Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 27, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | COMMUNITY FINANCIAL CORP /MD/ | |
Entity Central Index Key | 855,874 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | tcfc | |
Entity Common Stock Shares Outstanding | 4,657,528 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 12,957 | $ 9,059 |
Federal funds sold | 225 | |
Interest-bearing deposits with banks | 1,406 | 1,855 |
Securities available for sale (AFS), at fair value | 43,885 | 35,116 |
Securities held to maturity (HTM), at amortized cost | 102,956 | 109,420 |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock - at cost | 6,173 | 6,931 |
Loans receivable - net of allowance for loan losses of $9,663 and $8,540 | 1,041,910 | 909,200 |
Premises and equipment, net | 22,758 | 20,156 |
Premises and equipment held for sale | 2,000 | |
Other real estate owned (OREO) | 8,620 | 9,449 |
Accrued interest receivable | 3,604 | 3,218 |
Investment in bank owned life insurance | 28,429 | 27,836 |
Other assets | 9,176 | 8,867 |
Total assets | 1,281,874 | 1,143,332 |
Liabilities and Stockholders' Equity | ||
Non-interest-bearing deposits | 143,221 | 142,771 |
Interest-bearing deposits | 868,354 | 764,128 |
Total deposits | 1,011,575 | 906,899 |
Short-term borrowings | 55,500 | 36,000 |
Long-term debt | 65,573 | 55,617 |
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,000 | 12,000 |
Subordinated notes - 6.25% | 23,000 | 23,000 |
Accrued expenses and other liabilities | 10,243 | 10,033 |
Total liabilities | 1,177,891 | 1,043,549 |
Stockholders' Equity | ||
Common stock - par value $.01; authorized - 15,000,000 shares; issued 4,656,989 and 4,645,429 shares, respectively | 47 | 46 |
Additional paid in capital | 47,107 | 46,809 |
Retained earnings | 57,070 | 53,495 |
Accumulated other comprehensive gain (loss) | 75 | (251) |
Unearned ESOP shares | (316) | (316) |
Total stockholders' equity | 103,983 | 99,783 |
Total liabilities and stockholders' equity | $ 1,281,874 | $ 1,143,332 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Loans receivable, allowance for loan losses (in dollars) | $ 9,663 | $ 8,540 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 4,656,989 | 4,645,429 |
Subordinated Debt [Member] | ||
Subordinated notes interest rate | 6.25% | 6.25% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 11,460 | $ 10,336 | $ 33,175 | $ 30,886 |
Interest and dividends on investment securities | 758 | 661 | 2,273 | 1,768 |
Interest on deposits with banks | 5 | 5 | 15 | 11 |
Total interest and dividend income | 12,223 | 11,002 | 35,463 | 32,665 |
Interest Expense | ||||
Deposits | 1,209 | 1,068 | 3,486 | 3,098 |
Short-term borrowings | 36 | 5 | 123 | 26 |
Long-term debt | 834 | 845 | 2,422 | 2,361 |
Total interest expense | 2,079 | 1,918 | 6,031 | 5,485 |
Net interest income | 10,144 | 9,084 | 29,432 | 27,180 |
Provision for loan losses | 698 | 501 | 1,689 | 1,071 |
Net interest income after provision for loan losses | 9,446 | 8,583 | 27,743 | 26,109 |
Noninterest Income | ||||
Loan appraisal, credit, and miscellaneous charges | 60 | 61 | 223 | 209 |
Gain on sale of asset | 4 | 19 | ||
Net gains (losses) on sale of OREO | 3 | (2) | (440) | (20) |
Net gain (losses) on sale of investment securities | 39 | (1) | ||
Loss on premises and equipment held for sale | (426) | (426) | ||
Income from bank owned life insurance | 199 | 206 | 593 | 616 |
Service charges | 580 | 627 | 2,050 | 1,889 |
Gain on sale of loans held for sale | 104 | |||
Total noninterest income | 842 | 466 | 2,469 | 2,390 |
Noninterest Expense | ||||
Salary and employee benefits | 4,268 | 4,185 | 12,617 | 12,218 |
Occupancy expense | 597 | 599 | 1,822 | 1,834 |
Advertising | 290 | 164 | 509 | 450 |
Data processing expense | 544 | 475 | 1,678 | 1,500 |
Professional fees | 308 | 353 | 1,113 | 920 |
Depreciation of furniture, fixtures, and equipment | 206 | 210 | 608 | 615 |
Telephone communications | 43 | 56 | 133 | 141 |
Office supplies | 33 | 38 | 105 | 108 |
FDIC insurance | 215 | 197 | 642 | 585 |
OREO valuation allowance and expenses | 203 | 129 | 609 | 682 |
Other | 604 | 625 | 2,007 | 1,809 |
Total noninterest expense | 7,311 | 7,031 | 21,843 | 20,862 |
Income before income taxes | 2,977 | 2,018 | 8,369 | 7,637 |
Income tax expense | 1,014 | 735 | 3,060 | 2,822 |
Net income | 1,963 | 1,283 | 5,309 | 4,815 |
Preferred stock dividends | 23 | |||
Net income available to common shareholders | $ 1,963 | $ 1,283 | $ 5,309 | $ 4,792 |
Earnings Per Common Share | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.28 | $ 1.16 | $ 1.03 |
Diluted (in dollars per share) | 0.42 | 0.27 | 1.15 | 1.02 |
Cash dividends paid per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,963 | $ 1,283 | $ 5,309 | $ 4,815 |
Net unrealized holding gains (losses) arising during period, net of tax expense of $13 and $151 and $223 and $201, respectively | 21 | 230 | 346 | 308 |
Reclasssification adjustment for gains included in net income, net of tax expense (benefit) of $0 and $0; $(10) and $0, respectively | (20) | |||
Comprehensive income | $ 1,984 | $ 1,513 | $ 5,635 | $ 5,123 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net unrealized holding gains arising during period, tax effect | $ 13 | $ 151 | $ 223 | $ 201 |
Reclassification adjustments, tax effect | $ 0 | $ 0 | $ (10) | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,309 | $ 4,815 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for loan losses | 1,689 | 1,071 |
Depreciation and amortization | 1,144 | 1,055 |
Provision for loss on premises held for sale | 426 | |
Loans originated for resale | (4,192) | |
Proceeds from sale of loans originated for sale | 4,296 | |
Gain on sale of loans held for sale | (104) | |
Net loss on the sale of OREO | 440 | 20 |
(Gain) losses on sales of investment securities | (39) | 1 |
Gain on sale of asset | (4) | (19) |
Net amortization of premium/discount on investment securities | 395 | 157 |
Increase in OREO valuation allowance | 366 | 447 |
Increase in cash surrender of bank owned life insurance | (593) | (617) |
Increase in deferred income tax benefit | (417) | (571) |
Increase in accrued interest receivable | (386) | (91) |
Stock based compensation | 240 | 182 |
(Increase) decrease in net deferred loan premiums | 1,308 | (4) |
Increase in accrued expenses and other liabilities | 210 | 1,745 |
(Increase) decrease in other assets | (77) | 641 |
Net cash provided by operating activities | 9,585 | 9,258 |
Cash Flows from Investing Activities | ||
Purchase of AFS investment securities | (15,142) | (2,062) |
Proceeds from redemption or principal payments of AFS investment securities | 4,404 | 5,409 |
Purchase of HTM investment securities | (12,180) | (23,647) |
Proceeds from maturities or principal payments of HTM investment securities | 17,618 | 14,099 |
Net decrease (increase) of FHLB and FRB stock | 759 | (243) |
Loans originated or acquired | (298,714) | (180,539) |
Principal collected on loans | 160,259 | 150,067 |
Purchase of premises and equipment | (3,757) | (2,585) |
Proceeds from sale of OREO | 2,770 | 930 |
Proceeds from sale of investment securities | 3,174 | 66 |
Proceeds from disposal of asset | 2,015 | 34 |
Net cash used in investing activities | (138,794) | (38,471) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 104,676 | 12,895 |
Proceeds from long-term debt | 15,000 | |
Payments of long-term debt | (5,044) | (4,041) |
Net increase in short term borrowings | 19,500 | 12,000 |
Proceeds from subordinated notes | 23,000 | |
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | |
Dividends paid | (1,362) | (1,456) |
Net change in unearned ESOP shares | (28) | |
Repurchase of common stock | (337) | (448) |
Net cash provided by financing activities | 132,433 | 21,922 |
Increase in Cash and Cash Equivalents | 3,224 | (7,291) |
Cash and cash equivalents - January 1 | 11,139 | 21,373 |
Cash and cash equivalents - September 30 | 14,363 | 14,082 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 6,253 | 5,276 |
Income taxes | 2,875 | 2,518 |
Supplemental Schedule of Non-Cash Operating Activities | ||
Issuance of common stock for payment of compensation | 575 | 216 |
Transfer from loans to OREO | 3,119 | 1,947 |
Transfer from OREO to loans | 1,830 | |
Transfer of OREO to Fixed Assets | $ 372 | |
Transfer from premises and equipment to premises and equipment held for sale | $ 2,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation and Nature of Business [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION The consolidated financial statements of The Community Financial Corporation (the “Company”) and its wholly owned subsidiary, Community Bank of the Chesapeake (the “Bank”), and the Bank’s wholly owned subsidiary, Community Mortgage Corporation of Tri-County, included herein are unaudited. The consolidated financial statements reflect all adjustments consisting only of normal recurring accruals that, in the opinion of management, are necessary to present fairly the Company’s financial condition, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company believes that the disclosures are adequate to make the information presented not misleading. The balances as of December 31, 2015 have been derived from audited financial statements. There have been no significant changes to the Company’s accounting policies as disclosed in the 2015 Annual Report. The results of operations for the three and nine months ended September 30 , 2016 are not necessarily indicative of the results of operations to be expected for the remainder of the year or any other period. Certain previously reported amounts have been restated to conform to the 2016 presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2015 Annual Report. |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2016 | |
Basis of Presentation and Nature of Business [Abstract] | |
Nature of Business | NOTE 2 – NATURE OF BUSINESS The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. The Bank conducts business through its main office in Waldorf, Maryland, and eleven branch offices in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby, California, Maryland; and Fredericksburg, Virginia. The Company maintains five loan production offices (“LPOs”) in Annapolis, La Plata, Prince Frederick and Leonardtown, Maryland; and Fredericksburg, Virginia. The Leonardtown and Fredericksburg LPOs are co-located with branches. The Company’s second branch in Fredericksburg opened in April 2016. The Company sold its King George, Virginia branch building and equipment to a credit union. The Company’s 2015 third quarter operating results reflect the financial impact of the transaction. The Company recorded an impairment of $426,000 during the third quarter of 2015. The transaction closed on January 28, 2016. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 3 – INCOME TAXES The Company files a consolidated federal income tax return with its subsidiaries. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws and when it is considered more likely than not that deferred tax assets will be realized. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Gain (Loss) | NOTE 4 - ACCUMULATED OTHER COMPREHENSIVE GAIN (LOSS) The following tables present the components of comprehensive gain for the three and nine months ended September 30, 2016 and 2015. The Company’s “other comprehensive ” gain was solely related to securities for the three and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains arising during period $ 34 $ 13 $ 21 $ 381 $ 151 $ 230 Reclassification adjustments - - - - - - Other comprehensive gain $ 34 $ 13 $ 21 $ 381 $ 151 $ 230 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains arising during period $ 569 $ 223 $ 346 $ 509 $ 201 $ 308 Reclassification adjustments (30) (10) (20) - - - Other comprehensive gain $ 539 $ 213 $ 326 $ 509 $ 201 $ 308 The following table presents the changes in each component of accumulated other comprehensive gain ( loss ) , net of tax, for the three and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ 54 $ (300) $ (251) $ (378) Other comprehensive gains (losses), net of tax before reclassifications 21 230 346 308 Amounts reclassified from accumulated other comprehensive income - - (20) - Net other comprehensive gain (loss) 21 230 326 308 End of period $ 75 $ (70) $ 75 $ (70) |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | NOTE 5 - EARNINGS PER SHARE (“EPS”) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. At September 30, 2016 and 2015 , there were 20,911 and 87,436 options , respectively, which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options were greater than the average market price of the common shares. T he Company has not granted any stock options since 2007 and all options outstanding at September 30, 2016 were anti-dilutive. Unvested restricted stock is excluded from the calculation of basic earnings per share. At September 30 , 2016 and 2015 there were 47,881 and 37,048 unvested shares of restricted stock. B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Net Income $ 1,963 $ 1,283 $ 5,309 $ 4,815 Less: dividends paid and accrued on preferred stock - - - (23) Net income available to common shareholders $ 1,963 $ 1,283 $ 5,309 $ 4,792 Average number of common shares outstanding 4,590,664 4,646,702 4,591,926 4,651,383 Dilutive effect of common stock equivalents 31,915 37,048 29,702 37,048 Average number of shares used to calculate diluted EPS 4,622,579 4,683,750 4,621,628 4,688,431 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 6 - STOCK-BASED COMPENSATION The Company has stock-based incentive arrangements to attract and retain key personnel. In May 2015, the 2015 Equity Compensation Plan (the “Plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service-based awards is recognized over the vesting period. Performance-based awards are recognized based on a vesting schedule and the probability of achieving goals specified at the time of the grant. The 2015 Plan replaced the 2005 Equity Compensation Plan. Stock-based compensation expense totaled $80,000 and $240,000 for the three and nine months ended September 3 0, 2016 and $61,000 and $182,000 for the three and nine months ended September 30, 2015. Stock-based compensation expense consisted of the vesting of grants of restricted stock. All outstanding options are fully vested and the Company has not granted any stock options since 2007. All outstanding options as of September 30, 2016 expire on July 17, 2017. The fair value of the Company’s outstanding employee stock options is estimated on the date of grant using the Black-Scholes option pricing model. The Company estimates expected market price volatility and expected term of the options based on historical data and other factors. The exercise price for options granted is set at the discretion of the committee administering the Plan, but is not less than the market value of the shares as of the date of grant. An option’s maximum term is 10 years and the options vest at the discretion of the committee. The following tables below summarize outstanding and exercisable options at September 30, 2016 and December 31, 2015. Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2016 21,211 $ 27.70 $ - Forfeited (300) 27.70 Outstanding at September 30, 2016 20,911 $ 27.70 $ - 0.8 Exercisable at September 30, 2016 20,911 $ 27.70 $ - 0.8 Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2015 87,436 $ 23.60 $ - Expired (66,225) 22.29 Outstanding at December 31, 2015 21,211 $ 27.70 $ - 1.5 Exercisable at December 31, 2015 21,211 $ 27.70 $ - 1.5 Options outstanding are all currently exercisable and are summarized as follows: Shares Outstanding Weighted Average Weighted Average September 30, 2016 Remaining Contractual Life Exercise Price 20,911 less than 1 year $ 27.70 The aggregate intrinsic value of outstanding stock options and exercisable stock options was $0 at September 3 0, 2016 and D ecember 31, 2015, respectively because all options outstanding were anti-dilutive. The Company granted restricted stock and stock units in accordance with the Plan. The vesting period for outstanding granted restricted stock is between three and five years. As of September 30, 2016, unrecognized stock compensation expense was $1.1 million . The following tables summarize the unvested restricted stock awards outstanding at September 30 , 2016 and December 31, 2015, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 37,048 $ 19.83 Granted 27,403 21.00 Vested (15,912) 20.09 Cancelled (658) 20.31 Nonvested at September 30, 2016 47,881 $ 20.41 Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 29,472 $ 20.83 Granted 28,040 18.63 Vested (20,464) 19.62 Nonvested at December 31, 2015 37,048 $ 19.83 |
Guaranteed Preferred Beneficial
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | 9 Months Ended |
Sep. 30, 2016 | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | NOTE 7 - GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) On June 15, 2005, Tri-County Capital Trust II (“Capital Trust II”), a Delaware business trust formed, funded and wholly owned by the Company, issued $5.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 1.70% . The Trust used the proceeds from this issuance, along with the $155,000 for Capital Trust II’s common securities, to purchase $5.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These capital securities qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust II and the junior subordinated debentures are scheduled to mature on June 15, 2035 , unless called by the Company. On July 22, 2004, Tri-County Capital Trust I (“Capital Trust I”), a Delaware business trust formed, funded and wholly owned by the Company, issued $7.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 2.60% . The Trust used the proceeds from this issuance, along with the Company’s $217,000 capital contribution for Capital Trust I’s common securities, to purchase $7.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These debentures qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust I and the junior subordinated debentures are scheduled to mature on July 22, 2034 , unless called by the Company. |
Subordinated Notes
Subordinated Notes | 9 Months Ended |
Sep. 30, 2016 | |
Subordinated Notes [Abstract] | |
Subordinated Notes | NOTE 8 – SUBORDINATED NOTES On February 6, 2015 the Company issued $23.0 million of unsecured 6.25% fixed to floating rate subordinated notes due February 15, 2025 (“subordinated notes”). On February 13, 2015 , the Company used proceeds of the offering to redeem all $20 million of the Company’s outstanding preferred stock issued under the Small Business Lending Fund (“SBLF”) program. The subordinated notes qualify as Tier 2 regulatory capital and replaced SBLF Tier 1 capital. The subordinated notes are not listed on any securities exchange or included in any automated dealer quotation system and there is no market for the notes. The notes are unsecured obligations and are subordinated in right of payment to all existing and future senior debt, whether secured or unsecured. The notes are not guaranteed obligations of any of the Company’s subsidiaries. Interest will accrue at a fixed per annum rate of 6.25% from and including the issue date to but excluding February 15, 2020. From and including February 15, 2020 to but excluding the maturity date interest will accrue at a floating rate equal to the three-month LIBOR plus 479 basis points. Interest is payable on the notes on February 15 and August 15 of each year, commencing August 15, 2015, through February 15, 2020, and thereafter February 15, May 15, August 15 and November 15 of each year through the maturity date or earlier redemption date. The subordinated notes may be redeemed in whole or in part on February 15, 2020 or on any scheduled interest payment date thereafter and upon the occurrence of certain special events. The redemption price is equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest to the date of redemption. Any partial redemption will be made pro rata among all holders of the subordinated notes. The subordinated notes are not subject to repayment at the option of the holders. The subordinated notes may be redeemed at any time, if (1) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the notes for U.S. federal income tax purposes, (2) a subsequent event occurs that precludes the notes from being recognized as Tier 2 Capital for regulatory capital purposes, or (3) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 9 Months Ended |
Sep. 30, 2016 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Other Real Estate Owned ("OREO") | NOTE 9 - OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of valuation allowances. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of OREO activity follows. Nine Months Ended September 30, Year Ended December 31, (dollars in thousands) 2016 2015 2015 Balance at beginning of year $ 9,449 $ 5,883 $ 5,883 Additions of underlying property 3,120 1,946 5,436 Disposals of underlying property (3,583) (951) (1,206) Valuation allowance (366) (447) (664) Balance at end of period $ 8,620 $ 6,431 $ 9,449 During the nine months ended September 30, 2016, additions of $ 3.1 million consisted of $977,000 for three residential propert ies and $2.1 million for a deed in lieu of foreclosure on an improved commercial office building with multiple tenants. The commercial office building was taken into OREO at fair value of the loan during the three months ended March 31, 2016 and had a ratified contract for its sale. That contract was voided during the second quarter of 2016. The Company plans to manage the property until its sale and will recognize miscellaneous rental income during the ownership and management of the property. During the nine months ended September 30, 2015, additions of $1. 9 million consisted of $784,000 for five residential properties, $372,000 for three residential lots and $790,000 for commercial building s . The Company recognized net losses on OREO disposals of $440,000 for the nine months ended September 30, 2016. Disposals for the nine months ended September 30, 2016 consisted of properties with the following carrying values; $106,000 for three residential lots, $166,000 for one residential property, $875,000 for three commercial properties , $138,000 for a commercial lot and $2.2 million for an apartment and condominium property. The Bank provided financing for the apartment and condominium purchase which was transferred from OREO to loans during the second quarter of 2015. The transaction qualified for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”. The Company disposed of t hree residential properties and t hree finished residential lots at a loss of $20,000 for the nine months ended September 30, 2015. Additions to the valuation allowances of $ 366 ,000 and $ 447 ,000 were taken to adjust properties to current appraised values for the nine months ended September 30, 2016 and 2015, respectively. OREO carrying amounts reflect management’s estimate of the realizable value of these properties incorporating current appraised values, local real estate market conditions and related costs. Expenses applicable to OREO assets include the following. Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2016 2015 2016 2015 Valuation allowance $ 104 $ 73 $ 366 $ 447 Operating expenses 99 56 243 235 $ 203 $ 129 $ 609 $ 682 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2016 | |
Securities [Abstract] | |
Securities | NOTE 10 – SECURITIES September 30, 2016 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs and U.S. Agencies Residential Mortgage Backed Securities ("MBS") $ 2,473 $ 28 $ - $ 2,501 Residential Collateralized Mortgage Obligations ("CMOs") 31,386 98 141 31,343 U.S. Agency 5,506 - 27 5,479 Corporate equity securities 37 - - 37 Bond mutual funds 4,359 166 - 4,525 Total securities available for sale $ 43,761 $ 292 $ 168 $ 43,885 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 34,092 $ 1,202 $ - $ 35,294 Residential CMOs 61,711 561 63 62,209 U.S. Agency 2,370 3 4 2,369 Asset-backed securities issued by Others: Residential CMOs 931 - 85 846 Total debt securities held to maturity 99,104 1,766 152 100,718 Callable GSE Agency Bonds 3,002 - - 3,002 U.S. government obligations 850 - - 850 Total securities held to maturity $ 102,956 $ 1,766 $ 152 $ 104,570 December 31, 2015 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs Residential MBS $ 22 $ 4 $ - $ 26 Residential CMOs 31,182 39 557 30,664 Corporate equity securities 37 2 - 39 Bond mutual funds 4,289 98 - 4,387 Total securities available for sale $ 35,530 $ 143 $ 557 $ 35,116 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 34,085 $ 552 $ 242 $ 34,395 Residential CMOs 73,492 278 599 73,171 Asset-backed securities issued by Others: Residential CMOs 1,093 - 100 993 Total debt securities held to maturity 108,670 830 941 108,559 U.S. government obligations 750 - - 750 Total securities held to maturity $ 109,420 $ 830 $ 941 $ 109,309 At September 30 , 2016, certain asset-backed securities with an amortized cost of $34.1 million were pledged to secure certain c ustomer deposits. At September 30 , 2016, asset-backed securities with an amortized cost of $1.7 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At September 30 , 2016, 99% of the asset-backed securities and agency bond portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by GSEs and U.S. Agencies had an average life of 4.14 years and average duration of 3.84 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs and U.S. Agencies had an average life of 4.17 years and average duration of 3.84 years and are guaranteed by their issuer as to credit risk. At December 31, 2015, certain asset-backed securities with an amortized cost of $21.4 million were pledged to secure certain deposits. At December 31, 2015, asset-backed securities with an amortized cost of $1.9 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At December 31, 2015, 99% of the asset-backed securities and agency bond portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by GSEs and U.S. Agencies had an average life of 4.39 years and average duration of 4.04 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs and U.S. Agencies and U.S. Agencies had an average life of 5.07 years and average duration of 4.58 years and are guaranteed by their issuer as to credit risk. Management b elieve s that AFS securities with unrealized losses will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. Management believe s that the losses are the result of general perceptions of safety and creditworthiness of the entire sector and a general disruption of orderly markets in the asset class. Management has the ability and intent to hold the HTM securities with unrealized losses until they mature, at which time the Company will receive full value for the securities. Because management’s intention is not to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, management considers the unrealized losses in the held-to-maturity portfolio to be temporary. No charges related to other-than-temporary impairment were made during for the six months ended September 30 , 2016 and the year ended December 31, 2015. During the nine months ended September 30 , 2016 the Company recognized net gains on the sale of securities of $39,000 . The Company sold three AFS securities with aggregate carrying values of $2.4 million and one HTM security with a carrying value of $698,000 , recognizing gains of $31,000 and $8,000 , respectively. During the nine months ended September 30 , 2015, the Company sold one HTM security with a carrying value of $68,000 and recognized a loss of $1,000 . The sale of HTM securities w as permitted under ASC 320 “Investments - Debt and Equity Securities.” ASC 320 permits the sale of HTM securities for certain changes in circumstances. The Company will dispose of HTM securities using the safe harbor rule that allows for the sale of HTM securities that have principal payments paid down to less than 15% of original purchased par. ASC 320 10-25-15 indicates that a sale of a debt security after a substantial portion of the principal has been collected is equivalent to holding the security to maturity. In addition, the Company may dispose of HTM securities under ASC 320-10-25-6 due to a significant deterioration in the issues’ creditworthiness . AFS Securities Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at September 30, 2016 were as follows: September 30, 2016 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 7,406 $ 43 $ 12,781 $ 125 $ 20,187 $ 168 At September 30 , 2016, the AFS investment portfolio had an estimated fair value of $ 43.9 million, of which $20.2 million of the securities had some unrealized losses from their amortized cost. The securities with unrealized losses were CMOs issued by GSEs and Small Business Administration bonds. AFS asset-backed securities issued by GSEs are guaranteed by the issuer and AFS U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government . Total unrealized losses on the portfolio were $168,000 of the portfolio amortized cost of $39.4 million. AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had an average life of 4.19 years and an average duration of 3.87 years. Management believe s that the securities will either recover in market value or be paid off as agreed. Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2015 were as follows: December 31, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 4,658 $ 28 $ 17,344 $ 529 $ 22,002 $ 557 At December 31, 2015, the AFS investment portfolio had an estimated fair value of $35.1 million, of which $22.0 million of the securities had some unrealized losses from their amortized cost. The securities with unrealized losses were CMOs issued by GSEs. AFS asset-backed securities issued by GSEs are guaranteed by the issuer and AFS U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government . Total unrealized losses on the asset-backed securities issued by GSEs were $557,000 of the portfolio amortized cost of $31.2 million. AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had an average life of 4.45 years and an average duration of 4.04 years. Management believe s that the securities will either recover in market value or be paid off as agreed. HTM Securities Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at September 30, 2016 were as follows: September 30, 2016 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies 1,363 4 13,435 63 14,798 67 Asset-backed securities issued by Others - - 846 85 846 85 $ 1,363 $ 4 $ 14,281 $ 148 $ 15,644 $ 152 At September 30 , 2016, the HTM investment portfolio had an estimated fair value of $10 4.6 million, of which $15.6 million of the securities had some unrealized losses from their amortized cost. Of these securities, $14.8 million were asset-backed securities issued by GSEs and U.S. Agencies . The remaining $846,000 were asset-backed securities issued by others. HTM asset-backed securities issued by GSEs are guaranteed by the issuer and HTM U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government. Total unrealized losses on the portfolio were $67,000 of the portfolio amortized cost of $102.0 million. The securities with unrealized losses had an average life of 3.67 years and an average duration of 3.49 years. Management b elieve s that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. HTM asset-backed securities issued by others are collateralized mortgage obligation securities. The securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. Total unrealized losses on the asset-backed securities issued by others were $85,000 of the portfolio amortized cost of $931,000 . HTM asset-backed securities issued by others with unrealized losses have an average life of 3.96 years and an average duration of 3.14 years. Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2015 were as follows: December 31, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 36,337 $ 346 $ 16,431 $ 495 $ 52,768 $ 841 Asset-backed securities issued by Others - - 992 100 992 100 $ 36,337 $ 346 $ 17,423 $ 595 $ 53,760 $ 941 At December 31, 2015, the HTM investment portfolio had an estimated fair value of $109.3 million, of which $53.8 million of the securities had some unrealized losses from their amortized cost. Of these securities, $52.8 million were asset-backed securities issued by GSEs and the remaining $992,000 were asset-backed securities issued by others. HTM asset-backed securities issued by GSEs are guaranteed by the issuer and HTM U.S. government agency securities and bonds are guaranteed by the full faith and credit of the U.S. government. Total unrealized losses on the asset-backed securities issued by GSEs were $841,000 of the portfolio amortized cost of $107.6 million. HTM asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had an average life of 5.42 years and an average duration of 4.78 years. Management believe s that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. HTM asset-backed securities issued by others are collateralized mortgage obligation securities. The securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. Total unrealized losses on the asset-backed securities issued by others were $100,000 of the portfolio amortized cost of $1.1 million. HTM asset-backed securities issued by others with unrealized losses have an average life of 4.04 years and an average duration of 3.29 years. Credit Quality of Asset-Backed Securities and Agency Bonds The tables below present the Standard & Poor’s (“S&P”) or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities issued by GSEs and U.S. Agencies and others or bonds issued by GSEs or U.S. government agencies at September 30 , 2016 and December 31, 2015 by carrying value. The Company considers noninvestment grade securities rated BB+ or lower as classified assets for regulatory and financial reporting. GSE asset-backed securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance. September 30, 2016 December 31, 2015 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 141,347 AAA $ 138,267 BB 435 BB 518 B+ 497 B+ - CCC+ - CCC+ 575 Total $ 142,279 Total $ 139,360 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Loans [Abstract] | |
Loans | NOTE 11 – LOANS Loans consist of the following: (dollars in thousands) September 30, 2016 % December 31, 2015 % Commercial real estate $ 625,504 59.51% $ 538,888 58.64% Residential first mortgages 167,306 15.91% 131,401 14.30% Residential rentals 99,288 9.44% 93,157 10.14% Construction and land development 35,475 3.37% 36,189 3.94% Home equity and second mortgages 21,458 2.04% 21,716 2.36% Commercial loans 67,334 6.40% 67,246 7.32% Consumer loans 422 0.04% 366 0.04% Commercial equipment 34,632 3.29% 29,931 3.26% 1,051,419 100.00% 918,894 100.00% Less: Deferred loan fees and premiums (154) -0.01% 1,154 0.13% Allowance for loan losses 9,663 0.92% 8,540 0.93% 9,509 9,694 $ 1,041,910 $ 909,200 At September 30, 2016 and December 31, 2015, the Bank’s allowance for loan losses totaled $9.7 million and $8.5 million, respectively or 0.92% and 0.93% , respectively, of loan balances. Management’s determination of the adequacy of the allowance is based on a periodic evaluation of the portfolio with consideration given to the overall loss experience, current economic conditions, size, growth and composition of the loan portfolio, financial condition of the borrowers and other relevant factors that, in management’s judgment, warrant recognition in providing an adequate allowance. Deferred loan fees and premiums include net deferred fees paid by customers of $2.6 million and $2.6 million at September 30, 2016 and December 31, 2015, respectively. These were offset by net deferred premiums paid for the purchase of residential first mortgages and deferred costs of $2.8 million and $1.4 million, respectively, at September 30, 2016 and December 31, 2015. The Company separated residential rentals into a new loan portfolio segment beginning in the second quarter of 2016. Residential rentals include income producing properties secured by 1-4 family units and apartment buildings. The Company’s decision to segregate the residential rental portfolio for financial reporting and valuation purposes was based on the growth and size of the portfolio and risk characteristics unique to residential rental properties. Risk Characteristics of Portfolio Segments The Company manages its credit products and exposure to credit losses (credit risk) by the following specific portfolio segments (classes), which are levels at which the Company develops and documents its allowance for loan loss methodology. These segments are: Commercial Real Estate (“CRE”) Commercial and other real estate projects include office buildings, retail locations, churches, other special purpose buildings and commercial construction. Commercial construction balances were 8.6% and 6.1% of the CRE portfolio at September 30, 2016 and December 31, 2015, respectively. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. The primary security on a commercial real estate loan is the real property and the leases that produce income for the real property. Loans secured by commercial real estate are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three to 20 years. Loans secured by commercial real estate are larger and involve greater risks than one-to four-family residential mortgage loans. Because payments on loans secured by such properties are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Residential First Mortgages Residential first mortgage loans are generally long-term loans, amortized on a monthly basis, with principal and interest due each month. The contractual loan payment period for residential loans typically ranges from ten to 30 years. The Bank’s experience indicates that real estate loans remain outstanding for significantly shorter time periods than their contractual terms. Borrowers may refinance or prepay loans at their option, without penalty. The Bank’s residential portfolio has both fixed-rate and adjustable-rate residential first mortgages. The annual and lifetime limitations on interest rate adjustments may limit the increases in interest rates on these loans. There are also credit risks resulting from potential increased costs to the borrower as a result of repricing of adjustable-rate mortgage loans. During periods of rising interest rates, the risk of default on adjustable-rate mortgage loans may increase due to the upward adjustment of interest cost to the borrower. The Bank’s adjustable rate residential first mortgage portfolio was $41.4 million or 3.9% of total gross loans of $1.1 billion at September 30, 2016 compared to $18.9 million or 2.1% of gross loans of $918.9 million at December 31, 2015. Residential Rentals Residential rental mortgage loans are amortizing, with principal and interest due each month. The loans are secured by income-producing 1-4 family units and apartments. As of September 30, 2016 and December 31, 2015, $83.3 million and $80.8 million, respectively, were 1-4 family units and $16.0 million and $12.4 million, respectively, were apartment buildings. Loans secured by residential rental properties are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three to 20 years. The primary security on a residential rental loan is the property and the leases that produce income. Loans secured by residential rental properties involve greater risks than 1-4 family residential mortgage loans. Although, there are similar risk characteristics shared with commercial real estate loans, the balances for the loans secured by residential rental properties are generally smaller. Because payments on loans secured residential rental properties are often dependent on the successful operation or management of the properties, repayment of these loans may be subject to a greater extent to adverse conditions in the rental real estate market or the economy than similar owner occupied properties. Construction and Land Development The Bank offers loans for the construction of one-to-four family dwellings. Generally, these loans are secured by the real estate under construction as well as by guarantees of the principals involved. In addition, the Bank offers loans to acquire and develop land, as well as loans on undeveloped, subdivided lots for home building. A decline in demand for new housing might adversely affect the ability of borrowers to repay these loans. Construction and land development loans are inherently riskier than providing financing on owner-occupied real estate. The Bank’s risk of loss is affected by the accuracy of the initial estimate of the market value of the completed project as well as the accuracy of the cost estimates made to complete the project. In addition, the volatility of the real estate market has made it increasingly difficult to ensure that the valuation of land associated with these loans is accurate. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, the Bank may be required to advance funds beyond the amount originally committed to permit completion of the development. If the estimate of value proves to be inaccurate, a project’s value might be insufficient to assure full repayment. As a result of these factors, construction lending often involves the disbursement of substantial funds with repayment dependent, in part, on the success of the project rather than the ability of the borrower or guarantor to repay principal and interest. If the Bank forecloses on a project, there can be no assurance that the Bank will be able to recover all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs. Home Equity and Second Mortgage Loans The Bank maintains a portfolio of home equity and second mortgage loans. These products contain a higher risk of default than residential first mortgages as in the event of foreclosure, the first mortgage would need to be paid off prior to collection of the second mortgage. This risk has been heightened as the market value of residential property has declined. Commercial Loans The Bank offers commercial loans to its business customers. The Bank offers a variety of commercial loan products including term loans and lines of credit. Such loans are generally made for terms of five years or less. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. When making commercial business loans, the Bank considers the financial condition of the borrower, the borrower’s payment history of both corporate and personal debt, the projected cash flows of the business, the viability of the industry in which the consumer operates, the value of the collateral, and the borrower’s ability to service the debt from income. These loans are primarily secured by equipment, real property, accounts receivable, or other security as determined by the Bank. Commercial loans are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Consumer Loans Consumer loans consist of loans secured by automobiles, boats, recreational vehicles and trucks. The Bank also makes home improvement loans and offers both secured and unsecured personal lines of credit. Consumer loans entail greater risk from other loan types due to being secured by rapidly depreciating assets or the reliance on the borrower’s continuing financial stability. Commercial Equipment Loans These loans consist primarily of fixed-rate, short-term loans collateralized by a commercial customer’s equipment. When making commercial equipment loans, the Bank considers the same factors it considers when underwriting a commercial business loan. Commercial loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. In the case of business failure, collateral would need to be liquidated to provide repayment for the loan. In many cases, the highly specialized nature of collateral equipment would make full recovery from the sale of collateral problematic. Non-accrual and Past Due Loans Non-accrual loans as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 2,113 7 $ - - $ 2,113 7 Residential first mortgages 371 2 - - 371 2 Residential rentals 591 4 - - 591 4 Construction and land development 3,611 3 - - 3,611 3 Home equity and second mortgages 17 1 - - 17 1 Commercial loans 391 4 677 2 1,068 6 Commercial equipment 684 5 - - 684 5 $ 7,778 26 $ 677 2 $ 8,455 28 December 31, 2015 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 2,875 7 $ - - $ 2,875 7 Residential first mortgages 1,948 7 - - 1,948 7 Residential rentals 605 4 - - 605 4 Construction and land development 3,555 3 - - 3,555 3 Home equity and second mortgages 48 3 - - 48 3 Commercial loans 1,361 8 693 2 2,054 10 Commercial equipment 348 4 - - 348 4 $ 10,740 36 $ 693 2 $ 11,433 38 Non-accrual loans (90 days or greater delinquent and non-accrual only loans) decreased $3.0 million from $11.4 million or 1.24% of total loans at December 31, 2015 to $8.5 million or 0.80% of total loans at September 30, 2016. Non-accrual only loans are loans classified as non-accrual due to customer operating results or payment history. In accordance with the Company’s policy, interest income is recognized on a cash basis for these loans. The Company had 28 non-accrual loans at September 30, 2016 compared to 38 non-accrual loans at December 31, 2015. Non-accrual loans at September 30, 2016 included $7.0 million, or 83% of non-accrual loans, attributed to 16 loans representing six customer relationships classified as substandard. Non-accrual loans at December 31, 2015 included $8.1 million, or 71% of non-accrual loans, attributed to 19 loans representing six customer relationships classified as substandard. Of these loans at September 30, 2016 and December 31, 2015, $3.6 million and $3.8 million, respectively, represented a residential development project. During the second quarter of 2014, the Company deferred the collection of principal and interest on this project. The project is currently being continued with the support of non-bank investment, which has been used for vertical construction that has significantly improved the collateral value and the viability of the project. The loans remain classified as troubled debt restructures (“TDRs”) and non-accrual. In addition, at September 30, 2016 and December 31, 2015, the Company had three TDR loans totaling $1.6 million and $1.7 million, respectively, classified as non-accrual. These loans are classified solely as non-accrual loans for the calculation of financial ratios. Non-accrual loans on which the recognition of interest has been discontinued, which did not have a specific allowance for impairment, amounted to $4.5 million and $10.5 million at September 30, 2016 and December 31, 2015, respectively. Interest due but not recognized on these balances September 30, 2016 and December 31, 2015 was $318,000 and $953,000 , respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $4.0 million and $902,000 at September 3 0, 2016 and December 31, 2015, respectively. Interest due but not recognized on these balances at September 30, 2016 and December 31, 2015 was $683,000 and $34,000 , respectively. Past due loans as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Loans > 90 Days and Accruing Commercial real estate $ 623,239 $ - $ 152 $ 2,113 $ 2,265 $ 625,504 $ - Residential first mortgages 166,557 - 378 371 749 167,306 - Residential rentals 98,622 - 75 591 666 99,288 - Construction and land dev. 31,864 - - 3,611 3,611 35,475 - Home equity and second mtg. 21,369 9 63 17 89 21,458 - Commercial loans 66,943 - - 391 391 67,334 - Consumer loans 420 2 - - 2 422 - Commercial equipment 33,904 44 - 684 728 34,632 - Total $ 1,042,918 $ 55 $ 668 $ 7,778 $ 8,501 $ 1,051,419 $ - December 31, 2015 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Loans > 90 Days and Accruing Commercial real estate $ 536,013 $ - $ - $ 2,875 $ 2,875 $ 538,888 $ - Residential first mortgages 129,154 - 299 1,948 2,247 131,401 - Residential rentals 92,552 - - 605 605 93,157 Construction and land dev. 32,634 - - 3,555 3,555 36,189 - Home equity and second mtg. 21,603 65 - 48 113 21,716 - Commercial loans 65,747 - 138 1,361 1,499 67,246 - Consumer loans 365 - 1 - 1 366 - Commercial equipment 29,138 152 293 348 793 29,931 - Total $ 907,206 $ 217 $ 731 $ 10,740 $ 11,688 $ 918,894 $ - Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at September 30, 2016 and 2015 and at December 31, 2015 were as follows: September 30, 2016 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Quarter Average Recorded Investment Quarter Interest Income Recognized YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 21,956 $ 19,719 $ 2,208 $ 21,927 $ 456 $ 21,994 $ 242 $ 22,184 $ 653 Residential first mortgages 2,246 1,765 481 2,246 13 2,273 22 2,288 66 Residential rentals 3,858 3,222 237 3,459 50 3,470 35 3,623 102 Construction and land dev. 4,413 804 3,536 4,340 467 4,469 4 4,332 11 Home equity and second mtg. 124 124 - 124 - 125 1 126 4 Commercial loans 3,390 3,157 174 3,331 106 3,349 36 3,355 101 Commercial equipment 825 611 192 803 164 829 2 831 12 Total $ 36,812 $ 29,402 $ 6,828 $ 36,230 $ 1,256 $ 36,509 $ 342 $ 36,739 $ 949 December 31, 2015 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Commercial real estate $ 21,477 $ 19,081 $ 2,367 $ 21,448 $ 601 $ 21,786 $ 774 Residential first mortgages 4,226 3,730 495 4,225 27 4,276 141 Residential rentals 4,473 3,893 181 4,074 40 4,400 170 Construction and land dev. 4,283 3,780 504 4,284 471 4,302 13 Home equity and second mtg. 154 154 - 154 - 163 8 Commercial loans 4,775 4,195 380 4,575 330 4,524 251 Commercial equipment 518 338 139 477 139 491 9 Total $ 39,906 $ 35,171 $ 4,066 $ 39,237 $ 1,608 $ 39,942 $ 1,366 September 30, 2015 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Quarter Average Recorded Investment Quarter Interest Income Recognized YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 21,389 $ 18,837 $ 2,523 $ 21,360 $ 373 $ 21,453 $ 203 $ 21,357 $ 610 Residential first mortgages 3,844 3,343 501 3,844 61 3,857 28 3,874 93 Residential rentals 8,366 7,726 639 8,365 77 8,383 52 8,399 183 Construction and land dev. 4,329 3,637 691 4,328 471 4,329 4 4,299 10 Home equity and second mtg. 529 470 - 470 - 475 2 481 9 Commercial loans 4,233 3,708 282 3,990 232 4,311 38 4,500 124 Commercial equipment 596 364 146 510 146 512 2 516 8 Total $ 43,286 $ 38,085 $ 4,782 $ 42,867 $ 1,360 $ 43,320 $ 329 $ 43,426 $ 1,037 TDRs, included in the impaired loan schedules above, as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 9,667 8 $ 9,839 8 Residential first mortgages 552 2 881 3 Residential rentals 228 1 2,058 5 Construction and land development 4,340 4 4,283 4 Commercial loans 883 5 1,384 8 Commercial equipment 116 2 123 2 Total TDRs $ 15,786 22 $ 18,568 30 Less: TDRs included in non-accrual loans (5,191) (5) (5,435) (7) Total accrual TDR loans $ 10,595 17 $ 13,133 23 At September 30, 2016, the Company had 17 accruing TDRs totaling $10.6 million compared to 23 accruing TDRs totaling $13.1 million as of December 31, 2015. The Company had specific reserves of $929,000 on seven TDRs totaling $6.2 million at September 30, 2016 and specific reserves of $1.3 million on nine TDRs totaling $3.6 million at December 31, 2015. At September 30, 2016, $8.0 million or 76% of accruing TDRs related to one customer relationship. The $8.0 million in TDRs is for eight loans with two construction and land development loans totaling $724,000 , one residential rental property of $228,000, and five commercial real estate loans totaling $7.1 million. The loans in this relationship have been classified as TDRs since the fourth quarter of 2014 and have performed according to the terms of their restructured agreements with all required payments made timely. They presently remain classified as TDRs due to below market rates of interest negotiated at the time the loans were restructured to obtain additional collateral. The Company has a strong collateral position in this relationship and as of September 30, 2016 has specific reserves of $426,000 on the relationship. At September 30, 2016 and December 31, 2015, non-accrual TDRs included $3.6 million and $3.8 million, respectively, related to a residential development project. During the second quarter of 2014, the Company deferred the collection of principal and interest on this project. The project is currently being continued with the support of non-bank investment, which has been used for vertical construction that has significantly improved the collateral value and the viability of the project. In addition, at September 30, 2016 and December 31, 2015, the Company had three TDR loans totaling $1.6 million and $1.7 million, respectively, classified as non-accrual. These loans are classified solely as non-accrual loans for the calculation of financial ratios. There was one TDR of $196,000 added during the nine months ended September 30, 2016. Interest income in the amount of $252,000 and $508,000 was recognized on TDR loans for the nine months ended September 30, 2016 and the year ended December 31, 2015, respectively. Allowance for Loan Losses The following tables detail activity in the allowance for loan losses at and for the three and nine months ended September 30, 2016 and 2015, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. September 30, 2016 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Three Months Ended Commercial real estate $ 4,380 $ - $ 48 $ 619 $ 5,047 Residential first mortgages 935 - - 349 1,284 Residential rentals 613 - - (295) 318 Construction and land development 1,044 - - 46 1,090 Home equity and second mortgages 141 - - (26) 115 Commercial loans 709 (200) 1 422 932 Consumer loans 2 - - 1 3 Commercial equipment 1,282 - 10 (418) 874 $ 9,106 $ (200) $ 59 $ 698 $ 9,663 Nine Months Ended Commercial real estate $ 3,465 $ - $ 53 $ 1,529 $ 5,047 Residential first mortgages 584 - - 700 1,284 Residential rentals 538 - - (220) 318 Construction and land development 1,103 (73) 1 59 1,090 Home equity and second mortgages 142 - 5 (32) 115 Commercial loans 1,477 (594) 12 37 932 Consumer loans 2 (1) - 2 3 Commercial equipment 1,229 - 31 (386) 874 $ 8,540 $ (668) $ 102 $ 1,689 $ 9,663 September 30, 2015 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Three Months Ended Commercial real estate $ 3,334 $ - $ 5 $ (250) $ 3,089 Residential first mortgages 849 - - (203) 646 Residential rentals 561 (17) - 49 593 Construction and land development 1,205 - - 402 1,607 Home equity and second mortgages 206 - - (46) 160 Commercial loans 1,366 (138) 4 25 1,257 Consumer loans 2 - - - 2 Commercial equipment 1,234 (743) 6 524 1,021 $ 8,757 $ (898) $ 15 $ 501 $ 8,375 Nine Months Ended Commercial real estate $ 3,528 $ - $ 12 $ (451) $ 3,089 Residential first mortgages 1,047 - 1 (402) 646 Residential rentals 593 (93) - 93 593 Construction and land development 1,071 - 32 504 1,607 Home equity and second mortgages 173 - - (13) 160 Commercial loans 1,677 (353) 11 (78) 1,257 Consumer loans 3 - - (1) 2 Commercial equipment 389 (797) 10 1,419 1,021 $ 8,481 $ (1,243) $ 66 $ 1,071 $ 8,375 The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at September 30, 2016 and 2015 and December 31, 2015. September 30, 2016 December 31, 2015 September 30, 2015 (dollars in thousands) Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Loan Receivables: Commercial real estate $ 21,927 $ 603,577 $ 625,504 $ 21,448 $ 517,440 $ 538,888 $ 21,360 $ 508,213 $ 529,573 Residential first mortgages 2,246 165,060 167,306 4,225 127,176 131,401 3,844 130,542 134,386 Residential rentals 3,459 95,829 99,288 4,074 89,083 93,157 8,365 87,750 96,115 Construction and land development 4,340 31,135 35,475 4,284 31,905 36,189 4,328 33,804 38,132 Home equity and second mortgages 124 21,334 21,458 154 21,562 21,716 470 20,760 21,230 Commercial loans 3,331 64,003 67,334 4,575 62,671 67,246 3,990 47,894 51,884 Consumer loans - 422 422 - 366 366 - 403 403 Commercial equipment 803 33,829 34,632 477 29,454 29,931 510 27,255 27,765 $ 36,230 $ 1,015,189 $ 1,051,419 $ 39,237 $ 879,657 $ 918,894 $ 42,867 $ 856,621 $ 899,488 Allowance for loan losses: Commercial real estate $ 456 $ 4,591 $ 5,047 $ 601 $ 2,864 $ 3,465 $ 373 $ 2,716 $ 3,089 Residential first mortgages 13 1,271 1,284 27 557 584 61 585 646 Residential rentals 50 268 318 40 498 538 77 516 593 Construction and land development 467 623 1,090 471 632 1,103 471 1,136 1,607 Home equity and second mortgages - 115 115 - 142 142 - 160 160 Commercial loans 106 826 932 330 1,147 1,477 232 1,025 1,257 Consumer loans - 3 3 - 2 2 - 2 2 Commercial equipment 164 710 874 139 1,090 1,229 146 875 1,021 $ 1,256 $ 8,407 $ 9,663 $ 1,608 $ 6,932 $ 8,540 $ 1,360 $ 7,015 $ 8,375 Credit Quality Indicators Credit quality indicators as of September 30, 2016 and December 31, 2015 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. Residential Rentals (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015 Unrated $ 53,873 $ 51,924 $ 2,011 $ 4,399 $ 22,825 $ 21,585 Pass 550,657 466,601 29,125 27,507 75,097 67,926 Special mention - 250 - - - 845 Substandard 20,974 20,113 3,974 3,845 1,366 2,801 Doubtful - - 365 438 - - Loss - - - - - - Total $ 625,504 $ 538,888 $ 35,475 $ 36,189 $ 99,288 $ 93,157 Commercial Loans Commercial Equipment (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 Unrated $ 10,730 $ 11,281 $ 11,654 $ 10,074 Pass 53,483 51,569 22,683 19,610 Special mention - - - - Substandard 3,121 4,110 158 110 Doubtful - 286 137 137 Loss - - - - Total $ 67,334 $ 67,246 $ 34,632 $ 29,931 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015 Performing $ 166,935 $ 129,453 $ 21,441 $ 21,668 $ 422 $ 366 Nonperforming 371 1,948 17 48 - - Total $ 167,306 $ 131,401 $ 21,458 $ 21,716 $ 422 $ 366 Summary of Total Classified Loans (dollars in thousands) 9/30/2016 12/31/2015 By Internally Assigned Grade $ 30,095 $ 31,840 By Payment Activity 588 964 Total Classified $ 30,683 $ 32,804 Management uses a risk scale to assign grades to commercial real estate, residential rentals, construction and land development, commercial loans and commercial equipment loans. Commercial loan relationships with an aggregate exposure to the Bank of $750,000 or greater are risk rated. Residential first mortgages, home equity and second mortgages and consumer loans are monitored on an ongoing basis based on borrower payment history. Consumer loans and residential real estate loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are troubled debt restructures or nonperforming loans with an Other Assets Especially Mentioned or higher risk rating due to a delinquent payment history Home equity and second mortgages and consumer loans are evaluated for creditworthiness in underwriting and are monitored based on borrower payment history. Residential first mortgages are evaluated for creditworthiness during credit due diligence before being purchased. Residential first mortgages, home equity and second mortgages and consumer loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are troubled debt restructures or nonperforming loans with an Other Assets Especially Mentioned (“OAEM”) or higher risk rating due to a delinquent payment history. Management regularly reviews credit quality indicators as part of its individual loan reviews and on a monthly and quarterly basis. The overall quality of the Bank’s loan portfolio is assessed using the Bank’s risk grading scale, the level and trends of net charge-offs, nonperforming loans and delinquencies, the performance of troubled debt restructured loans and the general economic conditions in the Company’s geographical market. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators and allowance factors are adjusted based on management’s judgment during the monthly and quarterly review process. Loans subject to risk ratings are graded on a scale of one to ten. The Company considers loans classified substandard, doubtful and loss as classified assets for regulatory and financial reporting. Ratings 1 thru 6 - Pass Ratings 1 thru 6 have asset risks ranging from excellent low risk to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. Rating 7 - OAEM (Other Assets Especially Mentioned) – Special Mention These credits, while protected by the financial strength of the borrowers, guarantors or collateral, have reduced quality due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. OAEM loans are the first adversely classified assets on the Bank’s watch list. These relationships will be reviewed at least quarterly. Rating 8 - Substandard Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor strength or operating losses. When a loan is assigned to this category the Bank may estimate a specific reserve in the loan loss allowance analysis. These assets listed may include assets with histories of repossessions or some that are non-performing bankruptcies. These relationships will be reviewed at least quarterly. Rating 9 - Doubtful Doubtful assets have many of the same characteristics of Substandard with the exception that the Bank has determined that loss is not only possible but is probable and the risk is close to certain that loss will occur. When a loan is assigned to this category the Bank will identify the probable loss and the loan will receive a specific reserve in the loan loss allowance analysis. These relationships will be reviewed at least quarterly. Rating 10 – Loss Once an asset is identified as a definite loss to the Bank, it will receive the classification of “loss”. There may be some future potential recovery; however it is more practical to write off the loan at the time of classification. Losses will be taken in the period in which they are determined to be uncollectable. |
Regulatory
Regulatory | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory [Abstract] | |
Regulatory | NOTE 12 - REGULATORY As of December 31, 2015, the Bank was a member of the Federal Reserve System and its primary federal regulator was the Federal Reserve Board. On April 18, 2016, Community Bank of the Chesapeake, cancelled its stock in the Federal Reserve Bank of Richmond. This terminated its status as a member of the Federal Reserve System. As of that date, the Bank’s primary regulator became the Federal Deposit Insurance Corporation (“FDIC”) and is subject to regulation, supervision and regular examination by the Maryland Commissioner of Financial Regulation (the “Commissioner”) and the FDIC. The Company will continue to be subject to regulation, examination and supervision by the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and the regulations of the Federal Reserve Board. On January 1, 2015, the Company and Bank became subject to the new Basel III Capital Rules with full compliance with all of the final rule's requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. In July 2013, the final rules were published ( the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions compared to the previous U.S. risk-based capital rules. The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing risk-weighting approach with a more risk-sensitive approach. The Basel III Capital Rules also implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies’ rules. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio (“Min. Ratio”) of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer (“CCB”) is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased-in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The final rules also revise the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. As of September 30, 2016 and December 31, 2015, the Company and Bank were well-capitalized under the regulatory framework for prompt corrective action under the new Basel III Capital Rules. Management believes, as of September 30, 2016 and December 31, 2015, that the Company and the Bank met all capital adequacy requirements to which they were subject. The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios The Company The Bank (dollars in thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Common Equity $ 103,983 $ 99,783 $ 134,395 $ 132,571 Preferred Stock -SBLF - - - - Total Stockholders' Equity 103,983 99,783 134,395 132,571 AOCI Losses (Gains) (75) 251 (75) 251 Common Equity Tier 1 Capital 103,908 100,034 134,320 132,822 TRUPs 12,000 12,000 - - Tier 1 Capital 115,908 112,034 134,320 132,822 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 9,663 8,540 9,663 8,540 Subordinated Notes 23,000 23,000 - - Tier 2 Capital $ 148,571 $ 143,574 $ 143,983 $ 141,362 Risk-Weighted Assets ("RWA") $ 1,066,030 $ 984,614 $ 1,063,911 $ 982,347 Average Assets ("AA") $ 1,256,792 $ 1,118,843 $ 1,254,292 $ 1,116,576 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA (2) 7.00 % 9.75 % 10.16 % 12.63 % 13.52 % Tier 1 Capital to RWA 8.50 10.87 11.38 12.63 13.52 Tier 2 Capital to RWA 10.50 13.94 14.58 13.53 14.39 Tier 1 Capital to AA (Leverage) n/a 9.22 10.01 10.71 11.90 (1) These are the fully phased-in ratios as of January 1, 2019 that include the minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). The phase-in period is more fully described in the footnote above. (2) The Common Tier 1 ratio became effective for regulatory reporting purposes when the Company and the Bank became subject to the new Basel III Capital Rules during the three months ended March 31, 2015. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 13 - FAIR VALUE MEASUREMENTS The Company adopted FASB ASC Topic 820, “Fair Value Measurements” and FASB ASC Topic 825, “The Fair Value Option for Financial Assets and Financial Liabilities” , which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. FASB ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans). FASB ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an 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. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under FASB ASC Topic 820, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. These hierarchy levels are: Level 1 inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly or quarterly valuation process. There were no transfers between levels of the fair value hierarchy and the Company had no Level 3 fair value assets or liabilities for the nine months ended September 30 , 2016 and the year ended December 31, 2015, respectively. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities Available for Sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by GSEs, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Loans Receivable The Company does not record loans at fair value on a recurring basis, however, from time to time, a loan is considered impaired and an allowance for loan loss is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are considered impaired. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Impaired loans not requiring a specific allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. At September 30 , 2016 and December 31, 2015, substantially all of the impaired loans were evaluated based upon the fair value of the collateral. In accordance with FASB ASC 820, impaired loans where an allowance is established based on the fair value of collateral (loans with impairment) require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3. Premises and Equipment Held For Sale Premises and equipment are adjusted to fair value upon transfer of the assets to held for sale. Subsequently, premises and equipment held for sale are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price) or a current appraised value, the Company records the assets as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the asset at nonrecurring Level 3. Other Real Estate Owned OREO is adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is carried at the lower of carrying value and fair value. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset at nonrecurring Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets as of September 30 , 2016 and December 31, 2015 measured at fair value on a recurring basis. (dollars in thousands) September 30, 2016 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs and U.S. Agencies CMOs $ 31,343 $ - $ 31,343 $ - MBS 2,501 - 2,501 - U.S. Agency 5,479 - 5,479 - Corporate equity securities 37 - 37 - Bond mutual funds 4,525 - 4,525 - Total available for sale securities $ 43,885 $ - $ 43,885 $ - (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs or U.S. Agencies CMOs $ 30,664 $ - $ 30,664 $ - MBS 26 - 26 - Corporate equity securities 39 - 39 - Bond mutual funds 4,387 - 4,387 - Total available for sale securities $ 35,116 $ - $ 35,116 $ - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of September 30, 2016 and December 31, 2015 were included in the tables below. (dollars in thousands) September 30, 2016 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,752 $ - $ 1,752 $ - Residential first mortgages 468 - 468 - Residential rentals 187 187 Construction and land development 3,069 - 3,069 - Commercial loans 68 - 68 - Commercial equipment 28 - 28 - Total loans with impairment $ 5,572 $ - $ 5,572 $ - Other real estate owned $ 8,620 $ - $ 8,620 $ - (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,765 $ - $ 1,765 $ - Residential first mortgages 469 - 469 - Residential rentals 141 - 141 Construction and land development 33 - 33 - Commercial loans 50 - 50 - Total loans with impairment $ 2,458 $ - $ 2,458 $ - Premises and equipment held for sale $ 2,000 $ - $ 2,000 $ - Other real estate owned $ 9,449 $ - $ 9,449 $ - Loans with impairment had unpaid principal balances of $7.3 million a nd $ 4.0 million at September 30, 2016 and December 31, 2015, respectively, and include impaired loans with a specific allowance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 14 - FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Therefore, any aggregate unrealized gains or losses should not be interpreted as a forecast of future earnings or cash flows. Furthermore, the fair values disclosed should not be interpreted as the aggregate current value of the Company. Valuation Methodology Investment securities - Fair values are based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. FHLB and FRB stock - Fair values are at cost, which is the carrying value of the securities. Investment in bank owned life insurance (“BOLI”) – Fair values are at cash surrender value. Loans receivable - For conforming residential first-mortgage loans, the market price for loans with similar coupons and maturities was used. For nonconforming loans with maturities similar to conforming loans, the coupon was adjusted for credit risk. Loans that did not have quoted market prices were priced using the discounted cash flow method. The discount rate used was the rate currently offered on similar products. Loans priced using the discounted cash flow method included residential construction loans, commercial real estate loans and consumer loans. Loans held for sale – Fair values are derived from secondary market quotations for similar instruments or the estimated fair value of loans held for sale based on the terms of the related sale commitments. There were no loans held for sale at September 30, 2016 and December 31, 2015 . Savings, NOW and money market d eposits - The fair value of checking accounts, saving accounts and money market accounts were the amount payable on demand at the reporting date. Time deposits - The fair value was determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products. Long-term debt and short-term borrowings - These were valued using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar borrowings. Guaranteed preferred beneficial interest in junior subordinated securities (“TRUPs”) - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Subordinated notes - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Off-balance sheet instruments - The Company charges fees for commitments to extend credit. Interest rates on loans for which these commitments are extended are normally committed for periods of less than one month. Fees charged on standby letters of credit and other financial guarantees are deemed to be immaterial and these guarantees are expected to be settled at face amount or expire unused. It is impractical to assign any fair value to these commitments. The Company’s estimated fair values of financial instruments are presented in the following tables. September 30, 2016 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 43,885 $43,885 $ - $ 43,885 $ - Investment securities - HTM 102,956 104,570 799 103,771 - FHLB Stock 6,173 6,173 - 6,173 - Loans Receivable 1,041,910 1,043,832 - 1,043,832 - Investment in BOLI 28,429 28,429 - 28,429 - Liabilities Savings, NOW and money market accounts $ 595,523 $ 595,523 $ - $ 595,523 $ - Time deposits 416,052 417,486 - 417,486 - Long-term debt 65,573 68,889 - 68,889 - Short term borrowings 55,500 55,478 - 55,478 - TRUPs 12,000 8,400 - 8,400 - Subordinated notes 23,000 22,821 - 22,821 - December 31, 2015 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $35,116 $ 35,116 $ - $ 35,116 $ - Investment securities - HTM 109,420 109,309 750 108,559 - FHLB and FRB Stock 6,931 6,931 - 6,931 - Loans Receivable 909,200 913,506 - 913,506 - Investment in BOLI 27,836 27,836 - 27,836 - Liabilities Savings, NOW and money market accounts $ 531,348 $ 531,348 $ - $ 531,348 $ - Time deposits 375,551 375,376 - 375,376 - Long-term debt 55,617 56,987 - 56,987 - Short term borrowings 36,000 36,000 - 36,000 - TRUPs 12,000 8,400 - 8,400 - Subordinated notes 23,000 23,000 - 23,000 - At September 30, 2016 and December 31, 2015, the Company had outstanding loan commitments and standby letters of credit of $85.3 million and $73.5 million, respectively and $19.4 million and $21.4 million, respectively. Additionally, customers had $135.4 million and $128.1 million available and unused on lines of credit at September 30, 2016 and December 31, 2015, respectively. Based on the short-term lives of these instruments, the Company does not believe that the fair value of these instruments differs significantly from their carrying values. The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2016 and December 31, 2015, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amount presented herein. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | NOTE 15 – NEW ACCOUNTING STANDARDS Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”). ASU 2014-09 - Revenue from Contracts with Customers (Topic 606); ASU 2016-08 - Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net); ASU No. 2016-10 - Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2014-09 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update affects entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. ASU 2016-08 was issued to clarify certain principal versus agent considerations within the implementation guidance of ASC Topic 606. ASU 2016-10 was issued to clarify ASC Topic 606 related to (i) identifying performance obligations; and (ii) the licensing implementation guidance. The effective date for the ASUs is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date of December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2015-05 - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015 and did not have a material impact on the Company’s consolidated financial statements. ASU 2015-16 - Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments . ASU 2015-16 require s that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. ASU 2015-16 was effective January 1, 2016 and did not have an impact on the Company’s consolidated financial statements. ASU 2016-01 - Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-1 will be effective on January 1, 2018 and the Company is evaluating its impact on the consolidated financial statements and will monitor developments and additional guidance. ASU 2016-02 - Leases (Topic 842 ). ASU 2016-02 requires lessees to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the potential impact of ASU 2016-02 on the consolidated financial statements. ASU 2016-05 - Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 will be effective on January 1, 2017 and is not expected to have a significant impact on the consolidated financial statements. A SU 2016-09 - Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 is intended to simplify how share-based payments are accounted for and presented in the financial statements. The key provisions include: (i) a company will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead all excess tax benefits and tax deficiencies will be reported as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (ii) a company can increase the amount of withholding to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (iii) a company can elect an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. ASU No. 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, but all of the guidance must be adopted in the same period. The Company is evaluating the potential impact of ASU 2016-09 on the consolidated financial statements. ASU 2016-13 - Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. ASU 2016-15 - Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on the Company's Consolidated Financial Statements |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following tables present the components of comprehensive gain for the three and nine months ended September 30, 2016 and 2015. The Company’s “other comprehensive ” gain was solely related to securities for the three and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains arising during period $ 34 $ 13 $ 21 $ 381 $ 151 $ 230 Reclassification adjustments - - - - - - Other comprehensive gain $ 34 $ 13 $ 21 $ 381 $ 151 $ 230 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains arising during period $ 569 $ 223 $ 346 $ 509 $ 201 $ 308 Reclassification adjustments (30) (10) (20) - - - Other comprehensive gain $ 539 $ 213 $ 326 $ 509 $ 201 $ 308 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive gain ( loss ) , net of tax, for the three and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ 54 $ (300) $ (251) $ (378) Other comprehensive gains (losses), net of tax before reclassifications 21 230 346 308 Amounts reclassified from accumulated other comprehensive income - - (20) - Net other comprehensive gain (loss) 21 230 326 308 End of period $ 75 $ (70) $ 75 $ (70) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Net Income $ 1,963 $ 1,283 $ 5,309 $ 4,815 Less: dividends paid and accrued on preferred stock - - - (23) Net income available to common shareholders $ 1,963 $ 1,283 $ 5,309 $ 4,792 Average number of common shares outstanding 4,590,664 4,646,702 4,591,926 4,651,383 Dilutive effect of common stock equivalents 31,915 37,048 29,702 37,048 Average number of shares used to calculate diluted EPS 4,622,579 4,683,750 4,621,628 4,688,431 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation [Abstract] | |
Summarization of outstanding and exercisable options | The following tables below summarize outstanding and exercisable options at September 30, 2016 and December 31, 2015. Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2016 21,211 $ 27.70 $ - Forfeited (300) 27.70 Outstanding at September 30, 2016 20,911 $ 27.70 $ - 0.8 Exercisable at September 30, 2016 20,911 $ 27.70 $ - 0.8 Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2015 87,436 $ 23.60 $ - Expired (66,225) 22.29 Outstanding at December 31, 2015 21,211 $ 27.70 $ - 1.5 Exercisable at December 31, 2015 21,211 $ 27.70 $ - 1.5 |
Options outstanding are all currently exercisable and are summarized | Options outstanding are all currently exercisable and are summarized as follows: Shares Outstanding Weighted Average Weighted Average September 30, 2016 Remaining Contractual Life Exercise Price 20,911 less than 1 year $ 27.70 |
Summary of the unvested restricted stock awards outstanding | The following tables summarize the unvested restricted stock awards outstanding at September 30 , 2016 and December 31, 2015, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 37,048 $ 19.83 Granted 27,403 21.00 Vested (15,912) 20.09 Cancelled (658) 20.31 Nonvested at September 30, 2016 47,881 $ 20.41 Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 29,472 $ 20.83 Granted 28,040 18.63 Vested (20,464) 19.62 Nonvested at December 31, 2015 37,048 $ 19.83 |
Other Real Estate Owned ("ORE26
Other Real Estate Owned ("OREO") (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Analysis of OREO activity | NOTE 9 - OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of valuation allowances. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of OREO activity follows. Nine Months Ended September 30, Year Ended December 31, (dollars in thousands) 2016 2015 2015 Balance at beginning of year $ 9,449 $ 5,883 $ 5,883 Additions of underlying property 3,120 1,946 5,436 Disposals of underlying property (3,583) (951) (1,206) Valuation allowance (366) (447) (664) Balance at end of period $ 8,620 $ 6,431 $ 9,449 |
Expenses applicable to OREO assets | Expenses applicable to OREO assets include the following. Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2016 2015 2016 2015 Valuation allowance $ 104 $ 73 $ 366 $ 447 Operating expenses 99 56 243 235 $ 203 $ 129 $ 609 $ 682 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Securities | September 30, 2016 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs and U.S. Agencies Residential Mortgage Backed Securities ("MBS") $ 2,473 $ 28 $ - $ 2,501 Residential Collateralized Mortgage Obligations ("CMOs") 31,386 98 141 31,343 U.S. Agency 5,506 - 27 5,479 Corporate equity securities 37 - - 37 Bond mutual funds 4,359 166 - 4,525 Total securities available for sale $ 43,761 $ 292 $ 168 $ 43,885 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 34,092 $ 1,202 $ - $ 35,294 Residential CMOs 61,711 561 63 62,209 U.S. Agency 2,370 3 4 2,369 Asset-backed securities issued by Others: Residential CMOs 931 - 85 846 Total debt securities held to maturity 99,104 1,766 152 100,718 Callable GSE Agency Bonds 3,002 - - 3,002 U.S. government obligations 850 - - 850 Total securities held to maturity $ 102,956 $ 1,766 $ 152 $ 104,570 December 31, 2015 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs Residential MBS $ 22 $ 4 $ - $ 26 Residential CMOs 31,182 39 557 30,664 Corporate equity securities 37 2 - 39 Bond mutual funds 4,289 98 - 4,387 Total securities available for sale $ 35,530 $ 143 $ 557 $ 35,116 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 34,085 $ 552 $ 242 $ 34,395 Residential CMOs 73,492 278 599 73,171 Asset-backed securities issued by Others: Residential CMOs 1,093 - 100 993 Total debt securities held to maturity 108,670 830 941 108,559 U.S. government obligations 750 - - 750 Total securities held to maturity $ 109,420 $ 830 $ 941 $ 109,309 |
Credit Quality of Asset-Backed Securities and Agency Bonds | GSE asset-backed securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance. September 30, 2016 December 31, 2015 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 141,347 AAA $ 138,267 BB 435 BB 518 B+ 497 B+ - CCC+ - CCC+ 575 Total $ 142,279 Total $ 139,360 |
Held-To-Maturity Securities [Member] | |
Schedule of Unrealized Loss on Investments | Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at September 30, 2016 were as follows: September 30, 2016 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies 1,363 4 13,435 63 14,798 67 Asset-backed securities issued by Others - - 846 85 846 85 $ 1,363 $ 4 $ 14,281 $ 148 $ 15,642 $ 152 Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2015 were as follows: December 31, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 36,337 $ 346 $ 16,431 $ 495 $ 52,768 $ 841 Asset-backed securities issued by Others - - 992 100 992 100 $ 36,337 $ 346 $ 17,423 $ 595 $ 53,760 $ 941 |
Available-For-Sale Securities [Member] | |
Schedule of Unrealized Loss on Investments | Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at September 30, 2016 were as follows: September 30, 2016 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs and U.S. Agencies $ 7,406 $ 43 $ 12,781 $ 125 $ 20,187 $ 168 Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2015 were as follows: December 31, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 4,658 $ 28 $ 17,344 $ 529 $ 22,002 $ 557 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans [Abstract] | |
Schedule of Loans Receivable | Loans consist of the following: (dollars in thousands) September 30, 2016 % December 31, 2015 % Commercial real estate $ 625,504 59.51% $ 538,888 58.64% Residential first mortgages 167,306 15.91% 131,401 14.30% Residential rentals 99,288 9.44% 93,157 10.14% Construction and land development 35,475 3.37% 36,189 3.94% Home equity and second mortgages 21,458 2.04% 21,716 2.36% Commercial loans 67,334 6.40% 67,246 7.32% Consumer loans 422 0.04% 366 0.04% Commercial equipment 34,632 3.29% 29,931 3.26% 1,051,419 100.00% 918,894 100.00% Less: Deferred loan fees and premiums (154) -0.01% 1,154 0.13% Allowance for loan losses 9,663 0.92% 8,540 0.93% 9,509 9,694 $ 1,041,910 $ 909,200 |
Non-accrual loans | Non-accrual loans as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 2,113 7 $ - - $ 2,113 7 Residential first mortgages 371 2 - - 371 2 Residential rentals 591 4 - - 591 4 Construction and land development 3,611 3 - - 3,611 3 Home equity and second mortgages 17 1 - - 17 1 Commercial loans 391 4 677 2 1,068 6 Commercial equipment 684 5 - - 684 5 $ 7,778 26 $ 677 2 $ 8,455 28 December 31, 2015 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 2,875 7 $ - - $ 2,875 7 Residential first mortgages 1,948 7 - - 1,948 7 Residential rentals 605 4 - - 605 4 Construction and land development 3,555 3 - - 3,555 3 Home equity and second mortgages 48 3 - - 48 3 Commercial loans 1,361 8 693 2 2,054 10 Commercial equipment 348 4 - - 348 4 $ 10,740 36 $ 693 2 $ 11,433 38 |
Past Due Financing Receivables | Past due loans as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Loans > 90 Days and Accruing Commercial real estate $ 623,239 $ - $ 152 $ 2,113 $ 2,265 $ 625,504 $ - Residential first mortgages 166,557 - 378 371 749 167,306 - Residential rentals 98,622 - 75 591 666 99,288 - Construction and land dev. 31,864 - - 3,611 3,611 35,475 - Home equity and second mtg. 21,369 9 63 17 89 21,458 - Commercial loans 66,943 - - 391 391 67,334 - Consumer loans 420 2 - - 2 422 - Commercial equipment 33,904 44 - 684 728 34,632 - Total $ 1,042,918 $ 55 $ 668 $ 7,778 $ 8,501 $ 1,051,419 $ - December 31, 2015 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Loans > 90 Days and Accruing Commercial real estate $ 536,013 $ - $ - $ 2,875 $ 2,875 $ 538,888 $ - Residential first mortgages 129,154 - 299 1,948 2,247 131,401 - Residential rentals 92,552 - - 605 605 93,157 Construction and land dev. 32,634 - - 3,555 3,555 36,189 - Home equity and second mtg. 21,603 65 - 48 113 21,716 - Commercial loans 65,747 - 138 1,361 1,499 67,246 - Consumer loans 365 - 1 - 1 366 - Commercial equipment 29,138 152 293 348 793 29,931 - Total $ 907,206 $ 217 $ 731 $ 10,740 $ 11,688 $ 918,894 $ - |
Impaired Loans, Including TDRs | Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at September 30, 2016 and 2015 and at December 31, 2015 were as follows: September 30, 2016 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Quarter Average Recorded Investment Quarter Interest Income Recognized YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 21,956 $ 19,719 $ 2,208 $ 21,927 $ 456 $ 21,994 $ 242 $ 22,184 $ 653 Residential first mortgages 2,246 1,765 481 2,246 13 2,273 22 2,288 66 Residential rentals 3,858 3,222 237 3,459 50 3,470 35 3,623 102 Construction and land dev. 4,413 804 3,536 4,340 467 4,469 4 4,332 11 Home equity and second mtg. 124 124 - 124 - 125 1 126 4 Commercial loans 3,390 3,157 174 3,331 106 3,349 36 3,355 101 Commercial equipment 825 611 192 803 164 829 2 831 12 Total $ 36,812 $ 29,402 $ 6,828 $ 36,230 $ 1,256 $ 36,509 $ 342 $ 36,739 $ 949 December 31, 2015 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Commercial real estate $ 21,477 $ 19,081 $ 2,367 $ 21,448 $ 601 $ 21,786 $ 774 Residential first mortgages 4,226 3,730 495 4,225 27 4,276 141 Residential rentals 4,473 3,893 181 4,074 40 4,400 170 Construction and land dev. 4,283 3,780 504 4,284 471 4,302 13 Home equity and second mtg. 154 154 - 154 - 163 8 Commercial loans 4,775 4,195 380 4,575 330 4,524 251 Commercial equipment 518 338 139 477 139 491 9 Total $ 39,906 $ 35,171 $ 4,066 $ 39,237 $ 1,608 $ 39,942 $ 1,366 September 30, 2015 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Quarter Average Recorded Investment Quarter Interest Income Recognized YTD Average Recorded Investment YTD Interest Income Recognized Commercial real estate $ 21,389 $ 18,837 $ 2,523 $ 21,360 $ 373 $ 21,453 $ 203 $ 21,357 $ 610 Residential first mortgages 3,844 3,343 501 3,844 61 3,857 28 3,874 93 Residential rentals 8,366 7,726 639 8,365 77 8,383 52 8,399 183 Construction and land dev. 4,329 3,637 691 4,328 471 4,329 4 4,299 10 Home equity and second mtg. 529 470 - 470 - 475 2 481 9 Commercial loans 4,233 3,708 282 3,990 232 4,311 38 4,500 124 Commercial equipment 596 364 146 510 146 512 2 516 8 Total $ 43,286 $ 38,085 $ 4,782 $ 42,867 $ 1,360 $ 43,320 $ 329 $ 43,426 $ 1,037 |
TDRs, Included in Impaired Loans Schedule | TDRs, included in the impaired loan schedules above, as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 9,667 8 $ 9,839 8 Residential first mortgages 552 2 881 3 Residential rentals 228 1 2,058 5 Construction and land development 4,340 4 4,283 4 Commercial loans 883 5 1,384 8 Commercial equipment 116 2 123 2 Total TDRs $ 15,786 22 $ 18,568 30 Less: TDRs included in non-accrual loans (5,191) (5) (5,435) (7) Total accrual TDR loans $ 10,595 17 $ 13,133 23 |
Allowance for Credit Losses on Financing Receivables | The following tables detail activity in the allowance for loan losses at and for the three and nine months ended September 30, 2016 and 2015, respectively. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category. September 30, 2016 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Three Months Ended Commercial real estate $ 4,380 $ - $ 48 $ 619 $ 5,047 Residential first mortgages 935 - - 349 1,284 Residential rentals 613 - - (295) 318 Construction and land development 1,044 - - 46 1,090 Home equity and second mortgages 141 - - (26) 115 Commercial loans 709 (200) 1 422 932 Consumer loans 2 - - 1 3 Commercial equipment 1,282 - 10 (418) 874 $ 9,106 $ (200) $ 59 $ 698 $ 9,663 Nine Months Ended Commercial real estate $ 3,465 $ - $ 53 $ 1,529 $ 5,047 Residential first mortgages 584 - - 700 1,284 Residential rentals 538 - - (220) 318 Construction and land development 1,103 (73) 1 59 1,090 Home equity and second mortgages 142 - 5 (32) 115 Commercial loans 1,477 (594) 12 37 932 Consumer loans 2 (1) - 2 3 Commercial equipment 1,229 - 31 (386) 874 $ 8,540 $ (668) $ 102 $ 1,689 $ 9,663 September 30, 2015 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Three Months Ended Commercial real estate $ 3,334 $ - $ 5 $ (250) $ 3,089 Residential first mortgages 849 - - (203) 646 Residential rentals 561 (17) - 49 593 Construction and land development 1,205 - - 402 1,607 Home equity and second mortgages 206 - - (46) 160 Commercial loans 1,366 (138) 4 25 1,257 Consumer loans 2 - - - 2 Commercial equipment 1,234 (743) 6 524 1,021 $ 8,757 $ (898) $ 15 $ 501 $ 8,375 Nine Months Ended Commercial real estate $ 3,528 $ - $ 12 $ (451) $ 3,089 Residential first mortgages 1,047 - 1 (402) 646 Residential rentals 593 (93) - 93 593 Construction and land development 1,071 - 32 504 1,607 Home equity and second mortgages 173 - - (13) 160 Commercial loans 1,677 (353) 11 (78) 1,257 Consumer loans 3 - - (1) 2 Commercial equipment 389 (797) 10 1,419 1,021 $ 8,481 $ (1,243) $ 66 $ 1,071 $ 8,375 The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at September 30, 2016 and 2015 and December 31, 2015. September 30, 2016 December 31, 2015 September 30, 2015 (dollars in thousands) Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Total Loan Receivables: Commercial real estate $ 21,927 $ 603,577 $ 625,504 $ 21,448 $ 517,440 $ 538,888 $ 21,360 $ 508,213 $ 529,573 Residential first mortgages 2,246 165,060 167,306 4,225 127,176 131,401 3,844 130,542 134,386 Residential rentals 3,459 95,829 99,288 4,074 89,083 93,157 8,365 87,750 96,115 Construction and land development 4,340 31,135 35,475 4,284 31,905 36,189 4,328 33,804 38,132 Home equity and second mortgages 124 21,334 21,458 154 21,562 21,716 470 20,760 21,230 Commercial loans 3,331 64,003 67,334 4,575 62,671 67,246 3,990 47,894 51,884 Consumer loans - 422 422 - 366 366 - 403 403 Commercial equipment 803 33,829 34,632 477 29,454 29,931 510 27,255 27,765 $ 36,230 $ 1,015,189 $ 1,051,419 $ 39,237 $ 879,657 $ 918,894 $ 42,867 $ 856,621 $ 899,488 Allowance for loan losses: Commercial real estate $ 456 $ 4,591 $ 5,047 $ 601 $ 2,864 $ 3,465 $ 373 $ 2,716 $ 3,089 Residential first mortgages 13 1,271 1,284 27 557 584 61 585 646 Residential rentals 50 268 318 40 498 538 77 516 593 Construction and land development 467 623 1,090 471 632 1,103 471 1,136 1,607 Home equity and second mortgages - 115 115 - 142 142 - 160 160 Commercial loans 106 826 932 330 1,147 1,477 232 1,025 1,257 Consumer loans - 3 3 - 2 2 - 2 2 Commercial equipment 164 710 874 139 1,090 1,229 146 875 1,021 $ 1,256 $ 8,407 $ 9,663 $ 1,608 $ 6,932 $ 8,540 $ 1,360 $ 7,015 $ 8,375 |
Credit Quality Indicators | Credit quality indicators as of September 30, 2016 and December 31, 2015 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. Residential Rentals (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015 Unrated $ 53,873 $ 51,924 $ 2,011 $ 4,399 $ 22,825 $ 21,585 Pass 550,657 466,601 29,125 27,507 75,097 67,926 Special mention - 250 - - - 845 Substandard 20,974 20,113 3,974 3,845 1,366 2,801 Doubtful - - 365 438 - - Loss - - - - - - Total $ 625,504 $ 538,888 $ 35,475 $ 36,189 $ 99,288 $ 93,157 Commercial Loans Commercial Equipment (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 Unrated $ 10,730 $ 11,281 $ 11,654 $ 10,074 Pass 53,483 51,569 22,683 19,610 Special mention - - - - Substandard 3,121 4,110 158 110 Doubtful - 286 137 137 Loss - - - - Total $ 67,334 $ 67,246 $ 34,632 $ 29,931 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015 Performing $ 166,935 $ 129,453 $ 21,441 $ 21,668 $ 422 $ 366 Nonperforming 371 1,948 17 48 - - Total $ 167,306 $ 131,401 $ 21,458 $ 21,716 $ 422 $ 366 Summary of Total Classified Loans (dollars in thousands) 9/30/2016 12/31/2015 By Internally Assigned Grade $ 30,095 $ 31,840 By Payment Activity 588 964 Total Classified $ 30,683 $ 32,804 |
Regulatory (Tables)
Regulatory (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory [Abstract] | |
Regulatory Matters | The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios The Company The Bank (dollars in thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Common Equity $ 103,983 $ 99,783 $ 134,395 $ 132,571 Preferred Stock -SBLF - - - - Total Stockholders' Equity 103,983 99,783 134,395 132,571 AOCI Losses (Gains) (75) 251 (75) 251 Common Equity Tier 1 Capital 103,908 100,034 134,320 132,822 TRUPs 12,000 12,000 - - Tier 1 Capital 115,908 112,034 134,320 132,822 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 9,663 8,540 9,663 8,540 Subordinated Notes 23,000 23,000 - - Tier 2 Capital $ 148,571 $ 143,574 $ 143,983 $ 141,362 Risk-Weighted Assets ("RWA") $ 1,066,030 $ 984,614 $ 1,063,911 $ 982,347 Average Assets ("AA") $ 1,256,792 $ 1,118,843 $ 1,254,292 $ 1,116,576 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA (2) 7.00 % 9.75 % 10.16 % 12.63 % 13.52 % Tier 1 Capital to RWA 8.50 10.87 11.38 12.63 13.52 Tier 2 Capital to RWA 10.50 13.94 14.58 13.53 14.39 Tier 1 Capital to AA (Leverage) n/a 9.22 10.01 10.71 11.90 (1) These are the fully phased-in ratios as of January 1, 2019 that include the minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). The phase-in period is more fully described in the footnote above. (2) The Common Tier 1 ratio became effective for regulatory reporting purposes when the Company and the Bank became subject to the new Basel III Capital Rules during the three months ended March 31, 2015. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of September 30 , 2016 and December 31, 2015 measured at fair value on a recurring basis. (dollars in thousands) September 30, 2016 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs and U.S. Agencies CMOs $ 31,343 $ - $ 31,343 $ - MBS 2,501 - 2,501 - U.S. Agency 5,479 - 5,479 - Corporate equity securities 37 - 37 - Bond mutual funds 4,525 - 4,525 - Total available for sale securities $ 43,885 $ - $ 43,885 $ - (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs or U.S. Agencies CMOs $ 30,664 $ - $ 30,664 $ - MBS 26 - 26 - Corporate equity securities 39 - 39 - Bond mutual funds 4,387 - 4,387 - Total available for sale securities $ 35,116 $ - $ 35,116 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | (dollars in thousands) September 30, 2016 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,752 $ - $ 1,752 $ - Residential first mortgages 468 - 468 - Residential rentals 187 187 Construction and land development 3,069 - 3,069 - Commercial loans 68 - 68 - Commercial equipment 28 - 28 - Total loans with impairment $ 5,572 $ - $ 5,572 $ - Other real estate owned $ 8,620 $ - $ 8,620 $ - (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,765 $ - $ 1,765 $ - Residential first mortgages 469 - 469 - Residential rentals 141 - 141 Construction and land development 33 - 33 - Commercial loans 50 - 50 - Total loans with impairment $ 2,458 $ - $ 2,458 $ - Premises and equipment held for sale $ 2,000 $ - $ 2,000 $ - Other real estate owned $ 9,449 $ - $ 9,449 $ - |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, by Balance Sheet Grouping | September 30, 2016 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 43,885 $43,885 $ - $ 43,885 $ - Investment securities - HTM 102,956 104,570 799 103,771 - FHLB Stock 6,173 6,173 - 6,173 - Loans Receivable 1,041,910 1,043,832 - 1,043,832 - Investment in BOLI 28,429 28,429 - 28,429 - Liabilities Savings, NOW and money market accounts $ 595,523 $ 595,523 $ - $ 595,523 $ - Time deposits 416,052 417,486 - 417,486 - Long-term debt 65,573 68,889 - 68,889 - Short term borrowings 55,500 55,478 - 55,478 - TRUPs 12,000 8,400 - 8,400 - Subordinated notes 23,000 22,821 - 22,821 - December 31, 2015 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $35,116 $ 35,116 $ - $ 35,116 $ - Investment securities - HTM 109,420 109,309 750 108,559 - FHLB and FRB Stock 6,931 6,931 - 6,931 - Loans Receivable 909,200 913,506 - 913,506 - Investment in BOLI 27,836 27,836 - 27,836 - Liabilities Savings, NOW and money market accounts $ 531,348 $ 531,348 $ - $ 531,348 $ - Time deposits 375,551 375,376 - 375,376 - Long-term debt 55,617 56,987 - 56,987 - Short term borrowings 36,000 36,000 - 36,000 - TRUPs 12,000 8,400 - 8,400 - Subordinated notes 23,000 23,000 - 23,000 - |
Nature of Business (Narrative)
Nature of Business (Narrative) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2015USD ($) | |
Basis of Presentation and Nature of Business [Abstract] | |
Asset Impairment Charges | $ 426 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Schedule of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | ||||
Net unrealized holding gains arising during period, before tax | $ 34 | $ 381 | $ 569 | $ 509 |
Reclassification adjustments, before tax | (30) | |||
Other comprehensive gain, before tax | 34 | 381 | 539 | 509 |
Net unrealized holding gains arising during period, tax effect | 13 | 151 | 223 | 201 |
Reclassification adjustments, tax effect | 0 | 0 | (10) | 0 |
Other comprehensive gain, tax effect | 13 | 151 | 213 | 201 |
Net unrealized holding gains arising during period, net of tax | 21 | 230 | 346 | 308 |
Reclassification adjustments, net of tax | (20) | |||
Other comprehensive gain, net of tax | $ 21 | $ 230 | $ 326 | $ 308 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | ||||
Net unrealized gains and losses, beginning of period | $ 54 | $ (300) | $ (251) | $ (378) |
Other comprehensive gain (losses), net of tax before reclassifications | 21 | 230 | 346 | 308 |
Amounts reclassified from accumulated other comprehensive income | (20) | |||
Net other comprehensive gain (loss) | 21 | 230 | 326 | 308 |
Net unrealized gains and losses, end of period | $ 75 | $ (70) | $ 75 | $ (70) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from diluted net income per share | 20,911 | 87,436 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Unvested shares of restricted stock | 47,881 | 37,048 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,963 | $ 1,283 | $ 5,309 | $ 4,815 |
Less: dividends paid and accrued on preferred stock | (23) | |||
Net income available to common shareholders | $ 1,963 | $ 1,283 | $ 5,309 | $ 4,792 |
Average number of common shares outstanding | 4,590,664 | 4,646,702 | 4,591,926 | 4,651,383 |
Dilutive effect of common stock equivalents | 31,915 | 37,048 | 29,702 | 37,048 |
Average number of shares used to calculate diluted EPS | 4,622,579 | 4,683,750 | 4,621,628 | 4,688,431 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 80,000 | $ 61,000 | $ 240,000 | $ 182,000 | |
Unrecognized stock compensation expense | 1,100,000 | $ 1,100,000 | |||
Option maximum term | 10 years | ||||
Aggregate intrinsic value exercisable | $ 0 | $ 0 | $ 0 | ||
Maximum [Member] | Restricted Stock and Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee benefit plan vesting period | 5 years | ||||
Minimum [Member] | Restricted Stock and Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee benefit plan vesting period | 3 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | ||
Shares outstanding, beginning balance | 21,211 | 87,436 |
Shares expired | (66,225) | |
Shares forfeited | (300) | |
Shares outstanding, ending balance | 20,911 | 21,211 |
Shares, exercisable | 20,911 | 21,211 |
Weighted average exercise price outstanding, beginning balance | $ 27.70 | $ 23.60 |
Weighted average exercise price expired | 22.29 | |
Weighted average exercise price forfeited | 27.70 | |
Weighted average exercise price outstanding, ending balance | 27.70 | 27.70 |
Weighted average exercise price exercisable | $ 27.70 | $ 27.70 |
Aggregate intrinsic value outstanding, beginning balance | $ 0 | $ 0 |
Aggregate intrinsic value outstanding, ending balance | 0 | 0 |
Aggregate intrinsic value exercisable | $ 0 | $ 0 |
Weighted-average contractual life remaining in years outstanding (in years) | 9 months 18 days | 1 year 6 months |
Weighted-average contractual life remaining in years exercisable (in years) | 9 months 18 days | 1 year 6 months |
Stock-Based Compensation (Sch39
Stock-Based Compensation (Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range) (Details) - $ / shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | ||
Shares Outstanding (in shares) | 20,911 | 21,211 |
Weighted average remaining contractual life | 9 months 18 days | 1 year 6 months |
Weighted average exercise price (in dollars per share) | $ 27.70 | $ 27.70 |
Stock-Based Compensation (Sch40
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - Restricted Stock [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning period, nonvested number of shares | shares | 37,048 | 29,472 |
Number of shares, granted | shares | 27,403 | 28,040 |
Number of shares, vested | shares | (15,912) | (20,464) |
Number of shares, cancelled | shares | (658) | |
Ending period, nonvested number of shares | shares | 47,881 | 37,048 |
Beginning period, weighted average grant date fair value, nonvested number of shares | $ / shares | $ 19.83 | $ 20.83 |
Weighted average grant date fair value, granted | $ / shares | 21 | 18.63 |
Weighted average grant date fair value, vested | $ / shares | $ 20.09 | 19.62 |
Weighted average grant date fair value, cancelled | $ / shares | 20.31 | |
Ending period, weighted average grant date fair value, nonvested number of shares | $ / shares | $ 20.41 | $ 19.83 |
Guaranteed Preferred Benefici41
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jun. 30, 2005 | Jul. 31, 2004 | Sep. 30, 2016 | Jun. 15, 2005 | Jul. 22, 2004 | |
Debt Instrument [Line Items] | |||||
Junior subordinated notes purchased | $ 5,200,000 | ||||
Capital Trust I I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 5,000,000 | ||||
Additional amount contributed to purchase debt | $ 155,000 | ||||
Debt instrument, maturity date | Jun. 15, 2035 | ||||
Capital Trust I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 7,000,000 | ||||
Additional amount contributed to purchase debt | $ 217,000 | ||||
Junior subordinated notes purchased | $ 7,200,000 | ||||
Debt instrument, maturity date | Jul. 22, 2034 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Capital Trust I I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of variable rate basis | 90-day LIBOR rate plus 1.70% | ||||
Debt instrument, percent spread on variable rate | 1.70% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Capital Trust I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of variable rate basis | 90-day LIBOR rate plus 2.60% | ||||
Debt instrument, percent spread on variable rate | 2.60% |
Subordinated Notes (Details)
Subordinated Notes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Feb. 13, 2015 | Feb. 06, 2015 | |
Subordinated notes | $ 23,000,000 | $ 23,000,000 | ||
Preferred stock, redemption date | Feb. 13, 2015 | |||
Preferred stock, value | $ 20,000,000 | |||
Subordinated Debt [Member] | ||||
Debt Instrument, Face Amount | $ 23,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||
Subordinated notes interest rate | 6.25% | 6.25% | ||
Debt Instrument, Maturity Date | Feb. 15, 2025 | |||
Redemption percentage | 100.00% | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt instrument, percent spread on variable rate | 4.79% |
Other Real Estate Owned ("ORE43
Other Real Estate Owned ("OREO") (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Additions of underlying property | $ 3,120 | $ 1,946 | $ 5,436 | |||
Gains (losses) on sale of OREO | (440) | |||||
Other real estate owned, carrying amount | $ 8,620 | $ 6,431 | 8,620 | 6,431 | 9,449 | $ 5,883 |
Disposals | 138 | |||||
Valuation allowance | 104 | $ 73 | 366 | 447 | $ 664 | |
Residential Real Estate [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Additions of underlying property | 977 | |||||
Five Residential Properties [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Additions of underlying property | 784 | |||||
One Residential Property [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Other real estate owned, carrying amount | 166 | 166 | ||||
Three Residential Lots [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Additions of underlying property | 372 | |||||
Other real estate owned, carrying amount | 106 | 106 | ||||
Commercial Real Estate [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Additions of underlying property | 2,100 | |||||
Commercial Building [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Additions of underlying property | 790 | |||||
Three Commercial Properties [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Other real estate owned, carrying amount | 875 | 875 | ||||
Apartment And Condominium Property [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Other real estate owned, carrying amount | $ 2,200 | $ 2,200 | ||||
Three Residential Properties And Three Finished Residential Lots [Member] | ||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||||
Gains (losses) on sale of OREO | $ (20) |
Other Real Estate Owned ("ORE44
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |||||
Balance at beginning of year | $ 9,449 | $ 5,883 | $ 5,883 | ||
Additions of underlying property | 3,120 | 1,946 | 5,436 | ||
Disposals of underlying property | (3,583) | (951) | (1,206) | ||
Valuation allowance | $ (104) | $ (73) | (366) | (447) | (664) |
Balance at end of period | $ 8,620 | $ 6,431 | $ 8,620 | $ 6,431 | $ 9,449 |
Other Real Estate Owned ("ORE45
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |||||
Valuation allowance | $ 104 | $ 73 | $ 366 | $ 447 | $ 664 |
Operating expenses | 99 | 56 | 243 | 235 | |
Expenses applicable to OREO assets | $ 203 | $ 129 | $ 609 | $ 682 |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Asset-backed securities pledged to secure certain deposits | $ 34,100 | $ 21,400 | |
Asset-backed securities pledged as collateral | 1,700 | 1,900 | |
Amount | $ 142,279 | $ 139,360 | |
Available for sale securities, average life | 4 years 1 month 21 days | 4 years 4 months 21 days | |
Available for sale securities, average duration | 3 years 10 months 2 days | 4 years 15 days | |
Held to maturity securities, average life | 4 years 2 months 1 day | 5 years 26 days | |
Held to maturity securities, average duration | 3 years 10 months 2 days | 4 years 6 months 29 days | |
Amortized cost, available for sale | $ 43,761 | $ 35,530 | |
Gain (Loss) On Sale Of Securities, Net | 39 | $ (1) | |
Gross realized gains on sale of HTM securities | 39 | (1) | |
Securities held to maturity (HTM), at amortized cost | 102,956 | 109,420 | |
Securities available for sale (AFS), at fair value | 43,885 | 35,116 | |
Estimated Fair Value, held to maturity | 104,570 | 109,309 | |
Gross unrealized losses, available for sale | 168 | 557 | |
Fair value of AFS Securities with unrealized losses | 20,200 | 22,000 | |
Fair value of HTM Securities with unrealized losses | 15,600 | 53,800 | |
Gross unrealized losses, held to maturity | 152 | 941 | |
Three Available For Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of AFS securities | 31 | ||
Securities available for sale (AFS), at fair value | 2,400 | ||
One Held To Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of HTM securities | 8 | (1) | |
Held-to-maturity securities sold | 698 | $ 68 | |
Residential Mortgage Backed Securities Issued By US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 2,473 | 22 | |
Securities held to maturity (HTM), at amortized cost | 34,092 | 34,085 | |
Securities available for sale (AFS), at fair value | 2,501 | 26 | |
Estimated Fair Value, held to maturity | 35,294 | 34,395 | |
Gross unrealized losses, held to maturity | 242 | ||
Residential Collateralized Mortgage Obligations, Issued By US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 31,386 | 31,182 | |
Securities held to maturity (HTM), at amortized cost | 61,711 | 73,492 | |
Securities available for sale (AFS), at fair value | 31,343 | 30,664 | |
Estimated Fair Value, held to maturity | 62,209 | 73,171 | |
Gross unrealized losses, available for sale | 141 | 557 | |
Gross unrealized losses, held to maturity | $ 63 | $ 599 | |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities with unrealized losses, average life | 3 years 8 months 1 day | 5 years 5 months 1 day | |
Held to maturity securities with unrealized losses, average duration | 3 years 5 months 27 days | 4 years 9 months 11 days | |
Securities held to maturity (HTM), at amortized cost | $ 102,000 | $ 107,600 | |
Fair value of HTM Securities with unrealized losses | 14,800 | 52,800 | |
Gross unrealized losses, held to maturity | $ 67 | $ 841 | |
Asset-backed Securities, Issued by Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities with unrealized losses, average life | 3 years 11 months 16 days | 4 years 15 days | |
Held to maturity securities with unrealized losses, average duration | 3 years 1 month 21 days | 3 years 3 months 15 days | |
Securities held to maturity (HTM), at amortized cost | $ 931 | $ 1,100 | |
Fair value of HTM Securities with unrealized losses | 846 | 992 | |
Gross unrealized losses, held to maturity | $ 85 | $ 100 | |
Asset-backed securities issued by GSEs [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available for sale securities with unrealized losses, average life | 4 years 2 months 9 days | 4 years 5 months 12 days | |
Available for sale securities with unrealized losses, average duration | 3 years 10 months 13 days | 4 years 15 days | |
Amortized cost, available for sale | $ 39,400 | $ 31,200 | |
Gross unrealized losses, available for sale | 168 | 557 | |
Residential Collateralized Mortgage Obligations, Issued By Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 931 | 1,093 | |
Estimated Fair Value, held to maturity | 846 | 993 | |
Gross unrealized losses, held to maturity | 85 | 100 | |
Debt Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 99,104 | 108,670 | |
Estimated Fair Value, held to maturity | 100,718 | 108,559 | |
Gross unrealized losses, held to maturity | 152 | 941 | |
Corporate Equity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 37 | 37 | |
Securities available for sale (AFS), at fair value | 37 | 39 | |
Bond Mutual Funds [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 4,359 | 4,289 | |
Securities available for sale (AFS), at fair value | 4,525 | 4,387 | |
US Government Obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 850 | 750 | |
Estimated Fair Value, held to maturity | $ 850 | $ 750 | |
Standard Poor's, AAA Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Percentage of asset backed securities in investment portfolio | 99.00% | 99.00% | |
Amount | $ 141,347 | $ 138,267 | |
Standard Poor's, BB Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 435 | 518 | |
Standard Poor's, B+ Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 497 | ||
Standard Poor's CCC + Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 575 |
Securities (Fair Value to Amort
Securities (Fair Value to Amortized Cost Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | $ 43,761 | $ 35,530 |
Gross unrealized gains, available for sale | 292 | 143 |
Gross unrealized losses, available for sale | 168 | 557 |
Estimated fair value, available for sale | 43,885 | 35,116 |
Amortized cost, Held-to-maturity Securities | 102,956 | 109,420 |
Gross unrealized gains, held to maturity | 1,766 | 830 |
Gross unrealized losses, held to maturity | 152 | 941 |
Estimated Fair Value, held to maturity | 104,570 | 109,309 |
Residential Mortgage Backed Securities Issued By US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 2,473 | 22 |
Gross unrealized gains, available for sale | 28 | 4 |
Estimated fair value, available for sale | 2,501 | 26 |
Amortized cost, Held-to-maturity Securities | 34,092 | 34,085 |
Gross unrealized gains, held to maturity | 1,202 | 552 |
Gross unrealized losses, held to maturity | 242 | |
Estimated Fair Value, held to maturity | 35,294 | 34,395 |
Residential Collateralized Mortgage Obligations, Issued By US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 31,386 | 31,182 |
Gross unrealized gains, available for sale | 98 | 39 |
Gross unrealized losses, available for sale | 141 | 557 |
Estimated fair value, available for sale | 31,343 | 30,664 |
Amortized cost, Held-to-maturity Securities | 61,711 | 73,492 |
Gross unrealized gains, held to maturity | 561 | 278 |
Gross unrealized losses, held to maturity | 63 | 599 |
Estimated Fair Value, held to maturity | 62,209 | 73,171 |
US Agency [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 5,506 | |
Gross unrealized losses, available for sale | 27 | |
Estimated fair value, available for sale | 5,479 | |
Amortized cost, Held-to-maturity Securities | 2,370 | |
Gross unrealized gains, held to maturity | 3 | |
Gross unrealized losses, held to maturity | 4 | |
Estimated Fair Value, held to maturity | 2,369 | |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 102,000 | 107,600 |
Gross unrealized losses, held to maturity | 67 | 841 |
Residential Collateralized Mortgage Obligations, Issued By Private Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 931 | 1,093 |
Gross unrealized losses, held to maturity | 85 | 100 |
Estimated Fair Value, held to maturity | 846 | 993 |
Debt Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 99,104 | 108,670 |
Gross unrealized gains, held to maturity | 1,766 | 830 |
Gross unrealized losses, held to maturity | 152 | 941 |
Estimated Fair Value, held to maturity | 100,718 | 108,559 |
US Government Agencies Callable Agency Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 3,002 | |
Estimated Fair Value, held to maturity | 3,002 | |
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 850 | 750 |
Estimated Fair Value, held to maturity | 850 | 750 |
Corporate Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 37 | 37 |
Gross unrealized gains, available for sale | 2 | |
Estimated fair value, available for sale | 37 | 39 |
Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 4,359 | 4,289 |
Gross unrealized gains, available for sale | 166 | 98 |
Estimated fair value, available for sale | $ 4,525 | $ 4,387 |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Loss on Investments, AFS) (Details) - Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Less than 12 months, fair value | $ 7,406 | $ 4,658 |
More than 12 months, fair value | 12,781 | 17,344 |
Fair value | 20,187 | 22,002 |
Less than 12 months, unrealized loss | 43 | 28 |
More than 12 months, unrealized loss | 125 | 529 |
Unrealized loss | $ 168 | $ 557 |
Securities (Schedule of Unrea49
Securities (Schedule of Unrealized Loss on Investments, HTM) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 1,363 | $ 36,337 |
Less than 12 months, unrealized loss | 4 | 346 |
More than 12 months, fair value | 14,281 | 17,423 |
More than 12 months, unrealized loss | 148 | 595 |
Total, fair value | 15,644 | 53,760 |
Total, unrealized loss | 152 | 941 |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | 1,363 | 36,337 |
Less than 12 months, unrealized loss | 4 | 346 |
More than 12 months, fair value | 13,435 | 16,431 |
More than 12 months, unrealized loss | 63 | 495 |
Total, fair value | 14,798 | 52,768 |
Total, unrealized loss | 67 | 841 |
Asset-backed Securities, Issued by Private Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, fair value | 846 | 992 |
More than 12 months, unrealized loss | 85 | 100 |
Total, fair value | 846 | 992 |
Total, unrealized loss | $ 85 | $ 100 |
Securities (Financing Receivabl
Securities (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 142,279 | $ 139,360 |
Standard Poor's, AAA Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 141,347 | 138,267 |
Standard Poor's, BB Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 435 | 518 |
Standard Poor's, B+ Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 497 | |
Standard Poor's CCC + Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 575 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases receivable, allowance percentage | 0.92% | 0.92% | 0.93% | ||
Total number of loans | loan | 28 | 28 | 38 | ||
90 or greater days delinquent | $ 7,778,000 | $ 7,778,000 | $ 10,740,000 | ||
Total non-accrual loans | 8,455,000 | 8,455,000 | 11,433,000 | ||
Deferred loan fees and premiums include net deferred fees paid by customers | 2,600,000 | 2,600,000 | 2,600,000 | ||
Loan portfolio | 1,051,419,000 | $ 899,488,000 | 1,051,419,000 | $ 899,488,000 | 918,894,000 |
Allowance for loan loss | 9,663,000 | 9,663,000 | 8,540,000 | ||
Interest income recognized on outstanding TDR loans | 252,000 | 508,000 | |||
Charge-offs | 200,000 | 898,000 | 668,000 | 1,243,000 | |
Loans, carrying amount | 1,041,910,000 | 1,041,910,000 | 909,200,000 | ||
Non-accrual performing loans | 677,000 | 677,000 | 693,000 | ||
Past Due | $ 8,501,000 | $ 8,501,000 | $ 11,688,000 | ||
Number of TDR loans | loan | 22 | 30 | |||
Number of accrual TDR loans | loan | 17 | 17 | 23 | ||
Financing receivable post modification recorded investment | $ 15,786,000 | $ 15,786,000 | $ 18,568,000 | ||
Accrual TDR loans | $ 10,595,000 | $ 10,595,000 | 13,133,000 | ||
Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases receivable, allowance percentage | 80.00% | 80.00% | |||
Loan portfolio | $ 625,504,000 | 529,573,000 | $ 625,504,000 | 529,573,000 | $ 538,888,000 |
Percentage status of loan in portfolio | 8.60% | 8.60% | 6.10% | ||
Past Due | $ 2,265,000 | $ 2,265,000 | $ 2,875,000 | ||
Number of TDR loans | loan | 8 | 8 | |||
Financing receivable post modification recorded investment | 9,667,000 | $ 9,667,000 | $ 9,839,000 | ||
Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 67,334,000 | 51,884,000 | 67,334,000 | 51,884,000 | 67,246,000 |
Charge-offs | 200,000 | 138,000 | 594,000 | 353,000 | |
Past Due | 391,000 | $ 391,000 | $ 1,499,000 | ||
Number of TDR loans | loan | 5 | 8 | |||
Financing receivable post modification recorded investment | 883,000 | $ 883,000 | $ 1,384,000 | ||
Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 34,632,000 | 27,765,000 | 34,632,000 | 27,765,000 | 29,931,000 |
Charge-offs | 743,000 | 797,000 | |||
Past Due | 728,000 | $ 728,000 | $ 793,000 | ||
Number of TDR loans | loan | 2 | 2 | |||
Financing receivable post modification recorded investment | 116,000 | $ 116,000 | $ 123,000 | ||
Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Offset by net deferred premiums paid to purchase loans | 2,800,000 | 2,800,000 | 1,400,000 | ||
Loan portfolio | 167,306,000 | 134,386,000 | 167,306,000 | 134,386,000 | 131,401,000 |
Past Due | 749,000 | $ 749,000 | $ 2,247,000 | ||
Number of TDR loans | loan | 2 | 3 | |||
Financing receivable post modification recorded investment | 552,000 | $ 552,000 | $ 881,000 | ||
Adjustable Rate Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 41,400,000 | $ 41,400,000 | $ 18,900,000 | ||
Percentage status of loan in portfolio | 3.90% | 3.90% | 2.10% | ||
Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 99,288,000 | 96,115,000 | $ 99,288,000 | 96,115,000 | $ 93,157,000 |
Charge-offs | $ 17,000 | $ 93,000 | |||
Past Due | 666,000 | $ 666,000 | $ 605,000 | ||
Number of TDR loans | loan | 1 | 5 | |||
Financing receivable post modification recorded investment | 228,000 | $ 228,000 | $ 2,058,000 | ||
1-4 Family Units [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 83,300,000 | 83,300,000 | 80,800,000 | ||
Apartment Buildings Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 16,000,000 | 16,000,000 | 12,400,000 | ||
Nineteen Loans Representing Six Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans with deferred collection of principal and interest for one year | 3,800,000 | ||||
Seventeen Loans Representing Six Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans with deferred collection of principal and interest for one year | 3,600,000 | 3,600,000 | |||
One Customer Relationship [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Reserve of the allowance for loan losses | 426,000 | 426,000 | |||
Accrual TDR loans | 8,000,000 | 8,000,000 | |||
Eight Loans With Two Construction And Land Development Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrual TDR loans | 724,000 | 724,000 | |||
Five Commercial Real Estate Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrual TDR loans | 7,100,000 | 7,100,000 | |||
Residential Development Project [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable post modification recorded investment | 3,600,000 | 3,600,000 | 3,800,000 | ||
Three Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable post modification recorded investment | 1,600,000 | 1,600,000 | 1,700,000 | ||
One Loan [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable post modification recorded investment | 196,000 | 196,000 | |||
Financing Receivable Troubled Debt Restructuring [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans with deferred collection of principal and interest for one year | 1,600,000 | 1,600,000 | 1,700,000 | ||
Seven Troubled Debt Restructuring Loans with Reserves [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 6,200,000 | ||||
Specific reserves for TDR loans | 929,000 | $ 929,000 | |||
Number of TDR loans | loan | 7 | ||||
Nine Troubled Debt Restructuring Loans with Reserves [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 3,600,000 | ||||
Specific reserves for TDR loans | $ 1,300,000 | ||||
Number of TDR loans | loan | 9 | ||||
Nonaccrual Loans With No Impairment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | 4,500,000 | $ 4,500,000 | $ 10,500,000 | ||
Interest due to debt | 318,000 | 953,000 | |||
Nonaccrual Loans With Impairment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | 4,000,000 | 4,000,000 | 902,000 | ||
Interest due to debt | $ 683,000 | 34,000 | |||
Minimum [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 3 years | ||||
Minimum [Member] | Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 10 years | ||||
Minimum [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 3 years | ||||
Maximum [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 20 years | ||||
Maximum [Member] | Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 30 years | ||||
Maximum [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 20 years | ||||
Unrated [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 53,873,000 | $ 53,873,000 | 51,924,000 | ||
Unrated [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 10,730,000 | 10,730,000 | 11,281,000 | ||
Unrated [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 11,654,000 | 11,654,000 | 10,074,000 | ||
Unrated [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 22,825,000 | 22,825,000 | 21,585,000 | ||
Pass [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 550,657,000 | 550,657,000 | 466,601,000 | ||
Pass [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 53,483,000 | 53,483,000 | 51,569,000 | ||
Pass [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 22,683,000 | 22,683,000 | 19,610,000 | ||
Pass [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 75,097,000 | 75,097,000 | 67,926,000 | ||
Special Mention [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 250,000 | ||||
Special Mention [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 845,000 | ||||
Substandard [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 20,974,000 | 20,974,000 | 20,113,000 | ||
Substandard [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 3,121,000 | 3,121,000 | 4,110,000 | ||
Substandard [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 158,000 | 158,000 | 110,000 | ||
Substandard [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 1,366,000 | 1,366,000 | 2,801,000 | ||
Substandard [Member] | Nineteen Loans Representing Six Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 8,100,000 | ||||
Percentage status of loan in portfolio | 71.00% | ||||
Substandard [Member] | Sixteen Loans Representing Six Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 7,000,000 | $ 7,000,000 | |||
Percentage status of loan in portfolio | 83.00% | 83.00% | |||
Doubtful [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 286,000 | ||||
Doubtful [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 137,000 | $ 137,000 | 137,000 | ||
Performing Financing Receivable [Member] | Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 166,935,000 | $ 166,935,000 | 129,453,000 | ||
Nonperforming Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in loans | $ 3,000,000 | ||||
Percentage status of loan in portfolio | 0.80% | 0.80% | 1.24% | ||
Nonperforming Financing Receivable [Member] | Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 371,000 | $ 371,000 | $ 1,948,000 | ||
31 - 60 Days [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 55,000 | 55,000 | 217,000 | ||
31 - 60 Days [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 44,000 | 44,000 | 152,000 | ||
61 - 89 Days [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 668,000 | 668,000 | 731,000 | ||
61 - 89 Days [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 152,000 | 152,000 | |||
61 - 89 Days [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 138,000 | ||||
61 - 89 Days [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 293,000 | ||||
61 - 89 Days [Member] | Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 378,000 | 378,000 | 299,000 | ||
61 - 89 Days [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 75,000 | 75,000 | |||
90 or Greater Days [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 7,778,000 | 7,778,000 | 10,740,000 | ||
90 or Greater Days [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 2,113,000 | 2,113,000 | 2,875,000 | ||
90 or Greater Days [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 391,000 | 391,000 | 1,361,000 | ||
90 or Greater Days [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 684,000 | 684,000 | 348,000 | ||
90 or Greater Days [Member] | Residential First Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 371,000 | 371,000 | 1,948,000 | ||
90 or Greater Days [Member] | Residential Rentals [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | $ 591,000 | $ 591,000 | $ 605,000 |
Loans (Schedule of Accounts, No
Loans (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 1,051,419 | $ 918,894 | $ 899,488 |
Less: | |||
Deferred loan fees and premiums | (154) | 1,154 | |
Allowance for loan losses | 9,663 | 8,540 | |
Loans and leases receivable adjustments | 9,509 | 9,694 | |
Loans and leases receivable net reported amount | 1,041,910 | 909,200 | |
Commercial Equipment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 34,632 | 29,931 | 27,765 |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 422 | 366 | 403 |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 67,334 | 67,246 | 51,884 |
Home Equity and Second Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 21,458 | 21,716 | 21,230 |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 35,475 | 36,189 | 38,132 |
Residential Rentals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 99,288 | 93,157 | 96,115 |
Residential First Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 167,306 | 131,401 | 134,386 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 625,504 | $ 538,888 | $ 529,573 |
Loans (Schedule of Financing Re
Loans (Schedule of Financing Receivables, Non-Accrual Status) (Details) $ in Thousands | Sep. 30, 2016USD ($)loan | Dec. 31, 2015USD ($)loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 7,778 | $ 10,740 |
Number of loans, 90 or greater days delinquent | loan | 26 | 36 |
Non-accrual performing loans | $ | $ 677 | $ 693 |
Number of loans, non-accrual performing loans | loan | 2 | 2 |
Total non-accrual loans | $ | $ 8,455 | $ 11,433 |
Total number of loans | loan | 28 | 38 |
Commercial Equipment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 684 | $ 348 |
Number of loans, 90 or greater days delinquent | loan | 5 | 4 |
Total non-accrual loans | $ | $ 684 | $ 348 |
Total number of loans | loan | 5 | 4 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 391 | $ 1,361 |
Number of loans, 90 or greater days delinquent | loan | 4 | 8 |
Non-accrual performing loans | $ | $ 677 | $ 693 |
Number of loans, non-accrual performing loans | loan | 2 | 2 |
Total non-accrual loans | $ | $ 1,068 | $ 2,054 |
Total number of loans | loan | 6 | 10 |
Home Equity and Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 17 | $ 48 |
Number of loans, 90 or greater days delinquent | loan | 1 | 3 |
Total non-accrual loans | $ | $ 17 | $ 48 |
Total number of loans | loan | 1 | 3 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 3,611 | $ 3,555 |
Number of loans, 90 or greater days delinquent | loan | 3 | 3 |
Total non-accrual loans | $ | $ 3,611 | $ 3,555 |
Total number of loans | loan | 3 | 3 |
Residential Rentals [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 591 | $ 605 |
Number of loans, 90 or greater days delinquent | loan | 4 | 4 |
Total non-accrual loans | $ | $ 591 | $ 605 |
Total number of loans | loan | 4 | 4 |
Residential First Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 371 | $ 1,948 |
Number of loans, 90 or greater days delinquent | loan | 2 | 7 |
Total non-accrual loans | $ | $ 371 | $ 1,948 |
Total number of loans | loan | 2 | 7 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 2,113 | $ 2,875 |
Number of loans, 90 or greater days delinquent | loan | 7 | 7 |
Total non-accrual loans | $ | $ 2,113 | $ 2,875 |
Total number of loans | loan | 7 | 7 |
Loans (Past Due Financing Recei
Loans (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Current | $ 1,042,918 | $ 907,206 | |
Past Due | 8,501 | 11,688 | |
Total Loan Receivables | 1,051,419 | 918,894 | $ 899,488 |
31 - 60 Days [Member] | |||
Past Due | 55 | 217 | |
61 - 89 Days [Member] | |||
Past Due | 668 | 731 | |
90 or Greater Days [Member] | |||
Past Due | 7,778 | 10,740 | |
Commercial Equipment [Member] | |||
Current | 33,904 | 29,138 | |
Past Due | 728 | 793 | |
Total Loan Receivables | 34,632 | 29,931 | 27,765 |
Commercial Equipment [Member] | 31 - 60 Days [Member] | |||
Past Due | 44 | 152 | |
Commercial Equipment [Member] | 61 - 89 Days [Member] | |||
Past Due | 293 | ||
Commercial Equipment [Member] | 90 or Greater Days [Member] | |||
Past Due | 684 | 348 | |
Consumer Loans [Member] | |||
Current | 420 | 365 | |
Past Due | 2 | 1 | |
Total Loan Receivables | 422 | 366 | 403 |
Consumer Loans [Member] | 31 - 60 Days [Member] | |||
Past Due | 2 | ||
Consumer Loans [Member] | 61 - 89 Days [Member] | |||
Past Due | 1 | ||
Commercial Loans [Member] | |||
Current | 66,943 | 65,747 | |
Past Due | 391 | 1,499 | |
Total Loan Receivables | 67,334 | 67,246 | 51,884 |
Commercial Loans [Member] | 61 - 89 Days [Member] | |||
Past Due | 138 | ||
Commercial Loans [Member] | 90 or Greater Days [Member] | |||
Past Due | 391 | 1,361 | |
Home Equity and Second Mortgage [Member] | |||
Current | 21,369 | 21,603 | |
Past Due | 89 | 113 | |
Total Loan Receivables | 21,458 | 21,716 | 21,230 |
Home Equity and Second Mortgage [Member] | 31 - 60 Days [Member] | |||
Past Due | 9 | 65 | |
Home Equity and Second Mortgage [Member] | 61 - 89 Days [Member] | |||
Past Due | 63 | ||
Home Equity and Second Mortgage [Member] | 90 or Greater Days [Member] | |||
Past Due | 17 | 48 | |
Construction and Land Development [Member] | |||
Current | 31,864 | 32,634 | |
Past Due | 3,611 | 3,555 | |
Total Loan Receivables | 35,475 | 36,189 | 38,132 |
Construction and Land Development [Member] | 90 or Greater Days [Member] | |||
Past Due | 3,611 | 3,555 | |
Residential Rentals [Member] | |||
Current | 98,622 | 92,552 | |
Past Due | 666 | 605 | |
Total Loan Receivables | 99,288 | 93,157 | 96,115 |
Residential Rentals [Member] | 61 - 89 Days [Member] | |||
Past Due | 75 | ||
Residential Rentals [Member] | 90 or Greater Days [Member] | |||
Past Due | 591 | 605 | |
Residential First Mortgages [Member] | |||
Current | 166,557 | 129,154 | |
Past Due | 749 | 2,247 | |
Total Loan Receivables | 167,306 | 131,401 | 134,386 |
Residential First Mortgages [Member] | 61 - 89 Days [Member] | |||
Past Due | 378 | 299 | |
Residential First Mortgages [Member] | 90 or Greater Days [Member] | |||
Past Due | 371 | 1,948 | |
Commercial Real Estate [Member] | |||
Current | 623,239 | 536,013 | |
Past Due | 2,265 | 2,875 | |
Total Loan Receivables | 625,504 | 538,888 | $ 529,573 |
Commercial Real Estate [Member] | 61 - 89 Days [Member] | |||
Past Due | 152 | ||
Commercial Real Estate [Member] | 90 or Greater Days [Member] | |||
Past Due | $ 2,113 | $ 2,875 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Unpaid contractual principal balance | $ 36,812 | $ 43,286 | $ 36,812 | $ 43,286 | $ 39,906 |
Recorded investment with no allowance | 29,402 | 38,085 | 29,402 | 38,085 | 35,171 |
Recorded investment with allowance | 6,828 | 4,782 | 6,828 | 4,782 | 4,066 |
Total recorded investment | 36,230 | 42,867 | 36,230 | 42,867 | 39,237 |
Related allowance | 1,256 | 1,360 | 1,256 | 1,360 | 1,608 |
Average recorded investment | 36,509 | 43,320 | 36,739 | 43,426 | 39,942 |
Interest income recognized | 342 | 329 | 949 | 1,037 | 1,366 |
Commercial Loans [Member] | |||||
Unpaid contractual principal balance | 3,390 | 4,233 | 3,390 | 4,233 | 4,775 |
Recorded investment with no allowance | 3,157 | 3,708 | 3,157 | 3,708 | 4,195 |
Recorded investment with allowance | 174 | 282 | 174 | 282 | 380 |
Total recorded investment | 3,331 | 3,990 | 3,331 | 3,990 | 4,575 |
Related allowance | 106 | 232 | 106 | 232 | 330 |
Average recorded investment | 3,349 | 4,311 | 3,355 | 4,500 | 4,524 |
Interest income recognized | 36 | 38 | 101 | 124 | 251 |
Commercial Equipment [Member] | |||||
Unpaid contractual principal balance | 825 | 596 | 825 | 596 | 518 |
Recorded investment with no allowance | 611 | 364 | 611 | 364 | 338 |
Recorded investment with allowance | 192 | 146 | 192 | 146 | 139 |
Total recorded investment | 803 | 510 | 803 | 510 | 477 |
Related allowance | 164 | 146 | 164 | 146 | 139 |
Average recorded investment | 829 | 512 | 831 | 516 | 491 |
Interest income recognized | 2 | 2 | 12 | 8 | 9 |
Home Equity and Second Mortgage [Member] | |||||
Unpaid contractual principal balance | 124 | 529 | 124 | 529 | 154 |
Recorded investment with no allowance | 124 | 470 | 124 | 470 | 154 |
Total recorded investment | 124 | 470 | 124 | 470 | 154 |
Average recorded investment | 125 | 475 | 126 | 481 | 163 |
Interest income recognized | 1 | 2 | 4 | 9 | 8 |
Construction and Land Development [Member] | |||||
Unpaid contractual principal balance | 4,413 | 4,329 | 4,413 | 4,329 | 4,283 |
Recorded investment with no allowance | 804 | 3,637 | 804 | 3,637 | 3,780 |
Recorded investment with allowance | 3,536 | 691 | 3,536 | 691 | 504 |
Total recorded investment | 4,340 | 4,328 | 4,340 | 4,328 | 4,284 |
Related allowance | 467 | 471 | 467 | 471 | 471 |
Average recorded investment | 4,469 | 4,329 | 4,332 | 4,299 | 4,302 |
Interest income recognized | 4 | 4 | 11 | 10 | 13 |
Residential Rentals [Member] | |||||
Unpaid contractual principal balance | 3,858 | 8,366 | 3,858 | 8,366 | 4,473 |
Recorded investment with no allowance | 3,222 | 7,726 | 3,222 | 7,726 | 3,893 |
Recorded investment with allowance | 237 | 639 | 237 | 639 | 181 |
Total recorded investment | 3,459 | 8,365 | 3,459 | 8,365 | 4,074 |
Related allowance | 50 | 77 | 50 | 77 | 40 |
Average recorded investment | 3,470 | 8,383 | 3,623 | 8,399 | 4,400 |
Interest income recognized | 35 | 52 | 102 | 183 | 170 |
Residential First Mortgages [Member] | |||||
Unpaid contractual principal balance | 2,246 | 3,844 | 2,246 | 3,844 | 4,226 |
Recorded investment with no allowance | 1,765 | 3,343 | 1,765 | 3,343 | 3,730 |
Recorded investment with allowance | 481 | 501 | 481 | 501 | 495 |
Total recorded investment | 2,246 | 3,844 | 2,246 | 3,844 | 4,225 |
Related allowance | 13 | 61 | 13 | 61 | 27 |
Average recorded investment | 2,273 | 3,857 | 2,288 | 3,874 | 4,276 |
Interest income recognized | 22 | 28 | 66 | 93 | 141 |
Commercial Real Estate [Member] | |||||
Unpaid contractual principal balance | 21,956 | 21,389 | 21,956 | 21,389 | 21,477 |
Recorded investment with no allowance | 19,719 | 18,837 | 19,719 | 18,837 | 19,081 |
Recorded investment with allowance | 2,208 | 2,523 | 2,208 | 2,523 | 2,367 |
Total recorded investment | 21,927 | 21,360 | 21,927 | 21,360 | 21,448 |
Related allowance | 456 | 373 | 456 | 373 | 601 |
Average recorded investment | 21,994 | 21,453 | 22,184 | 21,357 | 21,786 |
Interest income recognized | $ 242 | $ 203 | $ 653 | $ 610 | $ 774 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing receivable post modification recorded investment | $ | $ 15,786 | $ 18,568 |
Less: TDRs included in non-accrual loans | $ | (5,191) | (5,435) |
Accrual TDR loans | $ | $ 10,595 | $ 13,133 |
Number of TDR loans | loan | 22 | 30 |
Number of non-accrual TDR loans | loan | (5) | (7) |
Number of accrual TDR loans | loan | 17 | 23 |
Commercial Equipment [Member] | ||
Financing receivable post modification recorded investment | $ | $ 116 | $ 123 |
Number of TDR loans | loan | 2 | 2 |
Commercial Loans [Member] | ||
Financing receivable post modification recorded investment | $ | $ 883 | $ 1,384 |
Number of TDR loans | loan | 5 | 8 |
Construction and Land Development [Member] | ||
Financing receivable post modification recorded investment | $ | $ 4,340 | $ 4,283 |
Number of TDR loans | loan | 4 | 4 |
Residential Rentals [Member] | ||
Financing receivable post modification recorded investment | $ | $ 228 | $ 2,058 |
Number of TDR loans | loan | 1 | 5 |
Residential First Mortgages [Member] | ||
Financing receivable post modification recorded investment | $ | $ 552 | $ 881 |
Number of TDR loans | loan | 2 | 3 |
Commercial Real Estate [Member] | ||
Financing receivable post modification recorded investment | $ | $ 9,667 | $ 9,839 |
Number of TDR loans | loan | 8 | 8 |
Loans (Allowance for Credit Los
Loans (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 9,106 | $ 8,757 | $ 8,540 | $ 8,481 |
Charge-offs | (200) | (898) | (668) | (1,243) |
Recoveries | 59 | 15 | 102 | 66 |
Provisions | 698 | 501 | 1,689 | 1,071 |
Ending Balance | 9,663 | 8,375 | 9,663 | 8,375 |
Commercial Equipment [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,282 | 1,234 | 1,229 | 389 |
Charge-offs | (743) | (797) | ||
Recoveries | 10 | 6 | 31 | 10 |
Provisions | (418) | 524 | (386) | 1,419 |
Ending Balance | 874 | 1,021 | 874 | 1,021 |
Commercial Loans [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 709 | 1,366 | 1,477 | 1,677 |
Charge-offs | (200) | (138) | (594) | (353) |
Recoveries | 1 | 4 | 12 | 11 |
Provisions | 422 | 25 | 37 | (78) |
Ending Balance | 932 | 1,257 | 932 | 1,257 |
Consumer Loans [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 2 | 2 | 2 | 3 |
Charge-offs | (1) | |||
Provisions | 1 | 2 | (1) | |
Ending Balance | 3 | 2 | 3 | 2 |
Home Equity and Second Mortgage [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 141 | 206 | 142 | 173 |
Recoveries | 5 | |||
Provisions | (26) | (46) | (32) | (13) |
Ending Balance | 115 | 160 | 115 | 160 |
Construction and Land Development [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,044 | 1,205 | 1,103 | 1,071 |
Charge-offs | (73) | |||
Recoveries | 1 | 32 | ||
Provisions | 46 | 402 | 59 | 504 |
Ending Balance | 1,090 | 1,607 | 1,090 | 1,607 |
Residential Rentals [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 613 | 561 | 538 | 593 |
Charge-offs | (17) | (93) | ||
Provisions | (295) | 49 | (220) | 93 |
Ending Balance | 318 | 593 | 318 | 593 |
Residential First Mortgages [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 935 | 849 | 584 | 1,047 |
Recoveries | 1 | |||
Provisions | 349 | (203) | 700 | (402) |
Ending Balance | 1,284 | 646 | 1,284 | 646 |
Commercial Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 4,380 | 3,334 | 3,465 | 3,528 |
Recoveries | 48 | 5 | 53 | 12 |
Provisions | 619 | (250) | 1,529 | (451) |
Ending Balance | $ 5,047 | $ 3,089 | $ 5,047 | $ 3,089 |
Loans (Loan Receivable and Allo
Loans (Loan Receivable and Allowance Balances Disaggregated) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | $ 36,230 | $ 39,237 | $ 42,867 | |||
Ending balance: collectively evaluated for impairment | 1,015,189 | 879,657 | 856,621 | |||
Total Loan Receivables | 1,051,419 | 918,894 | 899,488 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 1,256 | 1,608 | 1,360 | |||
Ending balance: collectively evaluated for impairment | 8,407 | 6,932 | 7,015 | |||
Total Allowance for loan losses | 9,663 | $ 9,106 | 8,540 | 8,375 | $ 8,757 | $ 8,481 |
Commercial Equipment [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 803 | 477 | 510 | |||
Ending balance: collectively evaluated for impairment | 33,829 | 29,454 | 27,255 | |||
Total Loan Receivables | 34,632 | 29,931 | 27,765 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 164 | 139 | 146 | |||
Ending balance: collectively evaluated for impairment | 710 | 1,090 | 875 | |||
Total Allowance for loan losses | 874 | 1,282 | 1,229 | 1,021 | 1,234 | 389 |
Commercial Loans [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 3,331 | 4,575 | 3,990 | |||
Ending balance: collectively evaluated for impairment | 64,003 | 62,671 | 47,894 | |||
Total Loan Receivables | 67,334 | 67,246 | 51,884 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 106 | 330 | 232 | |||
Ending balance: collectively evaluated for impairment | 826 | 1,147 | 1,025 | |||
Total Allowance for loan losses | 932 | 709 | 1,477 | 1,257 | 1,366 | 1,677 |
Consumer Loans [Member] | ||||||
Loan receivables: | ||||||
Ending balance: collectively evaluated for impairment | 422 | 366 | 403 | |||
Total Loan Receivables | 422 | 366 | 403 | |||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 3 | 2 | 2 | |||
Total Allowance for loan losses | 3 | 2 | 2 | 2 | 2 | 3 |
Home Equity and Second Mortgage [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 124 | 154 | 470 | |||
Ending balance: collectively evaluated for impairment | 21,334 | 21,562 | 20,760 | |||
Total Loan Receivables | 21,458 | 21,716 | 21,230 | |||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 115 | 142 | 160 | |||
Total Allowance for loan losses | 115 | 141 | 142 | 160 | 206 | 173 |
Construction and Land Development [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 4,340 | 4,284 | 4,328 | |||
Ending balance: collectively evaluated for impairment | 31,135 | 31,905 | 33,804 | |||
Total Loan Receivables | 35,475 | 36,189 | 38,132 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 467 | 471 | 471 | |||
Ending balance: collectively evaluated for impairment | 623 | 632 | 1,136 | |||
Total Allowance for loan losses | 1,090 | 1,044 | 1,103 | 1,607 | 1,205 | 1,071 |
Residential Rentals [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 3,459 | 4,074 | 8,365 | |||
Ending balance: collectively evaluated for impairment | 95,829 | 89,083 | 87,750 | |||
Total Loan Receivables | 99,288 | 93,157 | 96,115 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 50 | 40 | 77 | |||
Ending balance: collectively evaluated for impairment | 268 | 498 | 516 | |||
Total Allowance for loan losses | 318 | 613 | 538 | 593 | 561 | 593 |
Residential First Mortgages [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 2,246 | 4,225 | 3,844 | |||
Ending balance: collectively evaluated for impairment | 165,060 | 127,176 | 130,542 | |||
Total Loan Receivables | 167,306 | 131,401 | 134,386 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 13 | 27 | 61 | |||
Ending balance: collectively evaluated for impairment | 1,271 | 557 | 585 | |||
Total Allowance for loan losses | 1,284 | 935 | 584 | 646 | 849 | 1,047 |
Commercial Real Estate [Member] | ||||||
Loan receivables: | ||||||
Ending balance: individually evaluated for impairment | 21,927 | 21,448 | 21,360 | |||
Ending balance: collectively evaluated for impairment | 603,577 | 517,440 | 508,213 | |||
Total Loan Receivables | 625,504 | 538,888 | 529,573 | |||
Allowance for loan losses: | ||||||
Ending balance: individually evaluated for impairment | 456 | 601 | 373 | |||
Ending balance: collectively evaluated for impairment | 4,591 | 2,864 | 2,716 | |||
Total Allowance for loan losses | $ 5,047 | $ 4,380 | $ 3,465 | $ 3,089 | $ 3,334 | $ 3,528 |
Loans (Schedule of Financing 59
Loans (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Loans | $ 1,051,419 | $ 918,894 | $ 899,488 |
Commercial Equipment [Member] | |||
Loans | 34,632 | 29,931 | 27,765 |
Commercial Equipment [Member] | Unrated [Member] | |||
Loans | 11,654 | 10,074 | |
Commercial Equipment [Member] | Pass [Member] | |||
Loans | 22,683 | 19,610 | |
Commercial Equipment [Member] | Substandard [Member] | |||
Loans | 158 | 110 | |
Commercial Equipment [Member] | Doubtful [Member] | |||
Loans | 137 | 137 | |
Commercial Loans [Member] | |||
Loans | 67,334 | 67,246 | 51,884 |
Commercial Loans [Member] | Unrated [Member] | |||
Loans | 10,730 | 11,281 | |
Commercial Loans [Member] | Pass [Member] | |||
Loans | 53,483 | 51,569 | |
Commercial Loans [Member] | Substandard [Member] | |||
Loans | 3,121 | 4,110 | |
Commercial Loans [Member] | Doubtful [Member] | |||
Loans | 286 | ||
Consumer Loans [Member] | |||
Loans | 422 | 366 | 403 |
Consumer Loans [Member] | Performing Financing Receivable [Member] | |||
Loans | 422 | 366 | |
Home Equity and Second Mortgage [Member] | |||
Loans | 21,458 | 21,716 | 21,230 |
Home Equity and Second Mortgage [Member] | Performing Financing Receivable [Member] | |||
Loans | 21,441 | 21,668 | |
Home Equity and Second Mortgage [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | 17 | 48 | |
Residential Rentals [Member] | |||
Loans | 99,288 | 93,157 | 96,115 |
Residential Rentals [Member] | Unrated [Member] | |||
Loans | 22,825 | 21,585 | |
Residential Rentals [Member] | Pass [Member] | |||
Loans | 75,097 | 67,926 | |
Residential Rentals [Member] | Special Mention [Member] | |||
Loans | 845 | ||
Residential Rentals [Member] | Substandard [Member] | |||
Loans | 1,366 | 2,801 | |
Residential First Mortgages [Member] | |||
Loans | 167,306 | 131,401 | 134,386 |
Residential First Mortgages [Member] | Performing Financing Receivable [Member] | |||
Loans | 166,935 | 129,453 | |
Residential First Mortgages [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | 371 | 1,948 | |
Construction and Land Development [Member] | |||
Loans | 35,475 | 36,189 | 38,132 |
Construction and Land Development [Member] | Unrated [Member] | |||
Loans | 2,011 | 4,399 | |
Construction and Land Development [Member] | Pass [Member] | |||
Loans | 29,125 | 27,507 | |
Construction and Land Development [Member] | Substandard [Member] | |||
Loans | 3,974 | 3,845 | |
Construction and Land Development [Member] | Doubtful [Member] | |||
Loans | 365 | 438 | |
Commercial Real Estate [Member] | |||
Loans | 625,504 | 538,888 | $ 529,573 |
Commercial Real Estate [Member] | Unrated [Member] | |||
Loans | 53,873 | 51,924 | |
Commercial Real Estate [Member] | Pass [Member] | |||
Loans | 550,657 | 466,601 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Loans | 250 | ||
Commercial Real Estate [Member] | Substandard [Member] | |||
Loans | 20,974 | 20,113 | |
Classified Loans [Member] | |||
Loans | 30,683 | 32,804 | |
Classified Loans [Member] | Classified Loans By Internally Assigned Grade [Member] | |||
Loans | 30,095 | 31,840 | |
Classified Loans [Member] | Classified Loans By Payment Activity [Member] | |||
Loans | $ 588 | $ 964 |
Regulatory (Details)
Regulatory (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Regulatory Assets | ||||||
Total stockholders' equity | $ 103,983 | $ 99,783 | ||||
AOCI Losses (Gains) | (75) | $ (54) | 251 | $ 70 | $ 300 | $ 378 |
Common equity Tier 1 capital | 103,908 | 100,034 | ||||
TRUPs | 12,000 | 12,000 | ||||
Tier 1 capital | 115,908 | 112,034 | ||||
Allowable reserve for credit losses and other Tier 2 adjustments | 9,663 | 8,540 | ||||
Subordinated notes | 23,000 | 23,000 | ||||
Tier 2 capital | 148,571 | 143,574 | ||||
Risk-weighted assets ("RWA") | 1,066,030 | 984,614 | ||||
Average Assets ("AA") | $ 1,256,792 | $ 1,118,843 | ||||
Common Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 7.00% | |||||
Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 8.50% | |||||
Tier 2 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 10.50% | |||||
Common Tier 1 capital to RWA | 9.75% | 10.16% | ||||
Tier 1 capital to RWA | 10.87% | 11.38% | ||||
Tier 2 capital to RWA | 13.94% | 14.58% | ||||
Tier 1 capital to AA (leverage) | 9.22% | 10.01% | ||||
Common Stock [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | $ 103,983 | $ 99,783 | ||||
Bank [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | 134,395 | 132,571 | ||||
AOCI Losses (Gains) | (75) | 251 | ||||
Common equity Tier 1 capital | 134,320 | 132,822 | ||||
Tier 1 capital | 134,320 | 132,822 | ||||
Allowable reserve for credit losses and other Tier 2 adjustments | 9,663 | 8,540 | ||||
Tier 2 capital | 143,983 | 141,362 | ||||
Risk-weighted assets ("RWA") | 1,063,911 | 982,347 | ||||
Average Assets ("AA") | $ 1,254,292 | $ 1,116,576 | ||||
Common Tier 1 capital to RWA | 12.63% | 13.52% | ||||
Tier 1 capital to RWA | 12.63% | 13.52% | ||||
Tier 2 capital to RWA | 13.53% | 14.39% | ||||
Tier 1 capital to AA (leverage) | 10.71% | 11.90% | ||||
Bank [Member] | Common Stock [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | $ 134,395 | $ 132,571 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans with impairment, unpaid principal | $ 7,300,000 | $ 4,000,000 |
Fair value transfers | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 0 | 0 |
Liabilities, fair value | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | $ 43,885 | $ 35,116 |
US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 5,479 | |
Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 37 | 39 |
Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,525 | 4,387 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 43,885 | 35,116 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 31,343 | 30,664 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 2,501 | 26 |
Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 5,479 | |
Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 37 | 39 |
Fair Value, Measurements, Recurring [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,525 | 4,387 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 43,885 | 35,116 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 43,885 | 35,116 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 31,343 | 30,664 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 2,501 | 26 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 5,479 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 37 | 39 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,525 | 4,387 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale |
Fair Value Measurements (Fair63
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans With Impairment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 5,572 | $ 2,458 |
Loans With Impairment [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 1,752 | 1,765 |
Loans With Impairment [Member] | Residential First Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 468 | 469 |
Loans With Impairment [Member] | Residential Rentals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 187 | 141 |
Loans With Impairment [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 68 | 50 |
Loans With Impairment [Member] | Construction and Land Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 3,069 | 33 |
Loans With Impairment [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 28 | |
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Residential First Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Residential Rentals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Construction and Land Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 5,572 | 2,458 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 1,752 | 1,765 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Residential First Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 468 | 469 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Rentals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 187 | 141 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 68 | 50 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Construction and Land Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 3,069 | 33 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 28 | |
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Residential First Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Rentals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Construction and Land Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Premises and Equipment Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 2,000 | |
Premises and Equipment Held for Sale [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Premises and Equipment Held for Sale [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 2,000 | |
Premises and Equipment Held for Sale [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Other Real Estate Owned [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 8,620 | 9,449 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 8,620 | 9,449 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring |
Fair Value of Financial Instr64
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value of Financial Instruments [Abstract] | ||
Loans commitments outstanding | $ 85.3 | $ 19.4 |
Letters of credit outstanding, amount | 73.5 | 21.4 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 135.4 | $ 128.1 |
Fair Value of Financial Instr65
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Investment securities - AFS | $ 43,885 | $ 35,116 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Investment securities - HTM | 799 | 750 |
Loans receivable | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Investment securities - AFS | 43,885 | 35,116 |
Investment securities - HTM | 103,771 | 108,559 |
FHLB and FRB stock | 6,173 | 6,931 |
Loans receivable | 1,043,832 | 913,506 |
Investments in BOLI | 28,429 | 27,836 |
Liabilities | ||
Savings, NOW and money market accounts | 595,523 | 531,348 |
Time deposits | 417,486 | 375,376 |
Long-term debt | 68,889 | 56,987 |
Short term borrowings | 55,478 | 36,000 |
TRUPs | 8,400 | 8,400 |
Subordinated notes | 22,821 | 23,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Loans receivable | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Fair Value [Member] | ||
Assets | ||
Investment securities - AFS | 43,885 | 35,116 |
Investment securities - HTM | 104,570 | 109,309 |
FHLB and FRB stock | 6,173 | 6,931 |
Loans receivable | 1,043,832 | 913,506 |
Investments in BOLI | 28,429 | 27,836 |
Liabilities | ||
Savings, NOW and money market accounts | 595,523 | 531,348 |
Time deposits | 417,486 | 375,376 |
Long-term debt | 68,889 | 56,987 |
Short term borrowings | 55,478 | 36,000 |
TRUPs | 8,400 | 8,400 |
Subordinated notes | 22,821 | 23,000 |
Carrying Amount [Member] | ||
Assets | ||
Investment securities - AFS | 43,885 | 35,116 |
Investment securities - HTM | 102,956 | 109,420 |
FHLB and FRB stock | 6,173 | 6,931 |
Loans receivable | 1,041,910 | 909,200 |
Investments in BOLI | 28,429 | 27,836 |
Liabilities | ||
Savings, NOW and money market accounts | 595,523 | 531,348 |
Time deposits | 416,052 | 375,551 |
Long-term debt | 65,573 | 55,617 |
Short term borrowings | 55,500 | 36,000 |
TRUPs | 12,000 | 12,000 |
Subordinated notes | $ 23,000 | $ 23,000 |