171,066 | |
Asset-backed | 86,787 | |
Total debt securities | 411,656 | |
Equity securities | 50 | |
Totals | 411,706 | $ 401,919 |
Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 8,929 | |
Due after five years through ten years | 51,188 | |
Due after ten years | 99,341 | |
MBSs and CMOs | 169,305 | |
Asset-backed | 86,431 | |
Total debt securities | 415,194 | |
Equity securities | 114 | |
Totals | $ 415,308 | $ 400,154 |
SECURITIES AVAILABLE FOR SALE58
SECURITIES AVAILABLE FOR SALE - Summary of Proceeds from Sale of Available for Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of AFS securities | $ 162,320 | $ 64,742 | $ 65,611 |
Gross gains | 1,477 | 1,468 | 1,948 |
Gross losses | $ 287 | $ 48 | $ 24 |
SECURITIES AVAILABLE FOR SALE59
SECURITIES AVAILABLE FOR SALE - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
AFS securities pledged as collateral | $ 319,907 | $ 317,282 |
LOANS AND ALLOWANCE FOR LOAN 60
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)note | Dec. 31, 2016USD ($)note | Dec. 31, 2015USD ($) | |
Receivables [Abstract] | |||
Maximum percentage of loan-to-value ratio upon loan origination (no more than) | 80.00% | ||
Maximum percentage of loan-to-value ratios of the value of the real estate taken as collateral (no greater than) | 90.00% | ||
Amount of loan on which reviews have been made annually | $ 500,000 | ||
Amount of loan on which reviews require approval | $ 250,000 | ||
Period past due when loans are deemed impaired | 90 days | ||
Number of notes split | note | 2 | ||
Appraisals, required period interval | 18 months | ||
Minimum amount on which annual updated appraisals for criticized loans are required | $ 250,000 | ||
Percentage of strong loan-to-value (or lower) | 70.00% | ||
Number of notes sold | note | 1 | ||
Note carrying amount | $ 5,946,000 | ||
Proceeds from sale of note | $ 2,195,000 | 5,100,000 | $ 0 |
Net charge-off to the ALL | $ 846,000 |
LOANS AND ALLOWANCE FOR LOAN 61
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loan Portfolio, Excluding Residential Loans Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 1,010,012 | $ 883,391 |
Commercial real estate | Owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 116,811 | 112,295 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 244,491 | 206,358 |
Commercial real estate | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 53,634 | 47,681 |
Commercial real estate | Non-owner occupied residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 77,980 | 62,533 |
Acquisition and development | 1-4 family residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 11,730 | 4,663 |
Acquisition and development | Commercial and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 19,251 | 26,085 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 115,663 | 88,465 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 42,065 | 53,741 |
Residential mortgage | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 162,509 | 139,851 |
Residential mortgage | Home equity – term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 11,784 | 14,248 |
Residential mortgage | Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 132,192 | 120,353 |
Installment and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 21,902 | $ 7,118 |
LOANS AND ALLOWANCE FOR LOAN 62
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loan Portfolio Ratings Based On Internal Risk Rating System (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,010,012 | $ 883,391 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 983,146 | 844,663 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,904 | 15,830 |
Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,936 | 14,925 |
Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,026 | 7,973 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 116,811 | 112,295 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 244,491 | 206,358 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 53,634 | 47,681 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 77,980 | 62,533 |
Commercial real estate | Pass | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 113,240 | 103,652 |
Commercial real estate | Pass | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 235,919 | 190,726 |
Commercial real estate | Pass | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 48,603 | 42,473 |
Commercial real estate | Pass | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 76,373 | 59,982 |
Commercial real estate | Special Mention | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 413 | 5,422 |
Commercial real estate | Special Mention | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 4,791 |
Commercial real estate | Special Mention | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,113 | 4,222 |
Commercial real estate | Special Mention | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 142 | 949 |
Commercial real estate | Non-Impaired Substandard | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,921 | 2,151 |
Commercial real estate | Non-Impaired Substandard | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,507 | 10,105 |
Commercial real estate | Non-Impaired Substandard | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 753 | 787 |
Commercial real estate | Non-Impaired Substandard | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,084 | 1,150 |
Commercial real estate | Impaired - Substandard | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,237 | 1,070 |
Commercial real estate | Impaired - Substandard | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,065 | 736 |
Commercial real estate | Impaired - Substandard | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 165 | 199 |
Commercial real estate | Impaired - Substandard | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 381 | 452 |
Commercial real estate | Doubtful | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Doubtful | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Doubtful | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Doubtful | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,730 | 4,663 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 19,251 | 26,085 |
Acquisition and development | Pass | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,238 | 4,560 |
Acquisition and development | Pass | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 18,635 | 25,435 |
Acquisition and development | Special Mention | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 103 |
Acquisition and development | Special Mention | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5 | 10 |
Acquisition and development | Non-Impaired Substandard | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Acquisition and development | Non-Impaired Substandard | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 611 | 639 |
Acquisition and development | Impaired - Substandard | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 492 | 0 |
Acquisition and development | Impaired - Substandard | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 1 |
Acquisition and development | Doubtful | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Acquisition and development | Doubtful | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 115,663 | 88,465 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 113,162 | 87,588 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,151 | 251 |
Commercial and industrial | Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 32 |
Commercial and industrial | Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 350 | 594 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 42,065 | 53,741 |
Municipal | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 42,065 | 53,741 |
Municipal | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal | Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal | Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 162,509 | 139,851 |
Residential mortgage | Home equity – term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,784 | 14,248 |
Residential mortgage | Home equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 132,192 | 120,353 |
Residential mortgage | Pass | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 158,673 | 135,558 |
Residential mortgage | Pass | Home equity – term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,762 | 14,155 |
Residential mortgage | Pass | Home equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 131,585 | 119,681 |
Residential mortgage | Special Mention | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | Special Mention | Home equity – term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | Special Mention | Home equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 80 | 82 |
Residential mortgage | Non-Impaired Substandard | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | Non-Impaired Substandard | Home equity – term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | Non-Impaired Substandard | Home equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 60 | 61 |
Residential mortgage | Impaired - Substandard | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,836 | 4,293 |
Residential mortgage | Impaired - Substandard | Home equity – term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22 | 93 |
Residential mortgage | Impaired - Substandard | Home equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 467 | 529 |
Residential mortgage | Doubtful | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | Doubtful | Home equity – term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Residential mortgage | Doubtful | Home equity lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21,902 | 7,118 |
Installment and other loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 21,891 | 7,112 |
Installment and other loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Installment and other loans | Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Installment and other loans | Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11 | 6 |
Installment and other loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 63
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Impaired Loans by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | $ 881 | $ 643 |
Impaired Loans with No Specific Allowance | 10,145 | 7,330 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 881 | 643 |
Impaired Loans with No Specific Allowance | 13,737 | 10,559 |
Related Allowance | 51 | 43 |
Commercial real estate | Owner-occupied | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 1,237 | 1,070 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 2,479 | 2,236 |
Related Allowance | 0 | 0 |
Commercial real estate | Non-owner occupied | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 4,065 | 736 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 4,856 | 1,323 |
Related Allowance | 0 | 0 |
Commercial real estate | Multi-family | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 165 | 199 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 352 | 368 |
Related Allowance | 0 | 0 |
Commercial real estate | Non-owner occupied residential | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 381 | 452 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 669 | 706 |
Related Allowance | 0 | 0 |
Acquisition and development | 1-4 family residential construction | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | |
Impaired Loans with No Specific Allowance | 492 | |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | |
Impaired Loans with No Specific Allowance | 492 | |
Related Allowance | 0 | |
Acquisition and development | Commercial and land development | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | |
Impaired Loans with No Specific Allowance | 1 | |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | |
Impaired Loans with No Specific Allowance | 16 | |
Related Allowance | 0 | |
Commercial and industrial | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 350 | 594 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 495 | 715 |
Related Allowance | 0 | 0 |
Residential mortgage | First lien | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 872 | 643 |
Impaired Loans with No Specific Allowance | 2,964 | 3,650 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 872 | 643 |
Impaired Loans with No Specific Allowance | 3,706 | 4,399 |
Related Allowance | 42 | 43 |
Residential mortgage | Home equity – term | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 22 | 93 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 27 | 103 |
Related Allowance | 0 | 0 |
Residential mortgage | Home equity lines of credit | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 467 | 529 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance | 628 | 659 |
Related Allowance | 0 | 0 |
Installment and other loans | ||
Recorded Investment (Book Balance) | ||
Impaired Loans with a Specific Allowance | 9 | 0 |
Impaired Loans with No Specific Allowance | 2 | 6 |
Unpaid Principal Balance (Legal Balance) | ||
Impaired Loans with a Specific Allowance | 9 | 0 |
Impaired Loans with No Specific Allowance | 33 | 34 |
Related Allowance | $ 9 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 64
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Average Recorded Investment in Impaired Loans and Related Interest Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | $ 7,130 | $ 15,118 | $ 14,346 |
Interest Income Recognized | 66 | 33 | 174 |
Commercial real estate | Owner-occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 1,000 | 1,758 | 2,613 |
Interest Income Recognized | 6 | 0 | 0 |
Commercial real estate | Non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 392 | 6,831 | 3,470 |
Interest Income Recognized | 0 | 0 | 0 |
Commercial real estate | Multi-family | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 182 | 216 | 402 |
Interest Income Recognized | 0 | 0 | 0 |
Commercial real estate | Non-owner occupied residential | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 418 | 645 | 1,020 |
Interest Income Recognized | 0 | 0 | 0 |
Acquisition and development | 1-4 family residential construction | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 154 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Acquisition and development | Commercial and land development | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 0 | 3 | 266 |
Interest Income Recognized | 0 | 0 | 137 |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 413 | 575 | 1,208 |
Interest Income Recognized | 0 | 0 | 0 |
Residential mortgage | First lien | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 4,012 | 4,525 | 4,644 |
Interest Income Recognized | 58 | 33 | 37 |
Residential mortgage | Home equity – term | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 61 | 98 | 130 |
Interest Income Recognized | 0 | 0 | 0 |
Residential mortgage | Home equity lines of credit | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 488 | 455 | 571 |
Interest Income Recognized | 2 | 0 | 0 |
Installment and other loans | |||
Financing Receivable, Impaired [Line Items] | |||
Average Impaired Balance | 10 | 12 | 22 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 65
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Impaired Loans That Are TDRs (Detail) $ in Thousands | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 23 | 22 |
Recorded Investment | $ | $ 1,958 | $ 1,971 |
Accruing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 13 | 9 |
Recorded Investment | $ | $ 1,183 | $ 930 |
Accruing | Commercial real estate | Owner-occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment | $ | $ 52 | $ 0 |
Accruing | Residential mortgage | First lien | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 11 | 8 |
Recorded Investment | $ | $ 1,102 | $ 896 |
Accruing | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 29 | $ 34 |
Nonaccruing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 10 | 13 |
Recorded Investment | $ | $ 775 | $ 1,041 |
Nonaccruing | Commercial real estate | Owner-occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 0 |
Recorded Investment | $ | $ 57 | $ 0 |
Nonaccruing | Residential mortgage | First lien | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 8 | 12 |
Recorded Investment | $ | $ 715 | $ 1,035 |
Nonaccruing | Installment and other loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 3 | $ 6 |
LOANS AND ALLOWANCE FOR LOAN 66
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Number of Loans Modified (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 4 | ||
Pre- Modification Investment Balance | $ 6,394 | ||
Post- Modification Investment Balance | $ 6,394 | ||
Commercial real estate | Owner-occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 2 | ||
Pre- Modification Investment Balance | $ 119 | ||
Post- Modification Investment Balance | $ 119 | ||
Commercial real estate | Non-owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Pre- Modification Investment Balance | $ 6,095 | ||
Post- Modification Investment Balance | $ 6,095 | ||
Residential mortgage | First lien | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 2 | 1 | |
Pre- Modification Investment Balance | $ 265 | $ 59 | |
Post- Modification Investment Balance | $ 265 | $ 59 | |
Residential mortgage | Home equity - lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Pre- Modification Investment Balance | $ 34 | ||
Post- Modification Investment Balance | $ 34 |
LOANS AND ALLOWANCE FOR LOAN 67
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Classes of Loan Portfolio Summarized by Aging Categories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 994,892 | $ 875,131 |
Past Due | 5,277 | 1,218 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 9,843 | 7,042 |
Total Loans | 1,010,012 | 883,391 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,132 | 888 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,145 | 330 |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 115,605 | 111,225 |
Past Due | 21 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 1,185 | 1,070 |
Total Loans | 116,811 | 112,295 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 240,426 | 205,622 |
Past Due | 0 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 4,065 | 736 |
Total Loans | 244,491 | 206,358 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 53,469 | 47,482 |
Past Due | 0 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 165 | 199 |
Total Loans | 53,634 | 47,681 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 77,454 | 62,081 |
Past Due | 145 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 381 | 452 |
Total Loans | 77,980 | 62,533 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | Owner-occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 0 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 145 | 0 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | Owner-occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 0 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,238 | 4,548 |
Past Due | 0 | 115 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 492 | 0 |
Total Loans | 11,730 | 4,663 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 19,226 | 26,084 |
Past Due | 25 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 0 | 1 |
Total Loans | 19,251 | 26,085 |
Acquisition and development | Financing Receivables, 30 to 59 Days Past Due | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 115 |
Acquisition and development | Financing Receivables, 30 to 59 Days Past Due | Commercial and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 25 | 0 |
Acquisition and development | Financing Receivables, 60 to 89 Days Past Due | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | Financing Receivables, 60 to 89 Days Past Due | Commercial and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 115,312 | 87,871 |
Past Due | 1 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 350 | 594 |
Total Loans | 115,663 | 88,465 |
Commercial and industrial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 0 |
Commercial and industrial | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 42,065 | 53,741 |
Past Due | 0 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 42,065 | 53,741 |
Municipal | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 155,387 | 135,499 |
Past Due | 4,388 | 956 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 2,734 | 3,396 |
Total Loans | 162,509 | 139,851 |
Residential mortgage | Home equity – term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,753 | 14,155 |
Past Due | 9 | 0 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 22 | 93 |
Total Loans | 11,784 | 14,248 |
Residential mortgage | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 131,208 | 119,733 |
Past Due | 546 | 125 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 438 | 495 |
Total Loans | 132,192 | 120,353 |
Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | First lien | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,333 | 628 |
Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | Home equity – term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9 | 0 |
Residential mortgage | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 474 | 125 |
Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | First lien | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,055 | 328 |
Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | Home equity – term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Residential mortgage | Financing Receivables, 60 to 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 72 | 0 |
Installment and other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 21,749 | 7,090 |
Past Due | 142 | 22 |
90 (still accruing) | 0 | 0 |
Non- Accrual | 11 | 6 |
Total Loans | 21,902 | 7,118 |
Installment and other loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 141 | 20 |
Installment and other loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1 | $ 2 |
LOANS AND ALLOWANCE FOR LOAN 68
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity in allowance for loan losses | |||
Balance, beginning of year | $ 12,775 | $ 13,568 | $ 14,747 |
Provision for loan losses | 1,000 | 250 | (603) |
Charge-offs | (1,266) | (1,722) | (1,502) |
Recoveries | 287 | 679 | 926 |
Balance, end of year | 12,796 | 12,775 | 13,568 |
Unallocated | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 414 | 774 | 1,218 |
Provision for loan losses | 61 | (360) | (444) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance, end of year | 475 | 414 | 774 |
Commercial | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 9,238 | 9,803 | 11,148 |
Provision for loan losses | 234 | (38) | (1,336) |
Charge-offs | (920) | (951) | (848) |
Recoveries | 158 | 424 | 839 |
Balance, end of year | 8,710 | 9,238 | 9,803 |
Commercial | Commercial Real Estate | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 7,530 | 7,883 | 9,462 |
Provision for loan losses | 38 | 107 | (1,020) |
Charge-offs | (835) | (872) | (711) |
Recoveries | 30 | 412 | 152 |
Balance, end of year | 6,763 | 7,530 | 7,883 |
Commercial | Acquisition and Development | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 580 | 850 | 697 |
Provision for loan losses | (167) | (270) | (440) |
Charge-offs | 0 | 0 | (22) |
Recoveries | 4 | 0 | 615 |
Balance, end of year | 417 | 580 | 850 |
Commercial | Commercial and Industrial | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 1,074 | 1,012 | 806 |
Provision for loan losses | 333 | 129 | 249 |
Charge-offs | (85) | (79) | (115) |
Recoveries | 124 | 12 | 72 |
Balance, end of year | 1,446 | 1,074 | 1,012 |
Commercial | Municipal | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 54 | 58 | 183 |
Provision for loan losses | 30 | (4) | (125) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance, end of year | 84 | 54 | 58 |
Consumer | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 3,123 | 2,991 | 2,381 |
Provision for loan losses | 705 | 648 | 1,177 |
Charge-offs | (346) | (771) | (654) |
Recoveries | 129 | 255 | 87 |
Balance, end of year | 3,611 | 3,123 | 2,991 |
Consumer | Residential Mortgage | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 2,979 | 2,870 | 2,262 |
Provision for loan losses | 531 | 532 | 1,122 |
Charge-offs | (180) | (577) | (592) |
Recoveries | 70 | 154 | 78 |
Balance, end of year | 3,400 | 2,979 | 2,870 |
Consumer | Installment and Other | |||
Activity in allowance for loan losses | |||
Balance, beginning of year | 144 | 121 | 119 |
Provision for loan losses | 174 | 116 | 55 |
Charge-offs | (166) | (194) | (62) |
Recoveries | 59 | 101 | 9 |
Balance, end of year | $ 211 | $ 144 | $ 121 |
LOANS AND ALLOWANCE FOR LOAN 69
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Ending Loan Balance Individually Evaluated for Impairment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans allocated by: | ||||
Individually evaluated for impairment | $ 11,026 | $ 7,973 | ||
Collectively evaluated for impairment | 998,986 | 875,418 | ||
Total Loans | 1,010,012 | 883,391 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 51 | 43 | ||
Collectively evaluated for impairment | 12,745 | 12,732 | ||
Allowance for loan losses, Total | 12,796 | 12,775 | $ 13,568 | $ 14,747 |
Commercial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 6,690 | 3,052 | ||
Collectively evaluated for impairment | 674,935 | 598,769 | ||
Total Loans | 681,625 | 601,821 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 8,710 | 9,238 | ||
Allowance for loan losses, Total | 8,710 | 9,238 | ||
Consumer | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 4,336 | 4,921 | ||
Collectively evaluated for impairment | 324,051 | 276,649 | ||
Total Loans | 328,387 | 281,570 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 51 | 43 | ||
Collectively evaluated for impairment | 3,560 | 3,080 | ||
Allowance for loan losses, Total | 3,611 | 3,123 | ||
Unallocated | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total Loans | 0 | 0 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 475 | 414 | ||
Allowance for loan losses, Total | 475 | 414 | ||
Commercial Real Estate | Commercial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 5,848 | 2,457 | ||
Collectively evaluated for impairment | 487,068 | 426,410 | ||
Total Loans | 492,916 | 428,867 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 6,763 | 7,530 | ||
Allowance for loan losses, Total | 6,763 | 7,530 | ||
Acquisition and Development | Commercial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 492 | 1 | ||
Collectively evaluated for impairment | 30,489 | 30,747 | ||
Total Loans | 30,981 | 30,748 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 417 | 580 | ||
Allowance for loan losses, Total | 417 | 580 | ||
Commercial and Industrial | ||||
Loans allocated by: | ||||
Total Loans | 115,663 | 88,465 | ||
Commercial and Industrial | Commercial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 350 | 594 | ||
Collectively evaluated for impairment | 115,313 | 87,871 | ||
Total Loans | 115,663 | 88,465 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,446 | 1,074 | ||
Allowance for loan losses, Total | 1,446 | 1,074 | ||
Municipal | ||||
Loans allocated by: | ||||
Total Loans | 42,065 | 53,741 | ||
Municipal | Commercial | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 42,065 | 53,741 | ||
Total Loans | 42,065 | 53,741 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 84 | 54 | ||
Allowance for loan losses, Total | 84 | 54 | ||
Residential Mortgage | Consumer | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 4,325 | 4,915 | ||
Collectively evaluated for impairment | 302,160 | 269,537 | ||
Total Loans | 306,485 | 274,452 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 42 | 43 | ||
Collectively evaluated for impairment | 3,358 | 2,936 | ||
Allowance for loan losses, Total | 3,400 | 2,979 | ||
Installment and other loans | ||||
Loans allocated by: | ||||
Total Loans | 21,902 | 7,118 | ||
Installment and other loans | Consumer | ||||
Loans allocated by: | ||||
Individually evaluated for impairment | 11 | 6 | ||
Collectively evaluated for impairment | 21,891 | 7,112 | ||
Total Loans | 21,902 | 7,118 | ||
Allowance for loan losses allocated by: | ||||
Individually evaluated for impairment | 9 | 0 | ||
Collectively evaluated for impairment | 202 | 144 | ||
Allowance for loan losses, Total | $ 211 | $ 144 |
LOANS TO RELATED PARTIES (Detai
LOANS TO RELATED PARTIES (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Related Party Transaction, Loans To Related Party [Roll Forward] | |
Balance, beginning of year | $ 677 |
New loans | 311 |
Repayments | (315) |
Balance, end of year | $ 673 |
PREMISES AND EQUIPMENT - Summar
PREMISES AND EQUIPMENT - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 63,412 | $ 61,162 |
Less accumulated depreciation and amortization | 28,603 | 26,291 |
Bank premises and equipment, net | 34,809 | 34,871 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 7,664 | 7,717 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 31,154 | 30,626 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 2,482 | 1,719 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 22,023 | 21,032 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 89 | $ 68 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,650 | $ 2,311 | $ 2,310 |
Property, Plant and Equipment [Line Items] | |||
Rent expense | $ 639 | 601 | $ 435 |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment retired from active use | 5,600 | ||
Loss in connection with retirement of premises and equipment | $ 147 |
PREMISES AND EQUIPMENT - Schedu
PREMISES AND EQUIPMENT - Schedule of Minimum Rental Commitments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 574 |
2,019 | 528 |
2,020 | 496 |
2,021 | 334 |
2,022 | 230 |
Thereafter | 474 |
Total | $ 2,636 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current expense | $ 1,260 | $ 1,498 | $ 837 |
Deferred expense (benefit) | 443 | (232) | 797 |
Expense due to enactment of federal tax reform legislation | 2,635 | 0 | 0 |
Income tax expense | $ 4,338 | $ 1,266 | $ 1,634 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate to Statutory Federal Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 34.00% | 34.00% | 35.00% |
Increase (decrease) resulting from: | |||
Tax exempt interest income | (13.00%) | (16.00%) | (11.30%) |
Earnings from life insurance | (2.40%) | (4.70%) | (3.80%) |
Disallowed interest expense | 1.00% | 1.00% | 0.40% |
Low-income housing credits and related expense | (4.60%) | (7.20%) | (5.00%) |
Regulatory settlement | 0.00% | 4.30% | 0.00% |
Change in statutory federal tax rate | 0.00% | 2.30% | 0.00% |
Expense due to enactment of federal tax reform legislation | 21.20% | 0.00% | 0.00% |
Other | (1.30%) | 2.30% | 1.90% |
Effective income tax rate | 34.90% | 16.00% | 17.20% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense related to net security gains | $ 405,000 | $ 483,000 | $ 673,000 |
Statutory federal tax rate | 34.00% | 34.00% | 35.00% |
Increase in income tax expense due to application of new rate | $ 185,000 | ||
Tax Cuts And Jobs Act Of 2017,change in tax rate, deferred tax asset, provisional deferred income tax expense | $ 2,635,000 | ||
Reclass to other assets from deferred tax assets | 5,343,000 | ||
Income tax penalties or interest | 0 | 0 | $ 0 |
Accrued penalties | $ 0 | $ 0 |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,919 | $ 4,725 |
Deferred compensation | 355 | 545 |
Retirement plans and salary continuation | 1,301 | 1,942 |
Share-based compensation | 597 | 583 |
Off-balance sheet reserves | 207 | 313 |
Nonaccrual loan interest | 258 | 370 |
Net unrealized losses on securities available for sale | 0 | 600 |
Goodwill | 39 | 92 |
Bonus accrual | 25 | 236 |
Low-income housing credit carryforward | 2,313 | 1,983 |
Alternative minimum tax credit carryforward | 0 | 4,048 |
Net operating loss carryforward | 0 | 2,520 |
Other | 390 | 479 |
Total deferred tax assets | 8,404 | 18,436 |
Deferred tax liabilities: | ||
Depreciation | 488 | 771 |
Net unrealized gains on securities available for sale | 757 | 0 |
Mortgage servicing rights | 536 | 777 |
Purchase accounting adjustments | 251 | 435 |
Other | 122 | 195 |
Total deferred tax liabilities | 2,154 | 2,178 |
Net deferred tax asset, included in Other Assets | $ 6,250 | $ 16,258 |
RETIREMENT PLANS (Detail)
RETIREMENT PLANS (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)plan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Retirement Benefits [Abstract] | |||
Employer contribution expense | $ 432 | $ 334 | $ 361 |
Deferred compensation arrangement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Age at which a director or his beneficiaries will receive a monthly retirement benefit | 65 years | ||
Estimated present value of future benefits to be paid | $ 94 | 105 | |
Plan expense | 11 | 12 | 12 |
Supplemental discretionary deferred compensation plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan expense | 10 | 15 | 30 |
Trust account balance | 1,571 | 1,483 | |
Supplemental retirement and salary continuation plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated present value of future benefits to be paid | 6,109 | 5,662 | |
Plan expense | $ 739 | 727 | 626 |
Number of supplemental retirement and salary continuation plans | plan | 2 | ||
Life insurance coverage post-retirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated present value of future benefits to be paid | $ 937 | 860 | |
Plan expense | $ 77 | $ 61 | $ 129 |
SHARE-BASED COMPENSATION PLAN79
SHARE-BASED COMPENSATION PLANS - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
2011 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock reserved to be issued | 381,920 | |
Number of shares available to be issued | 82,277 | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock reserved to be issued | 350,000 | |
Number of shares available to be issued | 179,372 | |
Maximum shares employees may purchase as a percent of their annual salary | 10.00% | |
Percentage of value of the shares on the semi-annual offering | 95.00% | |
Restricted stock awards | 2011 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense related to restricted stock awards | $ 2,035 | $ 2,169 |
Weighted-average recognition period | 1 year 9 months 22 days | |
Stock options | 2011 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of options | 10 years | |
Intrinsic value of outstanding and exercisable options | $ 127 | $ 39 |
SHARE-BASED COMPENSATION PLAN80
SHARE-BASED COMPENSATION PLANS - Summary of Nonvested Restricted Shares Activity (Details) - 2011 Incentive Stock Plan - Restricted stock awards | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Nonvested shares, beginning of year (in shares) | shares | 227,337 |
Granted (in shares) | shares | 67,753 |
Forfeited (in shares) | shares | (13,079) |
Vested (in shares) | shares | (13,600) |
Nonvested shares, at end of year (in shares) | shares | 268,411 |
Weighted Average Grant Date Fair Value | |
Nonvested shares, beginning of year (in dollars per share) | $ / shares | $ 16.88 |
Granted (in dollars per share) | $ / shares | 22.52 |
Forfeited (in dollars per share) | $ / shares | 18.36 |
Vested (in dollars per share) | $ / shares | 17.95 |
Nonvested shares, at end of year (in dollars per share) | $ / shares | $ 18.18 |
SHARE-BASED COMPENSATION PLAN81
SHARE-BASED COMPENSATION PLANS - Schedule of Restricted Shares Compensation Expense (Details) - 2011 Incentive Stock Plan - Restricted stock awards - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share award expense | $ 1,369 | $ 941 | $ 732 |
Restricted share award tax benefit | 465 | 320 | 256 |
Fair value of shares vested | $ 303 | $ 237 | $ 43 |
SHARE-BASED COMPENSATION PLAN82
SHARE-BASED COMPENSATION PLANS - Summary of Outstanding Stock Options Activity (Detail) - 2011 Incentive Stock Plan - Employee Stock Option | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Outstanding at beginning of year (in shares) | shares | 80,370 |
Forfeited (in shares) | shares | (1,300) |
Expired (in shares) | shares | (19,487) |
Options outstanding and exercisable, at year end (in shares) | shares | 59,583 |
Weighted Average Exercise Price | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 27.37 |
Forfeited (in dollars per share) | $ / shares | 21.14 |
Expired (in dollars per share) | $ / shares | 32.33 |
Options outstanding and exercisable, at year end (in dollars per share) | $ / shares | $ 25.89 |
SHARE-BASED COMPENSATION PLAN83
SHARE-BASED COMPENSATION PLANS - Schedule of Information Pertaining to Options Outstanding and Exercisable (Detail) - 2011 Incentive Stock Plan - Employee Stock Option | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
$21.14 - $24.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in usd per share) | $ 21.14 |
Range of Exercise Prices, Maximum (in usd per share) | $ 24.99 |
Number Outstanding and Exercisable (in shares) | shares | 33,699 |
Weighted Average Remaining Contractual Life (Years) | 2 years 4 months 10 days |
Weighted Average Exercise Price (in dollars per share) | $ 21.49 |
$25.00 - $29.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in usd per share) | 25 |
Range of Exercise Prices, Maximum (in usd per share) | $ 29.99 |
Number Outstanding and Exercisable (in shares) | shares | 2,792 |
Weighted Average Remaining Contractual Life (Years) | 2 years 3 months |
Weighted Average Exercise Price (in dollars per share) | $ 25.76 |
$30.00 - $34.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in usd per share) | 30 |
Range of Exercise Prices, Maximum (in usd per share) | $ 34.99 |
Number Outstanding and Exercisable (in shares) | shares | 15,744 |
Weighted Average Remaining Contractual Life (Years) | 5 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 30.10 |
$35.00 - $37.59 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in usd per share) | 35 |
Range of Exercise Prices, Maximum (in usd per share) | $ 37.59 |
Number Outstanding and Exercisable (in shares) | shares | 7,348 |
Weighted Average Remaining Contractual Life (Years) | 1 year 6 months 7 days |
Weighted Average Exercise Price (in dollars per share) | $ 37.08 |
$21.14 - $37.59 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Minimum (in usd per share) | 21.14 |
Range of Exercise Prices, Maximum (in usd per share) | $ 37.59 |
Number Outstanding and Exercisable (in shares) | shares | 59,583 |
Weighted Average Remaining Contractual Life (Years) | 1 year 9 months |
Weighted Average Exercise Price (in dollars per share) | $ 25.89 |
SHARE-BASED COMPENSATION PLAN84
SHARE-BASED COMPENSATION PLANS - Schedule of Employee Stock Purchase Plan Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares purchased | 56,885 | 25,834 | 0 |
Employee Stock Purchase Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares purchased | 6,632 | 6,334 | 6,305 |
Weighted average price of shares purchased (in dollars per share) | $ 20.57 | $ 16.64 | $ 15.83 |
Compensation expense recognized | $ 17 | $ 17 | $ 8 |
Tax benefits | $ 6 | $ 6 | $ 3 |
DEPOSITS - Summary of Compositi
DEPOSITS - Summary of Composition of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing | $ 162,343 | $ 150,747 |
NOW and money market | 687,936 | 613,232 |
Savings | 95,148 | 91,706 |
Time (less than $250,000) | 252,200 | 277,899 |
Time ($250,000 or more) | 21,888 | 18,868 |
Total deposits | $ 1,219,515 | $ 1,152,452 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Banking and Thrift [Abstract] | |
2,018 | $ 107,765 |
2,019 | 88,028 |
2,020 | 71,149 |
2,021 | 4,547 |
2,022 | 1,722 |
Thereafter | 877 |
Total | $ 274,088 |
DEPOSITS - Narrative (Detail)
DEPOSITS - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Brokered time deposits | $ 96,368 | $ 85,994 |
Cash and Cash Equivalents [Line Items] | ||
Deposits of officers and directors | 3,723 | $ 2,826 |
Bank Time Deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Time deposits that meet or exceed the FDIC limit | $ 21,888 |
SHORT-TERM BORROWINGS - Summary
SHORT-TERM BORROWINGS - Summary of the Use of Short-Term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Balance at year-end | $ 50,000 | $ 52,000 | $ 60,000 |
Weighted average interest rate at year-end | 1.21% | 0.76% | 0.53% |
Average balance during the year | $ 54,610 | $ 17,841 | $ 55,106 |
Average interest rate during the year | 1.08% | 0.61% | 0.43% |
Maximum month-end balance during the year | $ 72,000 | $ 52,000 | $ 83,500 |
SHORT-TERM BORROWINGS - Summa89
SHORT-TERM BORROWINGS - Summary of the Use of Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Balance at year-end | $ 43,576 | $ 35,864 | $ 29,156 |
Weighted average interest rate at year-end | 0.56% | 0.20% | 0.20% |
Average balance during the year | $ 43,205 | $ 38,546 | $ 30,156 |
Average interest rate during the year | 0.45% | 0.20% | 0.20% |
Maximum month-end balance during the year | $ 55,270 | $ 52,693 | $ 37,558 |
Fair value of securities underlying the agreements at year-end | $ 53,485 | $ 56,201 | $ 35,470 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Weighted Average rate | ||
Total FHLB Advances | 1.93% | 1.68% |
Amount | ||
Total FHLB Advances | $ 83,815 | $ 24,163 |
Weighted Average rate | ||
Total FHLB Advances | 1.93% | 1.68% |
FHLB fixed rate advances maturing | ||
Amount | ||
2,017 | $ 0 | $ 20,000 |
2,019 | 40,000 | 0 |
2,020 | 40,350 | 350 |
Total | $ 80,350 | $ 20,350 |
Weighted Average rate | ||
2,017 | 0.00% | 1.00% |
2,019 | 1.86% | 0.00% |
2,020 | 1.76% | 7.40% |
Total FHLB Advances | 1.81% | 1.11% |
Weighted Average rate | ||
Total FHLB Advances | 1.81% | 1.11% |
FHLB amortizing advance requiring monthly principal and interest payments, maturing | ||
Amount | ||
2,025 | $ 3,465 | $ 3,813 |
Weighted Average rate | ||
2,025 | 4.74% | 4.74% |
LONG-TERM DEBT - Summary of Fut
LONG-TERM DEBT - Summary of Future Principal Payments Required (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 365 | |
2,019 | 40,382 | |
2,020 | 40,751 | |
2,021 | 421 | |
2,022 | 441 | |
Thereafter | 1,455 | |
Total | $ 83,815 | $ 24,163 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Detail) | Dec. 31, 2017USD ($)bank | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | ||
Collateral for all outstanding loans | $ 517,257,000 | |
Additional availability at the FHLB based on qualifying collateral | 381,892,000 | |
Letters of Credit Outstanding, Amount | $ 1,550,000 | |
Number of correspondent banks | bank | 2 | |
Debt Instrument [Line Items] | ||
Borrowings under lines of credit | $ 0 | $ 0 |
Federal Funds rate | ||
Debt Instrument [Line Items] | ||
Available unsecured lines of credit | 30,000,000 | |
Prime rate | ||
Debt Instrument [Line Items] | ||
Unsecured line of credit | $ 5,000,000 |
SHAREHOLDERS_ EQUITY AND REGU93
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL - Narrative (Detail) - USD ($) | Jan. 24, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 19, 2016 | Sep. 30, 2015 |
Class of Stock [Line Items] | ||||||
Common stock reserved to be issued under dividend reinvestment and stock purchase plan (in shares) | 1,045,000 | |||||
Shares available to be issued under the plan (in shares) | 665,000 | |||||
Aggregate amount provided for under shelf registration | $ 100,000,000 | |||||
Outstanding shares of common stock authorized to be repurchased (in shares) | 416,000 | |||||
Shares repurchased under the program (in shares) | 82,725 | |||||
Total cost of shares repurchased under the program | $ 1,438,000 | |||||
Shares repurchased under the program, price per share (in dollars per share) | $ 17.38 | |||||
Cash dividend declared by the Board (in dollars per share) | $ 0.42 | $ 0.35 | $ 0.22 | |||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Cash dividend declared by the Board (in dollars per share) | $ 0.12 | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Outstanding shares of common stock authorized to be repurchased (as a percent) | 5.00% |
SHAREHOLDERS_ EQUITY AND REGU94
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL - Schedule of Actual and Required Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 152,386 | $ 139,033 |
Actual, Ratio | 13.30% | 14.60% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 106,040 | $ 82,391 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 9.25% | 8.625% |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 138,774 | $ 127,033 |
Actual, Ratio | 12.10% | 13.30% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 83,112 | $ 63,286 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 7.25% | 6.625% |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 138,774 | $ 127,033 |
Actual, Ratio | 12.10% | 13.30% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 65,917 | $ 48,957 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 5.75% | 5.125% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 138,774 | $ 127,033 |
Actual, Ratio | 8.90% | 9.30% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 62,042 | $ 54,453 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 4.00% | 4.00% |
Bank | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 148,997 | $ 126,408 |
Actual, Ratio | 13.00% | 13.20% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 105,747 | $ 82,328 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 9.25% | 8.625% |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 114,321 | $ 95,453 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 135,385 | $ 114,417 |
Actual, Ratio | 11.80% | 12.00% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 82,883 | $ 63,238 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 7.25% | 6.625% |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 91,457 | $ 76,363 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | 8.00% |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 135,385 | $ 114,417 |
Actual, Ratio | 11.80% | 12.00% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 65,734 | $ 48,920 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 5.75% | 5.125% |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 74,308 | $ 62,045 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.50% | 6.50% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 135,385 | $ 114,417 |
Actual, Ratio | 8.70% | 8.40% |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Amount | $ 62,066 | $ 54,500 |
For Capital Adequacy Purposes (includes applicable capital conservation buffer), Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Amount | $ 77,582 | $ 68,126 |
To Be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% |
RESTRICTIONS ON DIVIDENDS, LO95
RESTRICTIONS ON DIVIDENDS, LOANS AND ADVANCES (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Equity [Abstract] | |
Amount available for dividend distribution | $ 15,875 |
Maximum amount available to loan nonbank affiliates | $ 14,900 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income | $ 8,090 | $ 6,628 | $ 7,874 |
Weighted average shares outstanding - basic (in shares) | 8,070 | 8,059 | 8,107 |
Dilutive effect of share-based compensation (in shares) | 156 | 86 | 35 |
Weighted average shares outstanding - diluted (in shares) | 8,226 | 8,145 | 8,142 |
Per share information: | |||
Basic earnings per share (in dollars per share) | $ 1 | $ 0.82 | $ 0.97 |
Diluted earnings per share (in dollars per share) | $ 0.98 | $ 0.81 | $ 0.97 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Average outstanding stock options not included in computation of earnings per share (in shares) | 42 | 90 | 109 |
FINANCIAL INSTRUMENTS WITH OF98
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Schedule of Commitments and Conditional Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | $ 139,281 | $ 126,811 |
1-4 family residential construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 11,420 | 7,820 |
Commercial real estate, construction and land development loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 44,592 | 43,830 |
Commercial, industrial and other loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | 145,394 | 111,884 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract or Notional Amount | $ 12,273 | $ 7,097 |
FINANCIAL INSTRUMENTS WITH OF99
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Reserve in other liabilities | $ 816 | $ 784 |
MPF Program | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total outstanding balance of loans sold under the MPF Program | 31,977 | 35,678 |
Limited recourse back on loans | $ 1,135 | $ 1,029 |
FINANCIAL INSTRUMENTS WITH O100
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Schedule of Net Amount Expensed (Recovered) Through Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Off-balance sheet credit exposures expense (recovery) | $ 32 | $ 312 | $ (13) |
FINANCIAL INSTRUMENTS WITH O101
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Schedule of MPF Program Recourse (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
MPF Program | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
MPF program recourse loss expense | $ 25 | $ 18 | $ 127 |
FAIR VALUE - Narrative (Detail)
FAIR VALUE - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Specific charges to value the real estate owned | $ 0 | $ 43,000 | |
Change in fair value of foreclosed real estate | $ 0 | 43,000 | $ 32,000 |
Short-term borrowings maturity period | 90 days | ||
Impaired loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Changes in fair value of impaired loans and foreclosed real estate | $ 867,000 | 268,000 | $ 888,000 |
Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value liabilities | 0 | 0 | |
Allowance for loan losses or partial charge-offs | $ 2,266,000 | $ 1,967,000 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 415,308 | $ 400,154 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 415,308 | 400,154 |
Fair Value, Measurements, Recurring | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 415,194 | 400,063 |
Fair Value, Measurements, Recurring | Debt securities | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 39,592 | |
Fair Value, Measurements, Recurring | Debt securities | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 159,458 | 164,282 |
Fair Value, Measurements, Recurring | Debt securities | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 49,530 | 116,944 |
Fair Value, Measurements, Recurring | Debt securities | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 111,119 | 69,383 |
Fair Value, Measurements, Recurring | Debt securities | GSE commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 4,856 | |
Fair Value, Measurements, Recurring | Debt securities | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 1,003 | 5,006 |
Fair Value, Measurements, Recurring | Debt securities | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 7,653 | |
Fair Value, Measurements, Recurring | Debt securities | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 86,431 | |
Fair Value, Measurements, Recurring | Equity securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 114 | 91 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | GSE commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Equity securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 415,308 | 400,154 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 415,194 | 400,063 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 39,592 | |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 159,458 | 164,282 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 49,530 | 116,944 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 111,119 | 69,383 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | GSE commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 4,856 | |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 1,003 | 5,006 |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 7,653 | |
Fair Value, Measurements, Recurring | Level 2 | Debt securities | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 86,431 | |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 114 | 91 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | GSE residential MBSs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | GSE commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Debt securities | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 0 | $ 0 |
FAIR VALUE - Summary of Asse104
FAIR VALUE - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of assets measured at fair value on a nonrecurring basis | ||
Foreclosed real estate | $ 961 | $ 346 |
Fair Value, Measurements, Nonrecurring | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 7,173 | 4,350 |
Fair Value, Measurements, Nonrecurring | Commercial real estate | Owner-occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 430 | 777 |
Fair Value, Measurements, Nonrecurring | Commercial real estate | Non-owner occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 4,066 | 736 |
Fair Value, Measurements, Nonrecurring | Commercial real estate | Multi-family | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 165 | 199 |
Fair Value, Measurements, Nonrecurring | Commercial real estate | Non-owner occupied residential | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 344 | 409 |
Fair Value, Measurements, Nonrecurring | Acquisition and development | Commercial and land development | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 1 | |
Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 53 | 66 |
Fair Value, Measurements, Nonrecurring | Residential mortgage | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Foreclosed real estate | 88 | |
Fair Value, Measurements, Nonrecurring | Residential mortgage | First lien | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 1,951 | 1,994 |
Fair Value, Measurements, Nonrecurring | Residential mortgage | Home equity lines of credit | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 161 | 162 |
Fair Value, Measurements, Nonrecurring | Installment and other loans | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 3 | 6 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Commercial real estate | Owner-occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Commercial real estate | Non-owner occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Commercial real estate | Multi-family | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Commercial real estate | Non-owner occupied residential | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Acquisition and development | Commercial and land development | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | |
Fair Value, Measurements, Nonrecurring | Level 1 | Commercial and industrial | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Residential mortgage | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Foreclosed real estate | 0 | |
Fair Value, Measurements, Nonrecurring | Level 1 | Residential mortgage | First lien | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Residential mortgage | Home equity lines of credit | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 1 | Installment and other loans | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Commercial real estate | Owner-occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Commercial real estate | Non-owner occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Commercial real estate | Multi-family | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Commercial real estate | Non-owner occupied residential | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Acquisition and development | Commercial and land development | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | Commercial and industrial | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Residential mortgage | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Foreclosed real estate | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | Residential mortgage | First lien | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Residential mortgage | Home equity lines of credit | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | Installment and other loans | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 7,173 | 4,350 |
Fair Value, Measurements, Nonrecurring | Level 3 | Commercial real estate | Owner-occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 430 | 777 |
Fair Value, Measurements, Nonrecurring | Level 3 | Commercial real estate | Non-owner occupied | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 4,066 | 736 |
Fair Value, Measurements, Nonrecurring | Level 3 | Commercial real estate | Multi-family | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 165 | 199 |
Fair Value, Measurements, Nonrecurring | Level 3 | Commercial real estate | Non-owner occupied residential | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 344 | 409 |
Fair Value, Measurements, Nonrecurring | Level 3 | Acquisition and development | Commercial and land development | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 1 | |
Fair Value, Measurements, Nonrecurring | Level 3 | Commercial and industrial | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 53 | 66 |
Fair Value, Measurements, Nonrecurring | Level 3 | Residential mortgage | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Foreclosed real estate | 88 | |
Fair Value, Measurements, Nonrecurring | Level 3 | Residential mortgage | First lien | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 1,951 | 1,994 |
Fair Value, Measurements, Nonrecurring | Level 3 | Residential mortgage | Home equity lines of credit | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | 161 | 162 |
Fair Value, Measurements, Nonrecurring | Level 3 | Installment and other loans | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Impaired Loans | $ 3 | $ 6 |
FAIR VALUE - Schedule of Additi
FAIR VALUE - Schedule of Additional Qualitative Information (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired loans | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 7,173 | $ 4,350 |
Impaired loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 0.00% | 0.00% |
Impaired loans | Minimum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 7.00% | 10.00% |
Impaired loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 20.00% | 41.00% |
Impaired loans | Maximum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 75.00% | 75.00% |
Foreclosed real estate | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Estimate | $ 88 | |
Foreclosed real estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 10.00% | |
Foreclosed real estate | Minimum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 13.00% | |
Foreclosed real estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 18.00% | |
Foreclosed real estate | Maximum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate | 17.00% |
FAIR VALUE - Schedule of Estima
FAIR VALUE - Schedule of Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Interest-bearing deposits with banks | $ 8,073 | $ 14,201 |
Restricted investments in bank stock | 9,997 | 7,970 |
Securities available for sale | 415,308 | 400,154 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 21,734 | 16,072 |
Interest-bearing deposits with banks | 8,073 | 14,201 |
Restricted investments in bank stock | 9,997 | 7,970 |
Securities available for sale | 415,308 | 400,154 |
Loans held for sale | 6,089 | 2,768 |
Loans, net of allowance for loan losses | 997,216 | 870,616 |
Accrued interest receivable | 5,048 | 4,672 |
Financial Liabilities | ||
Deposits | 1,219,515 | 1,152,452 |
Short-term borrowings | 93,576 | 87,864 |
Long-term debt | 83,815 | 24,163 |
Accrued interest payable | 495 | 437 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | ||
Financial Assets | ||
Cash and due from banks | 21,734 | 16,072 |
Interest-bearing deposits with banks | 8,073 | 14,201 |
Securities available for sale | 415,308 | 400,154 |
Loans held for sale | 6,272 | 2,843 |
Loans, net of allowance for loan losses | 994,617 | 870,470 |
Accrued interest receivable | 5,048 | 4,672 |
Financial Liabilities | ||
Deposits | 1,213,288 | 1,149,727 |
Short-term borrowings | 93,576 | 87,864 |
Long-term debt | 83,949 | 24,966 |
Accrued interest payable | 495 | 437 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 21,734 | 16,072 |
Interest-bearing deposits with banks | 8,073 | 14,201 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Securities available for sale | 415,308 | 400,154 |
Loans held for sale | 6,272 | 2,843 |
Loans, net of allowance for loan losses | 0 | 0 |
Accrued interest receivable | 2,580 | 2,643 |
Financial Liabilities | ||
Deposits | 1,213,288 | 1,149,727 |
Short-term borrowings | 93,576 | 87,864 |
Long-term debt | 83,949 | 24,966 |
Accrued interest payable | 495 | 437 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 3 | ||
Financial Assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 994,617 | 870,470 |
Accrued interest receivable | 2,468 | 2,029 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet instruments | $ 0 | $ 0 |
ORRSTOWN FINANCIAL SERVICES,107
ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash in Orrstown Bank | $ 21,734 | $ 16,072 | ||
Deposits with other banks | 8,073 | 14,201 | ||
Cash and cash equivalents | 29,807 | 30,273 | $ 28,340 | $ 31,409 |
Securities available for sale | 415,308 | 400,154 | ||
Other assets | 27,005 | 31,078 | ||
Total assets | 1,558,849 | 1,414,504 | ||
Liabilities | 1,414,084 | 1,279,645 | ||
Shareholders’ Equity | ||||
Common stock | 435 | 437 | ||
Additional paid-in capital | 125,458 | 124,935 | ||
Retained earnings | 16,042 | 11,669 | ||
Accumulated other comprehensive income (loss) | 2,845 | (1,165) | ||
Treasury stock | (15) | (1,017) | ||
Total shareholders’ equity | 144,765 | 134,859 | 133,061 | 127,265 |
Total liabilities and shareholders’ equity | 1,558,849 | 1,414,504 | ||
Consolidated | ||||
Assets | ||||
Cash in Orrstown Bank | 703 | 10,263 | ||
Deposits with other banks | 214 | 307 | ||
Cash and cash equivalents | 917 | 10,570 | $ 14,353 | $ 389 |
Securities available for sale | 114 | 91 | ||
Investment in Orrstown Bank | 140,429 | 121,362 | ||
Other assets | 3,953 | 3,519 | ||
Total assets | 145,413 | 135,542 | ||
Liabilities | 648 | 683 | ||
Shareholders’ Equity | ||||
Common stock | 435 | 437 | ||
Additional paid-in capital | 125,458 | 124,935 | ||
Retained earnings | 16,042 | 11,669 | ||
Accumulated other comprehensive income (loss) | 2,845 | (1,165) | ||
Treasury stock | (15) | (1,017) | ||
Total shareholders’ equity | 144,765 | 134,859 | ||
Total liabilities and shareholders’ equity | $ 145,413 | $ 135,542 |
ORRSTOWN FINANCIAL SERVICES,108
ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION - Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses | |||
Share-based compensation | $ 1,386 | $ 958 | $ 740 |
Income tax benefit | 4,338 | 1,266 | 1,634 |
Net income | 8,090 | 6,628 | 7,874 |
Consolidated | |||
Income | |||
Dividends from subsidiaries | 0 | 2,200 | 17,900 |
Other interest and dividend income | 15 | 38 | 3 |
Other income | 61 | 62 | 35 |
Total income | 76 | 2,300 | 17,938 |
Expenses | |||
Share-based compensation | 247 | 216 | 135 |
Management fee to Bank | 501 | 504 | 500 |
Other expenses | 1,116 | 2,152 | 1,720 |
Total expenses | 1,864 | 2,872 | 2,355 |
Income (loss) before income tax benefit and equity in undistributed income (distributions in excess of income) of subsidiaries | (1,788) | (572) | 15,583 |
Income tax benefit | (596) | (606) | (831) |
Income (loss) before equity in undistributed income (distributions in excess of income) of subsidiaries | (1,192) | 34 | 16,414 |
Equity in undistributed income (distributions in excess of income) of subsidiaries | 9,282 | 6,594 | (8,540) |
Net income | $ 8,090 | $ 6,628 | $ 7,874 |
ORRSTOWN FINANCIAL SERVICES,109
ORRSTOWN FINANCIAL SERVICES, INC. (PARENT COMPANY ONLY) CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 8,090 | $ 6,628 | $ 7,874 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||
Deferred income taxes | 3,078 | (232) | 797 |
Share-based compensation | 1,386 | 958 | 740 |
Other, net | 52 | (135) | (498) |
Net cash provided by operating activities | 16,350 | 15,587 | 12,158 |
Cash flows from investing activities: | |||
Other, net | 0 | (439) | 0 |
Net cash used in investing activities | (145,892) | (128,891) | (107,346) |
Cash flows from financing activities: | |||
Dividends paid | (3,488) | (2,898) | (1,822) |
Proceeds from issuance of common stock | 0 | 105 | 190 |
Payments to repurchase common stock | 0 | (631) | (809) |
Net cash provided by financing activities | 129,076 | 115,237 | 92,119 |
Net increase (decrease) in cash and cash equivalents | (466) | 1,933 | (3,069) |
Cash and cash equivalents at beginning of year | 30,273 | 28,340 | 31,409 |
Cash and cash equivalents at end of year | 29,807 | 30,273 | 28,340 |
Consolidated | |||
Cash flows from operating activities: | |||
Net income | 8,090 | 6,628 | 7,874 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||
Deferred income taxes | 16 | 4 | (53) |
Equity in (undistributed income) distributions in excess of income of subsidiaries | (9,282) | (6,594) | 8,540 |
Share-based compensation | 247 | 216 | 135 |
Net change in other liabilities | (35) | (6) | 17 |
Other, net | (377) | (849) | (712) |
Net cash provided by operating activities | (1,341) | (601) | 15,801 |
Cash flows from investing activities: | |||
Capital contributed to subsidiaries | (6,100) | 0 | 0 |
Other, net | 0 | (500) | 0 |
Net cash used in investing activities | (6,100) | (500) | 0 |
Cash flows from financing activities: | |||
Dividends paid | (3,488) | (2,898) | (1,822) |
Proceeds from issuance of common stock | 1,276 | 847 | 794 |
Payments to repurchase common stock | 0 | (631) | (809) |
Net cash provided by financing activities | (2,212) | (2,682) | (1,837) |
Net increase (decrease) in cash and cash equivalents | (9,653) | (3,783) | 13,964 |
Cash and cash equivalents at beginning of year | 10,570 | 14,353 | 389 |
Cash and cash equivalents at end of year | $ 917 | $ 10,570 | $ 14,353 |
CONTINGENCIES (Detail)
CONTINGENCIES (Detail) $ in Thousands | Jun. 22, 2015 | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($)claim |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of legal proceedings that might have a material effect on the results of operations | claim | 0 | ||
Period to amend complaint or file notice | 30 days | ||
Civil money penalty | $ 1,000 | ||
Pending Litigation | SEPTA Second Amended Complaint | |||
Loss Contingencies [Line Items] | |||
Indemnification costs | $ 645 |