Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ORRSTOWN FINANCIAL SERVICES INC | |
Entity Central Index Key | 0000826154 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ORRF | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 9,485,269 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Jun. 22, 2015 | Jun. 30, 2016USD ($) | Mar. 31, 2019claim |
Commitments and Contingencies Disclosure [Abstract] | |||
Number of legal proceedings (in claims) | claim | 0 | ||
Number of days to file an amendment or stand on current amended complaint | 30 days | ||
Regulatory settlement | $ | $ 1,000,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 22,387 | $ 26,156 |
Interest-bearing deposits with banks | 54,830 | 45,664 |
Federal funds sold | 0 | 16,995 |
Cash and cash equivalents | 77,217 | 88,815 |
Restricted investments in bank stocks | 10,292 | 10,842 |
Available-for-sale securities | 490,221 | 465,844 |
Loans held for sale | 4,787 | 3,340 |
Loans | 1,265,539 | 1,247,657 |
Less: Allowance for loan losses | (14,283) | (14,014) |
Net loans | 1,251,256 | 1,233,643 |
Premises and equipment, net | 38,107 | 38,201 |
Cash surrender value of life insurance | 41,578 | 41,327 |
Goodwill | 12,592 | 12,592 |
Other intangible assets, net | 3,702 | 3,910 |
Accrued interest receivable | 6,340 | 5,927 |
Other assets | 37,191 | 29,947 |
Total assets | 1,973,283 | 1,934,388 |
Deposits: | ||
Noninterest-bearing | 214,308 | 204,843 |
Interest-bearing | 1,406,388 | 1,353,913 |
Total deposits | 1,620,696 | 1,558,756 |
Short-term borrowings | 9,579 | 64,069 |
Long-term debt | 103,356 | 83,450 |
Subordinated notes | 31,810 | 31,859 |
Accrued interest and other liabilities | 28,675 | 22,821 |
Total liabilities | 1,794,116 | 1,760,955 |
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; 9,484,769 and 9,439,255 shares issued; 9,484,769 and 9,430,224 shares outstanding | 494 | 491 |
Additional paid - in capital | 151,702 | 151,678 |
Retained earnings | 26,161 | 24,472 |
Accumulated other comprehensive income (loss) | 810 | (2,972) |
Treasury stock—common, 0 and 9,031 shares, at cost | 0 | (236) |
Total shareholders’ equity | 179,167 | 173,433 |
Total liabilities and shareholders’ equity | $ 1,973,283 | $ 1,934,388 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 1.25 | $ 1.25 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, stated value (usd per share) | $ 0.05205 | $ 0.05205 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 9,484,769 | 9,439,255 |
Common stock, shares outstanding (in shares) | 9,484,769 | 9,430,224 |
Treasury stock - common - shares (in shares) | 0 | 9,031 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Income | ||
Loans | $ 15,059,000 | $ 11,056,000 |
Investment securities - taxable | 3,492,000 | 2,293,000 |
Investment securities - tax-exempt | 842,000 | 871,000 |
Short-term investments | 173,000 | 55,000 |
Total interest and dividend income | 19,566,000 | 14,275,000 |
Interest expense | ||
Deposits | 3,694,000 | 1,824,000 |
Short-term borrowings | 243,000 | 363,000 |
Long-term debt | 443,000 | 404,000 |
Subordinated notes | 497,000 | 0 |
Total interest expense | 4,877,000 | 2,591,000 |
Net interest income | 14,689,000 | 11,684,000 |
Provision for loan losses | 400,000 | 200,000 |
Net interest income after provision for loan losses | 14,289,000 | 11,484,000 |
Noninterest income | ||
Service charges on deposit accounts | 1,489,000 | 1,418,000 |
Other service charges, commissions and fees | 241,000 | 249,000 |
Trust and investment management income | 1,758,000 | 1,668,000 |
Brokerage income | 478,000 | 558,000 |
Mortgage banking activities | 468,000 | 635,000 |
Income from life insurance | 342,000 | 277,000 |
Other income | 112,000 | 81,000 |
Investment securities gains | 339,000 | 816,000 |
Total noninterest income | 5,227,000 | 5,702,000 |
Noninterest expenses | ||
Salaries and employee benefits | 8,677,000 | 8,022,000 |
Occupancy | 1,001,000 | 798,000 |
Furniture and equipment | 1,023,000 | 919,000 |
Data processing | 770,000 | 619,000 |
Telephone and communication | 212,000 | 196,000 |
Automated teller and interchange fees | 236,000 | 171,000 |
Advertising and bank promotions | 521,000 | 382,000 |
FDIC insurance | 185,000 | 166,000 |
Legal fees | 53,000 | 66,000 |
Other professional services | 504,000 | 303,000 |
Directors' compensation | 236,000 | 251,000 |
Real estate owned | 2,000 | 25,000 |
Taxes other than income | 306,000 | 251,000 |
Intangible asset amortization | 208,000 | 24,000 |
Merger related | 645,000 | 0 |
Insurance claim receivable write off | 615,000 | 0 |
Other operating expenses | 988,000 | 876,000 |
Total noninterest expenses | 16,182,000 | 13,069,000 |
Income before income tax expense | 3,334,000 | 4,117,000 |
Income tax expense | 232,000 | 492,000 |
Net income | $ 3,102,000 | $ 3,625,000 |
Per share information: | ||
Basic earnings per share (in usd per share) | $ 0.34 | $ 0.45 |
Diluted earnings per share (in usd per share) | 0.33 | 0.44 |
Dividends paid per share (in usd per share) | $ 0.15 | $ 0.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,102 | $ 3,625 |
Other comprehensive income (loss), net of tax: | ||
Unrealized gains (losses) on securities available for sale arising during the period | 5,127 | (5,619) |
Reclassification adjustment for gains realized in net income | (339) | (816) |
Net unrealized gains (losses) | 4,788 | (6,435) |
Tax effect | (1,006) | 1,352 |
Total other comprehensive income (loss), net of tax and reclassification adjustments | 3,782 | (5,083) |
Total comprehensive income (loss) | $ 6,884 | $ (1,458) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2017 | $ 144,765 | $ 435 | $ 125,458 | $ 16,042 | $ 2,845 | $ (15) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 3,625 | 0 | 0 | 3,625 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | (5,083) | 0 | 0 | 0 | (5,083) | 0 |
Cash dividends | (1,000) | 0 | 0 | (1,000) | 0 | 0 |
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 249 | 3 | 530 | 0 | 0 | (284) |
Ending balance at Mar. 31, 2018 | 142,556 | 438 | 125,988 | 18,667 | (2,238) | (299) |
Beginning balance at Dec. 31, 2018 | 173,433 | 491 | 151,678 | 24,472 | (2,972) | (236) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 3,102 | 0 | 0 | 3,102 | 0 | 0 |
Total other comprehensive income (loss), net of taxes | 3,782 | 0 | 0 | 0 | 3,782 | 0 |
Cash dividends | (1,413) | 0 | 0 | (1,413) | 0 | 0 |
Share-based compensation plans: | ||||||
Issuance of stock, including compensation expense | 263 | 3 | 24 | 0 | 0 | 236 |
Ending balance at Mar. 31, 2019 | $ 179,167 | $ 494 | $ 151,702 | $ 26,161 | $ 810 | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share (in usd per share) | $ 0.15 | $ 0.12 |
Stock-based compensation plans, issuance of stock (in shares) | 45,514 | 75,923 |
Issuance of stock, common stock forfeited (in shares) | 0 | 0 |
Compensation expense, issuance of stock | $ 499 | $ 480 |
Issuance of treasury stock (in shares) | 9,031 | 0 |
Treasury stock, shares acquired (in shares) | 0 | 10,648 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 3,102 | $ 3,625 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net premium amortization (discount accretion) | 69 | 501 | |
Depreciation and amortization (including amortization of ROU assets) | 1,079 | 869 | |
Provision for loan losses | 400 | 200 | $ 200 |
Share-based compensation | 499 | 480 | |
Gain on sales of loans originated for sale | (350) | (513) | |
Mortgage loans originated for sale | (16,682) | (18,091) | |
Proceeds from sales of loans originated for sale | 15,505 | 20,943 | |
Net (gain) loss on disposal of premises and equipment | 130 | (5) | |
Deferred income taxes | 211 | 269 | |
Investment securities gains | (339) | (816) | |
Income from life insurance | (342) | (277) | |
(Increase) decrease in accrued interest receivable | (413) | 146 | |
Increase in accrued interest payable and other liabilities | (2,351) | (41) | |
Other, net | (89) | (2,331) | |
Net cash provided by operating activities | 429 | 4,959 | |
Cash flows from investing activities | |||
Proceeds from sales of AFS securities | 59,464 | 62,577 | |
Maturities, repayments and calls of AFS securities | 6,306 | 3,111 | |
Purchases of AFS securities | (85,324) | (111,300) | |
Net (purchases) redemptions of restricted investments in bank stocks | 550 | (2,125) | |
Net increase in loans | (17,974) | (34,552) | |
Purchases of bank premises and equipment | (689) | (245) | |
Proceeds from disposal of bank premises and equipment | 0 | 7 | |
Purchases of bank owned life insurance | 0 | (900) | |
Net cash used in investing activities | (37,667) | (83,427) | |
Cash flows from financing activities | |||
Net increase in deposits | 61,931 | 79,999 | |
Net increase (decrease) in borrowings with original maturities less than 90 days | (29,490) | 40,155 | |
Payments on other short-term borrowings | (25,000) | (40,000) | |
Proceeds from long-term debt | 20,000 | 0 | |
Payments on long-term debt | (94) | (90) | |
Subordinated note issuance costs | (58) | 0 | |
Dividends paid | (1,413) | (1,000) | |
Treasury shares repurchased for employee taxes associated with restricted stock vesting | (294) | (307) | |
Proceeds from issuance of stock for option exercises and employee stock purchase plan | 58 | 76 | |
Net cash provided by financing activities | 25,640 | 78,833 | |
Net increase (decrease) in cash and cash equivalents | (11,598) | 365 | |
Cash and cash equivalents at beginning of period | 88,815 | 29,807 | 29,807 |
Cash and cash equivalents at end of period | 77,217 | 30,172 | $ 88,815 |
Supplemental disclosures of cash flow information: | |||
Interest | 4,724 | 2,631 | |
Supplemental schedule of noncash investing activities: | |||
OREO acquired in settlement of loans | 161 | 408 | |
ROU asset obtained in exchange for lease obligations | $ 8,115 | $ 0 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Nonvested Restricted Shares Activity | The table below presents a summary of nonvested restricted shares activity for the three months ended March 31, 2019. Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 275,412 $ 20.33 Granted 67,793 19.35 Forfeited (700) 23.75 Vested (23,405) 17.69 Nonvested shares, at period end 319,100 $ 20.31 |
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 three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Restricted share award expense $ 496 $ 477 Restricted share award tax benefit 110 128 Fair value of shares vested 444 397 |
Summary of Outstanding Stock Options Activity | The following table presents a summary of outstanding stock options at March 31, 2019. There was no activity in outstanding stock options in the three months ended March 31, 2019. Shares Weighted Average Exercise Price Options outstanding and exercisable 40,984 $ 24.34 |
Information Pertaining to Options Outstanding and Exercisable | The following table presents information pertaining to options outstanding and exercisable at March 31, 2019. Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $21.14 - $24.99 31,519 1.15 $ 21.51 $25.00 - $34.99 2,792 1.01 25.76 $35.00 - $37.59 6,673 0.31 37.10 $21.14 - $37.59 40,984 1.01 $ 24.34 |
Schedule of Employee Stock Purchase Plan | The following table presents information for the employee stock purchase plan for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands except share information) 2019 2018 Shares purchased 3,004 2,956 Weighted average price of shares purchased $ 18.96 $ 23.47 Compensation expense recognized 3 4 Tax benefits 1 1 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table presents earnings per share for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, (In thousands, except per share information) 2019 2018 Net income $ 3,102 $ 3,625 Weighted average shares outstanding - basic 9,160 8,082 Dilutive effect of share-based compensation 166 186 Weighted average shares outstanding - diluted 9,326 8,268 Per share information: Basic earnings per share $ 0.34 $ 0.45 Diluted earnings per share 0.33 0.44 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, recognition period | 2 years | |
Orrstown 2011 Incentive Stock Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 881,920 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 466,759 | |
Orrstown 2011 Incentive Stock Plan | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 2,803 | $ 2,115 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of options outstanding and exercisable | $ 0 | $ 0 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term to exercise option | 10 years | |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved to be issued (in shares) | 350,000 | |
Number of shares available to be issued under employee stock purchase plan (in shares) | 170,461 | |
Maximum shares purchase, as percentage of salary | 10.00% | |
Percentage of value of the shares on the semi-annual offering | 95.00% |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Summary of Outstanding Stock Options Activity (Details) | Mar. 31, 2019$ / sharesshares |
Shares | |
Options exercisable (in shares) | shares | 40,984 |
Weighted Average Exercise Price | |
Options exercisable at period end (in usd per share) | $ / shares | $ 24.34 |
Orrstown 2011 Incentive Stock Plan | Employee Stock Option | |
Shares | |
Options outstanding (in shares) | shares | 40,984 |
Weighted Average Exercise Price | |
Options outstanding, weighted average exercise price (in usd per share) | $ / shares | $ 24.34 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Information Pertaining to Options Outstanding and Exercisable (Details) - Orrstown 2011 Incentive Stock Plan - Employee Stock Option | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
$21.14 - $24.99 | |
Range of Exercise Prices | |
Range of Exercise Prices, Minimum (in usd per share) | $ 21.14 |
Range of Exercise Prices, Maximum (in usd per share) | $ 24.99 |
Number Outstanding (in shares) | shares | 31,519 |
Weighted Average Remaining Contractual Life (Years) | 1 year 1 month 24 days |
Weighted Average Exercise Price (in usd per share) | $ 21.51 |
$25.00 - $34.99 | |
Range of Exercise Prices | |
Range of Exercise Prices, Minimum (in usd per share) | 25 |
Range of Exercise Prices, Maximum (in usd per share) | $ 34.99 |
Number Outstanding (in shares) | shares | 2,792 |
Weighted Average Remaining Contractual Life (Years) | 1 year 3 days |
Weighted Average Exercise Price (in usd per share) | $ 25.76 |
$35.00 - $37.59 | |
Range of Exercise Prices | |
Range of Exercise Prices, Minimum (in usd per share) | 35 |
Range of Exercise Prices, Maximum (in usd per share) | $ 37.59 |
Number Outstanding (in shares) | shares | 6,673 |
Weighted Average Remaining Contractual Life (Years) | 3 months 21 days |
Weighted Average Exercise Price (in usd per share) | $ 37.10 |
$21.14 - $37.59 | |
Range of Exercise Prices | |
Range of Exercise Prices, Minimum (in usd per share) | 21.14 |
Range of Exercise Prices, Maximum (in usd per share) | $ 37.59 |
Number Outstanding (in shares) | shares | 40,984 |
Weighted Average Remaining Contractual Life (Years) | 1 year 3 days |
Weighted Average Exercise Price (in usd per share) | $ 24.34 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 3,102 | $ 3,625 |
Weighted average shares outstanding - basic (in shares) | 9,160 | 8,082 |
Dilutive effect of share-based compensation (in shares) | 166 | 186 |
Weighted average shares outstanding - diluted (in shares) | 9,326 | 8,268 |
Per share information: | ||
Basic earnings per share (in usd per share) | $ 0.34 | $ 0.45 |
Diluted earnings per share (in usd per share) | $ 0.33 | $ 0.44 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from diluted earnings per share (in shares) | 26 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from diluted earnings per share (in shares) | 41 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
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-Q. 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, Perry and York Counties, Pennsylvania, and in Washington County, Maryland and Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster County, Pennsylvania. The Company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending, and deposit services, including checking, savings, time, and money market deposits. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. 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 condensed consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiaries, the Bank and Wheatland. The Company has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, SEC rules that permit reduced disclosure for interim periods, and Article 10 of Regulation S-X. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. The December 31, 2018 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2018 audited consolidated financial statements. Interim results are not necessarily indicative of results for a full year. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications may have been made to prior year amounts to conform with current year classifications. 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 those used in valuation methodologies in areas with no observable market, such as loans, deposits, borrowings, goodwill, core deposit and other intangible assets, other assets and liabilities obtained or assumed in business combinations. Leases - We evaluate our contracts at inception to determine if an arrangement is or contains a lease. Operating leases are included in operating lease ROU assets in Other assets and operating lease liabilities in Accrued interest payable and other liabilities in our consolidated balance sheets. The Company has no finance leases. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit rate, so we use our incremental borrowing rate, which approximates our fully collateralized borrowing rate, based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We adopted ASU 2016-02, “Leases (Topic 842),” on January 1, 2019, the effective date of the guidance, using the practical expedient transition method whereby we did not revise comparative period information or disclosure. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward the historical lease classification. We also elected certain optional practical expedients, including the hindsight practical expedient under which we considered the actual outcomes of lease renewals and terminations when measuring the lease term at adoption, and we made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We recognize these lease payments in the consolidated statements of income on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, and we have elected the practical expedient to account for these as a single lease component. Our operating leases relate primarily to bank branches and office space. In conjunction with the adoption on January 1, 2019, we recognized operating lease liabilities of $7,971,000 and related lease assets of $7,494,000 on our balance sheet. The difference between the lease assets and lease liabilities primarily consists of deferred rent liabilities reclassified upon adoption to reduce the measurement of the lease assets. The standard did not materially impact our consolidated net income and had no impact on cash flows. Recent Accounting Pronouncements - ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the financial assets. Under the updates, the income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of financial assets. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Off-balance-sheet arrangements such as commitments to extend credit, guarantees, and standby letters of credit that are not considered derivatives under ASC 815 and are not unconditionally cancellable are also within the scope of this update. Credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For public companies, the update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. We plan to adopt this update on January 1, 2020, the effective date. An entity will apply the amendments in this update on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. 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. Our implementation plan includes, but is not not limited to, an assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs.We are currently evaluating various loss estimation models. We are also working with a third party vendor solution to assist with the application of ASU 2016-13 and anticipate running parallel models during 2019.While we currently cannot reasonably estimate the impact of adopting this standard, we expect the impact will be influenced by the composition, characteristics and quality of our loan and securities portfolios, as well as the general economic conditions and forecasts at the adoption date. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The update 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). The update 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. On January 1, 2019, we adopted ASU 2016-18 with no material impact on our consolidated financial condition or results of operations. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement and should present a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
MERGERS AND ACQUISITIONS | MERGERS AND ACQUISITIONS Mercersburg Financial Corporation On October 1, 2018, we acquired 100% of the outstanding common shares of Mercersburg Financial Corporation and its wholly-owned subsidiary, First Community Bank of Mercersburg, headquartered in Mercersburg, Pennsylvania. We issued 1,052,635 shares of our common stock and paid $4,866,000 in cash for all outstanding shares of Mercersburg stock. Based on our $23.80 closing stock price on Friday, September 28, 2018, the consideration paid to acquire Mercersburg totaled $29,919,000. The fair value of assets acquired, excluding goodwill, totaled $181,430,000, including loans totaling $141,103,000 and investment securities available for sale totaling $7,352,000. The fair value of liabilities assumed totaled 163,384,000, including deposits totaling $160,433,000. The Company recognized $11,873,000 in initial goodwill, representing consideration transferred in excess of the fair value of the net assets acquired in the Mercersburg acquisition. The goodwill resulting from the acquisition represents the value expected from the expansion of our market in south central Pennsylvania and the enhancement of our operations through customer synergies and efficiencies, thereby providing enhanced customer service. The Mercersburg acquisition was accounted for using the acquisition method of accounting and, accordingly, purchased assets, including identifiable intangible assets, and assumed liabilities were recorded at their respective acquisition date fair values. The fair value measurements of assets acquired and liabilities assumed are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available. The Company continues to finalize the fair values of loans and, as a result, the fair value adjustment is preliminary and may change as information becomes available. No material measurement period adjustments were made in the first quarter of 2019. The results of operations for the Company include Mercersburg's results from and after October 1, 2018. Unaudited pro forma net income for the three months ended March 31, 2018, would have totaled $3,925,000 and revenues would have totaled $22,013,000 for the same period had the Mercersburg acquisition occurred January 1, 2018. Hamilton Bancorp, Inc. On May 1, 2019, we acquired 100% of the outstanding common shares of Hamilton Bancorp, Inc., and its wholly-owned subsidiary, Hamilton Bank, based in Towson, Maryland. We acquired Hamilton to introduce our banking and financial services into the Greater Baltimore area of Maryland. Pursuant to the merger agreement, we issued approximately 1,765,000 shares of our common stock and paid approximately $13,400,000 in cash for all outstanding shares of Hamilton stock. In accordance with the merger agreement, each outstanding share of Hamilton common stock was converted into 0.54 shares of the Company's stock and $4.10 in cash. Based on our closing stock price on Tuesday, April 30, 2019, the consideration paid to acquire Hamilton totaled approximately $50,000,000. At December 31, 2018, Hamilton reported $496,254,000 in assets, $369,457,000 in loans, and $384,171,000 in deposits. The initial purchase accounting for this acquisition is not yet completed and we are not yet able to disclose the preliminary fair value of the Hamilton assets acquired and liabilities assumed. |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE | SECURITIES AVAILABLE FOR SALE At March 31, 2019 and December 31, 2018, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of AFS securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at March 31, 2019 and December 31, 2018. (Dollars in thousands) Amortized Cost Gross Unrealized Gross Unrealized Fair Value March 31, 2019 States and political subdivisions $ 149,618 $ 4,399 $ 114 $ 153,903 GSE residential CMOs 74,298 599 1,896 73,001 Private label residential CMOs 17 0 0 17 Private label commercial CMOs 77,603 111 595 77,119 Asset-backed and other 187,660 210 1,689 186,181 Totals $ 489,196 $ 5,319 $ 4,294 $ 490,221 December 31, 2018 States and political subdivisions $ 144,596 $ 1,919 $ 1,511 $ 145,004 GSE residential CMOs 110,421 332 2,689 108,064 Private label residential CMOs 144 0 1 143 Private label commercial CMOs 75,911 55 921 75,045 Asset-backed and other 138,535 126 1,073 137,588 Totals $ 469,607 $ 2,432 $ 6,195 $ 465,844 The following table summarizes AFS securities with unrealized losses at March 31, 2019 and December 31, 2018, 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 # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized March 31, 2019 States and political subdivisions 1 $ 10,235 $ 7 4 $ 20,998 $ 107 5 $ 31,233 $ 114 GSE residential CMOs 0 0 0 6 45,889 1,896 6 45,889 1,896 Private label commercial CMOs 12 57,500 421 2 11,062 174 14 68,562 595 Asset-backed and other 9 132,643 1,189 4 28,114 500 13 160,757 1,689 Totals 22 $ 200,378 $ 1,617 16 $ 106,063 $ 2,677 38 $ 306,441 $ 4,294 December 31, 2018 States and political subdivisions 27 $ 46,585 $ 662 6 $ 23,036 $ 849 33 $ 69,621 $ 1,511 GSE residential CMOs 1 18,037 122 7 46,168 2,567 8 64,205 2,689 Private label residential CMOs 1 143 1 0 0 0 1 143 1 Private label commercial CMOs 11 56,499 712 2 6,349 209 13 62,848 921 Asset-backed and other 6 78,900 859 3 10,808 214 9 89,708 1,073 Totals 46 $ 200,164 $ 2,356 18 $ 86,361 $ 3,839 64 $ 286,525 $ 6,195 States 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 March 31, 2019 or at December 31, 2018. GSE 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 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 March 31, 2019 or at December 31, 2018. Private Label Residential CMOs, Private Label Commercial CMOs and Asset-backed and Other. 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 March 31, 2019 or at December 31, 2018. The following table summarizes amortized cost and fair value of AFS securities by contractual maturity at March 31, 2019. 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 $ 600 $ 600 Due after one year through five years 956 956 Due after five years through ten years 29,325 29,786 Due after ten years 118,737 122,561 CMOs 151,918 150,137 Asset-backed and other 187,660 186,181 $ 489,196 $ 490,221 The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Proceeds from sale of AFS securities $ 59,464 $ 62,577 Gross gains 519 841 Gross losses 180 25 AFS securities with a fair value of $157,209,000 and $164,233,000 at March 31, 2019 and December 31, 2018 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 | 3 Months Ended |
Mar. 31, 2019 | |
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, if any, 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 by segment and class, excluding residential LHFS, at March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, 2019 December 31, 2018 Commercial real estate: Owner occupied $ 123,100 $ 129,650 Non-owner occupied 264,869 252,794 Multi-family 83,009 78,933 Non-owner occupied residential 101,312 100,367 Acquisition and development: 1-4 family residential construction 6,361 7,385 Commercial and land development 49,784 42,051 Commercial and industrial 169,651 160,964 Municipal 50,599 50,982 Residential mortgage: First lien 231,243 235,296 Home equity - term 11,828 12,208 Home equity - lines of credit 143,308 143,616 Installment and other loans 30,475 33,411 Total Loans (1) $ 1,265,539 $ 1,247,657 (1) Includes $127,049,000 and $135,009,000 of acquired loans at March 31, 2019 and December 31, 2018. 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 commercial 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 commercial 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 table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2019 and December 31, 2018. (Dollars in thousands) Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total March 31, 2019 Commercial real estate: Owner occupied $ 117,176 $ 1,379 $ 899 $ 1,802 $ 0 $ 1,844 $ 123,100 Non-owner occupied 253,207 11,034 0 0 0 628 264,869 Multi-family 74,935 6,535 709 123 0 707 83,009 Non-owner occupied residential 97,201 2,113 1,176 294 0 528 101,312 Acquisition and development: 1-4 family residential construction 5,711 650 0 0 0 0 6,361 Commercial and land development 48,983 49 577 0 0 175 49,784 Commercial and industrial 149,895 11,700 2,744 266 0 5,046 169,651 Municipal 50,599 0 0 0 0 0 50,599 Residential mortgage: First lien 226,174 0 0 2,636 0 2,433 231,243 Home equity - term 11,793 0 0 13 0 22 11,828 Home equity - lines of credit 142,451 132 10 715 0 0 143,308 Installment and other loans 30,320 0 0 10 0 145 30,475 $ 1,208,445 $ 33,592 $ 6,115 $ 5,859 $ 0 $ 11,528 $ 1,265,539 December 31, 2018 Commercial real estate: Owner occupied $ 121,903 $ 3,024 $ 987 $ 1,880 $ 0 $ 1,856 $ 129,650 Non-owner occupied 242,136 10,008 0 0 0 650 252,794 Multi-family 71,482 5,886 717 131 0 717 78,933 Non-owner occupied residential 97,590 736 1,197 309 0 535 100,367 Acquisition and development: 1-4 family residential construction 7,385 0 0 0 0 0 7,385 Commercial and land development 41,251 25 583 0 0 192 42,051 Commercial and industrial 150,286 2,278 2,940 286 0 5,174 160,964 Municipal 50,982 0 0 0 0 0 50,982 Residential mortgage: First lien 229,971 0 0 2,877 0 2,448 235,296 Home equity - term 12,170 0 0 16 0 22 12,208 Home equity - lines of credit 142,638 165 15 798 0 0 143,616 Installment and other loans 33,229 15 1 0 0 166 33,411 $ 1,201,023 $ 22,137 $ 6,440 $ 6,297 $ 0 $ 11,760 $ 1,247,657 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 March 31, 2019 and December 31, 2018, 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 than that 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, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2019 and December 31, 2018. 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 any 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 Unpaid Principal Related Recorded Unpaid Principal March 31, 2019 Commercial real estate: Owner occupied $ 0 $ 0 $ 0 $ 1,802 $ 2,535 Multi-family 0 0 0 123 332 Non-owner occupied residential 0 0 0 294 624 Commercial and industrial 0 0 0 266 445 Residential mortgage: First lien 455 460 35 2,181 2,801 Home equity - term 0 0 0 13 20 Home equity - lines of credit 0 0 0 715 994 Installment and other loans 0 0 0 10 18 $ 455 $ 460 $ 35 $ 5,404 $ 7,769 December 31, 2018 Commercial real estate: Owner occupied $ 0 $ 0 $ 0 $ 1,880 $ 2,576 Multi-family 0 0 0 131 336 Non-owner occupied residential 0 0 0 309 632 Commercial and industrial 0 0 0 286 457 Residential mortgage: First lien 743 743 38 2,134 2,727 Home equity - term 0 0 0 16 23 Home equity - lines of credit 0 0 0 798 1,081 $ 743 $ 743 $ 38 $ 5,554 $ 7,832 The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2019 and 2018. 2019 2018 (Dollars in thousands) Average Interest Average Interest Commercial real estate: Owner occupied $ 1,863 $ 0 $ 1,245 $ 1 Non-owner occupied 0 0 4,021 0 Multi-family 127 0 161 0 Non-owner occupied residential 301 0 374 0 Acquisition and development: 1-4 family residential construction 0 0 286 0 Commercial and industrial 277 0 343 0 Residential mortgage: First lien 2,788 15 3,741 15 Home equity - term 15 0 21 0 Home equity - lines of credit 758 0 496 0 Installment and other loans 7 0 11 0 $ 6,136 $ 15 $ 10,699 $ 16 The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 (Dollars in thousands) Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 34 1 $ 39 Residential mortgage: First lien 11 1,060 11 1,069 Home equity - lines of credit 1 22 1 24 13 1,116 13 1,132 Nonaccruing: Commercial real estate: Owner occupied 1 36 1 37 Residential mortgage: First lien 8 641 8 658 9 677 9 695 22 $ 1,793 22 $ 1,827 There were no modified restructured loans for the three months ended March 31, 2019 or 2018. 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 March 31, 2019 and December 31, 2018. Days Past Due (Dollars in thousands) Current 30-59 60-89 90+ Total Non- Total March 31, 2019 Commercial real estate: Owner occupied $ 119,488 $ 0 $ 0 $ 0 $ 0 $ 1,768 $ 121,256 Non-owner occupied 264,241 0 0 0 0 0 264,241 Multi-family 82,179 0 0 0 0 123 82,302 Non-owner occupied residential 100,353 137 0 0 137 294 100,784 Acquisition and development: 1-4 family residential construction 6,361 0 0 0 0 0 6,361 Commercial and land development 49,609 0 0 0 0 0 49,609 Commercial and industrial 163,983 356 0 0 356 266 164,605 Municipal 50,599 0 0 0 0 0 50,599 Residential mortgage: First lien 224,022 3,046 166 0 3,212 1,576 228,810 Home equity - term 11,782 0 11 0 11 13 11,806 Home equity - lines of credit 141,788 460 367 0 827 693 143,308 Installment and other loans 30,260 57 3 0 60 10 30,330 Subtotal 1,244,665 4,056 547 0 4,603 4,743 1,254,011 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 1,771 0 0 73 73 0 1,844 Non-owner occupied 628 0 0 0 0 0 628 Multi-family 707 0 0 0 0 0 707 Non-owner occupied residential 528 0 0 0 0 0 528 Acquisition and development: Commercial and land development 175 0 0 0 0 0 175 Commercial and industrial 4,821 225 0 0 225 0 5,046 Residential mortgage: First lien 1,717 29 465 222 716 0 2,433 Home equity - term 17 0 5 0 5 0 22 Installment and other loans 128 17 0 0 17 0 145 Subtotal 10,492 271 470 295 1,036 0 11,528 $ 1,255,157 $ 4,327 $ 1,017 $ 295 $ 5,639 $ 4,743 $ 1,265,539 Days Past Due (Dollars in thousands) Current 30-59 60-89 90+ Total Non- Total December 31, 2018 Commercial real estate: Owner occupied $ 125,887 $ 66 $ 0 $ 0 $ 66 $ 1,841 $ 127,794 Non-owner occupied 252,144 0 0 0 0 0 252,144 Multi-family 78,085 0 0 0 0 131 78,216 Non-owner occupied residential 99,268 226 29 0 255 309 99,832 Acquisition and development: 1-4 family residential construction 7,385 0 0 0 0 0 7,385 Commercial and land development 41,822 37 0 0 37 0 41,859 Commercial and industrial 154,988 411 105 0 516 286 155,790 Municipal 50,982 0 0 0 0 0 50,982 Residential mortgage: First lien 228,714 1,592 734 0 2,326 1,808 232,848 Home equity - term 11,487 678 5 0 683 16 12,186 Home equity - lines of credit 142,394 420 28 0 448 774 143,616 Installment and other loans 33,135 66 44 0 110 0 33,245 Subtotal 1,226,291 3,496 945 0 4,441 5,165 1,235,897 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 1,784 0 72 0 72 0 1,856 Non-owner occupied 650 0 0 0 0 0 650 Multi-family 717 0 0 0 0 0 717 Non-owner occupied residential 535 0 0 0 0 0 535 Acquisition and development: Commercial and land development 192 0 0 0 0 0 192 Commercial and industrial 4,943 231 0 0 231 0 5,174 Residential mortgage: First lien 1,971 382 42 53 477 0 2,448 Home equity - term 17 5 0 0 5 0 22 Installment and other loans 149 13 0 4 17 0 166 Subtotal 10,958 631 114 57 802 0 11,760 $ 1,237,249 $ 4,127 $ 1,059 $ 57 $ 5,243 $ 5,165 $ 1,247,657 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 the activity in the ALL for the three months ended March 31, 2019 and 2018. Commercial Consumer (Dollars in thousands) Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 103 150 159 0 412 189 (26) 163 (175) 400 Charge-offs (25) 0 (43) 0 (68) (246) (20) (266) 0 (334) Recoveries 71 2 42 0 115 69 19 88 0 203 Balance, end of period $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 March 31, 2018 Balance, beginning of period $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 Provision for loan losses 7 92 144 (1) 242 (35) 7 (28) (14) 200 Charge-offs 0 0 0 0 0 0 (71) (71) 0 (71) Recoveries 0 1 0 0 1 17 57 74 0 75 Balance, end of period $ 6,770 $ 510 $ 1,590 $ 83 $ 8,953 $ 3,382 $ 204 $ 3,586 $ 461 $ 13,000 The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2019 and December 31, 2018: Commercial Consumer (Dollars in thousands) Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2019 Loans allocated by: Individually evaluated for impairment $ 2,219 $ 0 $ 266 $ 0 $ 2,485 $ 3,364 $ 10 $ 3,374 $ 0 $ 5,859 Collectively evaluated for impairment 570,071 56,145 169,385 50,599 846,200 383,015 30,465 413,480 0 1,259,680 $ 572,290 $ 56,145 $ 169,651 $ 50,599 $ 848,685 $ 386,379 $ 30,475 $ 416,854 $ 0 $ 1,265,539 ALL allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 35 $ 0 $ 35 $ 0 $ 35 Collectively evaluated for impairment 7,025 969 1,814 98 9,906 3,730 217 3,947 395 14,248 $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 December 31, 2018 Loans allocated by: Individually evaluated for impairment $ 2,320 $ 0 $ 286 $ 0 $ 2,606 $ 3,691 $ 0 $ 3,691 $ 0 $ 6,297 Collectively evaluated for impairment 559,424 49,436 160,678 50,982 820,520 387,429 33,411 420,840 0 1,241,360 $ 561,744 $ 49,436 $ 160,964 $ 50,982 $ 823,126 $ 391,120 $ 33,411 $ 424,531 $ 0 $ 1,247,657 ALL allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 38 $ 0 $ 38 $ 0 $ 38 Collectively evaluated for impairment 6,876 817 1,656 98 9,447 3,715 244 3,959 570 13,976 $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 |
LEASE
LEASE | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES A lease provides the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has primarily entered into operating leases for branches and office space. Most of our leases contain renewal options, which we are reasonably certain to exercise. Including renewal options, our leases range from 3 years to 50 years Operating lease right-of-use assets and lease liabilities are included in Other assets and Accrued interest and other liabilities on the Company's Consolidated Balance Sheet. The Company uses its incremental borrowing rate to determine the present value of the lease payments, as the rate implicit in the Company's leases is not readily determinable. Lease agreements that contain non-lease components are generally accounted for as a single lease component, while variable costs, such as common area maintenance expenses and property taxes, are expensed as incurred. The following table summarizes the Company's ROU assets and related lease liabilities at March 31, 2019. (Dollars in thousands) March 31, 2019 Cash paid for operating lease liabilities $ 180 Right-of-use assets obtained in exchange for new operating lease obligations (1) $ 8,115 Weighted-average remaining lease term (in years) 21.3 Weighted-average discount rate 4.7 % (1 ) Included $7,971,000 for operating leases existing on January 1, 2019, and $144,000 for operating leases that commenced in the first quarter of 2019. The following table presents maturities of the Company's lease liabilities. (Dollars in thousands) Remainder of 2019 $ 553 2020 746 2021 631 2022 591 2023 607 2024 592 Thereafter 9,865 13,585 Less imputed interest 5,556 Total lease liabilities $ 8,029 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
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 2015. The following table summarizes income tax expense for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Current expense $ 21 $ 223 Deferred expense 211 269 Income tax expense $ 232 $ 492 Income tax expense includes $71,000 and $171,000 related to net security gains for the three months ended March 31, 2019 and 2018. The following table summarizes deferred tax assets and liabilities at March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, December 31, Deferred tax assets: Allowance for loan losses $ 3,200 $ 3,143 Deferred compensation 380 723 Retirement and salary continuation plans 1,844 1,416 Share-based compensation 759 742 Off-balance sheet reserves 215 219 Nonaccrual loan interest 549 537 Net unrealized losses on AFS securities 0 791 Purchase accounting adjustments 1,714 1,795 Bonus accrual 116 470 Low-income housing credit carryforward 456 641 Other 311 321 Total deferred tax assets 9,544 10,798 Deferred tax liabilities: Depreciation 368 458 Net unrealized gains on AFS securities 215 0 Mortgage servicing rights 642 590 Purchase accounting adjustments 791 1,021 Other 166 150 Total deferred tax liabilities 2,182 2,219 Net deferred tax asset, included in Other Assets $ 7,362 $ 8,579 The provision for income taxes differs from that computed by applying statutory rates to income before income taxes , primarily due to the effects of tax-exempt income, non-deductible expenses and tax credits. In the first quarter of 2019, the Company recorded a tax benefit of approximately $185,000 related to a change in tax law concerning the treatment of life insurance assets of an acquired entity. At March 31, 2019, the Company had low-income housing credit carryforwards that expire through 2038. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2019 | |
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 the 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. At March 31, 2019, 881,920 shares of the common stock of the Company were reserved to be issued and 466,759 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 table below presents a summary of nonvested restricted shares activity for the three months ended March 31, 2019. Shares Weighted Average Grant Date Fair Value Nonvested shares, beginning of year 275,412 $ 20.33 Granted 67,793 19.35 Forfeited (700) 23.75 Vested (23,405) 17.69 Nonvested shares, at period end 319,100 $ 20.31 The following table presents restricted shares compensation expense, with tax benefit information, and fair value of shares vested, for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Restricted share award expense $ 496 $ 477 Restricted share award tax benefit 110 128 Fair value of shares vested 444 397 The unrecognized compensation expense related to the share awards totaled $2,803,000 at March 31, 2019 and $2,115,000 at December 31, 2018. The unrecognized compensation expense at March 31, 2019 is expected to be recognized over a weighted-average period of 2.0 years . The following table presents a summary of outstanding stock options at March 31, 2019. There was no activity in outstanding stock options in the three months ended March 31, 2019. Shares Weighted Average Exercise Price Options outstanding and exercisable 40,984 $ 24.34 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 March 31, 2019. Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price $21.14 - $24.99 31,519 1.15 $ 21.51 $25.00 - $34.99 2,792 1.01 25.76 $35.00 - $37.59 6,673 0.31 37.10 $21.14 - $37.59 40,984 1.01 $ 24.34 Outstanding and exercisable options had no intrinsic value at March 31, 2019 and December 31, 2018. 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 March 31, 2019, 170,461 shares were available to be issued. The following table presents information for the employee stock purchase plan for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands except share information) 2019 2018 Shares purchased 3,004 2,956 Weighted average price of shares purchased $ 18.96 $ 23.47 Compensation expense recognized 3 4 Tax benefits 1 1 The Company issues new shares or treasury shares, depending on market conditions, in its share-based compensation plans. |
SHAREHOLDERS' EQUITY AND REGULA
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL | SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL 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"), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The required capital conservation buffer was 1.875% for 2018 and is 2.50% for 2019 under phase-in rule s which were completed in 2019 . T he consolidated asset limit on small bank holding companies is $3,000,000,000 and a company with assets under th at limit is not subject to the FRB consolidated capital rules , but may file reports that include capital amounts and ratios. The Company has elected to file those reports. Management believes that the Company and the Bank met all capital adequacy requirements to which they are subject at March 31, 2019 and December 31, 2018 . At March 31, 2019, 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 classification. 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. The following table presents capital amounts and ratios at March 31, 2019 and December 31, 2018. Actual For Capital Adequacy Purposes To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital to risk weighted assets Consolidated $ 209,492 15.3 % $ 143,429 10.5 % n/a n/a Bank 180,680 13.2 % 143,323 10.5 % $ 136,498 10.0 % Tier 1 Capital to risk weighted assets Consolidated 162,399 11.9 % 116,109 8.5 % n/a n/a Bank 165,397 12.1 % 116,023 8.5 % 109,198 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 162,399 11.9 % 95,619 7.0 % n/a n/a Bank 165,397 12.1 % 95,548 7.0 % 88,724 6.5 % Tier 1 Capital to average assets Consolidated 162,399 8.5 % 76,465 4.0 % n/a n/a Bank 165,397 8.6 % 76,488 4.0 % 95,610 5.0 % December 31, 2018 Total Capital to risk weighted assets Consolidated $ 206,988 15.6 % $ 131,393 9.875 % n/a n/a Bank 177,892 13.4 % 131,286 9.875 % $ 132,948 10.0 % Tier 1 Capital to risk weighted assets Consolidated 160,117 12.0 % 104,782 7.875 % n/a n/a Bank 162,880 12.3 % 104,696 7.875 % 106,358 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 160,117 12.0 % 84,823 6.375 % n/a n/a Bank 162,880 12.3 % 84,754 6.375 % 86,416 6.5 % Tier 1 Capital to average assets Consolidated 160,117 8.4 % 76,089 4.0 % n/a n/a Bank 162,880 8.6 % 76,113 4.0 % 95,142 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 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 March 31, 2019, 82,725 shares had been repurchased under the program at a total cost of $1,438,000, or $17.38 per share. On April 18, 2019 , the Board declared a cash dividend of $0.15 per common share, which was paid on May 7, 2019 to shareholders of record at April 30, 2019. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table presents earnings per share for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, (In thousands, except per share information) 2019 2018 Net income $ 3,102 $ 3,625 Weighted average shares outstanding - basic 9,160 8,082 Dilutive effect of share-based compensation 166 186 Weighted average shares outstanding - diluted 9,326 8,268 Per share information: Basic earnings per share $ 0.34 $ 0.45 Diluted earnings per share 0.33 0.44 Average outstanding stock options |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 3 Months Ended |
Mar. 31, 2019 | |
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. 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. Contract or Notional Amount (Dollars in thousands) 3/31/2019 12/31/2018 Commitments to fund: Home equity lines of credit $ 166,762 $ 160,971 1-4 family residential construction loans 14,911 13,002 Commercial real estate, construction and land development loans 22,753 31,133 Commercial, industrial and other loans 147,692 147,518 Standby letters of credit 14,211 13,909 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 March 31, 2019 and December 31, 2018, for guarantees under standby letters of credit issued was not material. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2019 | |
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: 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 March 31, 2019 and December 31, 2018. The following table summarizes assets measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018. (Dollars in Thousands) Level 1 Level 2 Level 3 Total Fair March 31, 2019 AFS Securities: States and political subdivisions $ 0 $ 153,903 $ 0 $ 153,903 GSE residential CMOs 0 73,001 0 73,001 Private label residential CMOs 0 17 0 17 Private label commercial CMOs 0 69,858 7,261 77,119 Asset-backed and other 0 186,181 0 186,181 Totals $ 0 $ 482,960 $ 7,261 $ 490,221 December 31, 2018 AFS Securities: States and political subdivisions $ 0 $ 145,004 $ 0 $ 145,004 GSE residential CMOs 0 108,064 0 108,064 Private label residential CMOs 0 143 0 143 Private label commercial CMOs 0 67,836 7,209 75,045 Asset-backed and other 0 137,588 0 137,588 Totals $ 0 $ 458,635 $ 7,209 $ 465,844 One private label commercial CMO was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2019 and December 31, 2018. Fair value for this investment at March 31, 2019 and December 31, 2018 totaled $7,261,000 and $7,209,000. The investment was purchased at $7,213,000, premium amortization expense totaling $22,000 and $0 was included in earnings for the three months ended March 31, 2019 and March 31, 2018, and an unrealized gain of $111,000 and $0 was recognized in other comprehensive income for the three months ended March 31, 2019 and March 31, 2018. The Level 3 valuation is based on a non-executable broker quote, which is considered a significant unobservable input. Such quotes are updated as available and may remain constant for a period of time for certain broker-quoted securities that do not move with the market or that are not interest rate sensitive as a result of their structure or overall attributes. 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 $915,000 and $928,000 at March 31, 2019 and December 31, 2018. The following table presents changes in the fair value for impaired loans still held at March 31, considered in the determination of the provision for loan losses, for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Changes in fair value of impaired loans still held $ 4 $ 8 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 March 31, 2019 and December 31, 2018 both totaled $0. The re were no changes in the fair value of OREO for properties , still held at March 31, that were charged to real estate expenses for the three months ended March 31, 2019 and 2018. The following table summarizes assets measured at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2019 Impaired Loans Commercial real estate: Owner occupied $ 0 $ 0 $ 1,049 $ 1,049 Multi-family 0 0 122 122 Non-owner occupied residential 0 0 264 264 Commercial and industrial 0 0 15 15 Residential mortgage: First lien 0 0 824 824 Home equity - lines of credit 0 0 344 344 Installment and other loans 0 0 10 10 Total impaired loans $ 0 $ 0 $ 2,628 $ 2,628 December 31, 2018 Impaired Loans Commercial real estate: Owner occupied $ 0 $ 0 $ 1,087 $ 1,087 Multi-family 0 0 131 131 Non-owner occupied residential 0 0 278 278 Commercial and industrial 0 0 25 25 Residential mortgage: First lien 0 0 1,121 1,121 Home equity - lines of credit 0 0 409 409 Total impaired loans $ 0 $ 0 $ 3,051 $ 3,051 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. (Dollars in thousands) Fair Value Valuation Unobservable Input Range March 31, 2019 Impaired loans $ 2,628 Appraisal of Management adjustments on appraisals for property type and recent activity 5% - 75% discount - Management adjustments for liquidation expenses 6% - 20% discount December 31, 2018 Impaired loans $ 3,051 Appraisal of Management adjustments on appraisals for property type and recent activity 5% - 75% discount - Management adjustments for liquidation expenses 6% - 20% discount Fair values of financial instruments The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at March 31, 2019 and December 31, 2018: (Dollars in thousands) Carrying Fair Value Level 1 Level 2 Level 3 March 31, 2019 Financial Assets Cash and due from banks $ 22,387 $ 22,387 $ 22,387 $ 0 $ 0 Interest-bearing deposits with banks 54,830 54,830 54,830 0 0 Restricted investments in bank stocks 10,292 n/a n/a n/a n/a AFS securities 490,221 490,221 0 482,960 7,261 Loans held for sale 4,787 4,906 0 4,906 0 Loans, net of allowance for loan losses 1,251,256 1,258,698 0 0 1,258,698 Accrued interest receivable 6,340 6,340 0 2,812 3,528 Financial Liabilities Deposits 1,620,696 1,618,521 0 1,618,521 0 Short-term borrowings 9,579 9,579 0 9,579 0 Long-term debt 103,356 103,401 0 103,401 0 Subordinated notes 31,810 33,339 0 33,339 0 Accrued interest payable 1,454 1,454 0 1,454 0 Off-balance sheet instruments 0 0 0 0 0 December 31, 2018 Financial Assets Cash and due from banks $ 26,156 $ 26,156 $ 26,156 $ 0 $ 0 Interest-bearing deposits with banks 45,664 45,664 45,664 0 0 Federal Funds Sold 16,995 16,995 16,995 0 0 Restricted investments in bank stocks 10,842 n/a n/a n/a n/a AFS securities 465,844 465,844 0 458,635 7,209 Loans held for sale 3,340 3,413 0 3,413 0 Loans, net of allowance for loan losses 1,233,643 1,229,645 0 0 1,229,645 Accrued interest receivable 5,927 5,927 0 2,853 3,074 Financial Liabilities Deposits 1,558,756 1,555,912 0 1,555,912 0 Short-term borrowings 64,069 64,069 0 64,069 0 Long-term debt 83,450 82,951 0 82,951 0 Subordinated notes 31,859 31,256 0 31,256 0 Accrued interest payable 1,301 1,301 0 1,301 0 Off-balance sheet instruments 0 0 0 0 0 T he methods utilized to measure the fair value of financial instruments at March 31, 2019 and December 31, 2018 represent an approximation of exit price; however, an actual exit price may differ. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company's revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income on the consolidated statements of income. Consistent with ASC 606, noninterest income covered by this guidance is recognized as services are transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Service Charges on Deposit Accounts - The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed , as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange Income - The Company earns interchange fees from debit/credit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange income is presented net of cardholder rewards. Wealth Management and Investment Advisory Income (Gross) - The Company earns wealth management and investment brokerage fees from its contracts with trust and wealth management customers to manage assets for investment, and/or to transact on their accounts. Asset management fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on a tiered scale of the market value of assets under management. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e., the trade date. Other related services provided included financial planning services , and the fees the Company earns for such services , which are based on a fixed fee schedule, are recognized when the services are rendered. Services are generally billed in arrears and a receivable is recorded until fees are paid. Investment Brokerage Income (Net) - The Company earns fees from investment management and brokerage services provided to its customers through a third-party service provider. The Company receives commissions from the third-party service provider and recognizes income on a weekly basis based upon customer activity. Because the Company acts as an agent in arranging the relationship between the customer and the third-party service provider and does not control the services rendered to the customers, investment brokerage income is presented net of related costs. Gains/Losses on Sales of OREO - The Company records a gain or loss on the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. If the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. At March 31, 2019 and December 31, 2018, the Company had receivables from customers totaling $695,000 and $640,000. The following table presents our noninterest income disaggregated by revenue source for the three months ended March 31, 2019 and 2018. Three Months Ended (Dollars in thousands) March 31, 2019 March 31, 2018 Noninterest income Service charges on deposits $ 842 $ 838 Trust and investment management income 1,758 1,668 Brokerage income 478 558 Merchant and bankcard fees (interchange income) 736 655 Revenue from contracts with customers 3,814 3,719 Other service charges 152 174 Mortgage banking activities 468 635 Income from life insurance 342 277 Other income 112 81 Investment securities gains 339 816 Total noninterest income $ 5,227 $ 5,702 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
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 second amended complaint disclosed the existence of a confidential, non-public, fact-finding inquiry regarding the Company being conducted by the SEC. 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 SEC 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 SEC’s administrative proceedings and pursuant to the cease-and-desist order, without admitting or denying the SEC’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 SEC. 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 SEC, 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. 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. On March 27, 2018, the Court held a telephonic status conference with the parties to discuss outstanding discovery issues and case deadlines. On May 2, 2018, the parties filed a joint status report. On May 10, 2018, the Court held a follow-up telephonic status conference at which the parties reported on the progress of discovery to date. Party and non-party document discovery in the case has continued. To date, SEPTA has taken a few non-party depositions. On August 9, 2018, SEPTA filed a motion to compel the production of Confidential Supervisory Information (CSI) of non-parties the Board of Governors of the Federal Reserve System (FRB) and the Pennsylvania Department of Banking and Securities, in the possession of Orrstown and third parties. On August 23, 2018, the Orrstown Defendants filed a response to the motion to compel. On August 30, 2018, the FRB filed an unopposed motion to intervene in the Action for the purpose of opposing SEPTA’s motion to compel, and on September 27, 2018, the FRB filed its brief in opposition to SEPTA’s motion. On October 11, 2018, SEPTA filed its reply brief in support of its motion to compel. On February 12, 2019, the Court denied SEPTA’s motion to compel the production of CSI on the ground that SEPTA had failed to exhaust its administrative remedies. On April 11, 2019, SEPTA filed a motion for leave to file a third amended complaint. The proposed third amended complaint seeks to reassert the Securities Act claims that the Court dismissed as to all defendants on December 7, 2016, when the Court granted in part and denied in part defendants’ motions to dismiss SEPTA’s second amended complaint. The proposed third amended complaint also seeks to reassert the Exchange Act claims against those defendants that the Court dismissed from the case on December 7, 2016. Defendants’ briefs in opposition to SEPTA’s motion for leave to file a third amended complaint were filed on April 25, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, Perry and York Counties, Pennsylvania, and in Washington County, Maryland and Wheatland Advisors, Inc., a registered investment advisor non-bank subsidiary, headquartered in Lancaster County, Pennsylvania. The Company operates in the community banking segment and engages in lending activities, including commercial, residential, commercial mortgages, construction, municipal, and various forms of consumer lending, and deposit services, including checking, savings, time, and money market deposits. The Company also provides fiduciary services, investment advisory, insurance and brokerage services. 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 condensed consolidated financial statements include the accounts of Orrstown Financial Services, Inc. and its wholly owned subsidiaries, the Bank and Wheatland. The Company has prepared these unaudited condensed consolidated financial statements in accordance with GAAP for interim financial information, SEC rules that permit reduced disclosure for interim periods, and Article 10 of Regulation S-X. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. The December 31, 2018 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2018 audited consolidated financial statements. Interim results are not necessarily indicative of results for a full year. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. All significant intercompany transactions and accounts have been eliminated. Certain reclassifications may have been made to prior year amounts to conform with current year classifications. 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 those used in valuation methodologies in areas with no observable market, such as loans, deposits, borrowings, goodwill, core deposit and other intangible assets, other assets and liabilities obtained or assumed in business combinations. |
Leases | Leases - We evaluate our contracts at inception to determine if an arrangement is or contains a lease. Operating leases are included in operating lease ROU assets in Other assets and operating lease liabilities in Accrued interest payable and other liabilities in our consolidated balance sheets. The Company has no finance leases. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit rate, so we use our incremental borrowing rate, which approximates our fully collateralized borrowing rate, based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is reevaluated upon lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We adopted ASU 2016-02, “Leases (Topic 842),” on January 1, 2019, the effective date of the guidance, using the practical expedient transition method whereby we did not revise comparative period information or disclosure. The new standard requires lessees to record assets and liabilities on the balance sheet for all leases with terms longer than 12 months. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward the historical lease classification. We also elected certain optional practical expedients, including the hindsight practical expedient under which we considered the actual outcomes of lease renewals and terminations when measuring the lease term at adoption, and we made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. We recognize these lease payments in the consolidated statements of income on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, and we have elected the practical expedient to account for these as a single lease component. Our operating leases relate primarily to bank branches and office space. In conjunction with the adoption on January 1, 2019, we recognized operating lease liabilities of $7,971,000 and related lease assets of $7,494,000 on our balance sheet. The difference between the lease assets and lease liabilities primarily consists of deferred rent liabilities reclassified upon adoption to reduce the measurement of the lease assets. The standard did not materially impact our consolidated net income and had no impact on cash flows. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net carrying value at the amount expected to be collected on the financial assets. Under the updates, the income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of financial assets. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Off-balance-sheet arrangements such as commitments to extend credit, guarantees, and standby letters of credit that are not considered derivatives under ASC 815 and are not unconditionally cancellable are also within the scope of this update. Credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. For public companies, the update is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. We plan to adopt this update on January 1, 2020, the effective date. An entity will apply the amendments in this update on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. 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. Our implementation plan includes, but is not not limited to, an assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs.We are currently evaluating various loss estimation models. We are also working with a third party vendor solution to assist with the application of ASU 2016-13 and anticipate running parallel models during 2019.While we currently cannot reasonably estimate the impact of adopting this standard, we expect the impact will be influenced by the composition, characteristics and quality of our loan and securities portfolios, as well as the general economic conditions and forecasts at the adoption date. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The update 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). The update 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. On January 1, 2019, we adopted ASU 2016-18 with no material impact on our consolidated financial condition or results of operations. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement and should present a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is |
Revenue Recognition | All of the Company's revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income on the consolidated statements of income. Consistent with ASC 606, noninterest income covered by this guidance is recognized as services are transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Service Charges on Deposit Accounts - The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed , as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange Income - The Company earns interchange fees from debit/credit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange income is presented net of cardholder rewards. Wealth Management and Investment Advisory Income (Gross) - The Company earns wealth management and investment brokerage fees from its contracts with trust and wealth management customers to manage assets for investment, and/or to transact on their accounts. Asset management fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on a tiered scale of the market value of assets under management. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e., the trade date. Other related services provided included financial planning services , and the fees the Company earns for such services , which are based on a fixed fee schedule, are recognized when the services are rendered. Services are generally billed in arrears and a receivable is recorded until fees are paid. Investment Brokerage Income (Net) - The Company earns fees from investment management and brokerage services provided to its customers through a third-party service provider. The Company receives commissions from the third-party service provider and recognizes income on a weekly basis based upon customer activity. Because the Company acts as an agent in arranging the relationship between the customer and the third-party service provider and does not control the services rendered to the customers, investment brokerage income is presented net of related costs. |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of AFS Securities | At March 31, 2019 and December 31, 2018, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of AFS securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at March 31, 2019 and December 31, 2018. (Dollars in thousands) Amortized Cost Gross Unrealized Gross Unrealized Fair Value March 31, 2019 States and political subdivisions $ 149,618 $ 4,399 $ 114 $ 153,903 GSE residential CMOs 74,298 599 1,896 73,001 Private label residential CMOs 17 0 0 17 Private label commercial CMOs 77,603 111 595 77,119 Asset-backed and other 187,660 210 1,689 186,181 Totals $ 489,196 $ 5,319 $ 4,294 $ 490,221 December 31, 2018 States and political subdivisions $ 144,596 $ 1,919 $ 1,511 $ 145,004 GSE residential CMOs 110,421 332 2,689 108,064 Private label residential CMOs 144 0 1 143 Private label commercial CMOs 75,911 55 921 75,045 Asset-backed and other 138,535 126 1,073 137,588 Totals $ 469,607 $ 2,432 $ 6,195 $ 465,844 |
Summary of AFS Securities with Unrealized Losses | The following table summarizes AFS securities with unrealized losses at March 31, 2019 and December 31, 2018, 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 # of Securities Fair Value Unrealized # of Securities Fair Value Unrealized March 31, 2019 States and political subdivisions 1 $ 10,235 $ 7 4 $ 20,998 $ 107 5 $ 31,233 $ 114 GSE residential CMOs 0 0 0 6 45,889 1,896 6 45,889 1,896 Private label commercial CMOs 12 57,500 421 2 11,062 174 14 68,562 595 Asset-backed and other 9 132,643 1,189 4 28,114 500 13 160,757 1,689 Totals 22 $ 200,378 $ 1,617 16 $ 106,063 $ 2,677 38 $ 306,441 $ 4,294 December 31, 2018 States and political subdivisions 27 $ 46,585 $ 662 6 $ 23,036 $ 849 33 $ 69,621 $ 1,511 GSE residential CMOs 1 18,037 122 7 46,168 2,567 8 64,205 2,689 Private label residential CMOs 1 143 1 0 0 0 1 143 1 Private label commercial CMOs 11 56,499 712 2 6,349 209 13 62,848 921 Asset-backed and other 6 78,900 859 3 10,808 214 9 89,708 1,073 Totals 46 $ 200,164 $ 2,356 18 $ 86,361 $ 3,839 64 $ 286,525 $ 6,195 |
Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity | The following table summarizes amortized cost and fair value of AFS securities by contractual maturity at March 31, 2019. 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 $ 600 $ 600 Due after one year through five years 956 956 Due after five years through ten years 29,325 29,786 Due after ten years 118,737 122,561 CMOs 151,918 150,137 Asset-backed and other 187,660 186,181 $ 489,196 $ 490,221 |
Proceeds From Sale of AFS Securities and Gross Gains and Gross Losses | The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Proceeds from sale of AFS securities $ 59,464 $ 62,577 Gross gains 519 841 Gross losses 180 25 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes | The following table presents the loan portfolio by segment and class, excluding residential LHFS, at March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, 2019 December 31, 2018 Commercial real estate: Owner occupied $ 123,100 $ 129,650 Non-owner occupied 264,869 252,794 Multi-family 83,009 78,933 Non-owner occupied residential 101,312 100,367 Acquisition and development: 1-4 family residential construction 6,361 7,385 Commercial and land development 49,784 42,051 Commercial and industrial 169,651 160,964 Municipal 50,599 50,982 Residential mortgage: First lien 231,243 235,296 Home equity - term 11,828 12,208 Home equity - lines of credit 143,308 143,616 Installment and other loans 30,475 33,411 Total Loans (1) $ 1,265,539 $ 1,247,657 (1) Includes $127,049,000 and $135,009,000 of acquired loans at March 31, 2019 and December 31, 2018. |
Bank's Ratings Based on its Internal Risk Rating System | The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2019 and December 31, 2018. (Dollars in thousands) Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total March 31, 2019 Commercial real estate: Owner occupied $ 117,176 $ 1,379 $ 899 $ 1,802 $ 0 $ 1,844 $ 123,100 Non-owner occupied 253,207 11,034 0 0 0 628 264,869 Multi-family 74,935 6,535 709 123 0 707 83,009 Non-owner occupied residential 97,201 2,113 1,176 294 0 528 101,312 Acquisition and development: 1-4 family residential construction 5,711 650 0 0 0 0 6,361 Commercial and land development 48,983 49 577 0 0 175 49,784 Commercial and industrial 149,895 11,700 2,744 266 0 5,046 169,651 Municipal 50,599 0 0 0 0 0 50,599 Residential mortgage: First lien 226,174 0 0 2,636 0 2,433 231,243 Home equity - term 11,793 0 0 13 0 22 11,828 Home equity - lines of credit 142,451 132 10 715 0 0 143,308 Installment and other loans 30,320 0 0 10 0 145 30,475 $ 1,208,445 $ 33,592 $ 6,115 $ 5,859 $ 0 $ 11,528 $ 1,265,539 December 31, 2018 Commercial real estate: Owner occupied $ 121,903 $ 3,024 $ 987 $ 1,880 $ 0 $ 1,856 $ 129,650 Non-owner occupied 242,136 10,008 0 0 0 650 252,794 Multi-family 71,482 5,886 717 131 0 717 78,933 Non-owner occupied residential 97,590 736 1,197 309 0 535 100,367 Acquisition and development: 1-4 family residential construction 7,385 0 0 0 0 0 7,385 Commercial and land development 41,251 25 583 0 0 192 42,051 Commercial and industrial 150,286 2,278 2,940 286 0 5,174 160,964 Municipal 50,982 0 0 0 0 0 50,982 Residential mortgage: First lien 229,971 0 0 2,877 0 2,448 235,296 Home equity - term 12,170 0 0 16 0 22 12,208 Home equity - lines of credit 142,638 165 15 798 0 0 143,616 Installment and other loans 33,229 15 1 0 0 166 33,411 $ 1,201,023 $ 22,137 $ 6,440 $ 6,297 $ 0 $ 11,760 $ 1,247,657 |
Impaired Loans by Class | The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2019 and December 31, 2018. 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 any 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 Unpaid Principal Related Recorded Unpaid Principal March 31, 2019 Commercial real estate: Owner occupied $ 0 $ 0 $ 0 $ 1,802 $ 2,535 Multi-family 0 0 0 123 332 Non-owner occupied residential 0 0 0 294 624 Commercial and industrial 0 0 0 266 445 Residential mortgage: First lien 455 460 35 2,181 2,801 Home equity - term 0 0 0 13 20 Home equity - lines of credit 0 0 0 715 994 Installment and other loans 0 0 0 10 18 $ 455 $ 460 $ 35 $ 5,404 $ 7,769 December 31, 2018 Commercial real estate: Owner occupied $ 0 $ 0 $ 0 $ 1,880 $ 2,576 Multi-family 0 0 0 131 336 Non-owner occupied residential 0 0 0 309 632 Commercial and industrial 0 0 0 286 457 Residential mortgage: First lien 743 743 38 2,134 2,727 Home equity - term 0 0 0 16 23 Home equity - lines of credit 0 0 0 798 1,081 $ 743 $ 743 $ 38 $ 5,554 $ 7,832 |
Average Recorded Investment in Impaired Loans and Related Interest Income | The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2019 and 2018. 2019 2018 (Dollars in thousands) Average Interest Average Interest Commercial real estate: Owner occupied $ 1,863 $ 0 $ 1,245 $ 1 Non-owner occupied 0 0 4,021 0 Multi-family 127 0 161 0 Non-owner occupied residential 301 0 374 0 Acquisition and development: 1-4 family residential construction 0 0 286 0 Commercial and industrial 277 0 343 0 Residential mortgage: First lien 2,788 15 3,741 15 Home equity - term 15 0 21 0 Home equity - lines of credit 758 0 496 0 Installment and other loans 7 0 11 0 $ 6,136 $ 15 $ 10,699 $ 16 |
Troubled Debt Restructurings | The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 (Dollars in thousands) Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 34 1 $ 39 Residential mortgage: First lien 11 1,060 11 1,069 Home equity - lines of credit 1 22 1 24 13 1,116 13 1,132 Nonaccruing: Commercial real estate: Owner occupied 1 36 1 37 Residential mortgage: First lien 8 641 8 658 9 677 9 695 22 $ 1,793 22 $ 1,827 |
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans | The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2019 and December 31, 2018. Days Past Due (Dollars in thousands) Current 30-59 60-89 90+ Total Non- Total March 31, 2019 Commercial real estate: Owner occupied $ 119,488 $ 0 $ 0 $ 0 $ 0 $ 1,768 $ 121,256 Non-owner occupied 264,241 0 0 0 0 0 264,241 Multi-family 82,179 0 0 0 0 123 82,302 Non-owner occupied residential 100,353 137 0 0 137 294 100,784 Acquisition and development: 1-4 family residential construction 6,361 0 0 0 0 0 6,361 Commercial and land development 49,609 0 0 0 0 0 49,609 Commercial and industrial 163,983 356 0 0 356 266 164,605 Municipal 50,599 0 0 0 0 0 50,599 Residential mortgage: First lien 224,022 3,046 166 0 3,212 1,576 228,810 Home equity - term 11,782 0 11 0 11 13 11,806 Home equity - lines of credit 141,788 460 367 0 827 693 143,308 Installment and other loans 30,260 57 3 0 60 10 30,330 Subtotal 1,244,665 4,056 547 0 4,603 4,743 1,254,011 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 1,771 0 0 73 73 0 1,844 Non-owner occupied 628 0 0 0 0 0 628 Multi-family 707 0 0 0 0 0 707 Non-owner occupied residential 528 0 0 0 0 0 528 Acquisition and development: Commercial and land development 175 0 0 0 0 0 175 Commercial and industrial 4,821 225 0 0 225 0 5,046 Residential mortgage: First lien 1,717 29 465 222 716 0 2,433 Home equity - term 17 0 5 0 5 0 22 Installment and other loans 128 17 0 0 17 0 145 Subtotal 10,492 271 470 295 1,036 0 11,528 $ 1,255,157 $ 4,327 $ 1,017 $ 295 $ 5,639 $ 4,743 $ 1,265,539 Days Past Due (Dollars in thousands) Current 30-59 60-89 90+ Total Non- Total December 31, 2018 Commercial real estate: Owner occupied $ 125,887 $ 66 $ 0 $ 0 $ 66 $ 1,841 $ 127,794 Non-owner occupied 252,144 0 0 0 0 0 252,144 Multi-family 78,085 0 0 0 0 131 78,216 Non-owner occupied residential 99,268 226 29 0 255 309 99,832 Acquisition and development: 1-4 family residential construction 7,385 0 0 0 0 0 7,385 Commercial and land development 41,822 37 0 0 37 0 41,859 Commercial and industrial 154,988 411 105 0 516 286 155,790 Municipal 50,982 0 0 0 0 0 50,982 Residential mortgage: First lien 228,714 1,592 734 0 2,326 1,808 232,848 Home equity - term 11,487 678 5 0 683 16 12,186 Home equity - lines of credit 142,394 420 28 0 448 774 143,616 Installment and other loans 33,135 66 44 0 110 0 33,245 Subtotal 1,226,291 3,496 945 0 4,441 5,165 1,235,897 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 1,784 0 72 0 72 0 1,856 Non-owner occupied 650 0 0 0 0 0 650 Multi-family 717 0 0 0 0 0 717 Non-owner occupied residential 535 0 0 0 0 0 535 Acquisition and development: Commercial and land development 192 0 0 0 0 0 192 Commercial and industrial 4,943 231 0 0 231 0 5,174 Residential mortgage: First lien 1,971 382 42 53 477 0 2,448 Home equity - term 17 5 0 0 5 0 22 Installment and other loans 149 13 0 4 17 0 166 Subtotal 10,958 631 114 57 802 0 11,760 $ 1,237,249 $ 4,127 $ 1,059 $ 57 $ 5,243 $ 5,165 $ 1,247,657 |
Activity in Allowance for Loan Losses | The following table presents the activity in the ALL for the three months ended March 31, 2019 and 2018. Commercial Consumer (Dollars in thousands) Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 103 150 159 0 412 189 (26) 163 (175) 400 Charge-offs (25) 0 (43) 0 (68) (246) (20) (266) 0 (334) Recoveries 71 2 42 0 115 69 19 88 0 203 Balance, end of period $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 March 31, 2018 Balance, beginning of period $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 Provision for loan losses 7 92 144 (1) 242 (35) 7 (28) (14) 200 Charge-offs 0 0 0 0 0 0 (71) (71) 0 (71) Recoveries 0 1 0 0 1 17 57 74 0 75 Balance, end of period $ 6,770 $ 510 $ 1,590 $ 83 $ 8,953 $ 3,382 $ 204 $ 3,586 $ 461 $ 13,000 |
Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment | The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2019 and December 31, 2018: Commercial Consumer (Dollars in thousands) Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2019 Loans allocated by: Individually evaluated for impairment $ 2,219 $ 0 $ 266 $ 0 $ 2,485 $ 3,364 $ 10 $ 3,374 $ 0 $ 5,859 Collectively evaluated for impairment 570,071 56,145 169,385 50,599 846,200 383,015 30,465 413,480 0 1,259,680 $ 572,290 $ 56,145 $ 169,651 $ 50,599 $ 848,685 $ 386,379 $ 30,475 $ 416,854 $ 0 $ 1,265,539 ALL allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 35 $ 0 $ 35 $ 0 $ 35 Collectively evaluated for impairment 7,025 969 1,814 98 9,906 3,730 217 3,947 395 14,248 $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 December 31, 2018 Loans allocated by: Individually evaluated for impairment $ 2,320 $ 0 $ 286 $ 0 $ 2,606 $ 3,691 $ 0 $ 3,691 $ 0 $ 6,297 Collectively evaluated for impairment 559,424 49,436 160,678 50,982 820,520 387,429 33,411 420,840 0 1,241,360 $ 561,744 $ 49,436 $ 160,964 $ 50,982 $ 823,126 $ 391,120 $ 33,411 $ 424,531 $ 0 $ 1,247,657 ALL allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 38 $ 0 $ 38 $ 0 $ 38 Collectively evaluated for impairment 6,876 817 1,656 98 9,447 3,715 244 3,959 570 13,976 $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 |
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans | The following table provides activity for the accretable yield of purchased credit impaired loans for the three months ended March 31, 2019 and 2018. Three Months Ended (Dollars in thousands) March 31, 2019 March 31, 2018 Accretable yield, beginning of period $ 2,065 $ 0 Accretion of income (171) 0 Accretable yield, end of period $ 1,894 $ 0 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of ROU Assets and Related Lease Liabilities | The following table summarizes the Company's ROU assets and related lease liabilities at March 31, 2019. (Dollars in thousands) March 31, 2019 Cash paid for operating lease liabilities $ 180 Right-of-use assets obtained in exchange for new operating lease obligations (1) $ 8,115 Weighted-average remaining lease term (in years) 21.3 Weighted-average discount rate 4.7 % (1 ) Included $7,971,000 for operating leases existing on January 1, 2019, and $144,000 for operating leases that commenced in the first quarter of 2019. |
Schedule of Maturities of Lease Liabilities | The following table presents maturities of the Company's lease liabilities. (Dollars in thousands) Remainder of 2019 $ 553 2020 746 2021 631 2022 591 2023 607 2024 592 Thereafter 9,865 13,585 Less imputed interest 5,556 Total lease liabilities $ 8,029 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | The following table summarizes income tax expense for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Current expense $ 21 $ 223 Deferred expense 211 269 Income tax expense $ 232 $ 492 |
Summary of Deferred Tax Assets and Liabilities | The following table summarizes deferred tax assets and liabilities at March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, December 31, Deferred tax assets: Allowance for loan losses $ 3,200 $ 3,143 Deferred compensation 380 723 Retirement and salary continuation plans 1,844 1,416 Share-based compensation 759 742 Off-balance sheet reserves 215 219 Nonaccrual loan interest 549 537 Net unrealized losses on AFS securities 0 791 Purchase accounting adjustments 1,714 1,795 Bonus accrual 116 470 Low-income housing credit carryforward 456 641 Other 311 321 Total deferred tax assets 9,544 10,798 Deferred tax liabilities: Depreciation 368 458 Net unrealized gains on AFS securities 215 0 Mortgage servicing rights 642 590 Purchase accounting adjustments 791 1,021 Other 166 150 Total deferred tax liabilities 2,182 2,219 Net deferred tax asset, included in Other Assets $ 7,362 $ 8,579 |
SHAREHOLDERS' EQUITY AND REGU_2
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Capital Amounts and Ratios | The following table presents capital amounts and ratios at March 31, 2019 and December 31, 2018. Actual For Capital Adequacy Purposes To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital to risk weighted assets Consolidated $ 209,492 15.3 % $ 143,429 10.5 % n/a n/a Bank 180,680 13.2 % 143,323 10.5 % $ 136,498 10.0 % Tier 1 Capital to risk weighted assets Consolidated 162,399 11.9 % 116,109 8.5 % n/a n/a Bank 165,397 12.1 % 116,023 8.5 % 109,198 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 162,399 11.9 % 95,619 7.0 % n/a n/a Bank 165,397 12.1 % 95,548 7.0 % 88,724 6.5 % Tier 1 Capital to average assets Consolidated 162,399 8.5 % 76,465 4.0 % n/a n/a Bank 165,397 8.6 % 76,488 4.0 % 95,610 5.0 % December 31, 2018 Total Capital to risk weighted assets Consolidated $ 206,988 15.6 % $ 131,393 9.875 % n/a n/a Bank 177,892 13.4 % 131,286 9.875 % $ 132,948 10.0 % Tier 1 Capital to risk weighted assets Consolidated 160,117 12.0 % 104,782 7.875 % n/a n/a Bank 162,880 12.3 % 104,696 7.875 % 106,358 8.0 % Common Tier 1 (CET1) to risk weighted assets Consolidated 160,117 12.0 % 84,823 6.375 % n/a n/a Bank 162,880 12.3 % 84,754 6.375 % 86,416 6.5 % Tier 1 Capital to average assets Consolidated 160,117 8.4 % 76,089 4.0 % n/a n/a Bank 162,880 8.6 % 76,113 4.0 % 95,142 5.0 % |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Commitments and Conditional Obligations, Contract or Notional Amounts | The following table presents these contract, or notional, amounts. Contract or Notional Amount (Dollars in thousands) 3/31/2019 12/31/2018 Commitments to fund: Home equity lines of credit $ 166,762 $ 160,971 1-4 family residential construction loans 14,911 13,002 Commercial real estate, construction and land development loans 22,753 31,133 Commercial, industrial and other loans 147,692 147,518 Standby letters of credit 14,211 13,909 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018. (Dollars in Thousands) Level 1 Level 2 Level 3 Total Fair March 31, 2019 AFS Securities: States and political subdivisions $ 0 $ 153,903 $ 0 $ 153,903 GSE residential CMOs 0 73,001 0 73,001 Private label residential CMOs 0 17 0 17 Private label commercial CMOs 0 69,858 7,261 77,119 Asset-backed and other 0 186,181 0 186,181 Totals $ 0 $ 482,960 $ 7,261 $ 490,221 December 31, 2018 AFS Securities: States and political subdivisions $ 0 $ 145,004 $ 0 $ 145,004 GSE residential CMOs 0 108,064 0 108,064 Private label residential CMOs 0 143 0 143 Private label commercial CMOs 0 67,836 7,209 75,045 Asset-backed and other 0 137,588 0 137,588 Totals $ 0 $ 458,635 $ 7,209 $ 465,844 |
Schedule of Changes in Fair Value of Impaired Loans | The following table presents changes in the fair value for impaired loans still held at March 31, considered in the determination of the provision for loan losses, for the three months ended March 31, 2019 and 2018. Three months ended March 31, (Dollars in thousands) 2019 2018 Changes in fair value of impaired loans still held $ 4 $ 8 |
Schedule of Changes in Fair Value of OREO For Properties Held | The re were no changes in the fair value of OREO for properties , still held at March 31, that were charged to real estate expenses for the three months ended March 31, 2019 and 2018. |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes assets measured at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2019 Impaired Loans Commercial real estate: Owner occupied $ 0 $ 0 $ 1,049 $ 1,049 Multi-family 0 0 122 122 Non-owner occupied residential 0 0 264 264 Commercial and industrial 0 0 15 15 Residential mortgage: First lien 0 0 824 824 Home equity - lines of credit 0 0 344 344 Installment and other loans 0 0 10 10 Total impaired loans $ 0 $ 0 $ 2,628 $ 2,628 December 31, 2018 Impaired Loans Commercial real estate: Owner occupied $ 0 $ 0 $ 1,087 $ 1,087 Multi-family 0 0 131 131 Non-owner occupied residential 0 0 278 278 Commercial and industrial 0 0 25 25 Residential mortgage: First lien 0 0 1,121 1,121 Home equity - lines of credit 0 0 409 409 Total impaired loans $ 0 $ 0 $ 3,051 $ 3,051 |
Summary 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. (Dollars in thousands) Fair Value Valuation Unobservable Input Range March 31, 2019 Impaired loans $ 2,628 Appraisal of Management adjustments on appraisals for property type and recent activity 5% - 75% discount - Management adjustments for liquidation expenses 6% - 20% discount December 31, 2018 Impaired loans $ 3,051 Appraisal of Management adjustments on appraisals for property type and recent activity 5% - 75% discount - Management adjustments for liquidation expenses 6% - 20% discount |
Financial Instruments at Estimated Fair Values | The following table presents carrying amounts and estimated fair values of the Company’s financial instruments at March 31, 2019 and December 31, 2018: (Dollars in thousands) Carrying Fair Value Level 1 Level 2 Level 3 March 31, 2019 Financial Assets Cash and due from banks $ 22,387 $ 22,387 $ 22,387 $ 0 $ 0 Interest-bearing deposits with banks 54,830 54,830 54,830 0 0 Restricted investments in bank stocks 10,292 n/a n/a n/a n/a AFS securities 490,221 490,221 0 482,960 7,261 Loans held for sale 4,787 4,906 0 4,906 0 Loans, net of allowance for loan losses 1,251,256 1,258,698 0 0 1,258,698 Accrued interest receivable 6,340 6,340 0 2,812 3,528 Financial Liabilities Deposits 1,620,696 1,618,521 0 1,618,521 0 Short-term borrowings 9,579 9,579 0 9,579 0 Long-term debt 103,356 103,401 0 103,401 0 Subordinated notes 31,810 33,339 0 33,339 0 Accrued interest payable 1,454 1,454 0 1,454 0 Off-balance sheet instruments 0 0 0 0 0 December 31, 2018 Financial Assets Cash and due from banks $ 26,156 $ 26,156 $ 26,156 $ 0 $ 0 Interest-bearing deposits with banks 45,664 45,664 45,664 0 0 Federal Funds Sold 16,995 16,995 16,995 0 0 Restricted investments in bank stocks 10,842 n/a n/a n/a n/a AFS securities 465,844 465,844 0 458,635 7,209 Loans held for sale 3,340 3,413 0 3,413 0 Loans, net of allowance for loan losses 1,233,643 1,229,645 0 0 1,229,645 Accrued interest receivable 5,927 5,927 0 2,853 3,074 Financial Liabilities Deposits 1,558,756 1,555,912 0 1,555,912 0 Short-term borrowings 64,069 64,069 0 64,069 0 Long-term debt 83,450 82,951 0 82,951 0 Subordinated notes 31,859 31,256 0 31,256 0 Accrued interest payable 1,301 1,301 0 1,301 0 Off-balance sheet instruments 0 0 0 0 0 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Noninterest Income Disaggregated by Revenue Source | The following table presents our noninterest income disaggregated by revenue source for the three months ended March 31, 2019 and 2018. Three Months Ended (Dollars in thousands) March 31, 2019 March 31, 2018 Noninterest income Service charges on deposits $ 842 $ 838 Trust and investment management income 1,758 1,668 Brokerage income 478 558 Merchant and bankcard fees (interchange income) 736 655 Revenue from contracts with customers 3,814 3,719 Other service charges 152 174 Mortgage banking activities 468 635 Income from life insurance 342 277 Other income 112 81 Investment securities gains 339 816 Total noninterest income $ 5,227 $ 5,702 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liability | $ 8,029 | |
Right-of-use asset | $ 144 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liability | $ 7,971 | |
Right-of-use asset | $ 7,494 |
MERGERS AND ACQUISITIONS (Detai
MERGERS AND ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | May 01, 2019 | Oct. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 12,592 | $ 12,592 | |||
Assets of acquiree | 1,973,283 | 1,934,388 | |||
Loans of acquiree | 1,251,256 | 1,233,643 | |||
Deposits of acquiree | $ 1,620,696 | 1,558,756 | |||
Hamilton Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Assets of acquiree | 496,254 | ||||
Loans of acquiree | 369,457 | ||||
Deposits of acquiree | $ 384,171 | ||||
Hamilton Bancorp, Inc. | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Cash paid per acquiree shares (in usd per share) | $ 4.10 | ||||
Common Stock | Hamilton Bancorp, Inc. | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Acquisition stock exchange ratio | 0.54 | ||||
Mercersburg Financial Corporation | |||||
Business Acquisition [Line Items] | |||||
Percentage of ownership interests acquired | 100.00% | ||||
Acquisition, cash paid | $ 4,866 | ||||
Consideration paid for acquisition | 29,919 | ||||
Total assets acquired | 181,430 | ||||
Loans acquired | 141,103 | ||||
Investment securities acquired | 7,352 | ||||
Total liabilities assumed | 163,384 | ||||
Deposits | 160,433 | ||||
Goodwill | $ 11,873 | ||||
Unaudited pro forma net Income | $ 3,925 | ||||
Unaudited pro forma revenue | $ 22,013 | ||||
Mercersburg Financial Corporation | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Shares issued for common stock (in shares) | 1,052,635 | ||||
Price per share (in usd per share) | $ 23.80 | ||||
Hamilton Bancorp, Inc. | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Percentage of ownership interests acquired | 100.00% | ||||
Consideration paid | $ 50,000 | ||||
Hamilton Bancorp, Inc. | Hamilton Bancorp, Inc. | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Acquisition, cash paid | $ 13,400 | ||||
Hamilton Bancorp, Inc. | Common Stock | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Shares issued for common stock (in shares) | 1,765,000 |
SECURITIES AVAILABLE FOR SALE -
SECURITIES AVAILABLE FOR SALE - Amortized Cost and Fair Values of AFS Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 489,196 | $ 469,607 |
Gross Unrealized Gains | 5,319 | 2,432 |
Gross Unrealized Losses | 4,294 | 6,195 |
Fair Value | 490,221 | 465,844 |
States and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 149,618 | 144,596 |
Gross Unrealized Gains | 4,399 | 1,919 |
Gross Unrealized Losses | 114 | 1,511 |
Fair Value | 153,903 | 145,004 |
GSE residential CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 74,298 | 110,421 |
Gross Unrealized Gains | 599 | 332 |
Gross Unrealized Losses | 1,896 | 2,689 |
Fair Value | 73,001 | 108,064 |
Private label residential CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17 | 144 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 17 | 143 |
Private label commercial CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 77,603 | 75,911 |
Gross Unrealized Gains | 111 | 55 |
Gross Unrealized Losses | 595 | 921 |
Fair Value | 77,119 | 75,045 |
Asset-backed and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 187,660 | 138,535 |
Gross Unrealized Gains | 210 | 126 |
Gross Unrealized Losses | 1,689 | 1,073 |
Fair Value | $ 186,181 | $ 137,588 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE - Summary of AFS Securities with Unrealized Losses (Details) $ in Thousands | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Number of Securities | ||
Less Than 12 Months | security | 22 | 46 |
12 Months or More | security | 16 | 18 |
Total | security | 38 | 64 |
Fair Value | ||
Less Than 12 Months | $ 200,378 | $ 200,164 |
12 Months or More | 106,063 | 86,361 |
Total | 306,441 | 286,525 |
Unrealized Losses | ||
Less Than 12 Months | 1,617 | 2,356 |
12 Months or More | 2,677 | 3,839 |
Total | $ 4,294 | $ 6,195 |
States and political subdivisions | ||
Number of Securities | ||
Less Than 12 Months | security | 1 | 27 |
12 Months or More | security | 4 | 6 |
Total | security | 5 | 33 |
Fair Value | ||
Less Than 12 Months | $ 10,235 | $ 46,585 |
12 Months or More | 20,998 | 23,036 |
Total | 31,233 | 69,621 |
Unrealized Losses | ||
Less Than 12 Months | 7 | 662 |
12 Months or More | 107 | 849 |
Total | $ 114 | $ 1,511 |
GSE residential CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 0 | 1 |
12 Months or More | security | 6 | 7 |
Total | security | 6 | 8 |
Fair Value | ||
Less Than 12 Months | $ 0 | $ 18,037 |
12 Months or More | 45,889 | 46,168 |
Total | 45,889 | 64,205 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 122 |
12 Months or More | 1,896 | 2,567 |
Total | $ 1,896 | $ 2,689 |
Private label residential 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 | $ 143 | |
12 Months or More | 0 | |
Total | 143 | |
Unrealized Losses | ||
Less Than 12 Months | 1 | |
12 Months or More | 0 | |
Total | $ 1 | |
Private label commercial CMOs | ||
Number of Securities | ||
Less Than 12 Months | security | 12 | 11 |
12 Months or More | security | 2 | 2 |
Total | security | 14 | 13 |
Fair Value | ||
Less Than 12 Months | $ 57,500 | $ 56,499 |
12 Months or More | 11,062 | 6,349 |
Total | 68,562 | 62,848 |
Unrealized Losses | ||
Less Than 12 Months | 421 | 712 |
12 Months or More | 174 | 209 |
Total | $ 595 | $ 921 |
Asset-backed and other | ||
Number of Securities | ||
Less Than 12 Months | security | 9 | 6 |
12 Months or More | security | 4 | 3 |
Total | security | 13 | 9 |
Fair Value | ||
Less Than 12 Months | $ 132,643 | $ 78,900 |
12 Months or More | 28,114 | 10,808 |
Total | 160,757 | 89,708 |
Unrealized Losses | ||
Less Than 12 Months | 1,189 | 859 |
12 Months or More | 500 | 214 |
Total | $ 1,689 | $ 1,073 |
SECURITIES AVAILABLE FOR SALE_3
SECURITIES AVAILABLE FOR SALE - Schedule of Amortized Cost and Fair Values of AFS Securities by Contractual Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Amortized Cost | |
Due in one year or less | $ 600 |
Due after one year through five years | 956 |
Due after five years through ten years | 29,325 |
Due after ten years | 118,737 |
CMOs | 151,918 |
Asset-backed and other | 187,660 |
Total Amortized Cost | 489,196 |
Fair Value | |
Due in one year | 600 |
Due after one year through five years | 956 |
Due after five years through ten years | 29,786 |
Due after ten years | 122,561 |
CMOs | 150,137 |
Asset-backed and other | 186,181 |
Total Fair Value | $ 490,221 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE - Proceeds from Sales of AFS Securities and Gross Gains and Gross Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of AFS securities | $ 59,464 | $ 62,577 | |
Gross gains | 519 | 841 | |
Gross losses | 180 | $ 25 | |
Collateral Pledged | |||
Debt Securities, Available-for-sale [Line Items] | |||
AFS securities pledged to secure public funds, fair value | $ 157,209 | $ 164,233 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)note | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Amount of loan on which review have been made annually | $ 500,000 |
Amount of loan on which reviews require approval | $ 250,000 |
Loans that are deemed impaired, number of days past due (more than) | 90 days |
Number of notes split | note | 2 |
Appraisals, required period interval | 18 months |
Minimum amount on which annual updated appraisals for classified loans is required | $ 250,000 |
Maximum | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Percentage of loan-to-value ratio upon loan origination | 80.00% |
Percentage of loan-to-value ratios of the value of the real estate taken as collateral | 90.00% |
Percentage of strong loan-to-value | 70.00% |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 1,265,539 | $ 1,247,657 |
Acquired loans | 127,049 | 135,009 |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 123,100 | 129,650 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 264,869 | 252,794 |
Commercial real estate | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 83,009 | 78,933 |
Commercial real estate | Non-owner occupied residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 101,312 | 100,367 |
Acquisition and development | 1-4 family residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 6,361 | 7,385 |
Acquisition and development | Commercial and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 49,784 | 42,051 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 169,651 | 160,964 |
Municipal | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 50,599 | 50,982 |
Residential mortgage | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 231,243 | 235,296 |
Residential mortgage | Home equity - term | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 11,828 | 12,208 |
Residential mortgage | Home equity - lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 143,308 | 143,616 |
Installment and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 30,475 | $ 33,411 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Company's Loan Portfolio Ratings Based on its Internal Risk Rating System (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,265,539 | $ 1,247,657 |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 123,100 | 129,650 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 264,869 | 252,794 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 83,009 | 78,933 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 101,312 | 100,367 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,361 | 7,385 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 49,784 | 42,051 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 169,651 | 160,964 |
Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 50,599 | 50,982 |
Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 231,243 | 235,296 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,828 | 12,208 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 143,308 | 143,616 |
Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,475 | 33,411 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,208,445 | 1,201,023 |
Pass | Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 117,176 | 121,903 |
Pass | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 253,207 | 242,136 |
Pass | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 74,935 | 71,482 |
Pass | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 97,201 | 97,590 |
Pass | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,711 | 7,385 |
Pass | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 48,983 | 41,251 |
Pass | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 149,895 | 150,286 |
Pass | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 50,599 | 50,982 |
Pass | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 226,174 | 229,971 |
Pass | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,793 | 12,170 |
Pass | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 142,451 | 142,638 |
Pass | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,320 | 33,229 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 33,592 | 22,137 |
Special Mention | Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,379 | 3,024 |
Special Mention | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,034 | 10,008 |
Special Mention | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,535 | 5,886 |
Special Mention | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,113 | 736 |
Special Mention | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 650 | 0 |
Special Mention | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 49 | 25 |
Special Mention | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,700 | 2,278 |
Special Mention | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Special Mention | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Special Mention | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Special Mention | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 132 | 165 |
Special Mention | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 15 |
Non-Impaired Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,115 | 6,440 |
Non-Impaired Substandard | Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 899 | 987 |
Non-Impaired Substandard | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 709 | 717 |
Non-Impaired Substandard | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,176 | 1,197 |
Non-Impaired Substandard | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 577 | 583 |
Non-Impaired Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,744 | 2,940 |
Non-Impaired Substandard | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non-Impaired Substandard | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 10 | 15 |
Non-Impaired Substandard | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 1 |
Impaired - Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,859 | 6,297 |
Impaired - Substandard | Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,802 | 1,880 |
Impaired - Substandard | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 123 | 131 |
Impaired - Substandard | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 294 | 309 |
Impaired - Substandard | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 266 | 286 |
Impaired - Substandard | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Impaired - Substandard | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,636 | 2,877 |
Impaired - Substandard | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13 | 16 |
Impaired - Substandard | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 715 | 798 |
Impaired - Substandard | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 10 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,528 | 11,760 |
PCI Loans | Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,844 | 1,856 |
PCI Loans | Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 628 | 650 |
PCI Loans | Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 707 | 717 |
PCI Loans | Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 528 | 535 |
PCI Loans | Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 175 | 192 |
PCI Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,046 | 5,174 |
PCI Loans | Municipal | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Residential mortgage | First lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,433 | 2,448 |
PCI Loans | Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 22 | 22 |
PCI Loans | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
PCI Loans | Installment and other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 145 | $ 166 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans by Segment Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | $ 455 | $ 743 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 460 | 743 |
Impaired Loans with a Specific Allowance, Related Allowance | 35 | 38 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 5,404 | 5,554 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 7,769 | 7,832 |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 1,802 | 1,880 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 2,535 | 2,576 |
Commercial real estate | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 123 | 131 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 332 | 336 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 294 | 309 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 624 | 632 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 266 | 286 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 445 | 457 |
Residential mortgage | First lien | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 455 | 743 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 460 | 743 |
Impaired Loans with a Specific Allowance, Related Allowance | 35 | 38 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 2,181 | 2,134 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 2,801 | 2,727 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 13 | 16 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 20 | 23 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 715 | 798 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 994 | $ 1,081 |
Installment and other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 10 | |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | $ 18 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Average Recorded Investment in Impaired Loans and Related Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | $ 6,136 | $ 10,699 |
Interest Income Recognized | 15 | 16 |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 1,863 | 1,245 |
Interest Income Recognized | 0 | 1 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 0 | 4,021 |
Interest Income Recognized | 0 | 0 |
Commercial real estate | Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 127 | 161 |
Interest Income Recognized | 0 | 0 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 301 | 374 |
Interest Income Recognized | 0 | 0 |
Acquisition and development | 1-4 family residential construction | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 0 | 286 |
Interest Income Recognized | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 277 | 343 |
Interest Income Recognized | 0 | 0 |
Residential mortgage | First lien | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 2,788 | 3,741 |
Interest Income Recognized | 15 | 15 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 15 | 21 |
Interest Income Recognized | 0 | 0 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 758 | 496 |
Interest Income Recognized | 0 | 0 |
Installment and other loans | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Balance | 7 | 11 |
Interest Income Recognized | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | Mar. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 22 | 22 |
Recorded Investment | $ | $ 1,793 | $ 1,827 |
Accruing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 13 | 13 |
Recorded Investment | $ | $ 1,116 | $ 1,132 |
Accruing | Commercial real estate | Owner-occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 34 | $ 39 |
Accruing | Residential mortgage | First lien | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 11 | 11 |
Recorded Investment | $ | $ 1,060 | $ 1,069 |
Accruing | Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 22 | $ 24 |
Nonaccruing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 9 | 9 |
Recorded Investment | $ | $ 677 | $ 695 |
Nonaccruing | Commercial real estate | Owner-occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Recorded Investment | $ | $ 36 | $ 37 |
Nonaccruing | Residential mortgage | First lien | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 8 | 8 |
Recorded Investment | $ | $ 641 | $ 658 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,244,665 | |
Past Due | 4,603 | |
90+ (still accruing) Days Past Due | 0 | |
Non- Accrual | 4,743 | |
Total Loans | 1,254,011 | |
Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 10,492 | $ 10,958 |
Past Due | 1,036 | 802 |
90+ (still accruing) Days Past Due | 295 | 57 |
Non- Accrual | 0 | 0 |
Total Loans | 11,528 | 11,760 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,056 | |
30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 271 | 631 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 547 | 1,059 |
60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 470 | 114 |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 119,488 | 125,887 |
Past Due | 0 | 66 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 1,768 | 1,841 |
Total Loans | 121,256 | 127,794 |
Commercial real estate | Owner-occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,771 | 1,784 |
Past Due | 73 | 72 |
90+ (still accruing) Days Past Due | 73 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 1,844 | 1,856 |
Commercial real estate | Owner-occupied | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 66 |
Commercial real estate | Owner-occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Owner-occupied | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Owner-occupied | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 72 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 264,241 | 252,144 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 264,241 | 252,144 |
Commercial real estate | Non-owner occupied | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 628 | 650 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 628 | 650 |
Commercial real estate | Non-owner occupied | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 82,179 | 78,085 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 123 | 131 |
Total Loans | 82,302 | 78,216 |
Commercial real estate | Multi-family | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 707 | 717 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 707 | 717 |
Commercial real estate | Multi-family | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Multi-family | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 100,353 | 99,268 |
Past Due | 137 | 255 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 294 | 309 |
Total Loans | 100,784 | 99,832 |
Commercial real estate | Non-owner occupied residential | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 528 | 535 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 528 | 535 |
Commercial real estate | Non-owner occupied residential | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 137 | 226 |
Commercial real estate | Non-owner occupied residential | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Non-owner occupied residential | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 29 |
Commercial real estate | Non-owner occupied residential | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
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 | 6,361 | 7,385 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 6,361 | 7,385 |
Acquisition and development | 1-4 family residential construction | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | 1-4 family residential construction | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | Commercial and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 49,609 | 41,822 |
Past Due | 0 | 37 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 49,609 | 41,859 |
Acquisition and development | Commercial and land development | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 175 | 192 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 175 | 192 |
Acquisition and development | Commercial and land development | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 37 |
Acquisition and development | Commercial and land development | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | Commercial and land development | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Acquisition and development | Commercial and land development | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 163,983 | 154,988 |
Past Due | 356 | 516 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 266 | 286 |
Total Loans | 164,605 | 155,790 |
Commercial and industrial | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,821 | 4,943 |
Past Due | 225 | 231 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 5,046 | 5,174 |
Commercial and industrial | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 356 | 411 |
Commercial and industrial | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 225 | 231 |
Commercial and industrial | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 105 |
Commercial and industrial | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 50,599 | 50,982 |
Past Due | 0 | 0 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 50,599 | 50,982 |
Municipal | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Municipal | 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 | 224,022 | 228,714 |
Past Due | 3,212 | 2,326 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 1,576 | 1,808 |
Total Loans | 228,810 | 232,848 |
Residential mortgage | First lien | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,717 | 1,971 |
Past Due | 716 | 477 |
90+ (still accruing) Days Past Due | 222 | 53 |
Non- Accrual | 0 | 0 |
Total Loans | 2,433 | 2,448 |
Residential mortgage | First lien | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,046 | 1,592 |
Residential mortgage | First lien | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 29 | 382 |
Residential mortgage | First lien | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 166 | 734 |
Residential mortgage | First lien | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 465 | 42 |
Residential mortgage | Home equity - term | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,782 | 11,487 |
Past Due | 11 | 683 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 13 | 16 |
Total Loans | 11,806 | 12,186 |
Residential mortgage | Home equity - term | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 17 | 17 |
Past Due | 5 | 5 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 0 | 0 |
Total Loans | 22 | 22 |
Residential mortgage | Home equity - term | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 678 |
Residential mortgage | Home equity - term | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 5 |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11 | 5 |
Residential mortgage | Home equity - term | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 0 |
Residential mortgage | Home equity - lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 141,788 | 142,394 |
Past Due | 827 | 448 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 693 | 774 |
Total Loans | 143,308 | 143,616 |
Residential mortgage | Home equity - lines of credit | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 460 | 420 |
Residential mortgage | Home equity - lines of credit | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 367 | 28 |
Installment and other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 30,260 | 33,135 |
Past Due | 60 | 110 |
90+ (still accruing) Days Past Due | 0 | 0 |
Non- Accrual | 10 | 0 |
Total Loans | 30,330 | 33,245 |
Installment and other loans | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 128 | 149 |
Past Due | 17 | 17 |
90+ (still accruing) Days Past Due | 0 | 4 |
Non- Accrual | 0 | 0 |
Total Loans | 145 | 166 |
Installment and other loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 57 | 66 |
Installment and other loans | 30 to 59 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 13 |
Installment and other loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3 | 44 |
Installment and other loans | 60 to 89 Days Past Due | Loans Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans Excluding Acquired PCI | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,255,157 | 1,226,291 |
Past Due | 5,639 | 4,441 |
90+ (still accruing) Days Past Due | 295 | 0 |
Non- Accrual | 4,743 | 5,165 |
Total Loans | 1,265,539 | 1,235,897 |
Loans Excluding Acquired PCI | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,327 | 3,496 |
Loans Excluding Acquired PCI | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,017 | 945 |
Total Portfolio | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,237,249 | |
Past Due | 5,243 | |
90+ (still accruing) Days Past Due | 57 | |
Non- Accrual | 5,165 | |
Total Loans | 1,247,657 | |
Total Portfolio | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 4,127 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Activity in allowance for loan losses | |||
Balance, beginning of period | $ 14,014 | $ 12,796 | $ 12,796 |
Provision for loan losses | 400 | 200 | 200 |
Charge-offs | (334) | (71) | |
Recoveries | 203 | 75 | |
Balance, end of period | 14,283 | 13,000 | 14,014 |
Unallocated | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 570 | 475 | 475 |
Provision for loan losses | (175) | (14) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Balance, end of period | 395 | 461 | 570 |
Commercial | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 9,447 | 8,710 | 8,710 |
Provision for loan losses | 412 | 242 | |
Charge-offs | (68) | 0 | |
Recoveries | 115 | 1 | |
Balance, end of period | 9,906 | 8,953 | 9,447 |
Commercial | Commercial Real Estate | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 6,876 | 6,763 | 6,763 |
Provision for loan losses | 103 | 7 | |
Charge-offs | (25) | 0 | |
Recoveries | 71 | 0 | |
Balance, end of period | 7,025 | 6,770 | 6,876 |
Commercial | Acquisition and Development | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 817 | 417 | 417 |
Provision for loan losses | 150 | 92 | |
Charge-offs | 0 | 0 | |
Recoveries | 2 | 1 | |
Balance, end of period | 969 | 510 | 817 |
Commercial | Commercial and Industrial | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 1,656 | 1,446 | 1,446 |
Provision for loan losses | 159 | 144 | |
Charge-offs | (43) | 0 | |
Recoveries | 42 | 0 | |
Balance, end of period | 1,814 | 1,590 | 1,656 |
Commercial | Municipal | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 98 | 84 | 84 |
Provision for loan losses | 0 | (1) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Balance, end of period | 98 | 83 | 98 |
Consumer | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 3,997 | 3,611 | 3,611 |
Provision for loan losses | 163 | (28) | |
Charge-offs | (266) | (71) | |
Recoveries | 88 | 74 | |
Balance, end of period | 3,982 | 3,586 | 3,997 |
Consumer | Residential Mortgage | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 3,753 | 3,400 | 3,400 |
Provision for loan losses | 189 | (35) | |
Charge-offs | (246) | 0 | |
Recoveries | 69 | 17 | |
Balance, end of period | 3,765 | 3,382 | 3,753 |
Consumer | Installment and Other | |||
Activity in allowance for loan losses | |||
Balance, beginning of period | 244 | 211 | 211 |
Provision for loan losses | (26) | 7 | |
Charge-offs | (20) | (71) | |
Recoveries | 19 | 57 | |
Balance, end of period | $ 217 | $ 204 | $ 244 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Ending Loan Balances Evaluated for Impairment and Related Allowance for Loan Losses Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | $ 5,859 | $ 6,297 | ||
Loans, Collectively evaluated for impairment | 1,259,680 | 1,241,360 | ||
Total Loans | 1,265,539 | 1,247,657 | ||
Allowance for loan losses, Individually evaluated for impairment | 35 | 38 | ||
Allowance for loan losses, Collectively evaluated for impairment | 14,248 | 13,976 | ||
Allowance for loan losses, Total | 14,283 | 14,014 | $ 13,000 | $ 12,796 |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Loans | 169,651 | 160,964 | ||
Municipal | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Loans | 50,599 | 50,982 | ||
Installment and Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Loans | 30,475 | 33,411 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 2,485 | 2,606 | ||
Loans, Collectively evaluated for impairment | 846,200 | 820,520 | ||
Total Loans | 848,685 | 823,126 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 9,906 | 9,447 | ||
Allowance for loan losses, Total | 9,906 | 9,447 | ||
Commercial | Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 2,219 | 2,320 | ||
Loans, Collectively evaluated for impairment | 570,071 | 559,424 | ||
Total Loans | 572,290 | 561,744 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 7,025 | 6,876 | ||
Allowance for loan losses, Total | 7,025 | 6,876 | ||
Commercial | Acquisition and Development | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 0 | 0 | ||
Loans, Collectively evaluated for impairment | 56,145 | 49,436 | ||
Total Loans | 56,145 | 49,436 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 969 | 817 | ||
Allowance for loan losses, Total | 969 | 817 | ||
Commercial | Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 266 | 286 | ||
Loans, Collectively evaluated for impairment | 169,385 | 160,678 | ||
Total Loans | 169,651 | 160,964 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 1,814 | 1,656 | ||
Allowance for loan losses, Total | 1,814 | 1,656 | ||
Commercial | Municipal | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 0 | 0 | ||
Loans, Collectively evaluated for impairment | 50,599 | 50,982 | ||
Total Loans | 50,599 | 50,982 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 98 | 98 | ||
Allowance for loan losses, Total | 98 | 98 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 3,374 | 3,691 | ||
Loans, Collectively evaluated for impairment | 413,480 | 420,840 | ||
Total Loans | 416,854 | 424,531 | ||
Allowance for loan losses, Individually evaluated for impairment | 35 | 38 | ||
Allowance for loan losses, Collectively evaluated for impairment | 3,947 | 3,959 | ||
Allowance for loan losses, Total | 3,982 | 3,997 | ||
Consumer | Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 3,364 | 3,691 | ||
Loans, Collectively evaluated for impairment | 383,015 | 387,429 | ||
Total Loans | 386,379 | 391,120 | ||
Allowance for loan losses, Individually evaluated for impairment | 35 | 38 | ||
Allowance for loan losses, Collectively evaluated for impairment | 3,730 | 3,715 | ||
Allowance for loan losses, Total | 3,765 | 3,753 | ||
Consumer | Installment and Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 10 | 0 | ||
Loans, Collectively evaluated for impairment | 30,465 | 33,411 | ||
Total Loans | 30,475 | 33,411 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 217 | 244 | ||
Allowance for loan losses, Total | 217 | 244 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, Individually evaluated for impairment | 0 | 0 | ||
Loans, Collectively evaluated for impairment | 0 | 0 | ||
Total Loans | 0 | 0 | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, Collectively evaluated for impairment | 395 | 570 | ||
Allowance for loan losses, Total | $ 395 | $ 570 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Accretable Yield of Purchased Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Receivables [Abstract] | ||
Accretable Yield, beginning of period | $ 2,065 | $ 0 |
Accretion of income | (171) | 0 |
Accretable Yield, ending of period | $ 1,894 | $ 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Mar. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 50 years |
LEASES - Summary of ROU Assets
LEASES - Summary of ROU Assets and Related Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Cash paid for operating lease liabilities | $ 180 | ||
Right-of-use asset obtained in exchange for operating lease liabilities | $ 8,115 | $ 0 | |
Weighted average remaining lease term (in years) | 21 years 3 months 18 days | ||
Weighted average discount rate percent | 4.70% | ||
Right-of-use asset | $ 144 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liability | $ 8,029 | ||
ASU 2016-02 | |||
Leases [Abstract] | |||
Right-of-use asset | $ 7,494 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liability | $ 7,971 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Leases Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 553 |
2020 | 746 |
2021 | 631 |
2022 | 591 |
2023 | 607 |
2024 | 592 |
Thereafter | 9,865 |
Total payments due | 13,585 |
Less imputed interest | 5,556 |
Total lease liabilities | $ 8,029 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current expense | $ 21 | $ 223 |
Deferred expense | 211 | 269 |
Income tax expense | $ 232 | $ 492 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense related to net securities gains | $ 71 | $ 171 |
Tax benefit due to a change in tax law, treatment of acquired life insurance assets | $ 185 |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,200 | $ 3,143 |
Deferred compensation | 380 | 723 |
Retirement and salary continuation plans | 1,844 | 1,416 |
Share-based compensation | 759 | 742 |
Off-balance sheet reserves | 215 | 219 |
Nonaccrual loan interest | 549 | 537 |
Net unrealized losses on securities available for sale | 0 | 791 |
Goodwill | 1,714 | 1,795 |
Bonus accrual | 116 | 470 |
Low-income housing credit carryforward | 456 | 641 |
Other | 311 | 321 |
Total deferred tax assets | 9,544 | 10,798 |
Deferred tax liabilities: | ||
Depreciation | 368 | 458 |
Net unrealized gains on securities available for sale | 215 | 0 |
Mortgage servicing rights | 642 | 590 |
Purchase accounting adjustments | 791 | 1,021 |
Other | 166 | 150 |
Total deferred tax liabilities | 2,182 | 2,219 |
Net deferred tax asset, included in Other Assets | $ 7,362 | $ 8,579 |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Summary of Nonvested Restricted Shares Activity (Details) - Orrstown 2011 Incentive Stock Plan - Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Nonvested shares, beginning of year (in shares) | shares | 275,412 |
Granted (in shares) | shares | 67,793 |
Forfeited (in shares) | shares | (700) |
Vested (in usd per share) | shares | (23,405) |
Nonvested shares, at period end (in shares) | shares | 319,100 |
Weighted Average Grant Date Fair Value | |
Nonvested shares, beginning of year (in usd per share) | $ / shares | $ 20.33 |
Granted (in usd per share) | $ / shares | 19.35 |
Forfeited (in usd per share) | $ / shares | 23.75 |
Vested (in usd per share) | $ / shares | 17.69 |
Nonvested shares, at period end (in usd per share) | $ / shares | $ 20.31 |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Schedule of Restricted Shares Compensation Expense (Details) - Orrstown 2011 Incentive Stock Plan - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share award expense | $ 496 | $ 477 |
Restricted share award tax benefit | 110 | 128 |
Fair value of shares vested | $ 444 | $ 397 |
SHARE-BASED COMPENSATION PLAN_7
SHARE-BASED COMPENSATION PLANS - Schedule of Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares purchased (in shares) | 9,031 | 0 |
Employee Stock Purchase Plan | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Shares purchased (in shares) | 3,004 | 2,956 |
Weighted average price of shares purchased (in usd per share) | $ 18.96 | $ 23.47 |
Compensation expense recognized | $ 3 | $ 4 |
Tax benefits | $ 1 | $ 1 |
SHAREHOLDERS_ EQUITY AND REGULA
SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 209,492 | $ 206,988 |
Actual, Ratio | 15.30% | 15.60% |
Minimum Capital Requirement, Amount | $ 143,429 | $ 131,393 |
Minimum Capital Requirement, Ratio | 10.50% | 9.875% |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 162,399 | $ 160,117 |
Actual, Ratio | 11.90% | 12.00% |
Minimum Capital Requirement, Amount | $ 116,109 | $ 104,782 |
Minimum Capital Requirement, Ratio | 8.50% | 7.875% |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 162,399 | $ 160,117 |
Actual, Ratio | 11.90% | 12.00% |
Minimum Capital Requirement, Amount | $ 95,619 | $ 84,823 |
Minimum Capital Requirement, Ratio | 7.00% | 6.375% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 162,399 | $ 160,117 |
Actual, Ratio | 8.50% | 8.40% |
Minimum Capital Requirement, Amount | $ 76,465 | $ 76,089 |
Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Bank | ||
Total Capital to risk weighted assets | ||
Actual, Amount | $ 180,680 | $ 177,892 |
Actual, Ratio | 13.20% | 13.40% |
Minimum Capital Requirement, Amount | $ 143,323 | $ 131,286 |
Minimum Capital Requirement, Ratio | 10.50% | 9.875% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 136,498 | $ 132,948 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital to risk weighted assets | ||
Actual, Amount | $ 165,397 | $ 162,880 |
Actual, Ratio | 12.10% | 12.30% |
Minimum Capital Requirement, Amount | $ 116,023 | $ 104,696 |
Minimum Capital Requirement, Ratio | 8.50% | 7.875% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 109,198 | $ 106,358 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Tier 1 (CET1) to risk weighted assets | ||
Actual, Amount | $ 165,397 | $ 162,880 |
Actual, Ratio | 12.10% | 12.30% |
Minimum Capital Requirement, Amount | $ 95,548 | $ 84,754 |
Minimum Capital Requirement, Ratio | 7.00% | 6.375% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 88,724 | $ 86,416 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital to average assets | ||
Actual, Amount | $ 165,397 | $ 162,880 |
Actual, Ratio | 8.60% | 8.60% |
Minimum Capital Requirement, Amount | $ 76,488 | $ 76,113 |
Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 95,610 | $ 95,142 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
SHAREHOLDERS' EQUITY AND REGU_3
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 18, 2019 | Mar. 31, 2019 | Sep. 30, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares authorized to be repurchased (in shares) | 416,000 | ||
Acquisition of treasury stock (in shares) | 82,725 | ||
Acquisition of treasury stock | $ 1,438 | ||
Acquisition of treasury stock (in usd per share) | $ 17.38 | ||
Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Dividends declared per share (in usd per share) | $ 0.15 | ||
Maximum | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program authorized, maximum percentage of outstanding shares of common stock | 5.00% |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Commitments and Conditional Obligations, Contract or Notional Amount (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | $ 166,762 | $ 160,971 |
1-4 family residential construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 14,911 | 13,002 |
Commercial real estate, construction and land development loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 22,753 | 31,133 |
Commercial, industrial and other loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | 147,692 | 147,518 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to fund | $ 14,211 | $ 13,909 |
FAIR VALUE - Additional Informa
FAIR VALUE - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 490,221,000 | $ 465,844,000 | |
Premium amortization | $ 0 | ||
Specific charges to value the real estate owned | 0 | 0 | |
Private label commercial CMOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | 7,261,000 | 7,209,000 | |
Purchase of investment | 7,213,000 | ||
Premium amortization | 22,000 | ||
Unrealized gain | 111,000 | $ 0 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value liabilities | 0 | 0 | |
Fair Value | 490,221,000 | 465,844,000 | |
Allowance for loan losses | 915,000 | 928,000 | |
Fair Value, Measurements, Recurring | Private label commercial CMOs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value | $ 77,119,000 | $ 75,045,000 |
FAIR VALUE - Summary of Assets
FAIR VALUE - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 490,221 | $ 465,844 |
States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 153,903 | 145,004 |
GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 73,001 | 108,064 |
Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17 | 143 |
Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,261 | 7,209 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 490,221 | 465,844 |
Fair Value, Measurements, Recurring | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 153,903 | 145,004 |
Fair Value, Measurements, Recurring | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 73,001 | 108,064 |
Fair Value, Measurements, Recurring | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17 | 143 |
Fair Value, Measurements, Recurring | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 77,119 | 75,045 |
Fair Value, Measurements, Recurring | Asset-backed and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 186,181 | 137,588 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 482,960 | 458,635 |
Fair Value, Measurements, Recurring | Level 2 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 153,903 | 145,004 |
Fair Value, Measurements, Recurring | Level 2 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 73,001 | 108,064 |
Fair Value, Measurements, Recurring | Level 2 | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17 | 143 |
Fair Value, Measurements, Recurring | Level 2 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 69,858 | 67,836 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 186,181 | 137,588 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,261 | 7,209 |
Fair Value, Measurements, Recurring | Level 3 | States and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | GSE residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Private label residential CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Private label commercial CMOs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,261 | 7,209 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
FAIR VALUE - Schedule of Change
FAIR VALUE - Schedule of Changes in Fair Value of Impaired Loans Still Held (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Changes in fair value of impaired loans still held | $ 4 | $ 8 |
FAIR VALUE - Schedule of Chan_2
FAIR VALUE - Schedule of Changes in Fair Value of OREO For Properties Held (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Changes in fair value of OREO still held | $ 0 | $ 0 |
FAIR VALUE- Summary of Assets M
FAIR VALUE- Summary of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 2,628 | $ 3,051 |
Commercial real estate | Owner-occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 1,049 | 1,087 |
Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 122 | 131 |
Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 264 | 278 |
Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 15 | 25 |
Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 824 | 1,121 |
Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 344 | 409 |
Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 10 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Owner-occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 1 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Owner-occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Level 2 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 2,628 | 3,051 |
Level 3 | Commercial real estate | Owner-occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 1,049 | 1,087 |
Level 3 | Commercial real estate | Multi-family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 122 | 131 |
Level 3 | Commercial real estate | Non-owner occupied residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 264 | 278 |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 15 | 25 |
Level 3 | Residential mortgage | First lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 824 | 1,121 |
Level 3 | Residential mortgage | Home equity - lines of credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 344 | $ 409 |
Level 3 | Installment and other loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 10 |
FAIR VALUE - Summary of Additio
FAIR VALUE - Summary of Additional Qualitative Information (Details) - Fair Value, Measurements, Nonrecurring - Impaired loans $ in Thousands | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.06 | |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.20 | |
Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.06 | |
Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.20 | |
Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Estimate | $ 2,628 | $ 3,051 |
Appraisal of collateral | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.05 | |
Appraisal of collateral | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.75 | |
Appraisal of collateral | Measurement Input, Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.05 | |
Appraisal of collateral | Measurement Input, Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing asset, measurement Input (percent) | 0.75 |
FAIR VALUE - Financial Instrume
FAIR VALUE - Financial Instruments at Estimated Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Interest-bearing deposits with banks | $ 54,830 | $ 45,664 |
Federal funds sold | 0 | 16,995 |
Restricted investments in bank stocks | 10,292 | 10,842 |
AFS Securities | 490,221 | 465,844 |
Carrying Amount | ||
Financial Assets | ||
Cash and due from banks | 22,387 | 26,156 |
Interest-bearing deposits with banks | 54,830 | 45,664 |
Federal funds sold | 16,995 | |
Restricted investments in bank stocks | 10,292 | 10,842 |
AFS Securities | 490,221 | 465,844 |
Loans held for sale | 4,787 | 3,340 |
Loans, net of allowance for loan losses | 1,251,256 | 1,233,643 |
Accrued interest receivable | 6,340 | 5,927 |
Financial Liabilities | ||
Deposits | 1,620,696 | 1,558,756 |
Short-term borrowings | 9,579 | 64,069 |
Long-term debt | 103,356 | 83,450 |
Subordinated Notes | 31,810 | 31,859 |
Accrued interest payable | 1,454 | 1,301 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | ||
Financial Assets | ||
Cash and due from banks | 22,387 | 26,156 |
Interest-bearing deposits with banks | 54,830 | 45,664 |
Federal funds sold | 16,995 | |
AFS Securities | 490,221 | 465,844 |
Loans held for sale | 4,906 | 3,413 |
Loans, net of allowance for loan losses | 1,258,698 | 1,229,645 |
Accrued interest receivable | 6,340 | 5,927 |
Financial Liabilities | ||
Deposits | 1,618,521 | 1,555,912 |
Short-term borrowings | 9,579 | 64,069 |
Long-term debt | 103,401 | 82,951 |
Subordinated Notes | 33,339 | 31,256 |
Accrued interest payable | 1,454 | 1,301 |
Off-balance sheet instruments | 0 | 0 |
Fair Value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 22,387 | 26,156 |
Interest-bearing deposits with banks | 54,830 | 45,664 |
Federal funds sold | 16,995 | |
AFS Securities | 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 |
Subordinated Notes | 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 |
Federal funds sold | 0 | |
AFS Securities | 482,960 | 458,635 |
Loans held for sale | 4,906 | 3,413 |
Loans, net of allowance for loan losses | 0 | 0 |
Accrued interest receivable | 2,812 | 2,853 |
Financial Liabilities | ||
Deposits | 1,618,521 | 1,555,912 |
Short-term borrowings | 9,579 | 64,069 |
Long-term debt | 103,401 | 82,951 |
Subordinated Notes | 33,339 | 31,256 |
Accrued interest payable | 1,454 | 1,301 |
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 |
Federal funds sold | 0 | |
AFS Securities | 7,261 | 7,209 |
Loans held for sale | 0 | 0 |
Loans, net of allowance for loan losses | 1,258,698 | 1,229,645 |
Accrued interest receivable | 3,528 | 3,074 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated Notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Off-balance sheet instruments | $ 0 | $ 0 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Receivables from customers | $ 695 | $ 640 | |
Disaggregation of Revenue [Line Items] | |||
Other service charges | 152 | $ 174 | |
Mortgage banking activities | 468 | 635 | |
Income from life insurance | 342 | 277 | |
Other income | 112 | 81 | |
Investment securities gains | 339 | 816 | |
Total noninterest income | 5,227 | 5,702 | |
Service charges on deposits | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 842 | 838 | |
Trust and investment management income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 1,758 | 1,668 | |
Brokerage income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 478 | 558 | |
Merchant and bankcard fees (interchange income) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 736 | 655 | |
Noninterest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 3,814 | $ 3,719 |