Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 02, 2018 | Jun. 30, 2017 | |
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 Public Float | $ 148 | ||
Entity Common Stock Shares Outstanding | 5,567,505 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 13,315 | $ 9,948 |
Interest-bearing deposits with banks | 2,102 | 1,315 |
Securities available for sale (AFS), at fair value | 68,285 | 53,033 |
Securities held to maturity (HTM), at amortized cost | 99,246 | 109,247 |
Federal Home Loan Bank (FHLB) stock - at cost | 7,276 | 7,235 |
Loans receivable - net of allowance for loan losses of $10,515 and $9,860 | 1,140,615 | 1,079,519 |
Premises and equipment, net | 21,391 | 22,205 |
Premises and equipment held for sale | 345 | |
Other real estate owned (OREO) | 9,341 | 7,763 |
Accrued interest receivable | 4,511 | 3,979 |
Investment in bank owned life insurance | 29,398 | 28,625 |
Other assets | 10,481 | 11,043 |
Total assets | 1,405,961 | 1,334,257 |
Liabilities and Stockholders' Equity | ||
Non-interest-bearing deposits | 159,844 | 144,877 |
Interest-bearing deposits | 946,393 | 893,948 |
Total deposits | 1,106,237 | 1,038,825 |
Short-term borrowings | 87,500 | 79,000 |
Long-term debt | 55,498 | 65,559 |
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 | 11,769 | 11,447 |
Total liabilities | 1,296,004 | 1,229,831 |
Stockholders' Equity | ||
Common stock - par value $.01; authorized - 15,000,000 shares; issued 4,649,658 and 4,633,868 shares, respectively | 46 | 46 |
Additional paid in capital | 48,209 | 47,377 |
Retained earnings | 63,648 | 58,100 |
Accumulated other comprehensive loss | (1,191) | (928) |
Unearned ESOP shares | (755) | (169) |
Total stockholders' equity | 109,957 | 104,426 |
Total liabilities and stockholders' equity | $ 1,405,961 | $ 1,334,257 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans receivable, allowance for loan losses (in dollars) | $ 10,515 | $ 9,860 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 4,649,658 | 4,633,868 |
Subordinated Debt [Member] | ||
Subordinated notes interest rate | 6.25% | 6.25% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and Dividend Income | |||
Loans, including fees | $ 49,611 | $ 44,919 | $ 41,386 |
Interest and dividends on investment securities | 3,906 | 3,108 | 2,473 |
Interest on deposits with banks | 53 | 20 | 14 |
Total interest and dividend income | 53,570 | 48,047 | 43,873 |
Interest Expense | |||
Deposits | 5,946 | 4,695 | 4,152 |
Short-term borrowings | 1,057 | 196 | 37 |
Long-term debt | 3,179 | 3,251 | 3,156 |
Total interest expense | 10,182 | 8,142 | 7,345 |
Net interest income | 43,388 | 39,905 | 36,528 |
Provision for loan losses | 1,010 | 2,359 | 1,433 |
Net interest income after provision for loan losses | 42,378 | 37,546 | 35,095 |
Noninterest Income | |||
Loan appraisal, credit, and miscellaneous charges | 157 | 289 | 315 |
Gain on sale of assets | 47 | 12 | 19 |
Net gains (losses) on sale of OREO | 43 | (436) | (20) |
Net gain on sale of investment securities | 175 | 31 | 4 |
Loss on premises and equipment held for sale | (426) | ||
Income from bank owned life insurance | 773 | 789 | 815 |
Service charges | 2,595 | 2,675 | 2,488 |
Gain on sale of loans held for sale | 294 | 104 | |
Total noninterest income | 4,084 | 3,360 | 3,299 |
Noninterest Expense | |||
Salary and employee benefits | 16,758 | 16,810 | 16,366 |
Occupancy expense | 2,632 | 2,488 | 2,427 |
Advertising | 543 | 647 | 583 |
Data processing expense | 2,354 | 2,267 | 2,044 |
Professional fees | 1,662 | 1,568 | 1,323 |
Merger and acquisition costs | 829 | ||
Depreciation of premises and equipment | 786 | 812 | 810 |
Telephone communications | 191 | 174 | 188 |
Office supplies | 119 | 136 | 157 |
FDIC insurance | 638 | 739 | 799 |
OREO valuation allowance and expenses | 746 | 861 | 1,059 |
Other | 2,839 | 2,657 | 2,662 |
Total noninterest expense | 30,097 | 29,159 | 28,418 |
Income before income taxes | 16,365 | 11,747 | 9,976 |
Income tax expense | 9,157 | 4,416 | 3,633 |
Net income | 7,208 | 7,331 | 6,343 |
Preferred stock dividends | 23 | ||
Net income available to common shareholders | $ 7,208 | $ 7,331 | $ 6,320 |
Earnings Per Common Share | |||
Basic (in dollars per share) | $ 1.56 | $ 1.59 | $ 1.36 |
Diluted (in dollars per share) | 1.56 | 1.59 | 1.35 |
Cash dividends paid per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,821 | $ 7,208 | $ 7,331 | $ 6,343 |
Net unrealized holding (losses) gains arising during period, net of tax (benefit) expense of $(41), $(433) and $85, respectively | (62) | (662) | 131 | ||||||||
Reclasssification adjustment for losses included in net income, net of tax benefit of $3, $7 and $2, respectively | (5) | (15) | (4) | ||||||||
Comprehensive income | $ 7,141 | $ 6,654 | $ 6,470 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net unrealized holding gains arising during period, tax effect | $ (41) | $ (433) | $ 85 |
Reclassification adjustments, tax effect | $ 3 | $ 7 | $ 2 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Additional Paid-In Capital [Member] | Common Stock [Member] | SBLF Preferred Stock [Member] | Total |
Balance at Dec. 31, 2014 | $ (462) | $ (378) | $ 50,936 | $ 46,416 | $ 47 | $ 20,000 | $ 116,559 |
Comprehensive Income | |||||||
Net income | 6,343 | 6,343 | |||||
Unrealized holding gain (loss) on investment securities net of tax | 127 | 127 | |||||
Comprehensive income | 6,470 | ||||||
Cash dividend at $0.40 per common share | (1,843) | (1,843) | |||||
Preferred stock dividends | (73) | (73) | |||||
Dividend reinvestment | (42) | 42 | |||||
Redemptin of SBLF Loan | $ (20,000) | (20,000) | |||||
Net change in unearned ESOP shares | 146 | 146 | |||||
Repurchase of common stock | (1,826) | (1) | (1,827) | ||||
Stock based compensation | 319 | 319 | |||||
Tax effect of the ESOP dividend | 32 | 32 | |||||
Balance at Dec. 31, 2015 | (316) | (251) | 53,495 | 46,809 | 46 | 99,783 | |
Comprehensive Income | |||||||
Net income | 7,331 | 7,331 | |||||
Unrealized holding gain (loss) on investment securities net of tax | (677) | (677) | |||||
Comprehensive income | 6,654 | ||||||
Cash dividend at $0.40 per common share | (1,814) | (1,814) | |||||
Dividend reinvestment | (47) | 47 | |||||
Net change in unearned ESOP shares | 147 | 147 | |||||
Repurchase of common stock | (865) | (865) | |||||
Stock based compensation | 489 | 489 | |||||
Tax effect of the ESOP dividend | 32 | 32 | |||||
Balance at Dec. 31, 2016 | (169) | (928) | 58,100 | 47,377 | 46 | 104,426 | |
Comprehensive Income | |||||||
Net income | 7,208 | 7,208 | |||||
Unrealized holding gain (loss) on investment securities net of tax | (67) | (67) | |||||
Reclassification due to Accounting Standard Update (ASU 2018-02) | (196) | 196 | |||||
Comprehensive income | 7,141 | ||||||
Cash dividend at $0.40 per common share | (1,804) | (1,804) | |||||
Excess of fair market value over cost of leveraged ESOP shares released | 110 | 110 | |||||
Dividend reinvestment | (52) | 52 | |||||
Exercise of stock options | 155 | 155 | |||||
Net change in unearned ESOP shares | (586) | (586) | |||||
Stock based compensation | 515 | 515 | |||||
Balance at Dec. 31, 2017 | $ (755) | $ (1,191) | $ 63,648 | $ 48,209 | $ 46 | $ 109,957 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders' Equity [Abstract] | |||
Net unrealized holding gains (losses) arising during period, tax effect | $ 44 | $ 440 | $ 83 |
Common stock, dividends, per share, cash paid | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net income | $ 7,208 | $ 7,331 | $ 6,343 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for loan losses | 1,010 | 2,359 | 1,433 |
Depreciation and amortization | 1,598 | 1,544 | 1,439 |
Provision for loss on premises held for sale | 426 | ||
Loans originated for resale | (2,529) | (4,192) | |
Proceeds from sale of loans originated for sale | 2,823 | 4,296 | |
Gain on sale of loans held for sale | (294) | (104) | |
Net (gain) loss on the sale of OREO | (43) | 436 | 20 |
Gain on sales of investment securities | (175) | (31) | (4) |
Gain on sale of asset | (47) | (12) | (19) |
Net amortization of premium/discount on investment securities | 393 | 509 | 245 |
Increase in OREO valuation allowance | 599 | 574 | 664 |
Increase in cash surrender of bank owned life insurance | (773) | (789) | (815) |
Decrease (increase) in deferred income tax benefit | 1,887 | (555) | (750) |
Increase in accrued interest receivable | (532) | (761) | (182) |
Stock based compensation | 515 | 489 | 319 |
Compensation expense due to excess of fair market value over cost of leveraged ESOP shares released | 110 | ||
(Increase) decrease in net deferred loan premiums | (689) | (1,552) | 85 |
Increase in accrued expenses and other liabilities | 322 | 1,414 | 1,770 |
(Increase) decrease in other assets | (1,281) | 1,959 | 1,523 |
Net cash provided by operating activities | 10,102 | 12,915 | 12,497 |
Cash Flows from Investing Activities | |||
Purchase of AFS investment securities | (26,251) | (31,312) | (2,084) |
Proceeds from redemption or principal payments of AFS investment securities | 7,110 | 5,653 | 8,986 |
Purchase of HTM investment securities | (13,135) | (24,504) | (42,949) |
Proceeds from maturities or principal payments of HTM investment securities | 18,048 | 23,564 | 17,860 |
Proceeds from sale of HTM investment securities | 4,947 | 710 | 66 |
Proceeds from sale of AFS investment securities | 3,702 | 6,546 | |
Net increase of FHLB and FRB stock | (41) | (303) | (497) |
Loans originated or acquired | (325,155) | (411,564) | (258,844) |
Principal collected on loans | 260,303 | 234,587 | 205,100 |
Purchase of premises and equipment | (779) | (3,970) | (3,450) |
Proceeds from sale of OREO | 1,300 | 3,423 | 1,184 |
Proceeds from disposal of asset | 387 | 2,044 | 34 |
Net cash used in investing activities | (69,564) | (195,126) | (74,594) |
Cash Flows from Financing Activities | |||
Net increase in deposits | 67,412 | 131,925 | 37,515 |
Proceeds from long-term debt | 10,000 | 15,000 | |
Payments of long-term debt | (20,061) | (5,058) | (19,055) |
Net increase in short term borrowings | 8,500 | 43,000 | 34,000 |
Exercise of stock options | 155 | ||
Proceeds from subordinated notes | 23,000 | ||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | ||
Dividends paid | (1,804) | (1,814) | (1,916) |
Net change in unearned ESOP shares | (586) | 147 | 146 |
Repurchase of common stock | (865) | (1,827) | |
Net cash provided by financing activities | 63,616 | 182,335 | 51,863 |
Increase (Decrease) in Cash and Cash Equivalents | 4,154 | 124 | (10,234) |
Cash and cash equivalents - January 1 | 11,263 | 11,139 | 21,373 |
Cash and cash equivalents - December 31 | 15,417 | 11,263 | 11,139 |
Supplemental Disclosures of Cash Flow Information | |||
Interest | 10,001 | 7,993 | 6,799 |
Income taxes | 7,435 | 5,325 | 3,604 |
Supplemental Schedule of Non-Cash Operating Activities | |||
Issuance of common stock for payment of compensation | 203 | 575 | 319 |
Transfer from loans to OREO | 3,634 | 3,120 | 5,436 |
Transfer from OREO to loans | $ 200 | 2,176 | |
Transfer of OREO to Fixed Assets | 372 | ||
Transfer from premises and equipment to premises and equipment held for sale | $ 345 | $ 2,426 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation 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 (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. Reclassification Certain reclassifications have been made in the Consolidated Financial Statements for 2016 to conform to the classification presented in 2017. Reclassifications had no effect on net income. Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Annapolis, 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 ten 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 closed its Central Park Fredericksburg branch during the third quarter of 2017. This location continues to serve as a loan production office and the branch closure did not have a material effect on operations. The Company offered branch employees open positions. On July 31, 2017, the Company and Community Bank of the Chesapeake entered into an Agreement and Plan of Merger with County First Bank (“County First”). Merger related costs, which included mainly professional fees and investment banking costs, for the twelve months ended December 31, 2017 were $829,000 . Regulatory approval and County First shareholder approvals, were obtained and the merger closed on January 1, 2018. For additional information see Note 23 – Subsequent Events. Use of Estimates In preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and the valuation of OREO and deferred tax assets. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the Fredericksburg area of Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 5 and 6 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2017, 2016, and 2015. Securities not classified as held to maturity or trading securities, including equity securities with readily determinable fair values, are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investments in Federal Reserve Bank and Federal Home Loan Bank of Atlanta stocks are recorded at cost and are considered restricted as to marketability. The Bank is required to maintain investments in the Federal Home Loan Bank based upon levels of borrowings. During 2016, the Bank’s primary regulator became the Federal Deposit Insurance Corporation (“FDIC”) and the Federal Reserve Bank stock was cancelled as it was no longer needed as a condition of membership (see Note 18 for further information). Debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary impairment (“OTTI”). The term other-than-temporary is not necessarily intended to indicate a permanent decline in value. It means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Under accounting guidance, for recognition and presentation of other-than-temporary impairments the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security. The discount rate used to determine the credit loss is the expected book yield on the security. The Company does not evaluate declines in the value of securities of Government Sponsored Enterprises (“GSEs”) or investments backed by the full faith and credit of the United States government (e.g. US Treasury Bills), for other-than-temporary impairment. Loans Held for Sale Residential mortgage loans intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Fair value is derived from secondary market quotations for similar instruments. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Residential mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold, using the specific identification method. The Company exited the residential mortgage origination line of business in April 2015 for individual owner occupied residential first mortgages and established third party sources to supply its residential whole loan portfolio. The Company continues to underwrite loans for non-owner occupied residential rental properties. T he Company may sell certain loans forward into the secondary market at a specified price with a specified date on a best efforts basis. These forward sales are derivative financial instruments. The Company does not recognize gains or losses due to interest rate changes for loans sold forward on a best efforts basis. The Bank had no loans held for sale at December 31, 2017 and 2016, respectively., and sold no 1-4 family residential mortgage loans for the year ended December 31, 2017. During the year ended December 31, 2017, the Company sold the guaranteed portion of a U.S. Small Business Administration (“SBA”) Loan for proceeds of $2.8 million and recognized a gain of $294,000 . Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. The Company purchases residential owner-occupied first mortgages from established third-parties. A substantial portion of the loan portfolio is comprised of loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for loan losses and any deferred fees or premiums. Interest income is accrued on the unpaid principal balance. Loan origination fees and premiums, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Interest is recognized on non-accrual loans on a cost recovery or cash-basis. Consumer loans are typically charged-off no later than 90 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses and Impaired Loans The allowance for loan losses is established as probable losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans considering historical experience, the composition and size of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses consists of a general and a specific component. The general component is based upon historical loss experience and a review of qualitative risk factors by portfolio segment (See Note 6 for a description of portfolio segments). The historical loss experience factor is tracked over various time horizons for each portfolio segment. The Company considers qualitative factors in addition to the loss experience factor. These include trends by portfolio segment in charge-offs, delinquencies, classified loans, loan concentrations and the rate of portfolio segment growth. Qualitative factors also include an assessment of the current regulatory environment, the quality of credit administration and loan portfolio management and national and local economic trends. The specific component of the allowance for loan losses relates to individual impaired loans with an identified impairment loss. The Company evaluates substandard and doubtful classified loans, loans delinquent 90 days or greater, non-accrual loans and troubled debt restructured loans (“TDRs”) to determine whether a loan is impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan. These circumstances include the length of the delay, the reasons for the delay, the borrower’s payment record and the amount of the shortfall in relation to the principal and interest owed. Loans not impaired are included in the pool of loans evaluated in the general component of the allowance. If a specific loan is deemed to be impaired it is evaluated for impairment. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than carrying value of the loan. The Company considers all TDRs to be impaired and defines TDRs as loans whose terms have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced at market rates with no debt forgiveness. TDRs are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. Servicing Servicing assets are recognized as separate assets when rights are acquired through the purchase or sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing based on relative estimated fair value. Estimated fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three to 15 years Automobiles: four to five years Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized. Other Real Estate Owned (“OREO”) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the estimated fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or estimated fair value less the cost to sell. Based on updated valuations, the Bank has the ability to reverse a valuation allowance that was recorded subsequent to the initial carrying value up to the amount of the initial recorded carrying value (initial cost basis). Revenues and expenses from operations and changes in the valuation allowance are included in noninterest expense. Gains or losses on disposition are included in noninterest income Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. A dvertising Costs The Company expenses advertising costs as incurred. 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. Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial lines of credit, letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2015, the 2015 Equity Compensation Plan (the “2015 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 cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. The Company and the Bank currently maintain incentive compensation plans which provide for payments to be made in cash or other share-based compensation. The Company has accrued the full amounts due under these plans. Earnings Per Common Share (“EPS”) Basic earnings per common share represent income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. Unencumbered shares held by the Employee Stock Ownership Plan (“ESOP”) are treated as outstanding in computing earnings per share. Shares issued to the ESOP but pledged as collateral for loans obtained to provide funds to acquire the shares are not treated as outstanding in computing earnings per share. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential dilutive common shares are determined using the treasury stock method and include incremental shares issuable upon the exercise of stock options and other share-based compensation awards. The Company excludes from the diluted EPS calculation anti-dilutive options, because the exercise price of the options were greater than the average market price of the common shares. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as components of comprehensive income as a separate statement in the Consolidated Statements of Comprehensive Income. Additionally, the Company discloses accumulated other comprehensive income as a separate component in the equity section of the balance sheet. Recent Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”). ASU 2014-09 - Revenue from Contracts with Customers . In May 2014, the FASB issued ASU 2014-09 which is a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those good or services. This new standard supersedes and replaces nearly all existing revenue recognition guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this new standard specifies the accounting for some costs to obtain or fulfill a contract with a customer. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective). We currently anticipate adopting the standard using the modified retrospective method. The guidance in the Accounting Standards Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU does not apply to revenue associated with financial instruments including loans and securities that are accounted for under U.S. GAAP. Consequently, adoption of the ASU is not expected to have a significant impact on the Company’s consolidated financial statements and related disclosures since the primary source of revenue is derived from interest and dividends earned on loans, investment securities and other financial instruments that are outside the scope of the ASU. However, the Company has assessed its revenue streams and reviewed its contracts with customers that are potentially affected by the new guidance. This includes fees on deposits, gains and losses on the sale of other real estate owned, credit and debit card interchange fees, administrative services for customer deposit accounts (i.e. ATM and wire transfer transactions) and rental income. This assessment included the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Based on this assessment the Company anticipates that ASC 606 will require us to estimate income from the sale of OREO property that is under contract at year end. As a result, the Company will recognize revenue earlier under ASC 606 than we have done so under current guidance. At December 31, 2017 there were no contracts for the sale of OREO property. The Company’s’ revenue recognition pattern for revenue streams within the scope of ASU is not expected to change significantly from current practice as the sale from OREO properties and resulting gain is immaterial to our financial statements. The new standard will be effective for us beginning January 1, 2018. 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. The Company’s management has engaged a third-party expert in the field of valuation and reporting and is creating a process to ensure adequate documentation of financial controls and analysis performed in its review of “exit pricing” of the fair values of loans, deposits and other financial instruments. ASU 2016-1 will be effective on January 1, 2018 and will not have a significant impact on the Company’s consolidated financial statements. ASU 2016-02 - Leases (Topic 842 ). In February 2016, the FASB amended existing guidance that requires lessees recognize the following for all leases (with the exception of short term leases) at the commencement date (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) 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. Leases will be classified as either finance or operating with classification affecting the pattern of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. Based on leases outstanding at December 31, 2017, the Company does not expect the updates to have a material impact on the income statement but does anticipate an increase in assets and liabilities. The Company will continue to evaluate the potential impact of ASU 2016-02 during 2018. This new standard will be effective for the Company beginning January 1, 2019. 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 designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 became effective on January 1, 2017 and did not have a significant impact on the consolidated financial statements. A SU 2016-09 – Compensation – Stock Compensation (Topic 718) - 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 obl |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Gain (Loss) | NOTE 2 - ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the components of comprehensive (loss) income for the years ended December 31, 2017, 2016 and 2015. The Company’s comprehensive gains and losses and reclassification adjustments were solely for securities for the years ended December 31, 2017, 2016 and 2015. Reclassification adjustments are recorded in non-interest income. Years Ended December 31, 2017 December 31, 2016 December 31, 2015 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding (losses) gains $ (103) $ (41) $ (62) $ (1,095) $ (433) $ (662) $ 216 $ 85 $ 131 Reclassification adjustments (8) (3) (5) (22) (7) (15) (6) (2) (4) Other comprehensive (loss) income $ (111) $ (44) $ (67) $ (1,117) $ (440) $ (677) $ 210 $ 83 $ 127 The following table presents the changes in each component of accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2017, 2016 and 2015. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (928) $ (251) $ (378) Other comprehensive (losses) gains, net of tax before reclassifications (62) (662) 131 Amounts reclassified from accumulated other comprehensive loss (5) (15) (4) Net other comprehensive (loss) income (67) (677) 127 Reclassification due to Accounting Standards Update (ASU 2018-02) (196) - - End of period $ (1,191) $ (928) $ (251) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | NOTE 3 - EARNINGS PER SHARE 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 have been issued by the Company related to outstanding stock options and were determined using the treasury stock method. T he Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017. As of December 31, 2017, 2016 and 2015 , there were 0 , 15,081 and 21,211 options , respectively, which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options was greater than the average market price of the common shares. B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Years Months Ended December 31, (dollars in thousands) 2017 2016 2015 Net Income $ 7,208 $ 7,331 $ 6,343 Less: dividends paid and accrued on preferred stock - - (23) Net income available to common shareholders $ 7,208 $ 7,331 $ 6,320 Average number of common shares outstanding 4,627,776 4,599,502 4,676,748 Dilutive effect of common stock equivalents 1,452 - - Average number of shares used to calculate diluted EPS 4,629,228 4,599,502 4,676,748 Earnings Per Common Share Basic $ 1.56 $ 1.59 1.36 Diluted 1.56 1.59 1.35 |
Restrictions on Cash and Amount
Restrictions on Cash and Amounts Due from Banks | 12 Months Ended |
Dec. 31, 2017 | |
Restrictions on Cash and Amounts Due from Banks [Abstract] | |
Restrictions on Cash and Amounts Due from Banks | NOTE 4 -RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS The Bank is required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2017 and 2016, these reserve balances amounted to $915,000 and $1.1 million, respectively. . |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Securities [Abstract] | |
Securities | NOTE 5 – SECURITIES December 31, 2017 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") $ 7,265 $ - $ 178 $ 7,087 Residential Collateralized Mortgage Obligations ("CMOs") 45,283 12 1,158 44,137 U.S. Agency 12,863 - 346 12,517 Corporate equity securities 37 - - 37 Bond mutual funds 4,480 27 - 4,507 Total securities available for sale $ 69,928 $ 39 $ 1,682 $ 68,285 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 29,113 $ 135 $ 261 $ 28,987 Residential CMOs 54,805 62 845 54,022 U.S. Agency 8,660 - 235 8,425 Asset-backed securities issued by Others: Residential CMOs 651 - 52 599 Callable GSE Agency Bonds 5,017 - 43 4,974 U.S. government obligations 1,000 - - 1,000 Total securities held to maturity $ 99,246 $ 197 $ 1,436 $ 98,007 December 31, 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 MBS $ 4,377 $ - $ 194 $ 4,183 Residential CMOs 35,176 18 966 34,228 U.S. Agency 10,589 - 417 10,172 Corporate equity securities 37 - - 37 Bond mutual funds 4,386 27 - 4,413 Total securities available for sale $ 54,565 $ 45 $ 1,577 $ 53,033 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 34,735 $ 367 $ 569 $ 34,533 Residential CMOs 63,060 135 802 62,393 U.S. Agency 6,717 - 253 6,464 Asset-backed securities issued by Others: Residential CMOs 884 - 81 803 Callable GSE Agency Bonds 3,001 - 10 2,991 U.S. government obligations 850 - - 850 Total securities held to maturity $ 109,247 $ 502 $ 1,715 $ 108,034 At December 31, 2017, securities with an amortized cost of $31.5 million were pledged to secure certain customer deposits. At December 31, 2017, securities with an amortized cost of $4.0 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At December 31, 2017, greater than 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 4.74 years and average duration of 4.22 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 4.95 years and average duration of 4.39 years and are guaranteed by their issuer as to credit risk. At December 31, 2016, certain asset-backed securities with an amortized cost of $21.5 million were pledged to secure certain deposits. At December 31, 2016, asset-backed securities with an amortized cost of $1.6 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At December 31, 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 4.96 years and average duration of 4.43 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 5.30 years and average duration of 4.71 years and are guaranteed by their issuer as to credit risk. Management believes 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. Because our 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, management considers the unrealized losses in the AFS portfolio to be temporary. The Company intends to, and has the ability to, hold the HTM securities with unrealized losses until they mature, at which time the Company will receive full value for the securities. Because our 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 years ended December 31, 2017, 2016 and 2015. During the year ended December 31, 2017 the Company recognized net gains on the sale of securities of $175,000 . The Company sold three AFS securities with aggregate carrying values of $3.7 million and nine HTM securities with aggregate carrying values of $4.8 million, recognizing gains of $9,000 and $166,000 , respectively. During the year ended December 31, 2016 the Company recognized net gains on the sale of securities of $31,000 . The Company sold five AFS securities with aggregate carrying values of $6.5 million and one HTM security with a carrying value of $698,000 , recognizing gains of $23,000 and $8,000 , respectively. During the year ended December 31, 2015, the Company recognized net gains on the sale of securities of $4,000 , which consisted of the sale of one HTM security with a carrying value of $67,000 and the call of an AFS agency bond with a carrying value of $2.0 million. These sales resulted in a loss of $1,000 for the HTM security and a gain of $5,000 for the AFS security. The sale of HTM securities was 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 December 31, 2017 were as follows: December 31, 2017 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 $ 24,571 $ 328 $ 38,428 $ 1,354 $ 62,999 $ 1,682 At December 31, 2017, the AFS investment portfolio had an estimated fair value of $68.3 million, of which $63.0 million of the securities had some unrealized losses from their amortized cost. 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 $1.7 million of the portfolio amortized cost of $65.4 million. AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had an average life of 4.71 years and an average duration of 4.20 years. Management believes 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, 2016 were as follows: December 31, 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 $ 34,262 $ 1,110 $ 11,846 $ 467 $ 46,108 $ 1,577 At December 31, 2016, the AFS investment portfolio had an estimated fair value of $53.0 million, of which $46.1 million of the securities had some unrealized losses from their amortized cost. 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 $1.6 million of the portfolio amortized cost of $50.1 million. AFS asset-backed securities issued by GSEs and U.S. Agencies with unrealized losses had an average life of 4.91 years and an average duration of 4.37 years. Management believes 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 December 31, 2017 were as follows: December 31, 2017 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 36,607 254 45,119 1,130 81,726 1,384 Asset-backed securities issued by Others - - 599 52 599 52 $ 36,607 $ 254 $ 45,718 $ 1,182 $ 82,325 $ 1,436 At December 31, 2017, the HTM investment portfolio had an estimated fair value of $98.0 million, of which $82.3 million of the securities had some unrealized losses from their amortized cost. Of these securities, $81.7 million were asset-backed securities issued by GSEs and U.S. Agencies and $599,000 were asset-backed securities issued by others. HTM asset-backed securities issued by GSEs and GSE agency bonds 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 $1.4 million of the portfolio amortized cost of $98.6 million. The securities with unrealized losses had an average life of 5.02 years and an average duration of 4.43 years. Management believes 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 $52,000 of the portfolio amortized cost of $651,000 . HTM asset-backed securities issued by others with unrealized losses had an average life of 3.20 years and an average duration of 2.66 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, 2016 were as follows: December 31, 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 $ 77,879 $ 1,452 $ 6,340 $ 182 $ 84,219 $ 1,634 Asset-backed securities issued by Others - - 803 81 803 81 $ 77,879 $ 1,452 $ 7,143 $ 263 $ 85,022 $ 1,715 At December 31, 2016, the HTM investment portfolio had an estimated fair value of $108.0 million, of which $85.0 million of the securities had some unrealized losses from their amortized cost. Of these securities, $84.2 million were asset-backed securities issued by GSEs and U.S. Agencies. The remaining $803,000 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 $1.6 million of the portfolio amortized cost of $108.4 million. The securities with unrealized losses had an average life of 5.06 years and an average duration of 4.49 years. Management believes 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 $81,000 of the portfolio amortized cost of $884,000 . HTM asset-backed securities issued by others with unrealized losses had an average life of 4.15 years and an average duration of 3.29 years. Maturities The amortized cost and estimated fair value of debt securities at December 31, 2017 and 2016 by contractual maturity, are shown below. The Company has allocated the asset-backed securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Available for Sale Held to Maturity December 31, 2017 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,480 $ 4,507 $ - $ - U.S. government obligations - - 1,000 1,000 Asset-backed securities & U.S. Agencies Within one year 9,853 9,601 18,722 22,512 Over one year through five years 28,832 28,096 41,433 38,813 Over five years through ten years 20,357 19,838 25,309 23,709 After ten years 6,369 6,206 12,782 11,973 Total asset-backed securities 65,411 63,741 98,246 97,007 $ 69,891 $ 68,248 $ 99,246 $ 98,007 Available for Sale Held to Maturity December 31, 2016 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,386 $ 4,413 $ - $ - U.S. government obligations - - 850 850 Asset-backed securities & U.S. Agencies Within one year 7,879 7,634 18,844 21,104 Over one year through five years 21,481 20,813 47,168 45,339 Over five years through ten years 13,093 12,686 29,803 28,647 After ten years 7,689 7,450 12,582 12,094 Total asset-backed securities 50,142 48,583 108,397 107,184 $ 54,528 $ 52,996 $ 109,247 $ 108,034 Credit Quality of Asset-Backed Securities 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 December 31, 2017 and 2016 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. December 31, 2017 December 31, 2016 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 162,336 AAA $ 156,947 BB 651 BB 411 B+ - B+ 472 Total $ 162,987 Total $ 157,830 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Loans [Abstract] | |
Loans | NOTE 6 – LOANS Loans consist of the following: (dollars in thousands) December 31, 2017 % December 31, 2016 % Commercial real estate $ 727,314 63.25% $ 667,105 61.25% Residential first mortgages 170,374 14.81% 171,004 15.70% Residential rentals 110,228 9.58% 101,897 9.36% Construction and land development 27,871 2.42% 36,934 3.39% Home equity and second mortgages 21,351 1.86% 21,399 1.97% Commercial loans 56,417 4.91% 50,484 4.64% Consumer loans 573 0.05% 422 0.04% Commercial equipment 35,916 3.12% 39,737 3.65% 1,150,044 100.00% 1,088,982 100.00% Less: Deferred loan fees and premiums (1,086) -0.09% (397) -0.04% Allowance for loan losses 10,515 0.91% 9,860 0.91% 9,429 9,463 $ 1,140,615 $ 1,079,519 At December 31, 2017 and 2016, the Bank’s allowance for loan losses totaled $10.5 million and $9.9 million, or 0.91% and 0.91% , 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. Net deferred loan fees and premiums of $1.1 million at December 31, 2017 included net deferred fees paid by customers of $2.8 million offset by net deferred premiums paid for the purchase of residential first mortgages and deferred costs of $3.9 million. Net deferred loan fees and premiums of $397,000 at December 31, 2016 included net deferred fees paid by customers of $2.7 million offset by net deferred premiums paid for the purchase of residential first mortgages and deferred costs of $3.1 million. Prior to April 1, 2016, loans secured by residential rental property were included in the residential first mortgage and commercial real estate loan portfolios. Beginning in the second quarter of 2016, the Company segregated loans secured by residential rental property into a new loan portfolio segment. Residential rental property includes income producing properties comprising 1-4 family units and apartment buildings. The Company’s decision to segregate the residential rental property portfolio for financial reporting was based on the growth and size of the portfolio and risk characteristics unique to residential rental properties. Comparative financial information was reclassified to conform to the classification presented in 2016. 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 6.2% and 9.3% of the CRE portfolio at December 31, 2017 and December 31, 2016, 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. During the years ended December 31, 2017 and 2016, the Bank purchased residential first mortgages of $25.5 million and $64.2 million, respectively. 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 $56.9 million or 5.0% of total gross loans of $1.15 billion at December 31, 2017 compared to $45.6 million or 4.2% of total gross loans of $1.09 billion at December 31, 2016. 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 December 31, 2017 and December 31, 2016, $85.0 million and $84.9 million, respectively, were 1-4 family units and $25.2 million and $17.0 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. 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 rental portfolio was $93.4 million or 8.1% of total gross loans of $1.15 billion at December 31, 2017 compared to $84.0 million or 7.7% of total gross loans of $1.09 billion at December 31, 2016. 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 by 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 is heightened as the market value of residential property has not fully returned to pre-financial crisis levels and interest rates began to increase in 2017. 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 borrower 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 or secured by real property, accounts receivable, or other security as determined by the Bank. 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 December 31, 2017 and December 31, 2016 were as follows: December 31, 2017 (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 $ 1,148 4 $ 839 3 $ 1,987 7 Residential first mortgages 478 3 507 1 985 4 Residential rentals 84 1 741 3 825 4 Home equity and second mortgages 134 3 123 1 257 4 Commercial loans 172 2 - - 172 2 Commercial equipment 467 3 - - 467 3 $ 2,483 16 $ 2,210 8 $ 4,693 24 December 31, 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 $ 2,371 7 $ - - $ 2,371 7 Residential first mortgages 623 4 - - 623 4 Residential rentals 577 4 - - 577 4 Construction and land development 3,048 2 - - 3,048 2 Home equity and second mortgages 61 2 - - 61 2 Commercial loans 375 3 669 2 1,044 5 Commercial equipment 650 5 - - 650 5 $ 7,705 27 $ 669 2 $ 8,374 29 Non-accrual loans (90 days or greater delinquent and non-accrual only loans) decreased $3.7 million from $8.4 million or 0.77% of total loans at December 31, 2016 to $4.7 million or 0.41% of total loans at December 31, 2017. Non-accrual only loans are loans classified as non-accrual due to customer operating results or payment history. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. In accordance with the Company’s policy, interest income is recognized on a cash basis or cost-recovery method, until qualifying for return to accrual status. At December 31, 2017, non-accrual loans of $4.7 million included 24 loans, of which $3.3 million, or 71% represented 10 loans and five customer relationships. During the year ended December 31, 2017 non-accrual loans decreased $3.0 million due to the foreclosure of a stalled residential development project. The Bank is working with a construction manager to stabilize and market the project. Before the foreclosure, the loans in this relationship were troubled debt restructures (“TDRs”). Additionally, during the third quarter of 2017, non-accrual loans decreased $607,000 due to the foreclosure of a commercial office building. At December 31, 2016, non-accrual loans of $8.4 million included 29 loans, of which $6.4 million, or 77% of represented 15 loans and six customer relationships. Non-accrual loans included one TDR totaling $769,000 at December 31, 2017 and six TDRs totaling $4.7 million at December 31, 2016. 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 $3.8 million and $7.8 million at December 31, 2017 and 2016, respectively. Interest due but not recognized on these balances at December 31, 2017 and 2016 was $85,000 and $947,000 , respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $876,000 and $575,000 at December 31, 2017 and 2016, respectively. Interest due but not recognized on these balances at December 31, 2017 and 2016 was $100,000 and $156,000 , respectively. An analysis of past due loans as of December 31, 2017 and 2016 was as follows: December 31, 2017 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 719,455 $ - $ 6,711 $ 1,148 $ 7,859 $ 727,314 Residential first mortgages 169,828 - 68 478 546 170,374 Residential rentals 109,937 - 207 84 291 110,228 Construction and land dev. 27,871 - - - - 27,871 Home equity and second mtg. 21,180 19 18 134 171 21,351 Commercial loans 55,054 892 299 172 1,363 56,417 Consumer loans 572 - 1 - 1 573 Commercial equipment 34,437 1,012 - 467 1,479 35,916 Total $ 1,138,334 $ 1,923 $ 7,304 $ 2,483 $ 11,710 $ 1,150,044 December 31, 2016 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 664,250 $ - $ 484 $ 2,371 $ 2,855 $ 667,105 Residential first mortgages 170,381 - - 623 623 171,004 Residential rentals 101,309 - 11 577 588 101,897 Construction and land dev. 33,886 - - 3,048 3,048 36,934 Home equity and second mtg. 21,175 130 33 61 224 21,399 Commercial loans 49,778 331 - 375 706 50,484 Consumer loans 420 - 2 - 2 422 Commercial equipment 39,044 42 1 650 693 39,737 Total $ 1,080,243 $ 503 $ 531 $ 7,705 $ 8,739 $ 1,088,982 There were no loans greater than 90 days still accruing interest at December 31, 2017 and 2016, respectively. Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at December 31, 2017 and 2016 were as follows: December 31, 2017 (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 $ 33,180 $ 30,921 $ 2,008 $ 32,929 $ 370 $ 33,575 $ 1,379 Residential first mortgages 2,455 1,978 459 2,437 2 2,479 91 Residential rentals 2,389 1,981 395 2,376 18 2,432 111 Construction and land dev. 729 - 729 729 163 729 26 Home equity and second mtg. 317 317 - 317 - 318 12 Commercial loans 3,010 2,783 168 2,951 168 3,048 137 Commercial equipment 1,538 1,048 467 1,515 303 1,578 73 Total $ 43,618 $ 39,028 $ 4,226 $ 43,254 $ 1,024 $ 44,159 $ 1,829 December 31, 2016 (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 $ 22,195 $ 14,896 $ 7,081 $ 21,977 $ 806 $ 22,303 $ 908 Residential first mortgages 2,436 1,938 475 2,413 7 2,445 90 Residential rentals 3,440 2,850 178 3,028 36 3,486 134 Construction and land dev. 4,304 2,926 851 3,777 178 3,867 16 Home equity and second mtg. 170 170 - 170 - 176 7 Commercial loans 3,285 3,004 200 3,204 123 3,442 137 Commercial equipment 855 652 139 791 139 815 17 Total $ 36,685 $ 26,436 $ 8,924 $ 35,360 $ 1,289 $ 36,534 $ 1,309 TDRs, included in the impaired loan schedules above, as of December 31, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 9,273 9 $ 9,587 8 Residential first mortgages 527 2 545 2 Residential rentals 221 1 227 1 Construction and land development 729 2 3,777 4 Commercial loans 4 1 872 5 Commercial equipment 36 1 113 2 Total TDRs $ 10,790 16 $ 15,121 22 Less: TDRs included in non-accrual loans (769) (1) (4,673) (6) Total accrual TDR loans $ 10,021 15 $ 10,448 16 TDRs decreased $4.3 million from $15.1 million at December 31, 2016 to $10.8 million at December 31, 2017. TDRs that are included in non-accrual are classified solely as non-accrual loans for the calculation of financial ratios. The Company had specific reserves of $413,000 on seven TDRs totaling $3.0 million at December 31, 2017 and $844,000 on nine TDRs totaling $5.7 million at December 31, 2016. During the year ended December 31, 2017, TDR disposals, which included payoffs and refinancing decreased by seven loans totaling $3.9 million, of which $3.0 million related to the foreclosure of the stalled residential development project mentioned previously. TDR loan principal curtailment was $385,000 for the year ended December 31, 2017. There were no TDRs added during the year ended December 31, 2017. During the year ended December 31, 2016 the Company added one TDR loan totaling $196,000 . TDR disposals, which included payoffs and refinancing for the year ended December 31, 2016 decreased by nine loans or $2.1 million. TDR loan principal curtailment was $1.6 million for the year ended December 31, 2016. Interest income in the amount of $327,000 and $357,000 was recognized on outstanding TDR loans for the years ended December 31, 2017 and 2016, respectively. Allowance for Loan Losses The following tables detail activity in the allowance for loan losses at and for the years ended December 31, 2017, 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. Year Ended December 31, 2017 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 5,212 $ (217) $ 63 $ 1,393 $ 6,451 Residential first mortgages 1,406 - - (262) 1,144 Residential rentals 362 (42) - 192 512 Construction and land development 941 (26) - (453) 462 Home equity and second mortgages 138 (14) 1 37 162 Commercial loans 794 (13) 1 231 1,013 Consumer loans 3 (2) - 6 7 Commercial equipment 1,004 (168) 62 (134) 764 $ 9,860 $ (482) $ 127 $ 1,010 $ 10,515 Year Ended December 31, 2016 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 3,465 $ - $ 58 $ 1,689 $ 5,212 Residential first mortgages 584 - - 822 1,406 Residential rentals 538 (14) - (162) 362 Construction and land development 1,103 (526) 1 363 941 Home equity and second mortgages 142 - 5 (9) 138 Commercial loans 1,477 (594) 18 (107) 794 Consumer loans 2 (1) - 2 3 Commercial equipment 1,229 (34) 48 (239) 1,004 $ 8,540 $ (1,169) $ 130 $ 2,359 $ 9,860 Year Ended December 31, 2015 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 3,528 $ (78) $ 17 $ (2) $ 3,465 Residential first mortgages 1,047 (30) 1 (434) 584 Residential rentals 593 - - (55) 538 Construction and land development 1,071 - 32 - 1,103 Home equity and second mortgages 173 (100) - 69 142 Commercial loans 1,677 (432) 11 221 1,477 Consumer loans 3 - - (1) 2 Commercial equipment 389 (818) 23 1,635 1,229 $ 8,481 $ (1,458) $ 84 $ 1,433 $ 8,540 The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2017 and 2016, respectively. December 31, 2017 December 31, 2016 (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 Loan Receivables: Commercial real estate $ 32,929 $ 694,385 $ 727,314 $ 21,977 $ 645,128 $ 667,105 Residential first mortgages 2,437 167,937 170,374 2,413 168,591 171,004 Residential rentals 2,376 107,852 110,228 3,028 98,869 101,897 Construction and land development 729 27,142 27,871 3,777 33,157 36,934 Home equity and second mortgages 317 21,034 21,351 170 21,229 21,399 Commercial loans 2,951 53,466 56,417 3,204 47,280 50,484 Consumer loans - 573 573 - 422 422 Commercial equipment 1,515 34,401 35,916 791 38,946 39,737 $ 43,254 $ 1,106,790 $ 1,150,044 $ 35,360 $ 1,053,622 $ 1,088,982 Allowance for loan losses: Commercial real estate $ 370 $ 6,081 $ 6,451 $ 806 $ 4,406 $ 5,212 Residential first mortgages 2 1,142 1,144 7 1,399 1,406 Residential rentals 18 494 512 36 326 362 Construction and land development 163 299 462 178 763 941 Home equity and second mortgages - 162 162 - 138 138 Commercial loans 168 845 1,013 123 671 794 Consumer loans - 7 7 - 3 3 Commercial equipment 303 461 764 139 865 1,004 $ 1,024 $ 9,491 $ 10,515 $ 1,289 $ 8,571 $ 9,860 During the fourth quarter of 2016, the Company expanded its factor scoring categories from three levels to five levels to capture additional movements in qualitative factors used to calculate the general allowance of each portfolio segment. No additional qualitative factors were added to the Company’s methodology as part of this change. There were no material changes to the existing allowance for loan losses by portfolio segment or in the aggregate as a result of the change. Credit Quality Indicators Credit quality indicators as of December 31, 2017 and 2016 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. Residential Rentals (dollars in thousands) 12/31/2017 12/31/2016 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Unrated $ 75,581 $ 51,503 $ 1,775 $ 1,632 $ 28,428 $ 25,563 Pass 619,604 594,768 25,367 31,525 80,279 74,989 Special mention - - - - - - Substandard 32,129 20,834 729 3,777 1,521 1,345 Doubtful - - - - - - Loss - - - - - - Total $ 727,314 $ 667,105 $ 27,871 $ 36,934 $ 110,228 $ 101,897 Commercial Loans Commercial Equipment Total Commercial Portfolios (dollars in thousands) 12/31/2017 12/31/2016 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Unrated $ 14,356 $ 11,266 $ 10,856 $ 11,769 $ 130,996 $ 101,733 Pass 39,118 36,221 23,581 27,290 787,949 764,793 Special mention - - - - - - Substandard 2,943 2,997 1,479 541 38,801 29,494 Doubtful - - - 137 - 137 Loss - - - - - - Total $ 56,417 $ 50,484 $ 35,916 $ 39,737 $ 957,746 $ 896,157 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 12/31/2017 12/31/2016 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Performing $ 169,896 $ 170,381 $ 21,217 $ 21,338 $ 573 $ 422 Nonperforming 478 623 134 61 - - Total $ 170,374 $ 171,004 $ 21,351 $ 21,399 $ 573 $ 422 A risk grading scale is used to assign grades to commercial relationships, which include commercial real estate, residential rentals, construction and land development, commercial loans and commercial equipment loans. Loans are graded at inception, annually thereafter when financial statements are received and at other times when there is an indication that a credit may have weakened or improved. Only commercial loan relationships with an aggregate exposure to the Bank of $1,000,000 or greater are subject to being risk rated. 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 our 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. Maturity of Loan Portfolio The following table sets forth certain information at December 31, 2017 and 2016 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. December 31, 2017 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2017 December 31, 2017 December 31, 2017 Real Estate Loans Commercial $ 67,951 $ 150,075 $ 509,288 Residential first mortgage 8,596 35,208 126,570 Residential rentals 4,288 21,627 84,313 Construction and land development 21,226 6,645 - Home equity and second mortgage 242 811 20,298 Commercial loans 56,417 - - Consumer loans 200 307 66 Commercial equipment 12,113 18,051 5,752 Total loans $ 171,033 $ 232,724 $ 746,287 December 31, 2016 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2016 December 31, 2016 December 31, 2016 Real Estate Loans Commercial $ 86,782 $ 128,431 $ 451,892 Residential first mortgage 8,501 34,592 127,911 Residential rentals 3,847 17,911 80,139 Construction and land development 23,674 10,212 3,048 Home equity and second mortgage 296 877 20,226 Commercial loans 50,484 - - Consumer loans 163 164 95 Commercial equipment 10,049 18,812 10,876 Total loans $ 183,796 $ 210,999 $ 694,187 The following table sets forth the dollar amount of all loans due after one year from December 31, 2017 and 2016, which have predetermined interest rates and have floating or adjustable interest rates. December 31, 2017 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 157,667 $ 501,696 $ 659 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2017 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 7 - LOAN SERVICING Loans serviced for others are not reflected in the accompanying balance sheets. The unpaid principal balances of mortgages serviced for others were $43.7 million and $52.0 million at December 31, 2017 and 2016, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. Loan servicing income is recorded on an accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The following table presents the activity of the mortgage servicing rights. Years Ended December 31, (dollars in thousands) 2017 2016 2015 Balance, beginning of the year $ 128 $ 219 $ 295 Additions - - 31 Amortization (74) (91) (107) Balance, end of the year $ 54 $ 128 $ 219 |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Other Real Estate Owned ("OREO") | NOTE 8 - OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. 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. An analysis of the activity follows. Years Ended December 31, (dollars in thousands) 2017 2016 2015 Balance at beginning of year $ 7,763 $ 9,449 $ 5,883 Additions of underlying property 3,634 3,120 5,436 Disposals of underlying property (1,456) (3,860) (1,206) Transfers to premises and equipment - (372) - Valuation allowance (600) (574) (664) Balance at end of period $ 9,341 $ 7,763 $ 9,449 During the year ended December 31, 2017, additions of $3.6 million consisted of $3.0 million related to the foreclosure of a stalled residential development project. The Bank is working with a construction manager to stabilize and market the project. Further, additions included $103,000 for residential lots and $495,000 for a commercial office building. The Company disposed of five residential properties and multiple residential lots for proceeds of $1.5 million and a gain of $43,000 for the year ended December 31, 2017. The Bank provided $200,000 in financing for one residential property and the three residential lots during the first quarter of 2017. The transaction qualified for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”. The Company recognized net losses on OREO disposals of $436,000 for the year ended December 31, 2016. Disposals consisted of properties with the following carrying values; $337,000 for seven residential lots, $584,000 for four residential properties, $501,000 for two 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 and the transaction qualified for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”. In addition, the Company transferred one commercial condominium with a carrying value of $372,000 into premises for commercial lending office space. The Company had $122,000 and $353,000 of impaired loans secured by residential real estate for which formal foreclosure proceedings were in process as of December 31, 2017 and 2016, respectively. Additions to the valuation allowances of $600,000 , $574,000 and $664,000 were taken to adjust properties to current appraised values for the years ended December 31, 2017, 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 included the following. . Years Ended December 31, (dollars in thousands) 2017 2016 2015 Valuation allowance $ 600 $ 574 $ 664 Operating expenses 146 287 395 $ 746 $ 861 $ 1,059 |
Premises and Equipment and Held
Premises and Equipment and Held for Sale Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | |
Premises and Equipment and Held for Sale Premises and Equipment | NOTE 9 - PREMISES AND EQUIPMENT AND HELD FOR SALE PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2017 and 2016 follows: December 31, (dollars in thousands) 2017 2016 Land $ 4,172 $ 4,172 Building and improvements 23,038 22,586 Furniture and equipment 9,225 8,989 Automobiles 303 313 Total cost 36,738 36,060 Less accumulated depreciation 15,347 13,855 Premises and equipment, net $ 21,391 $ 22,205 Certain Bank facilities are leased under various operating leases. Rent expense was $761,000 , $723,000 and $701,000 for the ye ars ended December 31, 2017, 2016 and 2015, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2017: (dollar in thousands) 2018 $ 747 2019 625 2020 514 2021 489 2022 415 Thereafter 4,019 Total $ 6,809 As of December 31, 2016, the Company had a small office condo under contract held for sale with a fair value of $345,000 that was recorded as a non-recurring Level 2 asset at December 31, 2016. The contract on the property was cancelled during the three months ended March 31, 2017, and the asset was transferred and recorded as a non-recurring Level 3 asset. During the three months ended June 30, 2017, the property was sold for net proceeds of $ 392,000 with a gain on the sale of $47,000 . During the year ended December 31, 2015, the Company agreed to sell its King George, Virginia branch building and equipment to a credit union. The required conditions were met during the third quarter of 2015 to classify the asset as held for sale (“HFS”) under FASB 360-10-45-9 which addresses accounting and reporting for long-lived assets to be disposed of by sale. FASB ASC 360-10-35-43 states that a long-lived asset classified as HFS should be measured at the lower of carrying amount or fair value less cost to sell. Based on the contracted sales price, the Company recorded an impairment of $426,000 during the third quarter of 2015. The transaction closed on January 28, 2016. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | NOTE 10 - DEPOSITS Deposits consist of the following: December 31, (dollars in thousands) 2017 2016 Noninterest-bearing demand $ 159,844 $ 144,877 Interest-bearing: Demand 215,447 162,823 Money market deposits 226,351 248,049 Savings 52,990 50,284 Certificates of deposit 451,605 432,792 Total interest-bearing 946,393 893,948 Total Deposits $ 1,106,237 $ 1,038,825 As of December 31, 2017 and 2016, there were $9.2 million and $6.2 million, respectively in deposit accounts held by executive officers and directors of the Bank and Company. The aggregate amount of certificates of deposit in denominations of $100,000 or more at December 31, 2017 and 2016 was $321.0 million and $287.6 million, respectively. The aggregate amount of certificates of deposit in denominations of $250,000 or more at December 31, 2017, and 2016 was $167.5 million and $153.9 million, respectively. At December 31, 2017 and 2016, the scheduled contractual maturities of certificates of deposit are as follows: December 31, (dollars in thousands) 2017 2016 Within one year $ 312,417 $ 306,089 Year 2 93,723 79,474 Year 3 29,661 31,921 Year 4 4,327 8,353 Year 5 11,477 6,955 $ 451,605 $ 432,792 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Short-Term Borrowings and Long-Term Debt | NOTE 11 - SHORT-TERM BORROWINGS AND LONG-TERM DEBT The Bank’s long-term debt and short-term borrowings consist of advances from the FHLB of Atlanta. The Bank classifies debt based upon original maturity and does not reclassify debt to short-term status during its life. Long-term debt and short-term borrowings include fixed-rate long-term advances, short-term advances, daily advances, fixed-rate convertible advances, and variable-rate convertible advances. Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed- Fixed-Rate Variable Rate Convertible Convertible December 31, 2017 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.95% 3.47% 4.00% Weighted average rate 1.42% 3.47% 4.00% Matures through 2036 2018 2020 December 31, 2016 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.54% 3.47% 4.00% Weighted average rate 1.05% 3.47% 4.00% Matures through 2036 2018 2020 Average rates of long-term debt and short-term borrowings were as follows: At or for the Year Ended December 31, (dollars in thousands) 2017 2016 2015 Long-term debt Long-term debt outstanding at end of period $ 55,498 $ 65,559 $ 55,617 Weighted average rate on outstanding long-term debt 2.38% 2.27% 2.47% Maximum outstanding long-term debt of any month end 65,554 65,593 74,668 Average outstanding long-term debt 58,704 60,503 68,924 Approximate average rate paid on long-term debt 2.24% 2.41% 2.26% Short-term borrowings Short-term borrowings outstanding at end of period $ 87,500 $ 79,000 $ 36,000 Weighted average rate on short-term borrowings 1.34% 0.71% 0.38% Maximum outstanding short-term borrowings at any month end 109,000 79,000 36,000 Average outstanding short-term borrowings 91,797 39,802 13,463 Approximate average rate paid on short-term borrowings 1.15% 0.49% 0.27% The Bank’s fixed-rate debt generally consists of advances with monthly interest payments and principal due at maturity. The Bank’s fixed-rate convertible long-term debt is callable by the issuer, after an initial period ranging from six months to five years. The instruments are callable at the end of the initial period. As of December 31, 2017 and 2016, all fixed-rate convertible debt has passed its call date. All advances have a prepayment penalty, determined based upon prevailing interest rates. Variable convertible advances have an initial variable rate based on a discount to LIBOR. Variable convertible debt is scheduled to mature in 2020. As of December 31, 2017 and 2016, all variable convertible debt has passed its call date and is fixed at 4.0% . During the year ended December 31, 2017, the Bank paid off $20.1 million of maturing long-term debt and added one $10.0 million fixed-rate advance maturing in 2018 at 1.38% . During the year ended December 31, 2016, the Bank paid off $5.0 million of maturing long-term debt and added one $15.0 million fixed-rate advances maturing in 2018 at 0.95% . At December 31, 2017 and 2016, $55.5 million or 100% and $65.6 million or 100% , respectively, of the Bank’s long-term debt was fixed for rate and term, as the conversion optionality of the advances have either been exercised or expired. The contractual maturities of long-term debt were as follows at December 31, 2017 and 2016: December 31, 2017 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2018 $ 25,000 $ 10,000 $ - $ 35,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Due in 2021 - - - - Due in 2022 10,302 - - 10,302 Thereafter 196 - - 196 $ 35,498 $ 10,000 $ 10,000 $ 55,498 December 31, 2016 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2017 $ 20,000 $ - $ - $ 20,000 Due in 2018 15,000 10,000 - 25,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Due in 2021 - - - - Thereafter 10,559 - - 10,559 $ 45,559 $ 10,000 $ 10,000 $ 65,559 The Bank also has daily advances outstanding and short-term advances with terms of less than one year, which are classified as short-term borrowings. Daily advances are repayable at the Bank’s option at any time and are re-priced daily. Daily advances were $6.0 million and $19.0 million at December 31, 2017 and 2016, respectively. The Bank had short-term advances of $81.5 million and $60.0 million, respectively, at December 31, 2017 and 2016. Under the terms of an Agreement for Advances and Security Agreement with Blanket Floating Lien (the “Agreement”), the Bank maintains collateral with the FHLB consisting of one-to four-family residential first mortgage loans, second mortgage loans, commercial real estate and securities. The Agreement limits total advances to 30% of assets, which were $420.3 million and $399.6 million at December 31, 2017 and 2016, respectively. At December 31, 2017, $584.6 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2017, FHLB lendable collateral was valued at $452.6 million. At December 31, 2017, the Bank had total lendable pledged collateral at the FHLB of $330.1 million of which $187.1 million was available to borrow in addition to outstanding advances of $143.0 million. Unpledged lendable collateral was $122.5 million, bringing total available borrowing capacity to $309.6 million at December 31, 2017. At December 31, 2016, $521.3 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2016, FHLB lendable collateral was valued at $405.7 million. At December 31, 2016, the Bank had total lendable pledged collateral at the FHLB of $275.1 million of which $130.6 million was available to borrow in addition to outstanding advances of $144.6 million. Unpledged lendable collateral was $130.5 million, bringing total available borrowing capacity to $261.1 million at December 31, 2016. The Bank has established a short-term credit facility with the Federal Reserve Bank of Richmond under its Borrower in Custody program. The Bank had segregated collateral sufficient to draw $7.5 million and $8.6 million under this agreement at December 31, 2017 and 2016, respectively. In addition, the Bank has established unsecured short-term credit facilities with other commercial banks totaling $22.0 million and $12.0 million, respectively, at December 31, 2017 and 2016. Additionally, the Bank secured a $40.0 million repurchase credit facility during 2017 with a commercial bank. The repurchase facility requires the pledging of securities as collateral. No amounts were outstanding under the Borrower in Custody or the unsecured and secured commercial lines at December 31, 2017 and 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2017 2016 2015 Current Federal $ 5,584 $ 3,675 $ 3,255 State 1,686 1,296 1,128 7,270 4,971 4,383 Deferred Federal 1,894 (460) (643) State (7) (95) (107) 1,887 (555) (750) Income tax expense $ 9,157 $ 4,416 $ 3,633 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2017 2016 2015 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 5,728 35.00% $ 3,994 34.00% $ 3,392 34.00% State taxes net of federal benefit 1,096 6.70% 796 6.78% 647 6.49% Nondeductible expenses 255 1.56% 37 0.31% 40 0.40% Nontaxable income (376) (2.30%) (375) (3.19%) (398) (3.99%) Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate 2,740 16.74% - 0.00% - 0.00% Other (286) (1.75%) (36) (0.31%) (48) (0.48%) $ 9,157 55.95% $ 4,416 37.59% $ 3,633 36.42% Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the new law, we recognized a provisional net tax expense of $2.7 million. The net deferred tax assets in the accompanying balance sheets include the following components: 2017 2016 Deferred tax assets Allowance for loan losses $ 2,893 $ 3,890 Deferred compensation 2,142 2,520 OREO valuation allowance & expenses 337 413 Unrealized loss on investment securities 452 605 Depreciation 29 Other 142 509 5,995 7,937 Deferred tax liabilities FHLB stock dividends 109 156 Depreciation - 15 109 171 $ 5,886 $ 7,766 The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations, however, such changes do not currently impact the Company. As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we calculated deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21%, which is the tax rate at which these assets and liabilities are expected to reverse in the future. We will continue to analyze certain aspects of the new law and refine our calculations based on this analysis and future tax positions taken, which could affect the measurement of these assets and liabilities or give rise to new deferred tax amounts. We recognized a provisional net tax expense related to the calculation of our deferred tax assets and liabilities totaling $2.7 million. The FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income,” which allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. The Company early adopted this standard for the quarter ended December 31, 2017. See Notes 1 and 2 for further information. On Friday, December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118). SAB 118 indicated that a reporting entity must record a reasonable estimate in the first period in which it is possible to determine a reasonable estimate. Under SAB 118, reasonable estimates are considered “provisional amounts” that have to be updated when additional information becomes available and the evaluation and computation of the additional information is complete. A reporting entity must act in good faith and update provisional amounts as soon as more information becomes available, evaluated and prepared, during a measurement period that cannot exceed one year from the enactment date. Initial reasonable estimates and subsequent changes to provisional amounts should be reported in income tax expense or benefit from continuing operations in the period in which they are determined. Retained earnings at December 31, 2017 and 2016 included approximately $1.2 million of bad debt deductions allowed for federal income tax purposes (the “base year tax reserve”) for which no deferred income tax has been recognized. If, in the future, this portion of retained earnings is used for any purpose other than to absorb bad debt losses, it would create income for tax purposes only and income taxes would be imposed at the then prevailing rates. The unrecorded income tax liability on the above amount was approximately $330,000 and 463,000 at December 31, 2017 and 2016. The Company does not have uncertain tax positions that are deemed material and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes as a component of tax expense. The Company is no longer subject to U.S. Federal tax examinations by tax authorities for years before 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 13 - COMMITMENTS AND CONTINGENCIES The Bank is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. These instruments may, but do not necessarily, involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet loans receivable. As of December 31, 2017 and 2016, the Bank had outstanding loan commitments of approximately $65.6 million and $67.0 million, respectively. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. These guarantees are issued primarily to support construction borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds cash or a secured interest in real estate as collateral to support those commitments for which collateral is deemed necessary. Standby letters of credit outstanding amounted to $17.9 million and $17.7 million at December 31, 2017 and 2016, respectively. In addition to the commitments noted above, customers had approximately $162.2 million and $135.3 million available under lines of credit at December 31, 2017 and 2016, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 14 - 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 “2015 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 $515,000 , $489,000 and $319,000 for the years ended December 31, 2017, 2016 and 2015, respectively, which consisted of grants of restricted stock and restricted stock units. The Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017. The fair value of the Company’s outstanding employee stock options were estimated on the date of grant using the Black-Scholes option pricing model. The Company estimated 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 option activity and outstanding and exercisable options at and for the years ended December 31, 2017 and 2016. respectively. 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, 2017 15,081 $ 27.70 $ - Exercised (14,231) 27.70 134 Expired (350) 27.70 - Forfeited (500) 27.70 - Outstanding at December 31, 2017 - $ - $ - - Exercisable at December 31, 2017 - $ - $ - - 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 (6,130) 27.70 Outstanding at December 31, 2016 15,081 $ 27.70 $ 20 0.5 Exercisable at December 31, 2016 15,081 $ 27.70 $ 20 0.5 The aggregate intrinsic value of outstanding stock options and exercisable stock options was $20,000 at D ecember 31, 2016. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $29.00 per share at December 31, 2016 and the exercise price multiplied by the number of options outstanding. The Company has outstanding restricted stock in accordance with the Plan. As of December 31, 2017 and 2016, unrecognized stock compensation expense was $521,000 and $810,000 , respectively. The following tables summarize the unvested restricted stock awards outstanding at December 31, 2017 and 2016, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2017 47,881 $ 20.41 Granted 6,752 30.20 Vested (21,738) 20.13 Cancelled (86) 20.75 Nonvested at December 31, 2017 32,809 $ 22.61 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 December 31, 2016 47,881 $ 20.41 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE 15 - EMPLOYEE BENEFIT PLANS The Company has an Employee Stock Ownership Plan (“ESOP”) that covers substantially all its employees. Employees qualify to participate after one year of service and vest in allocated shares after three years of service. The ESOP acquires stock of The Community Financial Corporation by purchasing shares. Dividends on ESOP shares are recorded as a reduction of retained earnings. Contributions are made at the discretion of the Board of Directors. ESOP contributions recognized for the years ended 2017, 2016 and 2015 totaled $242,000 , $99,000 and $129,000 , respectively. As of December 31, 2017 and 2016, the ESOP held 223,344 and 221,106 allocated shares and 22,908 and 9,562 unallocated shares. The approximate market values of the shares were $9.4 million and $6.7 million, respectively as of December 31, 2017 and 2016. The estimated value was determined using the Company’s closing stock price of $38.30 and $29.00 per share as of December 31, 2017 and 2016, respectively. In addition, salary and employee benefit expense for the year ended December 31, 2017 included $110,000 for the excess of fair market value of leveraged ESOP shares released (allocated). The ESOP has promissory notes with the Company for the purchase of TCFC common stock for the benefit of the participants in the Plan. The ESOP has promissory notes with the Company of $755,000 and $169,000 at December 31, 2017 and 2016, respectively. The promissory notes were originated for the purchase of TCFC common stock for the benefit of the participants in the Plan. Loan terms are at prime rate plus one -percentage point and amortize over seven (7) years. As principal is repaid, common shares are allocated to participants based on the participant account allocation rules described in the Plan. The Bank is a guarantor of the ESOP debt with the Company. During the year ended December 31, 2017, $237,000 or 10,157 ESOP shares were allocated with the payment of promissory notes. This was offset by the purchase of 23,503 shares of the Company’s common shares for $823,000 with promissory notes by the ESOP during the third quarter of 2017. The Company also has a 401(k) plan. The Company matches a portion of the employee contributions. This ratio is determined annually by the Board of Directors. In 2017, 2016 and 2015, the Company matched one-half of the first 8% of the employee’s contribution. Employees who have completed six months of service are covered under this defined contribution plan. Employee’s vest in the Company’s matching contributions after three years of service. Contributions are determined at the discretion of the Board of Directors. For the years ended December 31, 2017, 2016 and 2015, the expense recorded for this plan totaled $298,000 , $346,000 and $332,000 , respectively. The Company has a separate nonqualified retirement plan for non-employee directors. Directors are eligible for a maximum benefit of $3,500 a year for ten years following retirement from the Board of Community Bank of the Chesapeake. The maximum benefit is earned at 15 years of service as a non-employee director. Full vesting occurs after two years of service. Expense recorded for this plan was $29,000 , $20,000 and $22,000 for the years ended December 31, 2017, 2016 and 2015, respectively. In addition, the Company has established individual supplemental retirement plans and life insurance benefits for certain key executives and officers of the Bank. The retirement plans provide retirement income payments for 15 years from the date of the employee’s expected retirement at age 65. The retirement benefit amount for each agreement is set at the discretion of the Board of Directors and vests from the date of the agreement until the expected retirement date. Expense recorded for the plans totaled $637,000 , $525,000 and $519,000 for 2017, 2016 and 2015, respectively. |
Guaranteed Preferred Beneficial
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | 12 Months Ended |
Dec. 31, 2017 | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | NOTE 16 - 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 | 12 Months Ended |
Dec. 31, 2017 | |
Subordinated Notes [Abstract] | |
Subordinated Notes | NOTE 17 – 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. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | NOTE 18 - REGULATORY CAPITAL 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 continues 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 began its phase-in period beginning January 1, 2016 at 0.625% of risk-weighted assets and will 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 December 31, 2017 and 2016, 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 December 31, 2017 and 2016, 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) December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Common Equity $ 109,957 $ 104,426 $ 139,046 $ 136,109 AOCI Losses 1,191 928 1,191 928 Common Equity Tier 1 Capital 111,148 105,354 140,237 137,037 TRUPs 12,000 12,000 - - Tier 1 Capital 123,148 117,354 140,237 137,037 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 10,545 9,860 10,545 9,860 Subordinated Notes 23,000 23,000 - - Tier 2 Capital $ 156,693 $ 150,214 $ 150,782 $ 146,897 Risk-Weighted Assets ("RWA") $ 1,169,341 $ 1,104,505 $ 1,164,478 $ 1,102,116 Average Assets ("AA") $ 1,401,741 $ 1,300,445 $ 1,398,001 $ 1,298,145 2019 Regulatory Min. Ratio + CCB ( 1) Common Tier 1 Capital to RWA 7.00 % 9.51 % 9.54 % 12.04 % 12.43 % Tier 1 Capital to RWA 8.50 10.53 10.62 12.04 12.43 Tier 2 Capital to RWA 10.50 13.40 13.60 12.95 13.33 Tier 1 Capital to AA (Leverage) (2) n/a 8.79 9.02 10.03 10.56 (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) Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. PCA well capitalized is defined as 5.00%. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 19 - 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 quarterly valuation process. Transfers in and out of level 3 during a quarter are disclosed. There was one transfer from Level 2 to Level 3 in the fair value hierarchy during the first quarter of 2017 for premises and equipment held for sale. This asset was sold during the three months ended June 30, 2017. There were no transfers between Level 1, 2 or 3 in the fair value hierarchy for the remaining six months of 2017 and for the year ended December 31, 2016. The Company changed its presentation during the year ended December 31, 2016, for loans and OREO from Level 2 to Level 3. No changes were made to the Company’s valuation methodologies as a result of these changes. 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. Standard inputs include 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 government sponsored entities (“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 December 31, 2017 and 2016, substantially all 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 (e.g., contracted sales price), the Company records the loan as nonrecurring Level 2. When the fair value of the impaired loan is derived from an appraisal, the Company records the loan as nonrecurring Level 3. Fair value is re-assessed at least quarterly or more frequently when circumstances occur that indicate a change in the fair value. The fair values of impaired loans that are not measured based on collateral values are measured using discounted cash flows and considered to be Level 3 inputs. Premises and Equipment Held For Sale Premises and equipment are adjusted to fair value upon transfer of the assets to premises and equipment 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), the Company records the asset as nonrecurring Level 2. When the fair value of premises and equipment is derived from an appraisal or a cash flow analysis, the Company records the asset at nonrecurring Level 3. As of December 31, 2016, the Company had a small office condo under contract held for sale with a fair value of $345,000 that was recorded as a non-recurring Level 2 asset at December 31, 2016. The contract on the property was cancelled during the three months ended March 31, 2017, and the asset was transferred and recorded as a non-recurring Level 3 asset. During the three months ended June 30, 2017, the property was sold for net proceeds of $ 392,000 with a gain on the sale of $47,000 . Other Real Estate Owned (“OREO”) OREO is adjusted for 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 (e.g., contracted sales price), the Company records the foreclosed asset as nonrecurring Level 2. When the fair value is derived from an appraisal, the Company records the foreclosed asset at nonrecurring Level 3. Asse ts and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets as of December 31, 2017 and December 31, 2016 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2017 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 $ 44,137 $ - $ 44,137 $ - MBS 7,087 - 7,087 - U.S. Agency 12,517 - 12,517 - Corporate equity securities 37 - 37 - Bond mutual funds 4,507 - 4,507 - Total available for sale securities $ 68,285 $ - $ 68,285 $ - (dollars in thousands) December 31, 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 $ 34,228 $ - $ 34,228 $ - MBS 4,183 - 4,183 - U.S. Agency 10,172 - 10,172 - Corporate equity securities 37 - 37 - Bond mutual funds 4,413 - 4,413 - Total available for sale securities $ 53,033 $ - $ 53,033 $ - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required from time to time 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 December 31, 2017 and 2016 are included in the tables below. (dollars in thousands) December 31, 2017 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,638 $ - $ - $ 1,638 Residential first mortgages 457 - - 457 Residential rentals 377 - - 377 Construction and land development 566 - - 566 Commercial equipment 164 - - 164 Total loans with impairment $ 3,202 $ - $ - $ 3,202 Other real estate owned $ 9,341 $ - $ - $ 9,341 (dollars in thousands) December 31, 2016 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 6,275 $ - $ - $ 6,275 Residential first mortgages 468 - - 468 Residential rentals 142 - - 142 Construction and land development 673 - - 673 Commercial loans 77 - - 77 Total loans with impairment $ 7,635 $ - $ - $ 7,635 Premises and equipment held for sale $ 345 $ - $ 345 $ - Other real estate owned $ 7,763 $ - $ - $ 7,763 Loans with impairment have unpaid principal balances of $4.2 million and $8.9 million at December 31, 2017 and 2016, respectively, and include impaired loans with a specific allowance. The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements. December 31, 2017 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 3,202 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 24% ) Other real estate owned $ 9,341 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 12% ) December 31, 2016 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 7,635 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 14% ) Other real estate owned $ 7,763 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 12% ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 20 - 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 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 – The fair values for non-impaired loans are estimated using discounted cash flow analyses, applying interest rates currently being offered for loans with similar terms and credit quality. Internal prepayment risk models are used to adjust contractual cash flows. 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. After evaluating the underlying collateral, the fair value is determined by allocating specific reserves from the allowance for loan losses to the impaired loans. Loans held for sale – Fair values are derived from secondary market quotations for similar instruments. There were no loans held for sale at December 31, 2017 and 2016. Deposits - The fair value of checking accounts, saving accounts and money market accounts were the amount payable on demand at the reporting date. Time certificates - 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. December 31, 2017 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 68,285 $ 68,285 $ - $ 68,285 $ - Investment securities - HTM 99,246 98,007 1,000 97,007 - FHLB Stock 7,276 7,276 - 7,276 - Loans Receivable 1,140,615 1,097,592 - - 1,097,592 Investment in BOLI 29,398 29,398 - 29,398 - Liabilities Savings, NOW and money market accounts $ 654,632 $ 654,632 $ - $ 654,632 $ - Time deposits 451,605 453,644 - 453,644 - Long-term debt 55,498 57,421 - 57,421 - Short term borrowings 87,500 87,208 - 87,208 - TRUPs 12,000 9,400 - 9,400 - Subordinated notes 23,000 22,400 - 22,400 - December 31, 2016 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 53,033 $ 53,033 $ - $ 53,033 $ - Investment securities - HTM 109,247 108,034 850 107,184 - FHLB Stock 7,235 7,235 - 7,235 - Loans Receivable 1,079,519 1,066,975 - - 1,066,975 Investment in BOLI 28,625 28,625 - 28,625 - Liabilities Savings, NOW and money market accounts $ 606,033 $ 606,033 $ - $ 606,033 $ - Time deposits 432,792 433,242 - 433,242 - Long-term debt 65,559 66,302 - 66,302 - Short term borrowings 79,000 78,984 - 78,984 - TRUPs 12,000 8,100 - 8,100 - Subordinated notes 23,000 23,000 - 23,000 - At December 31, 2017 and 2016, the Company had outstanding loan commitments and standby letters of credit of $65.6 million and $67.0 million, respectively, and $17.9 million and $17.7 million respectively. Additionally, at December 31, 2017 and 2016, customers had $162.2 million and $135.3 million, respectively, available and unused on lines of credit, which include lines of credit for commercial customers, home equity loans as well as builder and construction lines. 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 December 31, 2017 and 2016, 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. |
Condensed Financial Statements
Condensed Financial Statements - Parent Company Only | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Statements - Parent Company Only [Abstract] | |
Condensed Financial Statements - Parent Company Only | NOTE 21 - CONDENSED FINANCIAL STATEMENTS – PARENT COMPANY ONLY Balance Sheets December 31, (dollars in thousands) 2017 2016 Assets Cash - noninterest bearing $ 2,812 $ 2,366 Investment in wholly owned subsidiaries 139,418 136,481 Other assets 4,491 2,017 Total Assets $ 146,721 $ 140,864 Liabilities and Stockholders' Equity Current liabilities $ 1,392 $ 1,066 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 6.25% 23,000 23,000 Total Liabilities 36,764 36,438 Stockholders' Equity Common stock 46 46 Additional paid in capital 48,209 47,377 Retained earnings 63,648 58,100 Accumulated other comprehensive loss (1,191) (928) Unearned ESOP shares (755) (169) Total Stockholders’ Equity 109,957 104,426 Total Liabilities and Stockholders’ Equity $ 146,721 $ 140,864 Condensed Statements of Income Years Ended December 31, (dollars in thousands) 2017 2016 2015 Interest and Dividend Income Dividends from subsidiary $ 7,500 $ 5,500 $ 2,775 Interest income 64 19 51 Interest expense 1,865 1,795 1,599 Net Interest Income 5,699 3,724 1,227 Miscellaneous expenses (2,968) (2,110) (1,421) Income (loss) before income taxes and equity in undistributed net income of subsidiary 2,731 1,614 (194) Federal and state income tax benefit 1,583 1,321 1,009 Equity in undistributed net income of subsidiary 2,894 4,396 5,528 Net Income $ 7,208 $ 7,331 $ 6,343 Preferred stock dividends - - 23 Net Income Available to Common Shareholders $ 7,208 $ 7,331 $ 6,320 Condensed Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2017 2016 2015 Cash Flows from Operating Activities Net income $ 7,208 $ 7,331 $ 6,343 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (2,894) (4,396) (5,528) Stock based compensation 515 489 139 (Increase) in other assets (2,446) (145) (284) (Increase) decrease in deferred income tax benefit (29) 55 23 Increase (decrease) in current liabilities 327 (157) 459 Net Cash Provided by Operating Activities 2,681 3,177 1,152 Cash Flows from Financing Activities Dividends paid (1,804) (1,814) (1,916) Capital (to) from subsidiary - 180 (78) Proceeds from Subordinated Notes - - 23,000 Redemption of Small Business Lending Fund Preferred Stock - - (20,000) Exercise of stock options 155 - - Net change in unearned ESOP shares (586) 147 146 Repurchase of common stock - (865) (1,827) Net Cash Used in Financing Activities (2,235) (2,352) (675) Increase in Cash 446 825 477 Cash at Beginning of Year 2,366 1,541 1,064 Cash at End of Year $ 2,812 $ 2,366 $ 1,541 |
Quarterly Financial Comparison
Quarterly Financial Comparison (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Comparison (Unaudited) [Abstract] | |
Quarterly Financial Comparison (Unaudited) | NOTE 22 - QUARTERLY FINANCIAL COMPARISON (Unaudited) 2017 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 13,573 $ 13,680 $ 13,395 $ 12,922 Interest expense 2,800 2,672 2,462 2,248 Net interest income 10,773 11,008 10,933 10,674 Provision for loan losses 30 224 376 380 Net interest income after provision 10,743 10,784 10,557 10,294 Noninterest income 1,000 1,157 1,052 875 Noninterest expense 7,746 7,442 7,530 7,379 Income before income taxes 3,997 4,499 4,079 3,790 Provision for income taxes 4,456 1,717 1,536 1,448 Net (Loss) Income Available to Common Stockholders $ (459) $ 2,782 $ 2,543 $ 2,342 Earnings Per Common Share 1 Basic $ (0.10) $ 0.60 $ 0.55 $ 0.51 Diluted $ (0.10) $ 0.60 $ 0.55 $ 0.51 2016 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 12,584 $ 12,223 $ 11,928 $ 11,312 Interest expense 2,111 2,079 2,033 1,919 Net interest income 10,473 10,144 9,895 9,393 Provision for loan losses 670 698 564 427 Net interest income after provision 9,803 9,446 9,331 8,966 Noninterest income 891 842 777 850 Noninterest expense 7,316 7,311 7,292 7,240 Income before income taxes 3,378 2,977 2,816 2,576 Provision for income taxes 1,356 1,014 1,078 968 Net Income Available to Common Stockholders $ 2,022 $ 1,963 $ 1,738 $ 1,608 Preferred stock dividends - - - - Earnings Per Common Share 1 Basic $ 0.44 $ 0.43 $ 0.38 $ 0.35 Diluted $ 0.44 $ 0.42 $ 0.38 $ 0.35 2015 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 11,208 $ 11,002 $ 10,935 $ 10,728 Interest expense 1,860 1,918 1,902 1,665 Net interest income 9,348 9,084 9,033 9,063 Provision for loan losses 362 501 392 178 Net interest income after provision 8,986 8,583 8,641 8,885 Noninterest income 909 466 962 962 Noninterest expense 7,556 7,031 6,888 6,943 Income before income taxes 2,339 2,018 2,715 2,904 Provision for income taxes 811 735 1,004 1,083 Net Income (NI) $ 1,528 $ 1,283 $ 1,711 $ 1,821 Preferred stock dividends - - - 23 NI Available to Common Stockholders $ 1,528 $ 1,283 $ 1,711 $ 1,798 Earnings Per Common Share 1 Basic $ 0.33 $ 0.28 $ 0.37 $ 0.38 Diluted $ 0.33 $ 0.27 $ 0.37 $ 0.38 (1) Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Event [Abstract] | |
Subsequent Event | NOTE 2 3 – SUBSEQUENT EVENTS County First Acquisition On January 1, 2018, the Company completed its previously announced merger of County First Bank (“County First”) with and into the Bank, with the Bank as the surviving bank (the “Merger”) pursuant to the Agreement and Plan of Merger, dated as of July 31, 2017, by and among the Company, the Bank and County First. Pursuant to the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $1.00 per share, of County First issued and outstanding immediately prior to the Effective Time was converted into the right to receive 0.9543 shares of Company common stock and $2.20 in cash (the “Merger Consideration”). The $2.20 in cash represents the sum of (i) $1.00 in cash consideration (the “Cash Consideration”) plus (ii) $1.20 in Contingent Cash Consideration that was determined before the completion of the Merger in accordance with the terms of the Merger Agreement. The aggregate merger consideration consisted of approximately 919,000 shares of the Company’s common stock and approximately $2.1 million in cash. Based upon the $38.78 per share closing price of the Company’s common stock on December 28, 2017, the transaction value was approximately $37.7 million. The County First Bank acquisition is being accounted for under the acquisition method of accounting with the Company treated as the acquirer. Under the acquisition method of accounting, the assets and liabilities of County First Bank, as of January 1, 2018, will be recorded by the Company at their respective fair values, and the excess of the merger consideration over the fair value of County First Bank's net assets will be allocated to goodwill. At December 31, 2017, County First had total assets of approximately $227 million (Unaudited), total loans of $143 million (Unaudited) and total deposits of $200 million (Unaudited). County First has five branch offices in La Plata, Waldorf, New Market, Prince Frederick and California, Maryland. The Bank intends to keep the La Plata branch open and consolidate the remaining four branches with legacy Community Bank of the Chesapeake branch offices in May of 2018. The calculations to determine fair values were not complete at the time of filing of the 2017 Annual Report on Form 10-K. Until the determination of the fair values is complete, it is impractical to include disclosures related to the fair value of the assets acquired and liabilities assumed as required by the accounting guidance. Merger related costs, which included mainly professional fees and investment banking costs, for the year ended December 31, 2017 were $829,000 . |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following table presents the components of comprehensive (loss) income for the years ended December 31, 2017, 2016 and 2015. The Company’s comprehensive gains and losses and reclassification adjustments were solely for securities for the years ended December 31, 2017, 2016 and 2015. Reclassification adjustments are recorded in non-interest income. Years Ended December 31, 2017 December 31, 2016 December 31, 2015 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding (losses) gains $ (103) $ (41) $ (62) $ (1,095) $ (433) $ (662) $ 216 $ 85 $ 131 Reclassification adjustments (8) (3) (5) (22) (7) (15) (6) (2) (4) Other comprehensive (loss) income $ (111) $ (44) $ (67) $ (1,117) $ (440) $ (677) $ 210 $ 83 $ 127 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive (loss) income, net of tax, for the years ended December 31, 2017, 2016 and 2015. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (928) $ (251) $ (378) Other comprehensive (losses) gains, net of tax before reclassifications (62) (662) 131 Amounts reclassified from accumulated other comprehensive loss (5) (15) (4) Net other comprehensive (loss) income (67) (677) 127 Reclassification due to Accounting Standards Update (ASU 2018-02) (196) - - End of period $ (1,191) $ (928) $ (251) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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 have been issued by the Company related to outstanding stock options and were determined using the treasury stock method. T he Company has not granted any stock options since 2007 and all outstanding options expired on July 17, 2017. As of December 31, 2017, 2016 and 2015 , there were 0 , 15,081 and 21,211 options , respectively, which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options was greater than the average market price of the common shares. B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Years Months Ended December 31, (dollars in thousands) 2017 2016 2015 Net Income $ 7,208 $ 7,331 $ 6,343 Less: dividends paid and accrued on preferred stock - - (23) Net income available to common shareholders $ 7,208 $ 7,331 $ 6,320 Average number of common shares outstanding 4,627,776 4,599,502 4,676,748 Dilutive effect of common stock equivalents 1,452 - - Average number of shares used to calculate diluted EPS 4,629,228 4,599,502 4,676,748 Earnings Per Common Share Basic $ 1.56 $ 1.59 1.36 Diluted 1.56 1.59 1.35 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Securities | December 31, 2017 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") $ 7,265 $ - $ 178 $ 7,087 Residential Collateralized Mortgage Obligations ("CMOs") 45,283 12 1,158 44,137 U.S. Agency 12,863 - 346 12,517 Corporate equity securities 37 - - 37 Bond mutual funds 4,480 27 - 4,507 Total securities available for sale $ 69,928 $ 39 $ 1,682 $ 68,285 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 29,113 $ 135 $ 261 $ 28,987 Residential CMOs 54,805 62 845 54,022 U.S. Agency 8,660 - 235 8,425 Asset-backed securities issued by Others: Residential CMOs 651 - 52 599 Callable GSE Agency Bonds 5,017 - 43 4,974 U.S. government obligations 1,000 - - 1,000 Total securities held to maturity $ 99,246 $ 197 $ 1,436 $ 98,007 December 31, 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 MBS $ 4,377 $ - $ 194 $ 4,183 Residential CMOs 35,176 18 966 34,228 U.S. Agency 10,589 - 417 10,172 Corporate equity securities 37 - - 37 Bond mutual funds 4,386 27 - 4,413 Total securities available for sale $ 54,565 $ 45 $ 1,577 $ 53,033 Securities held to maturity (HTM) Asset-backed securities issued by GSEs and U.S. Agencies Residential MBS $ 34,735 $ 367 $ 569 $ 34,533 Residential CMOs 63,060 135 802 62,393 U.S. Agency 6,717 - 253 6,464 Asset-backed securities issued by Others: Residential CMOs 884 - 81 803 Callable GSE Agency Bonds 3,001 - 10 2,991 U.S. government obligations 850 - - 850 Total securities held to maturity $ 109,247 $ 502 $ 1,715 $ 108,034 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities at December 31, 2017 and 2016 by contractual maturity, are shown below. The Company has allocated the asset-backed securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Available for Sale Held to Maturity December 31, 2017 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,480 $ 4,507 $ - $ - U.S. government obligations - - 1,000 1,000 Asset-backed securities & U.S. Agencies Within one year 9,853 9,601 18,722 22,512 Over one year through five years 28,832 28,096 41,433 38,813 Over five years through ten years 20,357 19,838 25,309 23,709 After ten years 6,369 6,206 12,782 11,973 Total asset-backed securities 65,411 63,741 98,246 97,007 $ 69,891 $ 68,248 $ 99,246 $ 98,007 Available for Sale Held to Maturity December 31, 2016 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,386 $ 4,413 $ - $ - U.S. government obligations - - 850 850 Asset-backed securities & U.S. Agencies Within one year 7,879 7,634 18,844 21,104 Over one year through five years 21,481 20,813 47,168 45,339 Over five years through ten years 13,093 12,686 29,803 28,647 After ten years 7,689 7,450 12,582 12,094 Total asset-backed securities 50,142 48,583 108,397 107,184 $ 54,528 $ 52,996 $ 109,247 $ 108,034 |
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 December 31, 2017 and 2016 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. December 31, 2017 December 31, 2016 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 162,336 AAA $ 156,947 BB 651 BB 411 B+ - B+ 472 Total $ 162,987 Total $ 157,830 |
Available-For-Sale Securities [Member] | |
Schedule of Unrealized Loss on Investments | 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 December 31, 2017 were as follows: December 31, 2017 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 $ 24,571 $ 328 $ 38,428 $ 1,354 $ 62,999 $ 1,682 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, 2016 were as follows: December 31, 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 $ 34,262 $ 1,110 $ 11,846 $ 467 $ 46,108 $ 1,577 |
Held-To-Maturity Securities [Member] | |
Schedule of Unrealized Loss on Investments | 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 December 31, 2017 were as follows: December 31, 2017 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 36,607 254 45,119 1,130 81,726 1,384 Asset-backed securities issued by Others - - 599 52 599 52 $ 36,607 $ 254 $ 45,718 $ 1,182 $ 82,325 $ 1,436 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, 2016 were as follows: December 31, 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 $ 77,879 $ 1,452 $ 6,340 $ 182 $ 84,219 $ 1,634 Asset-backed securities issued by Others - - 803 81 803 81 $ 77,879 $ 1,452 $ 7,143 $ 263 $ 85,022 $ 1,715 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans [Abstract] | |
Schedule of Loans Receivable | Loans consist of the following: (dollars in thousands) December 31, 2017 % December 31, 2016 % Commercial real estate $ 727,314 63.25% $ 667,105 61.25% Residential first mortgages 170,374 14.81% 171,004 15.70% Residential rentals 110,228 9.58% 101,897 9.36% Construction and land development 27,871 2.42% 36,934 3.39% Home equity and second mortgages 21,351 1.86% 21,399 1.97% Commercial loans 56,417 4.91% 50,484 4.64% Consumer loans 573 0.05% 422 0.04% Commercial equipment 35,916 3.12% 39,737 3.65% 1,150,044 100.00% 1,088,982 100.00% Less: Deferred loan fees and premiums (1,086) -0.09% (397) -0.04% Allowance for loan losses 10,515 0.91% 9,860 0.91% 9,429 9,463 $ 1,140,615 $ 1,079,519 |
Non-accrual loans | Non-accrual loans as of December 31, 2017 and December 31, 2016 were as follows: December 31, 2017 (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 $ 1,148 4 $ 839 3 $ 1,987 7 Residential first mortgages 478 3 507 1 985 4 Residential rentals 84 1 741 3 825 4 Home equity and second mortgages 134 3 123 1 257 4 Commercial loans 172 2 - - 172 2 Commercial equipment 467 3 - - 467 3 $ 2,483 16 $ 2,210 8 $ 4,693 24 December 31, 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 $ 2,371 7 $ - - $ 2,371 7 Residential first mortgages 623 4 - - 623 4 Residential rentals 577 4 - - 577 4 Construction and land development 3,048 2 - - 3,048 2 Home equity and second mortgages 61 2 - - 61 2 Commercial loans 375 3 669 2 1,044 5 Commercial equipment 650 5 - - 650 5 $ 7,705 27 $ 669 2 $ 8,374 29 |
Past Due Financing Receivables | An analysis of past due loans as of December 31, 2017 and 2016 was as follows: December 31, 2017 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 719,455 $ - $ 6,711 $ 1,148 $ 7,859 $ 727,314 Residential first mortgages 169,828 - 68 478 546 170,374 Residential rentals 109,937 - 207 84 291 110,228 Construction and land dev. 27,871 - - - - 27,871 Home equity and second mtg. 21,180 19 18 134 171 21,351 Commercial loans 55,054 892 299 172 1,363 56,417 Consumer loans 572 - 1 - 1 573 Commercial equipment 34,437 1,012 - 467 1,479 35,916 Total $ 1,138,334 $ 1,923 $ 7,304 $ 2,483 $ 11,710 $ 1,150,044 December 31, 2016 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 664,250 $ - $ 484 $ 2,371 $ 2,855 $ 667,105 Residential first mortgages 170,381 - - 623 623 171,004 Residential rentals 101,309 - 11 577 588 101,897 Construction and land dev. 33,886 - - 3,048 3,048 36,934 Home equity and second mtg. 21,175 130 33 61 224 21,399 Commercial loans 49,778 331 - 375 706 50,484 Consumer loans 420 - 2 - 2 422 Commercial equipment 39,044 42 1 650 693 39,737 Total $ 1,080,243 $ 503 $ 531 $ 7,705 $ 8,739 $ 1,088,982 |
Impaired Loans, Including TDRs | Impaired loans, including TDRs, at December 31, 2017 and 2016 were as follows: December 31, 2017 (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 $ 33,180 $ 30,921 $ 2,008 $ 32,929 $ 370 $ 33,575 $ 1,379 Residential first mortgages 2,455 1,978 459 2,437 2 2,479 91 Residential rentals 2,389 1,981 395 2,376 18 2,432 111 Construction and land dev. 729 - 729 729 163 729 26 Home equity and second mtg. 317 317 - 317 - 318 12 Commercial loans 3,010 2,783 168 2,951 168 3,048 137 Commercial equipment 1,538 1,048 467 1,515 303 1,578 73 Total $ 43,618 $ 39,028 $ 4,226 $ 43,254 $ 1,024 $ 44,159 $ 1,829 December 31, 2016 (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 $ 22,195 $ 14,896 $ 7,081 $ 21,977 $ 806 $ 22,303 $ 908 Residential first mortgages 2,436 1,938 475 2,413 7 2,445 90 Residential rentals 3,440 2,850 178 3,028 36 3,486 134 Construction and land dev. 4,304 2,926 851 3,777 178 3,867 16 Home equity and second mtg. 170 170 - 170 - 176 7 Commercial loans 3,285 3,004 200 3,204 123 3,442 137 Commercial equipment 855 652 139 791 139 815 17 Total $ 36,685 $ 26,436 $ 8,924 $ 35,360 $ 1,289 $ 36,534 $ 1,309 |
TDRs, Included in Impaired Loans Schedule | December 31, 2016 (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 $ 22,195 $ 14,896 $ 7,081 $ 21,977 $ 806 $ 22,303 $ 908 Residential first mortgages 2,436 1,938 475 2,413 7 2,445 90 Residential rentals 3,440 2,850 178 3,028 36 3,486 134 Construction and land dev. 4,304 2,926 851 3,777 178 3,867 16 Home equity and second mtg. 170 170 - 170 - 176 7 Commercial loans 3,285 3,004 200 3,204 123 3,442 137 Commercial equipment 855 652 139 791 139 815 17 Total $ 36,685 $ 26,436 $ 8,924 $ 35,360 $ 1,289 $ 36,534 $ 1,309 TDRs, included in the impaired loan schedules above, as of December 31, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 9,273 9 $ 9,587 8 Residential first mortgages 527 2 545 2 Residential rentals 221 1 227 1 Construction and land development 729 2 3,777 4 Commercial loans 4 1 872 5 Commercial equipment 36 1 113 2 Total TDRs $ 10,790 16 $ 15,121 22 Less: TDRs included in non-accrual loans (769) (1) (4,673) (6) Total accrual TDR loans $ 10,021 15 $ 10,448 16 |
Allowance for Credit Losses on Financing Receivables | The following tables detail activity in the allowance for loan losses at and for the years ended December 31, 2017, 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. Year Ended December 31, 2017 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 5,212 $ (217) $ 63 $ 1,393 $ 6,451 Residential first mortgages 1,406 - - (262) 1,144 Residential rentals 362 (42) - 192 512 Construction and land development 941 (26) - (453) 462 Home equity and second mortgages 138 (14) 1 37 162 Commercial loans 794 (13) 1 231 1,013 Consumer loans 3 (2) - 6 7 Commercial equipment 1,004 (168) 62 (134) 764 $ 9,860 $ (482) $ 127 $ 1,010 $ 10,515 Year Ended December 31, 2016 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 3,465 $ - $ 58 $ 1,689 $ 5,212 Residential first mortgages 584 - - 822 1,406 Residential rentals 538 (14) - (162) 362 Construction and land development 1,103 (526) 1 363 941 Home equity and second mortgages 142 - 5 (9) 138 Commercial loans 1,477 (594) 18 (107) 794 Consumer loans 2 (1) - 2 3 Commercial equipment 1,229 (34) 48 (239) 1,004 $ 8,540 $ (1,169) $ 130 $ 2,359 $ 9,860 Year Ended December 31, 2015 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provisions Ending Balance Commercial real estate $ 3,528 $ (78) $ 17 $ (2) $ 3,465 Residential first mortgages 1,047 (30) 1 (434) 584 Residential rentals 593 - - (55) 538 Construction and land development 1,071 - 32 - 1,103 Home equity and second mortgages 173 (100) - 69 142 Commercial loans 1,677 (432) 11 221 1,477 Consumer loans 3 - - (1) 2 Commercial equipment 389 (818) 23 1,635 1,229 $ 8,481 $ (1,458) $ 84 $ 1,433 $ 8,540 |
Loan receivable and allowance balances disaggregated on basis of Company's impairment methodology | The following tables detail loan receivable and allowance balances disaggregated on the basis of the Company’s impairment methodology at December 31, 2017 and 2016, respectively. December 31, 2017 December 31, 2016 (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 Loan Receivables: Commercial real estate $ 32,929 $ 694,385 $ 727,314 $ 21,977 $ 645,128 $ 667,105 Residential first mortgages 2,437 167,937 170,374 2,413 168,591 171,004 Residential rentals 2,376 107,852 110,228 3,028 98,869 101,897 Construction and land development 729 27,142 27,871 3,777 33,157 36,934 Home equity and second mortgages 317 21,034 21,351 170 21,229 21,399 Commercial loans 2,951 53,466 56,417 3,204 47,280 50,484 Consumer loans - 573 573 - 422 422 Commercial equipment 1,515 34,401 35,916 791 38,946 39,737 $ 43,254 $ 1,106,790 $ 1,150,044 $ 35,360 $ 1,053,622 $ 1,088,982 Allowance for loan losses: Commercial real estate $ 370 $ 6,081 $ 6,451 $ 806 $ 4,406 $ 5,212 Residential first mortgages 2 1,142 1,144 7 1,399 1,406 Residential rentals 18 494 512 36 326 362 Construction and land development 163 299 462 178 763 941 Home equity and second mortgages - 162 162 - 138 138 Commercial loans 168 845 1,013 123 671 794 Consumer loans - 7 7 - 3 3 Commercial equipment 303 461 764 139 865 1,004 $ 1,024 $ 9,491 $ 10,515 $ 1,289 $ 8,571 $ 9,860 |
Credit Quality Indicators | Credit quality indicators as of December 31, 2017 and 2016 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. Residential Rentals (dollars in thousands) 12/31/2017 12/31/2016 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Unrated $ 75,581 $ 51,503 $ 1,775 $ 1,632 $ 28,428 $ 25,563 Pass 619,604 594,768 25,367 31,525 80,279 74,989 Special mention - - - - - - Substandard 32,129 20,834 729 3,777 1,521 1,345 Doubtful - - - - - - Loss - - - - - - Total $ 727,314 $ 667,105 $ 27,871 $ 36,934 $ 110,228 $ 101,897 Commercial Loans Commercial Equipment Total Commercial Portfolios (dollars in thousands) 12/31/2017 12/31/2016 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Unrated $ 14,356 $ 11,266 $ 10,856 $ 11,769 $ 130,996 $ 101,733 Pass 39,118 36,221 23,581 27,290 787,949 764,793 Special mention - - - - - - Substandard 2,943 2,997 1,479 541 38,801 29,494 Doubtful - - - 137 - 137 Loss - - - - - - Total $ 56,417 $ 50,484 $ 35,916 $ 39,737 $ 957,746 $ 896,157 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 12/31/2017 12/31/2016 12/31/2017 12/31/2016 12/31/2017 12/31/2016 Performing $ 169,896 $ 170,381 $ 21,217 $ 21,338 $ 573 $ 422 Nonperforming 478 623 134 61 - - Total $ 170,374 $ 171,004 $ 21,351 $ 21,399 $ 573 $ 422 |
Schedule of Loans Contractual Terms to Maturity | The following table sets forth certain information at December 31, 2017 and 2016 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. December 31, 2017 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2017 December 31, 2017 December 31, 2017 Real Estate Loans Commercial $ 67,951 $ 150,075 $ 509,288 Residential first mortgage 8,596 35,208 126,570 Residential rentals 4,288 21,627 84,313 Construction and land development 21,226 6,645 - Home equity and second mortgage 242 811 20,298 Commercial loans 56,417 - - Consumer loans 200 307 66 Commercial equipment 12,113 18,051 5,752 Total loans $ 171,033 $ 232,724 $ 746,287 December 31, 2016 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2016 December 31, 2016 December 31, 2016 Real Estate Loans Commercial $ 86,782 $ 128,431 $ 451,892 Residential first mortgage 8,501 34,592 127,911 Residential rentals 3,847 17,911 80,139 Construction and land development 23,674 10,212 3,048 Home equity and second mortgage 296 877 20,226 Commercial loans 50,484 - - Consumer loans 163 164 95 Commercial equipment 10,049 18,812 10,876 Total loans $ 183,796 $ 210,999 $ 694,187 |
Schedule of Loans Due After One Year | The following table sets forth the dollar amount of all loans due after one year from December 31, 2017 and 2016, which have predetermined interest rates and have floating or adjustable interest rates. December 31, 2017 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 157,667 $ 501,696 $ 659,363 Residential first mortgage 106,792 54,986 161,778 Residential rentals 16,974 88,966 105,940 Construction and land development 3,521 3,124 6,645 Home equity and second mortgage 1,285 19,824 21,109 Commercial loans - - - Consumer loans 373 - 373 Commercial equipment 21,924 1,879 23,803 $ 308,536 $ 670,475 $ 979,011 December 31, 2016 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 124,549 $ 455,774 $ 580,323 Residential first mortgage 118,205 44,298 162,503 Residential rentals 17,499 80,551 98,050 Construction and land development 4,533 8,727 13,260 Home equity and second mortgage 1,454 19,649 21,103 Commercial loans - - - Consumer loans 259 - 259 Commercial equipment 24,635 5,053 29,688 $ 291,134 $ 614,052 $ 905,186 |
Related Party Loans | Included in loans receivable were loans made to executive officers and directors of the Bank. These loans were made in the ordinary course of business at substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons not affiliated with the Bank and are not considered to involve more than the normal risk of collectability. For the years ended December 31, 2017, 2016 and 2015, all loans to directors and executive officers of the Bank performed according to original loan terms. Activity in loans outstanding to executive officers and directors are summarized as follows: At and For the Years Ended December 31, (dollars in thousands) 2017 2016 2015 Balance, beginning of period $ 26,464 $ 28,105 $ 24,403 Loans and additions 3,699 2,547 6,822 Change in Directors' status - 2,299 (642) Repayments (3,687) (6,487) (2,478) Balance, end of period $ 26,476 $ 26,464 $ 28,105 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loan Servicing [Abstract] | |
Schedule of Participating Mortgage Loans | The following table presents the activity of the mortgage servicing rights. Years Ended December 31, (dollars in thousands) 2017 2016 2015 Balance, beginning of the year $ 128 $ 219 $ 295 Additions - - 31 Amortization (74) (91) (107) Balance, end of the year $ 54 $ 128 $ 219 |
Other Real Estate Owned ("ORE38
Other Real Estate Owned ("OREO") (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Analysis of OREO activity | Years Ended December 31, (dollars in thousands) 2017 2016 2015 Balance at beginning of year $ 7,763 $ 9,449 $ 5,883 Additions of underlying property 3,634 3,120 5,436 Disposals of underlying property (1,456) (3,860) (1,206) Transfers to premises and equipment - (372) - Valuation allowance (600) (574) (664) Balance at end of period $ 9,341 $ 7,763 $ 9,449 |
Expenses applicable to OREO assets | . Years Ended December 31, (dollars in thousands) 2017 2016 2015 Valuation allowance $ 600 $ 574 $ 664 Operating expenses 146 287 395 $ 746 $ 861 $ 1,059 |
Premises and Equipment and He39
Premises and Equipment and Held for Sale Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2017 and 2016 follows: December 31, (dollars in thousands) 2017 2016 Land $ 4,172 $ 4,172 Building and improvements 23,038 22,586 Furniture and equipment 9,225 8,989 Automobiles 303 313 Total cost 36,738 36,060 Less accumulated depreciation 15,347 13,855 Premises and equipment, net $ 21,391 $ 22,205 |
Schedule of Future Minimum Rental Payments for Operating Leases | Certain Bank facilities are leased under various operating leases. Rent expense was $761,000 , $723,000 and $701,000 for the ye ars ended December 31, 2017, 2016 and 2015, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2017: (dollar in thousands) 2018 $ 747 2019 625 2020 514 2021 489 2022 415 Thereafter 4,019 Total $ 6,809 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits consist of the following: December 31, (dollars in thousands) 2017 2016 Noninterest-bearing demand $ 159,844 $ 144,877 Interest-bearing: Demand 215,447 162,823 Money market deposits 226,351 248,049 Savings 52,990 50,284 Certificates of deposit 451,605 432,792 Total interest-bearing 946,393 893,948 Total Deposits $ 1,106,237 $ 1,038,825 |
Schedule of Deposits Maturities | At December 31, 2017 and 2016, the scheduled contractual maturities of certificates of deposit are as follows: December 31, (dollars in thousands) 2017 2016 Within one year $ 312,417 $ 306,089 Year 2 93,723 79,474 Year 3 29,661 31,921 Year 4 4,327 8,353 Year 5 11,477 6,955 $ 451,605 $ 432,792 |
Short-Term Borrowings and Lon41
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Schedule Related to the Classification of Debt Interest Rate | Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed- Fixed-Rate Variable Rate Convertible Convertible December 31, 2017 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.95% 3.47% 4.00% Weighted average rate 1.42% 3.47% 4.00% Matures through 2036 2018 2020 December 31, 2016 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.54% 3.47% 4.00% Weighted average rate 1.05% 3.47% 4.00% Matures through 2036 2018 2020 |
Schedule of Debt | Average rates of long-term debt and short-term borrowings were as follows: At or for the Year Ended December 31, (dollars in thousands) 2017 2016 2015 Long-term debt Long-term debt outstanding at end of period $ 55,498 $ 65,559 $ 55,617 Weighted average rate on outstanding long-term debt 2.38% 2.27% 2.47% Maximum outstanding long-term debt of any month end 65,554 65,593 74,668 Average outstanding long-term debt 58,704 60,503 68,924 Approximate average rate paid on long-term debt 2.24% 2.41% 2.26% Short-term borrowings Short-term borrowings outstanding at end of period $ 87,500 $ 79,000 $ 36,000 Weighted average rate on short-term borrowings 1.34% 0.71% 0.38% Maximum outstanding short-term borrowings at any month end 109,000 79,000 36,000 Average outstanding short-term borrowings 91,797 39,802 13,463 Approximate average rate paid on short-term borrowings 1.15% 0.49% 0.27% |
Schedule of Maturities of Long-term Debt | The contractual maturities of long-term debt were as follows at December 31, 2017 and 2016: December 31, 2017 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2018 $ 25,000 $ 10,000 $ - $ 35,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Due in 2021 - - - - Due in 2022 10,302 - - 10,302 Thereafter 196 - - 196 $ 35,498 $ 10,000 $ 10,000 $ 55,498 December 31, 2016 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2017 $ 20,000 $ - $ - $ 20,000 Due in 2018 15,000 10,000 - 25,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Due in 2021 - - - - Thereafter 10,559 - - 10,559 $ 45,559 $ 10,000 $ 10,000 $ 65,559 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes | Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2017 2016 2015 Current Federal $ 5,584 $ 3,675 $ 3,255 State 1,686 1,296 1,128 7,270 4,971 4,383 Deferred Federal 1,894 (460) (643) State (7) (95) (107) 1,887 (555) (750) Income tax expense $ 9,157 $ 4,416 $ 3,633 |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2017 2016 2015 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 5,728 35.00% $ 3,994 34.00% $ 3,392 34.00% State taxes net of federal benefit 1,096 6.70% 796 6.78% 647 6.49% Nondeductible expenses 255 1.56% 37 0.31% 40 0.40% Nontaxable income (376) (2.30%) (375) (3.19%) (398) (3.99%) Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate 2,740 16.74% - 0.00% - 0.00% Other (286) (1.75%) (36) (0.31%) (48) (0.48%) $ 9,157 55.95% $ 4,416 37.59% $ 3,633 36.42% |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax assets in the accompanying balance sheets include the following components: 2017 2016 Deferred tax assets Allowance for loan losses $ 2,893 $ 3,890 Deferred compensation 2,142 2,520 OREO valuation allowance & expenses 337 413 Unrealized loss on investment securities 452 605 Depreciation 29 Other 142 509 5,995 7,937 Deferred tax liabilities FHLB stock dividends 109 156 Depreciation - 15 109 171 $ 5,886 $ 7,766 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Summarization of outstanding and exercisable options | The following tables below summarize option activity and outstanding and exercisable options at and for the years ended December 31, 2017 and 2016. respectively. 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, 2017 15,081 $ 27.70 $ - Exercised (14,231) 27.70 134 Expired (350) 27.70 - Forfeited (500) 27.70 - Outstanding at December 31, 2017 - $ - $ - - Exercisable at December 31, 2017 - $ - $ - - 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 (6,130) 27.70 Outstanding at December 31, 2016 15,081 $ 27.70 $ 20 0.5 Exercisable at December 31, 2016 15,081 $ 27.70 $ 20 0.5 |
Summary of the unvested restricted stock awards outstanding | The Company has outstanding restricted stock in accordance with the Plan. As of December 31, 2017 and 2016, unrecognized stock compensation expense was $521,000 and $810,000 , respectively. The following tables summarize the unvested restricted stock awards outstanding at December 31, 2017 and 2016, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2017 47,881 $ 20.41 Granted 6,752 30.20 Vested (21,738) 20.13 Cancelled (86) 20.75 Nonvested at December 31, 2017 32,809 $ 22.61 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 December 31, 2016 47,881 $ 20.41 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital [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) December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Common Equity $ 109,957 $ 104,426 $ 139,046 $ 136,109 AOCI Losses 1,191 928 1,191 928 Common Equity Tier 1 Capital 111,148 105,354 140,237 137,037 TRUPs 12,000 12,000 - - Tier 1 Capital 123,148 117,354 140,237 137,037 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 10,545 9,860 10,545 9,860 Subordinated Notes 23,000 23,000 - - Tier 2 Capital $ 156,693 $ 150,214 $ 150,782 $ 146,897 Risk-Weighted Assets ("RWA") $ 1,169,341 $ 1,104,505 $ 1,164,478 $ 1,102,116 Average Assets ("AA") $ 1,401,741 $ 1,300,445 $ 1,398,001 $ 1,298,145 2019 Regulatory Min. Ratio + CCB ( 1) Common Tier 1 Capital to RWA 7.00 % 9.51 % 9.54 % 12.04 % 12.43 % Tier 1 Capital to RWA 8.50 10.53 10.62 12.04 12.43 Tier 2 Capital to RWA 10.50 13.40 13.60 12.95 13.33 Tier 1 Capital to AA (Leverage) (2) n/a 8.79 9.02 10.03 10.56 (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) Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. PCA well capitalized is defined as 5.00%. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of December 31, 2017 and December 31, 2016 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2017 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 $ 44,137 $ - $ 44,137 $ - MBS 7,087 - 7,087 - U.S. Agency 12,517 - 12,517 - Corporate equity securities 37 - 37 - Bond mutual funds 4,507 - 4,507 - Total available for sale securities $ 68,285 $ - $ 68,285 $ - (dollars in thousands) December 31, 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 $ 34,228 $ - $ 34,228 $ - MBS 4,183 - 4,183 - U.S. Agency 10,172 - 10,172 - Corporate equity securities 37 - 37 - Bond mutual funds 4,413 - 4,413 - Total available for sale securities $ 53,033 $ - $ 53,033 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The Company may be required from time to time 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 December 31, 2017 and 2016 are included in the tables below. (dollars in thousands) December 31, 2017 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,638 $ - $ - $ 1,638 Residential first mortgages 457 - - 457 Residential rentals 377 - - 377 Construction and land development 566 - - 566 Commercial equipment 164 - - 164 Total loans with impairment $ 3,202 $ - $ - $ 3,202 Other real estate owned $ 9,341 $ - $ - $ 9,341 (dollars in thousands) December 31, 2016 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 6,275 $ - $ - $ 6,275 Residential first mortgages 468 - - 468 Residential rentals 142 - - 142 Construction and land development 673 - - 673 Commercial loans 77 - - 77 Total loans with impairment $ 7,635 $ - $ - $ 7,635 Premises and equipment held for sale $ 345 $ - $ 345 $ - Other real estate owned $ 7,763 $ - $ - $ 7,763 |
Unobservable Inputs Used In Level 3 Fair Value Measurements [Table Text Block] | The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements. December 31, 2017 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 3,202 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 24% ) Other real estate owned $ 9,341 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 12% ) December 31, 2016 (dollars in thousands) Description of Asset Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Loans with impairment $ 7,635 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 14% ) Other real estate owned $ 7,763 Third party appraisals and in-house real estate evaluations of fair value Management discount for property type and current market conditions 0% -50% ( 12% ) |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s estimated fair values of financial instruments are presented in the following tables. December 31, 2017 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 68,285 $ 68,285 $ - $ 68,285 $ - Investment securities - HTM 99,246 98,007 1,000 97,007 - FHLB Stock 7,276 7,276 - 7,276 - Loans Receivable 1,140,615 1,097,592 - - 1,097,592 Investment in BOLI 29,398 29,398 - 29,398 - Liabilities Savings, NOW and money market accounts $ 654,632 $ 654,632 $ - $ 654,632 $ - Time deposits 451,605 453,644 - 453,644 - Long-term debt 55,498 57,421 - 57,421 - Short term borrowings 87,500 87,208 - 87,208 - TRUPs 12,000 9,400 - 9,400 - Subordinated notes 23,000 22,400 - 22,400 - December 31, 2016 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 53,033 $ 53,033 $ - $ 53,033 $ - Investment securities - HTM 109,247 108,034 850 107,184 - FHLB Stock 7,235 7,235 - 7,235 - Loans Receivable 1,079,519 1,066,975 - - 1,066,975 Investment in BOLI 28,625 28,625 - 28,625 - Liabilities Savings, NOW and money market accounts $ 606,033 $ 606,033 $ - $ 606,033 $ - Time deposits 432,792 433,242 - 433,242 - Long-term debt 65,559 66,302 - 66,302 - Short term borrowings 79,000 78,984 - 78,984 - TRUPs 12,000 8,100 - 8,100 - Subordinated notes 23,000 23,000 - 23,000 - |
Condensed Financial Statement47
Condensed Financial Statements - Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Statements - Parent Company Only [Abstract] | |
Schedule of Condensed Balance Sheet | Balance Sheets December 31, (dollars in thousands) 2017 2016 Assets Cash - noninterest bearing $ 2,812 $ 2,366 Investment in wholly owned subsidiaries 139,418 136,481 Other assets 4,491 2,017 Total Assets $ 146,721 $ 140,864 Liabilities and Stockholders' Equity Current liabilities $ 1,392 $ 1,066 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 6.25% 23,000 23,000 Total Liabilities 36,764 36,438 Stockholders' Equity Common stock 46 46 Additional paid in capital 48,209 47,377 Retained earnings 63,648 58,100 Accumulated other comprehensive loss (1,191) (928) Unearned ESOP shares (755) (169) Total Stockholders’ Equity 109,957 104,426 Total Liabilities and Stockholders’ Equity $ 146,721 $ 140,864 |
Schedule of Condensed Income Statement | Condensed Statements of Income Years Ended December 31, (dollars in thousands) 2017 2016 2015 Interest and Dividend Income Dividends from subsidiary $ 7,500 $ 5,500 $ 2,775 Interest income 64 19 51 Interest expense 1,865 1,795 1,599 Net Interest Income 5,699 3,724 1,227 Miscellaneous expenses (2,968) (2,110) (1,421) Income (loss) before income taxes and equity in undistributed net income of subsidiary 2,731 1,614 (194) Federal and state income tax benefit 1,583 1,321 1,009 Equity in undistributed net income of subsidiary 2,894 4,396 5,528 Net Income $ 7,208 $ 7,331 $ 6,343 Preferred stock dividends - - 23 Net Income Available to Common Shareholders $ 7,208 $ 7,331 $ 6,320 |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2017 2016 2015 Cash Flows from Operating Activities Net income $ 7,208 $ 7,331 $ 6,343 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (2,894) (4,396) (5,528) Stock based compensation 515 489 139 (Increase) in other assets (2,446) (145) (284) (Increase) decrease in deferred income tax benefit (29) 55 23 Increase (decrease) in current liabilities 327 (157) 459 Net Cash Provided by Operating Activities 2,681 3,177 1,152 Cash Flows from Financing Activities Dividends paid (1,804) (1,814) (1,916) Capital (to) from subsidiary - 180 (78) Proceeds from Subordinated Notes - - 23,000 Redemption of Small Business Lending Fund Preferred Stock - - (20,000) Exercise of stock options 155 - - Net change in unearned ESOP shares (586) 147 146 Repurchase of common stock - (865) (1,827) Net Cash Used in Financing Activities (2,235) (2,352) (675) Increase in Cash 446 825 477 Cash at Beginning of Year 2,366 1,541 1,064 Cash at End of Year $ 2,812 $ 2,366 $ 1,541 |
Quarterly Financial Compariso48
Quarterly Financial Comparison (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Comparison (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | 2017 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 13,573 $ 13,680 $ 13,395 $ 12,922 Interest expense 2,800 2,672 2,462 2,248 Net interest income 10,773 11,008 10,933 10,674 Provision for loan losses 30 224 376 380 Net interest income after provision 10,743 10,784 10,557 10,294 Noninterest income 1,000 1,157 1,052 875 Noninterest expense 7,746 7,442 7,530 7,379 Income before income taxes 3,997 4,499 4,079 3,790 Provision for income taxes 4,456 1,717 1,536 1,448 Net (Loss) Income Available to Common Stockholders $ (459) $ 2,782 $ 2,543 $ 2,342 Earnings Per Common Share 1 Basic $ (0.10) $ 0.60 $ 0.55 $ 0.51 Diluted $ (0.10) $ 0.60 $ 0.55 $ 0.51 2016 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 12,584 $ 12,223 $ 11,928 $ 11,312 Interest expense 2,111 2,079 2,033 1,919 Net interest income 10,473 10,144 9,895 9,393 Provision for loan losses 670 698 564 427 Net interest income after provision 9,803 9,446 9,331 8,966 Noninterest income 891 842 777 850 Noninterest expense 7,316 7,311 7,292 7,240 Income before income taxes 3,378 2,977 2,816 2,576 Provision for income taxes 1,356 1,014 1,078 968 Net Income Available to Common Stockholders $ 2,022 $ 1,963 $ 1,738 $ 1,608 Preferred stock dividends - - - - Earnings Per Common Share 1 Basic $ 0.44 $ 0.43 $ 0.38 $ 0.35 Diluted $ 0.44 $ 0.42 $ 0.38 $ 0.35 2015 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 11,208 $ 11,002 $ 10,935 $ 10,728 Interest expense 1,860 1,918 1,902 1,665 Net interest income 9,348 9,084 9,033 9,063 Provision for loan losses 362 501 392 178 Net interest income after provision 8,986 8,583 8,641 8,885 Noninterest income 909 466 962 962 Noninterest expense 7,556 7,031 6,888 6,943 Income before income taxes 2,339 2,018 2,715 2,904 Provision for income taxes 811 735 1,004 1,083 Net Income (NI) $ 1,528 $ 1,283 $ 1,711 $ 1,821 Preferred stock dividends - - - 23 NI Available to Common Stockholders $ 1,528 $ 1,283 $ 1,711 $ 1,798 Earnings Per Common Share 1 Basic $ 0.33 $ 0.28 $ 0.37 $ 0.38 Diluted $ 0.33 $ 0.27 $ 0.37 $ 0.38 (1) Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Acquisition Costs, Period Cost | $ 829 | |
Gain Loss On Sales Of Loans Net | 294 | $ 104 |
Accumulated Other Comprehensive Income Loss, Reclassification Due To Accounting Standard Update Asu 2018 02 | 196 | |
U.S. Small Business Administration Loan [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Proceeds from Sale of Loans Held-for-investment | 2,800 | |
Gain Loss On Sales Of Loans Net | $ 294 | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 50 years | |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 15 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Automobiles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Automobiles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 4 years |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Schedule of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Net unrealized holding gains arising during period, before tax | $ (103) | $ (1,095) | $ 216 |
Reclassification adjustments, before tax | (8) | (22) | (6) |
Other comprehensive gain, before tax | (111) | (1,117) | 210 |
Net unrealized holding gains arising during period, tax effect | (41) | (433) | 85 |
Reclassification adjustments, tax effect | (3) | (7) | (2) |
Other comprehensive gain, tax effect | (44) | (440) | 83 |
Net unrealized holding gains arising during period, net of tax | (62) | (662) | 131 |
Reclassification adjustments, net of tax | (5) | (15) | (4) |
Other comprehensive gain, net of tax | $ (67) | $ (677) | $ 127 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net unrealized gains and losses, beginning of period | $ (928) | $ (251) | $ (378) |
Other comprehensive gain (losses), net of tax before reclassifications | (62) | (662) | 131 |
Amounts reclassified from accumulated other comprehensive income | (5) | (15) | (4) |
Net other comprehensive gain (loss) | (67) | (677) | 127 |
Reclassification due to Accounting Standard Update (ASU 2018-02) | (196) | ||
Net unrealized gains and losses, end of period | (1,191) | (928) | $ (251) |
Parent Company [Member] | |||
Net unrealized gains and losses, beginning of period | (928) | ||
Net unrealized gains and losses, end of period | $ (1,191) | $ (928) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from diluted net income per share | 0 | 15,081 | 21,211 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||
Net income | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,821 | $ 7,208 | $ 7,331 | $ 6,343 | ||||||||||||||||
Less: dividends paid and accrued on preferred stock | (23) | (23) | |||||||||||||||||||||||||
Net income available to common shareholders | $ (459) | $ 2,782 | $ 2,543 | $ 2,342 | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,798 | $ 7,208 | $ 7,331 | $ 6,320 | ||||||||||||||||
Average number of common shares outstanding | 4,627,776 | 4,599,502 | 4,676,748 | ||||||||||||||||||||||||
Dilutive effect of common stock equivalents | 1,452 | ||||||||||||||||||||||||||
Average number of shares used to calculate diluted EPS | 4,629,228 | 4,599,502 | 4,676,748 | ||||||||||||||||||||||||
Earnings Per Share, Basic | $ (0.10) | [1] | $ 0.60 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.44 | [1] | $ 0.43 | [1] | $ 0.38 | [1] | $ 0.35 | [1] | $ 0.33 | [1] | $ 0.28 | [1] | $ 0.37 | [1] | $ 0.38 | [1] | $ 1.56 | $ 1.59 | $ 1.36 |
Earnings Per Share, Diluted | $ (0.10) | [1] | $ 0.60 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.44 | [1] | $ 0.42 | [1] | $ 0.38 | [1] | $ 0.35 | [1] | $ 0.33 | [1] | $ 0.27 | [1] | $ 0.37 | [1] | $ 0.38 | [1] | $ 1.56 | $ 1.59 | $ 1.35 |
[1] | Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Restrictions on Cash and Amou54
Restrictions on Cash and Amounts Due from Banks (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restrictions on Cash and Amounts Due from Banks [Abstract] | ||
Reserve balance maintained by bank | $ 915 | $ 1,100 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Asset-backed securities pledged to secure certain deposits | $ 31,500 | $ 21,500 | |
Asset-backed securities pledged as collateral | 4,000 | 1,600 | |
Amount | 162,987 | 157,830 | |
Amortized cost, available for sale | 69,928 | 54,565 | |
Gain (Loss) On Sale Of Securities, Net | 175 | 31 | $ 4 |
Securities held to maturity (HTM), at amortized cost | 99,246 | 109,247 | |
Securities available for sale (AFS), at fair value | 68,285 | 53,033 | |
Estimated Fair Value, held to maturity | 98,007 | 108,034 | |
Gross unrealized losses, available for sale | 1,682 | 1,577 | |
Held-To-Maturity Securities, Continuous Unrealized Loss Position, Fair Value | 82,325 | 85,022 | |
Gross unrealized losses, held to maturity | 1,436 | 1,715 | |
Three Available For Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of AFS securities | 9 | ||
Securities available for sale (AFS), at fair value | $ 3,700 | ||
Number Of Available For Sale Securities Sold | security | 3 | ||
Five Available For Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of AFS securities | 23 | ||
Securities available for sale (AFS), at fair value | $ 6,500 | ||
Number Of Available For Sale Securities Sold | security | 5 | ||
An Available For Sale Security Agency Bond [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of AFS securities | 5 | ||
Securities available for sale (AFS), at fair value | 2,000 | ||
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) | |
Securities held to maturity (HTM), at amortized cost | $ 698 | $ 67 | |
Number Of Held To Maturity Securities Sold | security | 1 | 1 | |
Nine Held To Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross realized gains on sale of HTM securities | $ 166 | ||
Securities held to maturity (HTM), at amortized cost | $ 4,800 | ||
Number Of Held To Maturity Securities Sold | security | 9 | ||
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 | $ 7,265 | $ 4,377 | |
Securities held to maturity (HTM), at amortized cost | 29,113 | 34,735 | |
Securities available for sale (AFS), at fair value | 7,087 | 4,183 | |
Estimated Fair Value, held to maturity | 28,987 | 34,533 | |
Gross unrealized losses, available for sale | 178 | 194 | |
Gross unrealized losses, held to maturity | 261 | 569 | |
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 | 45,283 | 35,176 | |
Securities held to maturity (HTM), at amortized cost | 54,805 | 63,060 | |
Securities available for sale (AFS), at fair value | 44,137 | 34,228 | |
Estimated Fair Value, held to maturity | 54,022 | 62,393 | |
Gross unrealized losses, available for sale | 1,158 | 966 | |
Gross unrealized losses, held to maturity | 845 | 802 | |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 62,999 | 46,108 | |
Held-To-Maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 81,726 | $ 84,219 | |
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 2 months 12 days | 4 years 1 month 24 days | |
Held to maturity securities with unrealized losses, average duration | 2 years 7 months 28 days | 3 years 3 months 15 days | |
Securities held to maturity (HTM), at amortized cost | $ 651 | $ 884 | |
Held-To-Maturity Securities, Continuous Unrealized Loss Position, Fair Value | $ 599 | $ 803 | |
Asset-backed securities issued by GSEs [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available for sale securities, average life | 4 years 8 months 27 days | 4 years 11 months 16 days | |
Available for sale securities, average duration | 4 years 2 months 19 days | 4 years 5 months 5 days | |
Held to maturity securities, average life | 4 years 11 months 12 days | 5 years 3 months 18 days | |
Held to maturity securities, average duration | 4 years 4 months 21 days | 4 years 8 months 16 days | |
Available for sale securities with unrealized losses, average life | 4 years 8 months 16 days | 4 years 10 months 28 days | |
Available for sale securities with unrealized losses, average duration | 4 years 2 months 12 days | 4 years 4 months 13 days | |
Held to maturity securities with unrealized losses, average life | 5 years 7 days | 5 years 22 days | |
Held to maturity securities with unrealized losses, average duration | 4 years 5 months 5 days | 4 years 5 months 27 days | |
Amortized cost, available for sale | $ 65,400 | $ 50,100 | |
Securities held to maturity (HTM), at amortized cost | 98,600 | 108,400 | |
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 | 651 | 884 | |
Estimated Fair Value, held to maturity | 599 | 803 | |
Gross unrealized losses, held to maturity | 52 | 81 | |
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 | 37 | |
Bond Mutual Funds [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 4,480 | 4,386 | |
Securities available for sale (AFS), at fair value | 4,507 | 4,413 | |
US Government Obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 1,000 | 850 | |
Estimated Fair Value, held to maturity | $ 1,000 | $ 850 | |
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 | $ 162,336 | $ 156,947 | |
Standard Poor's, BB Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 651 | 411 | |
Standard Poor's, B+ Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 472 |
Securities (Fair Value to Amort
Securities (Fair Value to Amortized Cost Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | $ 69,928 | $ 54,565 |
Gross unrealized gains, available for sale | 39 | 45 |
Gross unrealized losses, available for sale | 1,682 | 1,577 |
Estimated fair value, available for sale | 68,285 | 53,033 |
Amortized cost, Held-to-maturity Securities | 99,246 | 109,247 |
Gross unrealized gains, held to maturity | 197 | 502 |
Gross unrealized losses, held to maturity | 1,436 | 1,715 |
Estimated Fair Value, held to maturity | 98,007 | 108,034 |
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 | 7,265 | 4,377 |
Gross unrealized losses, available for sale | 178 | 194 |
Estimated fair value, available for sale | 7,087 | 4,183 |
Amortized cost, Held-to-maturity Securities | 29,113 | 34,735 |
Gross unrealized gains, held to maturity | 135 | 367 |
Gross unrealized losses, held to maturity | 261 | 569 |
Estimated Fair Value, held to maturity | 28,987 | 34,533 |
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 | 45,283 | 35,176 |
Gross unrealized gains, available for sale | 12 | 18 |
Gross unrealized losses, available for sale | 1,158 | 966 |
Estimated fair value, available for sale | 44,137 | 34,228 |
Amortized cost, Held-to-maturity Securities | 54,805 | 63,060 |
Gross unrealized gains, held to maturity | 62 | 135 |
Gross unrealized losses, held to maturity | 845 | 802 |
Estimated Fair Value, held to maturity | 54,022 | 62,393 |
US Agency [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 12,863 | 10,589 |
Gross unrealized losses, available for sale | 346 | 417 |
Estimated fair value, available for sale | 12,517 | 10,172 |
Amortized cost, Held-to-maturity Securities | 8,660 | 6,717 |
Gross unrealized losses, held to maturity | 235 | 253 |
Estimated Fair Value, held to maturity | 8,425 | 6,464 |
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 | 651 | 884 |
Gross unrealized losses, held to maturity | 52 | 81 |
Estimated Fair Value, held to maturity | 599 | 803 |
US Government Agencies Callable Agency Bonds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 5,017 | 3,001 |
Gross unrealized losses, held to maturity | 43 | 10 |
Estimated Fair Value, held to maturity | 4,974 | 2,991 |
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 1,000 | 850 |
Estimated Fair Value, held to maturity | 1,000 | 850 |
Corporate Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 37 | 37 |
Estimated fair value, available for sale | 37 | 37 |
Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 4,480 | 4,386 |
Gross unrealized gains, available for sale | 27 | 27 |
Estimated fair value, available for sale | $ 4,507 | $ 4,413 |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Less than 12 months, fair value | $ 24,571 | $ 34,262 |
More than 12 months, fair value | 38,428 | 11,846 |
Fair value | 62,999 | 46,108 |
Less than 12 months, unrealized loss | 328 | 1,110 |
More than 12 months, unrealized loss | 1,354 | 467 |
Unrealized loss | $ 1,682 | $ 1,577 |
Securities (Schedule of Unrea58
Securities (Schedule of Unrealized Loss on Investments, HTM) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 36,607 | $ 77,879 |
Less than 12 months, unrealized loss | 254 | 1,452 |
More than 12 months, fair value | 45,718 | 7,143 |
More than 12 months, unrealized loss | 1,182 | 263 |
Total, fair value | 82,325 | 85,022 |
Total, unrealized loss | 1,436 | 1,715 |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | 36,607 | 77,879 |
Less than 12 months, unrealized loss | 254 | 1,452 |
More than 12 months, fair value | 45,119 | 6,340 |
More than 12 months, unrealized loss | 1,130 | 182 |
Total, fair value | 81,726 | 84,219 |
Total, unrealized loss | 1,384 | 1,634 |
Asset-backed Securities, Issued by Private Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, fair value | 599 | 803 |
More than 12 months, unrealized loss | 52 | 81 |
Total, fair value | 599 | 803 |
Total, unrealized loss | $ 52 | $ 81 |
Securities (Investments Classif
Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, total | $ 69,891 | $ 54,528 |
Estimated fair value, available for sale, total | 68,248 | 52,996 |
Amortized cost, held to maturity, total | 99,246 | 109,247 |
Estimated fair value, held to maturity, total | 98,007 | 108,034 |
Asset-backed securities issued by GSEs [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, within one year | 9,853 | 7,879 |
Amortized cost, available for sale, over one year through five years | 28,832 | 21,481 |
Amortized cost, available for sale, over five years through ten years | 20,357 | 13,093 |
Amortized cost, available for sale, after ten years | 6,369 | 7,689 |
Amortized cost, available for sale, total | 65,411 | 50,142 |
Estimated fair value, available for sale, within one year | 9,601 | 7,634 |
Estimated fair value, available for sale, over one year through five years | 28,096 | 20,813 |
Estimated fair value, available for sale, over five years through ten years | 19,838 | 12,686 |
Estimated fair value, available for sale, after ten years | 6,206 | 7,450 |
Estimated fair value, available for sale, total | 63,741 | 48,583 |
Amortized cost, held to maturity, within one year | 18,722 | 18,844 |
Amortized cost, held to maturity, over one year through five years | 41,433 | 47,168 |
Amortized cost, held to maturity, over five years through ten years | 25,309 | 29,803 |
Amortized cost, held to maturity, after ten years | 12,782 | 12,582 |
Amortized cost, held to maturity, total | 98,246 | 108,397 |
Estimated fair value, held to maturity, within one year | 22,512 | 21,104 |
Estimated fair value, held to maturity, over one year through five years | 38,813 | 45,339 |
Estimated fair value, held to maturity, over five years through ten years | 23,709 | 28,647 |
Estimated fair value, held to maturity, after ten years | 11,973 | 12,094 |
Estimated fair value, held to maturity, total | 97,007 | 107,184 |
Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, within one year | 4,480 | 4,386 |
Estimated fair value, available for sale, within one year | 4,507 | 4,413 |
Amortized cost, held to maturity, within one year | ||
Estimated fair value, held to maturity, within one year | ||
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, within one year | ||
Estimated fair value, available for sale, within one year | ||
Amortized cost, held to maturity, within one year | 1,000 | 850 |
Estimated fair value, held to maturity, within one year | $ 1,000 | $ 850 |
Securities (Financing Receivabl
Securities (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 162,987 | $ 157,830 |
Standard Poor's, AAA Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 162,336 | 156,947 |
Standard Poor's, BB Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 651 | 411 |
Standard Poor's, B+ Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 472 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases receivable, allowance percentage | (0.09%) | (0.04%) | |||
Total number of loans | loan | 24 | 29 | |||
90 or greater days delinquent | $ 2,483 | $ 7,705 | |||
Total non-accrual loans | 4,693 | 8,374 | |||
Deferred loan fees and premiums include net deferred fees paid by customers | 2,800 | 2,700 | |||
Offset by net deferred premiums paid to purchase loans | 3,900 | 3,100 | |||
Loan portfolio | $ 1,150,044 | $ 1,088,982 | |||
Percentage status of loan in portfolio | 100.00% | 100.00% | |||
Allowance for loan loss | $ 10,515 | $ 9,860 | |||
Charge-offs | 482 | 1,169 | $ 1,458 | ||
Loans, carrying amount | 1,140,615 | 1,079,519 | |||
Non-accrual performing loans | 2,210 | 669 | |||
Past Due | 11,710 | 8,739 | |||
Loans receivable from related parties | $ 26,476 | $ 26,464 | 28,105 | $ 24,403 | |
Number of TDR loans | loan | 16 | 22 | |||
Number of accrual TDR loans | loan | 15 | 16 | |||
Financing receivable post modification recorded investment | $ 10,790 | $ 15,121 | |||
Accrual TDR loans | $ 10,021 | $ 10,448 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 7 | 7 | |||
90 or greater days delinquent | $ 1,148 | $ 2,371 | |||
Total non-accrual loans | 1,987 | 2,371 | |||
Loan portfolio | $ 727,314 | $ 667,105 | |||
Percentage status of loan in portfolio | 63.25% | 61.25% | |||
Charge-offs | $ 217 | 78 | |||
Non-accrual performing loans | 839 | ||||
Past Due | $ 7,859 | $ 2,855 | |||
Number of TDR loans | loan | 9 | 8 | |||
Financing receivable post modification recorded investment | $ 9,273 | $ 9,587 | |||
Commercial Construction Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage status of loan in portfolio | 6.20% | 9.30% | |||
Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 4 | 4 | |||
90 or greater days delinquent | $ 478 | $ 623 | |||
Total non-accrual loans | 985 | 623 | |||
Increase (decrease) in loans | 25,500 | 64,200 | |||
Loan portfolio | $ 170,374 | $ 171,004 | |||
Percentage status of loan in portfolio | 14.81% | 15.70% | |||
Charge-offs | 30 | ||||
Non-accrual performing loans | $ 507 | ||||
Past Due | $ 546 | $ 623 | |||
Number of TDR loans | loan | 2 | 2 | |||
Financing receivable post modification recorded investment | $ 527 | $ 545 | |||
Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 4 | 4 | |||
90 or greater days delinquent | $ 84 | $ 577 | |||
Total non-accrual loans | 825 | 577 | |||
Loan portfolio | $ 110,228 | $ 101,897 | |||
Percentage status of loan in portfolio | 9.58% | 9.36% | |||
Charge-offs | $ 42 | $ 14 | |||
Non-accrual performing loans | 741 | ||||
Past Due | $ 291 | $ 588 | |||
Number of TDR loans | loan | 1 | 1 | |||
Financing receivable post modification recorded investment | $ 221 | $ 227 | |||
Construction And Land Development Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 2 | ||||
90 or greater days delinquent | $ 3,048 | ||||
Total non-accrual loans | 3,048 | ||||
Loan portfolio | $ 27,871 | $ 36,934 | |||
Percentage status of loan in portfolio | 2.42% | 3.39% | |||
Charge-offs | $ 26 | $ 526 | |||
Past Due | $ 3,048 | ||||
Number of TDR loans | loan | 2 | 4 | |||
Financing receivable post modification recorded investment | $ 729 | $ 3,777 | |||
Home Equity And Second Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 4 | 2 | |||
90 or greater days delinquent | $ 134 | $ 61 | |||
Total non-accrual loans | 257 | 61 | |||
Loan portfolio | $ 21,351 | $ 21,399 | |||
Percentage status of loan in portfolio | 1.86% | 1.97% | |||
Charge-offs | $ 14 | 100 | |||
Non-accrual performing loans | 123 | ||||
Past Due | $ 171 | $ 224 | |||
Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 2 | 5 | |||
90 or greater days delinquent | $ 172 | $ 375 | |||
Total non-accrual loans | 172 | 1,044 | |||
Loan portfolio | $ 56,417 | $ 50,484 | |||
Percentage status of loan in portfolio | 4.91% | 4.64% | |||
Charge-offs | $ 13 | $ 594 | 432 | ||
Non-accrual performing loans | 669 | ||||
Past Due | $ 1,363 | $ 706 | |||
Number of TDR loans | loan | 1 | 5 | |||
Financing receivable post modification recorded investment | $ 4 | $ 872 | |||
Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 573 | $ 422 | |||
Percentage status of loan in portfolio | 0.05% | 0.04% | |||
Charge-offs | $ 2 | $ 1 | |||
Past Due | $ 1 | $ 2 | |||
Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 3 | 5 | |||
90 or greater days delinquent | $ 467 | $ 650 | |||
Total non-accrual loans | 467 | 650 | |||
Loan portfolio | $ 35,916 | $ 39,737 | |||
Percentage status of loan in portfolio | 3.12% | 3.65% | |||
Charge-offs | $ 168 | $ 34 | $ 818 | ||
Past Due | $ 1,479 | $ 693 | |||
Number of TDR loans | loan | 1 | 2 | |||
Financing receivable post modification recorded investment | $ 36 | $ 113 | |||
1-4 Family Units [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 85,000 | 84,900 | |||
Apartment Buildings Rentals [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 25,200 | 17,000 | |||
Adjustable Rate Residential First Mortgage [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 56,900 | $ 45,600 | |||
Percentage status of loan in portfolio | 5.00% | 4.20% | |||
Adjustable Rate Residential First Mortgage [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 93,400 | $ 84,000 | |||
Percentage status of loan in portfolio | 8.10% | 7.70% | |||
Foreclosure Of Stalled Residential Development Project [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Amount of loans removed from troubled debt restructuring | $ 3,000 | ||||
Ten Loans And Five Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | 3,300 | ||||
Financing Receivable Troubled Debt Restructuring [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in loans | $ (4,300) | ||||
Loans added to troubled debt restructuring | loan | 0 | 1 | |||
Loans removed from troubled debt restructuring | loan | 9 | ||||
Amount of loans added to troubled debt restructuring | $ 196 | ||||
Amount of loans removed from troubled debt restructuring | 2,100 | ||||
Interest income recognized on outstanding TDR loans | $ 327 | 357 | |||
TDR loan principal curtailment | $ 385 | 1,600 | |||
Seven Troubled Debt Restructuring Loans with Reserves [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans removed from troubled debt restructuring | loan | 7 | ||||
Amount of loans removed from troubled debt restructuring | $ 3,900 | ||||
Specific reserves for TDR loans | $ 413 | ||||
Number of TDR loans | loan | 7 | ||||
Financing receivable post modification recorded investment | $ 3,000 | ||||
Nine Troubled Debt Restructuring Loans with Reserves [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Specific reserves for TDR loans | $ 844 | ||||
Number of TDR loans | loan | 9 | ||||
Financing receivable post modification recorded investment | $ 5,700 | ||||
Nonaccrual Loans With No Impairment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | 3,800 | 7,800 | |||
Interest due to debt | 85 | 947 | |||
Nonaccrual Loans With Impairment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | 876 | 575 | |||
Interest due to debt | $ 100 | 156 | |||
Minimum [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 3 years | ||||
Minimum [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 10 years | ||||
Minimum [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 3 years | ||||
Maximum [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 20 years | ||||
Maximum [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 30 years | ||||
Maximum [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 20 years | ||||
Unrated [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 75,581 | 51,503 | |||
Unrated [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 28,428 | 25,563 | |||
Unrated [Member] | Construction And Land Development Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 1,775 | 1,632 | |||
Unrated [Member] | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 14,356 | 11,266 | |||
Unrated [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 10,856 | 11,769 | |||
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 619,604 | 594,768 | |||
Pass [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 80,279 | 74,989 | |||
Pass [Member] | Construction And Land Development Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 25,367 | 31,525 | |||
Pass [Member] | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 39,118 | 36,221 | |||
Pass [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 23,581 | 27,290 | |||
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 32,129 | 20,834 | |||
Substandard [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 1,521 | 1,345 | |||
Substandard [Member] | Construction And Land Development Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 729 | 3,777 | |||
Substandard [Member] | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 2,943 | 2,997 | |||
Substandard [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 1,479 | 541 | |||
Doubtful [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 137 | ||||
31 - 60 Days [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 1,923 | 503 | |||
31 - 60 Days [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 19 | 130 | |||
31 - 60 Days [Member] | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 892 | 331 | |||
31 - 60 Days [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 1,012 | 42 | |||
61 - 89 Days [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 7,304 | 531 | |||
61 - 89 Days [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 6,711 | 484 | |||
61 - 89 Days [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 68 | ||||
61 - 89 Days [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 207 | 11 | |||
61 - 89 Days [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 18 | 33 | |||
61 - 89 Days [Member] | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 299 | ||||
61 - 89 Days [Member] | Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 1 | 2 | |||
61 - 89 Days [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 1 | ||||
90 or Greater Days [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 2,483 | 7,705 | |||
90 or Greater Days [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 1,148 | 2,371 | |||
90 or Greater Days [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 478 | 623 | |||
90 or Greater Days [Member] | Residential Rentals Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 84 | 577 | |||
90 or Greater Days [Member] | Construction And Land Development Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 3,048 | ||||
90 or Greater Days [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 134 | 61 | |||
90 or Greater Days [Member] | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 172 | 375 | |||
90 or Greater Days [Member] | Commercial Equipment Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Past Due | 467 | 650 | |||
Performing Financing Receivable [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 169,896 | 170,381 | |||
Performing Financing Receivable [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 21,217 | 21,338 | |||
Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 573 | $ 422 | |||
Nonperforming Financing Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in loans | $ (3,700) | ||||
Percentage status of loan in portfolio | 0.41% | 0.77% | |||
Nonperforming Financing Receivable [Member] | Residential First Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 478 | $ 623 | |||
Nonperforming Financing Receivable [Member] | Home Equity And Second Mortgages Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 134 | 61 | |||
Nonperforming Financing Receivable [Member] | Foreclosure Of Stalled Residential Development Project [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in loans | $ (3,000) | ||||
Nonperforming Financing Receivable [Member] | Foreclosure Of Commercial Office Building [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase (decrease) in loans | $ (607) | ||||
Nonperforming Financing Receivable [Member] | Ten Loans And Five Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 10 | ||||
Percentage status of loan in portfolio | 71.00% | ||||
Nonperforming Financing Receivable [Member] | Fifteen Loans Representing Six Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | $ 6,400 | ||||
Percentage status of loan in portfolio | 77.00% | ||||
Number of loans | loan | 15 | ||||
Nonperforming Financing Receivable [Member] | One Troubled Debt Restructuring Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 1 | ||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 769 | ||||
Nonperforming Financing Receivable [Member] | Six Troubled Debt Restructuring Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total number of loans | loan | 6 | ||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 4,700 |
Loans (Schedule of Accounts, No
Loans (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,150,044 | $ 1,088,982 |
Less: | ||
Deferred loan fees and premiums | (1,086) | (397) |
Allowance for loan losses | 10,515 | 9,860 |
Loans and leases receivable adjustments | 9,429 | 9,463 |
Loans and leases receivable net reported amount | $ 1,140,615 | $ 1,079,519 |
Percentage status of loan in portfolio | 100.00% | 100.00% |
Loans and leases receivable, allowance percentage | (0.09%) | (0.04%) |
Loans and leases receivable, allowance percentage | 0.91% | 0.91% |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 727,314 | $ 667,105 |
Less: | ||
Percentage status of loan in portfolio | 63.25% | 61.25% |
Residential First Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 170,374 | $ 171,004 |
Less: | ||
Percentage status of loan in portfolio | 14.81% | 15.70% |
Residential Rentals Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 110,228 | $ 101,897 |
Less: | ||
Percentage status of loan in portfolio | 9.58% | 9.36% |
Construction And Land Development Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 27,871 | $ 36,934 |
Less: | ||
Percentage status of loan in portfolio | 2.42% | 3.39% |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 21,351 | $ 21,399 |
Less: | ||
Percentage status of loan in portfolio | 1.86% | 1.97% |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 56,417 | $ 50,484 |
Less: | ||
Percentage status of loan in portfolio | 4.91% | 4.64% |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 573 | $ 422 |
Less: | ||
Percentage status of loan in portfolio | 0.05% | 0.04% |
Commercial Equipment Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 35,916 | $ 39,737 |
Less: | ||
Percentage status of loan in portfolio | 3.12% | 3.65% |
Loans (Schedule of Financing Re
Loans (Schedule of Financing Receivables, Non-Accrual Status) (Details) $ in Thousands | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 2,483 | $ 7,705 |
Number of loans, 90 or greater days delinquent | loan | 16 | 27 |
Non-accrual performing loans | $ | $ 2,210 | $ 669 |
Number of loans, non-accrual performing loans | loan | 8 | 2 |
Total non-accrual loans | $ | $ 4,693 | $ 8,374 |
Total number of loans | loan | 24 | 29 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 1,148 | $ 2,371 |
Number of loans, 90 or greater days delinquent | loan | 4 | 7 |
Non-accrual performing loans | $ | $ 839 | |
Number of loans, non-accrual performing loans | loan | 3 | |
Total non-accrual loans | $ | $ 1,987 | $ 2,371 |
Total number of loans | loan | 7 | 7 |
Residential First Mortgages Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 478 | $ 623 |
Number of loans, 90 or greater days delinquent | loan | 3 | 4 |
Non-accrual performing loans | $ | $ 507 | |
Number of loans, non-accrual performing loans | loan | 1 | |
Total non-accrual loans | $ | $ 985 | $ 623 |
Total number of loans | loan | 4 | 4 |
Residential Rentals Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 84 | $ 577 |
Number of loans, 90 or greater days delinquent | loan | 1 | 4 |
Non-accrual performing loans | $ | $ 741 | |
Number of loans, non-accrual performing loans | loan | 3 | |
Total non-accrual loans | $ | $ 825 | $ 577 |
Total number of loans | loan | 4 | 4 |
Construction And Land Development Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 3,048 | |
Number of loans, 90 or greater days delinquent | loan | 2 | |
Total non-accrual loans | $ | $ 3,048 | |
Total number of loans | loan | 2 | |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 134 | $ 61 |
Number of loans, 90 or greater days delinquent | loan | 3 | 2 |
Non-accrual performing loans | $ | $ 123 | |
Number of loans, non-accrual performing loans | loan | 1 | |
Total non-accrual loans | $ | $ 257 | $ 61 |
Total number of loans | loan | 4 | 2 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 172 | $ 375 |
Number of loans, 90 or greater days delinquent | loan | 2 | 3 |
Non-accrual performing loans | $ | $ 669 | |
Number of loans, non-accrual performing loans | loan | 2 | |
Total non-accrual loans | $ | $ 172 | $ 1,044 |
Total number of loans | loan | 2 | 5 |
Commercial Equipment Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 467 | $ 650 |
Number of loans, 90 or greater days delinquent | loan | 3 | 5 |
Total non-accrual loans | $ | $ 467 | $ 650 |
Total number of loans | loan | 3 | 5 |
Loans (Past Due Financing Recei
Loans (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current | $ 1,138,334 | $ 1,080,243 |
Past Due | 11,710 | 8,739 |
Total Loan Receivables | 1,150,044 | 1,088,982 |
31 - 60 Days [Member] | ||
Past Due | 1,923 | 503 |
61 - 89 Days [Member] | ||
Past Due | 7,304 | 531 |
90 or Greater Days [Member] | ||
Past Due | 2,483 | 7,705 |
Commercial Real Estate Portfolio Segment [Member] | ||
Current | 719,455 | 664,250 |
Past Due | 7,859 | 2,855 |
Total Loan Receivables | 727,314 | 667,105 |
Commercial Real Estate Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 6,711 | 484 |
Commercial Real Estate Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 1,148 | 2,371 |
Residential First Mortgages Portfolio Segment [Member] | ||
Current | 169,828 | 170,381 |
Past Due | 546 | 623 |
Total Loan Receivables | 170,374 | 171,004 |
Residential First Mortgages Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 68 | |
Residential First Mortgages Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 478 | 623 |
Residential Rentals Portfolio Segment [Member] | ||
Current | 109,937 | 101,309 |
Past Due | 291 | 588 |
Total Loan Receivables | 110,228 | 101,897 |
Residential Rentals Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 207 | 11 |
Residential Rentals Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 84 | 577 |
Construction And Land Development Portfolio Segment [Member] | ||
Current | 27,871 | 33,886 |
Past Due | 3,048 | |
Total Loan Receivables | 27,871 | 36,934 |
Construction And Land Development Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 3,048 | |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Current | 21,180 | 21,175 |
Past Due | 171 | 224 |
Total Loan Receivables | 21,351 | 21,399 |
Home Equity And Second Mortgages Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 19 | 130 |
Home Equity And Second Mortgages Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 18 | 33 |
Home Equity And Second Mortgages Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 134 | 61 |
Commercial Portfolio Segment [Member] | ||
Current | 55,054 | 49,778 |
Past Due | 1,363 | 706 |
Total Loan Receivables | 56,417 | 50,484 |
Commercial Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 892 | 331 |
Commercial Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 299 | |
Commercial Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | 172 | 375 |
Consumer Portfolio Segment [Member] | ||
Current | 572 | 420 |
Past Due | 1 | 2 |
Total Loan Receivables | 573 | 422 |
Consumer Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 1 | 2 |
Commercial Equipment Portfolio Segment [Member] | ||
Current | 34,437 | 39,044 |
Past Due | 1,479 | 693 |
Total Loan Receivables | 35,916 | 39,737 |
Commercial Equipment Portfolio Segment [Member] | 31 - 60 Days [Member] | ||
Past Due | 1,012 | 42 |
Commercial Equipment Portfolio Segment [Member] | 61 - 89 Days [Member] | ||
Past Due | 1 | |
Commercial Equipment Portfolio Segment [Member] | 90 or Greater Days [Member] | ||
Past Due | $ 467 | $ 650 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unpaid contractual principal balance | $ 43,618 | $ 36,685 |
Recorded investment with no allowance | 39,028 | 26,436 |
Recorded investment with allowance | 4,226 | 8,924 |
Total recorded investment | 43,254 | 35,360 |
Related allowance | 1,024 | 1,289 |
Average recorded investment | 44,159 | 36,534 |
Interest income recognized | 1,829 | 1,309 |
Commercial Real Estate Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 33,180 | 22,195 |
Recorded investment with no allowance | 30,921 | 14,896 |
Recorded investment with allowance | 2,008 | 7,081 |
Total recorded investment | 32,929 | 21,977 |
Related allowance | 370 | 806 |
Average recorded investment | 33,575 | 22,303 |
Interest income recognized | 1,379 | 908 |
Residential First Mortgages Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 2,455 | 2,436 |
Recorded investment with no allowance | 1,978 | 1,938 |
Recorded investment with allowance | 459 | 475 |
Total recorded investment | 2,437 | 2,413 |
Related allowance | 2 | 7 |
Average recorded investment | 2,479 | 2,445 |
Interest income recognized | 91 | 90 |
Residential Rentals Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 2,389 | 3,440 |
Recorded investment with no allowance | 1,981 | 2,850 |
Recorded investment with allowance | 395 | 178 |
Total recorded investment | 2,376 | 3,028 |
Related allowance | 18 | 36 |
Average recorded investment | 2,432 | 3,486 |
Interest income recognized | 111 | 134 |
Construction And Land Development Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 729 | 4,304 |
Recorded investment with no allowance | 2,926 | |
Recorded investment with allowance | 729 | 851 |
Total recorded investment | 729 | 3,777 |
Related allowance | 163 | 178 |
Average recorded investment | 729 | 3,867 |
Interest income recognized | 26 | 16 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 317 | 170 |
Recorded investment with no allowance | 317 | 170 |
Total recorded investment | 317 | 170 |
Average recorded investment | 318 | 176 |
Interest income recognized | 12 | 7 |
Commercial Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 3,010 | 3,285 |
Recorded investment with no allowance | 2,783 | 3,004 |
Recorded investment with allowance | 168 | 200 |
Total recorded investment | 2,951 | 3,204 |
Related allowance | 168 | 123 |
Average recorded investment | 3,048 | 3,442 |
Interest income recognized | 137 | 137 |
Commercial Equipment Portfolio Segment [Member] | ||
Unpaid contractual principal balance | 1,538 | 855 |
Recorded investment with no allowance | 1,048 | 652 |
Recorded investment with allowance | 467 | 139 |
Total recorded investment | 1,515 | 791 |
Related allowance | 303 | 139 |
Average recorded investment | 1,578 | 815 |
Interest income recognized | $ 73 | $ 17 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
TDRs | $ | $ 10,790 | $ 15,121 |
Less: TDRs included in non-accrual loans | $ | (769) | (4,673) |
Accrual TDR loans | $ | $ 10,021 | $ 10,448 |
Number of TDR loans | loan | 16 | 22 |
Number of non-accrual TDR loans | loan | (1) | (6) |
Number of accrual TDR loans | loan | 15 | 16 |
Commercial Real Estate Portfolio Segment [Member] | ||
TDRs | $ | $ 9,273 | $ 9,587 |
Number of TDR loans | loan | 9 | 8 |
Residential First Mortgages Portfolio Segment [Member] | ||
TDRs | $ | $ 527 | $ 545 |
Number of TDR loans | loan | 2 | 2 |
Residential Rentals Portfolio Segment [Member] | ||
TDRs | $ | $ 221 | $ 227 |
Number of TDR loans | loan | 1 | 1 |
Construction And Land Development Portfolio Segment [Member] | ||
TDRs | $ | $ 729 | $ 3,777 |
Number of TDR loans | loan | 2 | 4 |
Commercial Portfolio Segment [Member] | ||
TDRs | $ | $ 4 | $ 872 |
Number of TDR loans | loan | 1 | 5 |
Commercial Equipment Portfolio Segment [Member] | ||
TDRs | $ | $ 36 | $ 113 |
Number of TDR loans | loan | 1 | 2 |
Loans (Allowance for Credit Los
Loans (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses: | |||||||||||||||
Beginning Balance | $ 9,860 | $ 8,540 | $ 8,481 | $ 9,860 | $ 8,540 | $ 8,481 | |||||||||
Charge-offs | (482) | (1,169) | (1,458) | ||||||||||||
Recoveries | 127 | 130 | 84 | ||||||||||||
Provisions | $ 30 | $ 224 | $ 376 | 380 | $ 670 | $ 698 | $ 564 | 427 | $ 362 | $ 501 | $ 392 | 178 | 1,010 | 2,359 | 1,433 |
Ending Balance | 10,515 | 9,860 | 8,540 | 10,515 | 9,860 | 8,540 | |||||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 5,212 | 3,465 | 3,528 | 5,212 | 3,465 | 3,528 | |||||||||
Charge-offs | (217) | (78) | |||||||||||||
Recoveries | 63 | 58 | 17 | ||||||||||||
Provisions | 1,393 | 1,689 | (2) | ||||||||||||
Ending Balance | 6,451 | 5,212 | 3,465 | 6,451 | 5,212 | 3,465 | |||||||||
Residential First Mortgages Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 1,406 | 584 | 1,047 | 1,406 | 584 | 1,047 | |||||||||
Charge-offs | (30) | ||||||||||||||
Recoveries | 1 | ||||||||||||||
Provisions | (262) | 822 | (434) | ||||||||||||
Ending Balance | 1,144 | 1,406 | 584 | 1,144 | 1,406 | 584 | |||||||||
Residential Rentals Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 362 | 538 | 593 | 362 | 538 | 593 | |||||||||
Charge-offs | (42) | (14) | |||||||||||||
Provisions | 192 | (162) | (55) | ||||||||||||
Ending Balance | 512 | 362 | 538 | 512 | 362 | 538 | |||||||||
Construction And Land Development Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 941 | 1,103 | 1,071 | 941 | 1,103 | 1,071 | |||||||||
Charge-offs | (26) | (526) | |||||||||||||
Recoveries | 1 | 32 | |||||||||||||
Provisions | (453) | 363 | |||||||||||||
Ending Balance | 462 | 941 | 1,103 | 462 | 941 | 1,103 | |||||||||
Home Equity And Second Mortgages Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 138 | 142 | 173 | 138 | 142 | 173 | |||||||||
Charge-offs | (14) | (100) | |||||||||||||
Recoveries | 1 | 5 | |||||||||||||
Provisions | 37 | (9) | 69 | ||||||||||||
Ending Balance | 162 | 138 | 142 | 162 | 138 | 142 | |||||||||
Commercial Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 794 | 1,477 | 1,677 | 794 | 1,477 | 1,677 | |||||||||
Charge-offs | (13) | (594) | (432) | ||||||||||||
Recoveries | 1 | 18 | 11 | ||||||||||||
Provisions | 231 | (107) | 221 | ||||||||||||
Ending Balance | 1,013 | 794 | 1,477 | 1,013 | 794 | 1,477 | |||||||||
Consumer Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | 3 | 2 | 3 | 3 | 2 | 3 | |||||||||
Charge-offs | (2) | (1) | |||||||||||||
Provisions | 6 | 2 | (1) | ||||||||||||
Ending Balance | 7 | 3 | 2 | 7 | 3 | 2 | |||||||||
Commercial Equipment Portfolio Segment [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning Balance | $ 1,004 | $ 1,229 | $ 389 | 1,004 | 1,229 | 389 | |||||||||
Charge-offs | (168) | (34) | (818) | ||||||||||||
Recoveries | 62 | 48 | 23 | ||||||||||||
Provisions | (134) | (239) | 1,635 | ||||||||||||
Ending Balance | $ 764 | $ 1,004 | $ 1,229 | $ 764 | $ 1,004 | $ 1,229 |
Loans (Loan Receivable and Allo
Loans (Loan Receivable and Allowance Balances Disaggregated) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | $ 43,254 | $ 35,360 | ||
Ending balance: collectively evaluated for impairment | 1,106,790 | 1,053,622 | ||
Total Loan Receivables | 1,150,044 | 1,088,982 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 1,024 | 1,289 | ||
Ending balance: collectively evaluated for impairment | 9,491 | 8,571 | ||
Total Allowance for loan losses | 10,515 | 9,860 | $ 8,540 | $ 8,481 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 32,929 | 21,977 | ||
Ending balance: collectively evaluated for impairment | 694,385 | 645,128 | ||
Total Loan Receivables | 727,314 | 667,105 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 370 | 806 | ||
Ending balance: collectively evaluated for impairment | 6,081 | 4,406 | ||
Total Allowance for loan losses | 6,451 | 5,212 | 3,465 | 3,528 |
Residential First Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 2,437 | 2,413 | ||
Ending balance: collectively evaluated for impairment | 167,937 | 168,591 | ||
Total Loan Receivables | 170,374 | 171,004 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 2 | 7 | ||
Ending balance: collectively evaluated for impairment | 1,142 | 1,399 | ||
Total Allowance for loan losses | 1,144 | 1,406 | 584 | 1,047 |
Residential Rentals Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 2,376 | 3,028 | ||
Ending balance: collectively evaluated for impairment | 107,852 | 98,869 | ||
Total Loan Receivables | 110,228 | 101,897 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 18 | 36 | ||
Ending balance: collectively evaluated for impairment | 494 | 326 | ||
Total Allowance for loan losses | 512 | 362 | 538 | 593 |
Construction And Land Development Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 729 | 3,777 | ||
Ending balance: collectively evaluated for impairment | 27,142 | 33,157 | ||
Total Loan Receivables | 27,871 | 36,934 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 163 | 178 | ||
Ending balance: collectively evaluated for impairment | 299 | 763 | ||
Total Allowance for loan losses | 462 | 941 | 1,103 | 1,071 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 317 | 170 | ||
Ending balance: collectively evaluated for impairment | 21,034 | 21,229 | ||
Total Loan Receivables | 21,351 | 21,399 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 162 | 138 | ||
Total Allowance for loan losses | 162 | 138 | 142 | 173 |
Commercial Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 2,951 | 3,204 | ||
Ending balance: collectively evaluated for impairment | 53,466 | 47,280 | ||
Total Loan Receivables | 56,417 | 50,484 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 168 | 123 | ||
Ending balance: collectively evaluated for impairment | 845 | 671 | ||
Total Allowance for loan losses | 1,013 | 794 | 1,477 | 1,677 |
Consumer Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: collectively evaluated for impairment | 573 | 422 | ||
Total Loan Receivables | 573 | 422 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 7 | 3 | ||
Total Allowance for loan losses | 7 | 3 | 2 | 3 |
Commercial Equipment Portfolio Segment [Member] | ||||
Loan receivables: | ||||
Ending balance: individually evaluated for impairment | 1,515 | 791 | ||
Ending balance: collectively evaluated for impairment | 34,401 | 38,946 | ||
Total Loan Receivables | 35,916 | 39,737 | ||
Allowance for loan losses: | ||||
Ending balance: individually evaluated for impairment | 303 | 139 | ||
Ending balance: collectively evaluated for impairment | 461 | 865 | ||
Total Allowance for loan losses | $ 764 | $ 1,004 | $ 1,229 | $ 389 |
Loans (Schedule of Financing 69
Loans (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans | $ 1,150,044 | $ 1,088,982 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans | 727,314 | 667,105 |
Commercial Real Estate Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 75,581 | 51,503 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Loans | 619,604 | 594,768 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 32,129 | 20,834 |
Residential First Mortgages Portfolio Segment [Member] | ||
Loans | 170,374 | 171,004 |
Residential First Mortgages Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Loans | 169,896 | 170,381 |
Residential First Mortgages Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Loans | 478 | 623 |
Residential Rentals Portfolio Segment [Member] | ||
Loans | 110,228 | 101,897 |
Residential Rentals Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 28,428 | 25,563 |
Residential Rentals Portfolio Segment [Member] | Pass [Member] | ||
Loans | 80,279 | 74,989 |
Residential Rentals Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 1,521 | 1,345 |
Construction And Land Development Portfolio Segment [Member] | ||
Loans | 27,871 | 36,934 |
Construction And Land Development Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 1,775 | 1,632 |
Construction And Land Development Portfolio Segment [Member] | Pass [Member] | ||
Loans | 25,367 | 31,525 |
Construction And Land Development Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 729 | 3,777 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Loans | 21,351 | 21,399 |
Home Equity And Second Mortgages Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Loans | 21,217 | 21,338 |
Home Equity And Second Mortgages Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Loans | 134 | 61 |
Commercial Portfolio [Member] | ||
Loans | 957,746 | 896,157 |
Commercial Portfolio [Member] | Unrated [Member] | ||
Loans | 130,996 | 101,733 |
Commercial Portfolio [Member] | Pass [Member] | ||
Loans | 787,949 | 764,793 |
Commercial Portfolio [Member] | Substandard [Member] | ||
Loans | 38,801 | 29,494 |
Commercial Portfolio [Member] | Doubtful [Member] | ||
Loans | 137 | |
Commercial Portfolio Segment [Member] | ||
Loans | 56,417 | 50,484 |
Commercial Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 14,356 | 11,266 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans | 39,118 | 36,221 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 2,943 | 2,997 |
Commercial Equipment Portfolio Segment [Member] | ||
Loans | 35,916 | 39,737 |
Commercial Equipment Portfolio Segment [Member] | Unrated [Member] | ||
Loans | 10,856 | 11,769 |
Commercial Equipment Portfolio Segment [Member] | Pass [Member] | ||
Loans | 23,581 | 27,290 |
Commercial Equipment Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 1,479 | 541 |
Commercial Equipment Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | 137 | |
Consumer Portfolio Segment [Member] | ||
Loans | 573 | 422 |
Consumer Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Loans | $ 573 | $ 422 |
Loans (Loans Maturing in Portfo
Loans (Loans Maturing in Portfolio Based on Contractual Terms) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Contract receivable, due within one year | $ 171,033 | $ 183,796 |
Contract receivable, due after one year through five years | 232,724 | 210,999 |
Contract receivable, due in more than five years | 746,287 | 694,187 |
Commercial Real Estate Portfolio Segment [Member] | ||
Contract receivable, due within one year | 67,951 | 86,782 |
Contract receivable, due after one year through five years | 150,075 | 128,431 |
Contract receivable, due in more than five years | 509,288 | 451,892 |
Residential First Mortgages Portfolio Segment [Member] | ||
Contract receivable, due within one year | 8,596 | 8,501 |
Contract receivable, due after one year through five years | 35,208 | 34,592 |
Contract receivable, due in more than five years | 126,570 | 127,911 |
Residential Rentals Portfolio Segment [Member] | ||
Contract receivable, due within one year | 4,288 | 3,847 |
Contract receivable, due after one year through five years | 21,627 | 17,911 |
Contract receivable, due in more than five years | 84,313 | 80,139 |
Construction And Land Development Portfolio Segment [Member] | ||
Contract receivable, due within one year | 21,226 | 23,674 |
Contract receivable, due after one year through five years | 6,645 | 10,212 |
Contract receivable, due in more than five years | 3,048 | |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Contract receivable, due within one year | 242 | 296 |
Contract receivable, due after one year through five years | 811 | 877 |
Contract receivable, due in more than five years | 20,298 | 20,226 |
Commercial Portfolio Segment [Member] | ||
Contract receivable, due within one year | 56,417 | 50,484 |
Consumer Portfolio Segment [Member] | ||
Contract receivable, due within one year | 200 | 163 |
Contract receivable, due after one year through five years | 307 | 164 |
Contract receivable, due in more than five years | 66 | 95 |
Commercial Equipment Portfolio Segment [Member] | ||
Contract receivable, due within one year | 12,113 | 10,049 |
Contract receivable, due after one year through five years | 18,051 | 18,812 |
Contract receivable, due in more than five years | $ 5,752 | $ 10,876 |
Loans (Loans Due After One Year
Loans (Loans Due After One Year) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans with fixed rate | $ 308,536 | $ 291,134 |
Loans with floating or adjustable rates | 670,475 | 614,052 |
Loans, total | 979,011 | 905,186 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans with fixed rate | 157,667 | 124,549 |
Loans with floating or adjustable rates | 501,696 | 455,774 |
Loans, total | 659,363 | 580,323 |
Residential First Mortgages Portfolio Segment [Member] | ||
Loans with fixed rate | 106,792 | 118,205 |
Loans with floating or adjustable rates | 54,986 | 44,298 |
Loans, total | 161,778 | 162,503 |
Residential Rentals Portfolio Segment [Member] | ||
Loans with fixed rate | 16,974 | 17,499 |
Loans with floating or adjustable rates | 88,966 | 80,551 |
Loans, total | 105,940 | 98,050 |
Construction And Land Development Portfolio Segment [Member] | ||
Loans with fixed rate | 3,521 | 4,533 |
Loans with floating or adjustable rates | 3,124 | 8,727 |
Loans, total | 6,645 | 13,260 |
Home Equity And Second Mortgages Portfolio Segment [Member] | ||
Loans with fixed rate | 1,285 | 1,454 |
Loans with floating or adjustable rates | 19,824 | 19,649 |
Loans, total | 21,109 | 21,103 |
Consumer Portfolio Segment [Member] | ||
Loans with fixed rate | 373 | 259 |
Loans, total | 373 | 259 |
Commercial Equipment Portfolio Segment [Member] | ||
Loans with fixed rate | 21,924 | 24,635 |
Loans with floating or adjustable rates | 1,879 | 5,053 |
Loans, total | $ 23,803 | $ 29,688 |
Loans (Related Party Loans) (De
Loans (Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans [Abstract] | |||
Balance, beginning of period | $ 26,464 | $ 28,105 | $ 24,403 |
Loans and additions | 3,699 | 2,547 | 6,822 |
Change in Directors' status | 2,299 | (642) | |
Repayments | (3,687) | (6,487) | (2,478) |
Balance, end of period | $ 26,476 | $ 26,464 | $ 28,105 |
Loan Servicing (Narrative) (Det
Loan Servicing (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loan Servicing [Abstract] | ||
Outstanding Balances Of Mortgages Serviced For Others | $ 43.7 | $ 52 |
Loan Servicing (Schedule of Par
Loan Servicing (Schedule of Participating Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loan Servicing [Abstract] | |||
Balance, beginning of the year | $ 128 | $ 219 | $ 295 |
Additions | 31 | ||
Amortization | (74) | (91) | (107) |
Balance, end of year | $ 54 | $ 128 | $ 219 |
Other Real Estate Owned ("ORE75
Other Real Estate Owned ("OREO") (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Additions of underlying property | $ 3,634 | $ 3,120 | $ 5,436 | |
Foreclosed Real Estate Disposals | 1,456 | 3,860 | 1,206 | |
Other real estate owned, carrying amount | 9,341 | 7,763 | 9,449 | $ 5,883 |
Recognized net losses on OREO disposals | 436 | |||
Repossessed Assets | 9,341 | 7,763 | 9,449 | $ 5,883 |
Carrying Value Of Impaired Loans With Formal Foreclosure Proceedings In Process | 122 | 353 | ||
Valuation allowance | 600 | 574 | $ 664 | |
Residential Lots [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Additions of underlying property | 103 | |||
Seven Residential Lots [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other real estate owned, carrying amount | 337 | |||
Repossessed Assets | 337 | |||
Four Residential Properties [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other real estate owned, carrying amount | 584 | |||
Repossessed Assets | 584 | |||
Commercial Office Building [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Additions of underlying property | 495 | |||
Two Commercial Properties [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other real estate owned, carrying amount | 501 | |||
Repossessed Assets | 501 | |||
Commercial Lot [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other real estate owned, carrying amount | 138 | |||
Repossessed Assets | 138 | |||
Apartment And Condominium Property [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Recognized net losses on OREO disposals | 2,200 | |||
One Commercial Condominium [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Transfers from OREO to loans | $ 372 | |||
One Residential Property And Three Residential Lots [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Financing provided | 200 | |||
Five Residential Properties And Multiple Residential Lots [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Gains (losses) on sale of OREO | 43 | |||
Foreclosure Of Stalled Residential Development Project [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Additions of underlying property | $ 3,000 |
Other Real Estate Owned ("ORE76
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |||
Balance at beginning of year | $ 7,763 | $ 9,449 | $ 5,883 |
Additions of underlying property | 3,634 | 3,120 | 5,436 |
Disposals of underlying property | (1,456) | (3,860) | (1,206) |
Transfers of OREO to loans | (372) | ||
Valuation allowance | (600) | (574) | (664) |
Balance at end of period | $ 9,341 | $ 7,763 | $ 9,449 |
Other Real Estate Owned ("ORE77
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |||
Valuation allowance | $ 600 | $ 574 | $ 664 |
Operating expenses | 146 | 287 | 395 |
Expenses applicable to OREO assets | $ 746 | $ 861 | $ 1,059 |
Premises and Equipment and He78
Premises and Equipment and Held for Sale Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment of assets to be disposed of | $ 426 | ||||
Operating leases, rent expense | $ 761 | $ 723 | $ 701 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ (426) | ||||
Small Office Condo [Member] | |||||
Long Lived Assets To Be Disposed Of Fair Value | $ 345 | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ 392 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 47 |
Premises and Equipment and He79
Premises and Equipment and Held for Sale Premises and Equipment (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | ||
Land | $ 4,172 | $ 4,172 |
Building and improvements | 23,038 | 22,586 |
Furniture and equipment | 9,225 | 8,989 |
Automobiles | 303 | 313 |
Total cost | 36,738 | 36,060 |
Less accumulated depreciation | 15,347 | 13,855 |
Premises and equipment, net | $ 21,391 | $ 22,205 |
Premises and Equipment and He80
Premises and Equipment and Held for Sale Premises and Equipment (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | |
2,018 | $ 747 |
2,019 | 625 |
2,020 | 514 |
2,021 | 489 |
2,022 | 415 |
Thereafter | 4,019 |
Total | $ 6,809 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits | $ 1,106,237 | $ 1,038,825 |
Time deposits, $100,000 or more | 321,000 | 287,600 |
Time deposits $250000 or more | 167,500 | 153,900 |
Executive Officers And Directors [Member] | ||
Deposits | $ 9,200 | $ 6,200 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 159,844 | $ 144,877 |
Interest-bearing | ||
Demand | 215,447 | 162,823 |
Money market deposits | 226,351 | 248,049 |
Savings | 52,990 | 50,284 |
Certificates of deposit | 451,605 | 432,792 |
Total interest-bearing | 946,393 | 893,948 |
Total deposits | $ 1,106,237 | $ 1,038,825 |
Deposits (Schedule Of Deposits
Deposits (Schedule Of Deposits Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Within one year | $ 312,417 | $ 306,089 |
Year 2 | 93,723 | 79,474 |
Year 3 | 29,661 | 31,921 |
Year 4 | 4,327 | 8,353 |
Year 5 | 11,477 | 6,955 |
Time deposits | $ 451,605 | $ 432,792 |
Short-Term Borrowings and Lon84
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Repayments Of Long Term Debt | $ 20,061 | $ 5,058 | $ 19,055 |
Proceeds From Issuance Of Long-Term Debt | 10,000 | 15,000 | |
Long-Term Debt | 55,498 | 65,559 | $ 55,617 |
Due in 2018 | 35,000 | 20,000 | |
Due in 2022 | 10,302 | ||
Daily advances outstanding | 6,000 | 19,000 | |
Short-term advances | 81,500 | 60,000 | |
Fixed Rate Advance Matures in 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds From Issuance Of Long-Term Debt | $ 10,000 | $ 15,000 | |
Interest rate | 1.38% | 0.95% | |
Federal Reserve Bank Of Richmond [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 7,500 | $ 8,600 | |
Other Commercial Banks [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 22,000 | 12,000 | |
Credit Facility With Commercial Bank [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 40,000 | ||
Federal Home Loan Bank Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 309,600 | 261,100 | |
Security owned and pledged as collateral, fair value | 584,600 | 521,300 | |
FHLB lendable collateral | 452,600 | 405,700 | |
FHLB lendable pledged collateral | 330,100 | 275,100 | |
Line of credit facility, current borrowing capacity | 187,100 | 130,600 | |
Line of credit facility, fair value of amount outstanding | 143,000 | 144,600 | |
FHLB lendable unpledged collateral | 122,500 | 130,500 | |
Advances and Security Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 420,300 | $ 399,600 | |
Percentage of assets limited to maximum borrowing capacity | 30.00% |
Short-Term Borrowings and Lon85
Short-Term Borrowings and Long-Term Debt (Schedule Related to the Classification of Debt Interest Rate) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 1.42% | 1.05% |
Matures through | 2,036 | 2,036 |
Fixed Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.83% | 2.83% |
Fixed Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.95% | 0.54% |
Fixed Rate Convertible [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 3.47% | 3.47% |
Matures through | 2,018 | 2,018 |
Fixed Rate Convertible [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.47% | 3.47% |
Fixed Rate Convertible [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.47% | 3.47% |
Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average rate | 4.00% | 4.00% |
Matures through | 2,020 | 2,020 |
Variable Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | 4.00% |
Variable Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | 4.00% |
Short-Term Borrowings and Lon86
Short-Term Borrowings and Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term debt | |||
Long-term debt outstanding at end of period | $ 55,498 | $ 65,559 | $ 55,617 |
Weighted average rate on outstanding long-term debt | 2.38% | 2.27% | 2.47% |
Maximum outstanding long-term debt of any month end | $ 65,554 | $ 65,593 | $ 74,668 |
Average outstanding long-term debt | $ 58,704 | $ 60,503 | $ 68,924 |
Approximate average rate paid on long-term debt | 2.24% | 2.41% | 2.26% |
Short-term borrowings | |||
Short-term borrowings outstanding at end of period | $ 87,500 | $ 79,000 | $ 36,000 |
Weighted average rate on short-term borrowings | 1.34% | 0.71% | 0.38% |
Maximum outstanding short-term borrowings at any month end | $ 109,000 | $ 79,000 | $ 36,000 |
Average outstanding short-term borrowings | $ 91,797 | $ 39,802 | $ 13,463 |
Approximate average rate paid on short-term borrowings | 1.15% | 0.49% | 0.27% |
Short-Term Borrowings and Lon87
Short-Term Borrowings and Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Due in 2018 | $ 35,000 | $ 20,000 | |
Due in 2019 | 25,000 | ||
Due in 2020 | 10,000 | ||
Due in 2021 | 10,000 | ||
Due in 2022 | 10,302 | ||
Thereafter | 196 | 10,559 | |
Long-term debt, total | 55,498 | 65,559 | $ 55,617 |
Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2018 | 25,000 | 20,000 | |
Due in 2019 | 15,000 | ||
Due in 2022 | 10,302 | ||
Thereafter | 196 | 10,559 | |
Long-term debt, total | 35,498 | 45,559 | |
Fixed Rate Convertible [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2018 | 10,000 | ||
Due in 2019 | 10,000 | ||
Long-term debt, total | 10,000 | 10,000 | |
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2020 | 10,000 | ||
Due in 2021 | 10,000 | ||
Long-term debt, total | $ 10,000 | $ 10,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 35.00% | 34.00% | 34.00% | |
Recognized provisional net tax expense | $ 2,700 | |||
Allowance for loan losses | 2,893 | $ 3,890 | ||
Unrecorded income tax liability from bad debt deductions | 330 | 463 | ||
Scenario, Plan [Member] | ||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% | |||
Retained Earnings [Member] | ||||
Allowance for loan losses | $ 1,200 | $ 1,200 |
Income Taxes (Schedule of Alloc
Income Taxes (Schedule of Allocation of Federal and State Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||||||||||||||
Federal | $ 5,584 | $ 3,675 | $ 3,255 | ||||||||||||
State | 1,686 | 1,296 | 1,128 | ||||||||||||
Current income tax expense (benefit), total | 7,270 | 4,971 | 4,383 | ||||||||||||
Deferred | |||||||||||||||
Federal | 1,894 | (460) | (643) | ||||||||||||
State | (7) | (95) | (107) | ||||||||||||
Deferred income tax expense (benefit), total | 1,887 | (555) | (750) | ||||||||||||
Income tax expense (benefit), total | $ 4,456 | $ 1,717 | $ 1,536 | $ 1,448 | $ 1,356 | $ 1,014 | $ 1,078 | $ 968 | $ 811 | $ 735 | $ 1,004 | $ 1,083 | $ 9,157 | $ 4,416 | $ 3,633 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expected income tax expense at federal tax rate | $ 5,728 | $ 3,994 | $ 3,392 | ||||||||||||
State taxes net of federal benefit | 1,096 | 796 | 647 | ||||||||||||
Nondeductible expenses | 255 | 37 | 40 | ||||||||||||
Nontaxable income | (376) | (375) | (398) | ||||||||||||
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | 2,740 | ||||||||||||||
Other | (286) | (36) | (48) | ||||||||||||
Income tax expense (benefit), total | $ 4,456 | $ 1,717 | $ 1,536 | $ 1,448 | $ 1,356 | $ 1,014 | $ 1,078 | $ 968 | $ 811 | $ 735 | $ 1,004 | $ 1,083 | $ 9,157 | $ 4,416 | $ 3,633 |
Expected income tax expense at federal tax rate | 35.00% | 34.00% | 34.00% | ||||||||||||
State taxes net of federal benefit | 6.70% | 6.78% | 6.49% | ||||||||||||
Nondeductible expenses | 1.56% | 0.31% | 0.40% | ||||||||||||
Nontaxable income | (2.30%) | (3.19%) | (3.99%) | ||||||||||||
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate | 16.74% | 0.00% | 0.00% | ||||||||||||
Other | (1.75%) | (0.31%) | (0.48%) | ||||||||||||
Total income tax expense | 55.95% | 37.59% | 36.42% | ||||||||||||
Parent Company [Member] | |||||||||||||||
Income tax expense (benefit), total | $ (1,583) | $ (1,321) | $ (1,009) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Allowance for loan losses | $ 2,893 | $ 3,890 |
Deferred compensation | 2,142 | 2,520 |
OREO valuation allowance and expenses | 337 | 413 |
Unrealized loss on investment securities | 452 | 605 |
Depreciation | 29 | |
Other | 142 | 509 |
Deferred tax assets, gross | 5,995 | 7,937 |
Deferred tax liabilities | ||
FHLB stock dividends | 109 | 156 |
Depreciation | 15 | |
Deferred tax liabilities, gross | 109 | 171 |
Net deferred tax assets | $ 5,886 | $ 7,766 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | ||
Line of credit facility, commitment amount | $ 65.6 | $ 67 |
Letters of credit outstanding, amount | 17.9 | 17.7 |
Amounts available under lines of credit | $ 162.2 | $ 135.3 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sale of stock, price per share (in dollars per share) | $ 29 | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 20 | ||
Aggregate intrinsic value exercisable | 20 | ||
Restricted Stock and Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 515 | 489 | $ 319 |
Unrecognized stock compensation expense | $ 521 | $ 810 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option maximum term | 10 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | ||
Shares outstanding, beginning balance | 15,081 | 21,211 |
Shares exercised | (14,231) | |
Shares expired | (350) | |
Shares forfeited | (500) | (6,130) |
Shares outstanding, ending balance | 15,081 | |
Shares, exercisable | 15,081 | |
Weighted average exercise price outstanding, beginning balance | $ 27.70 | $ 27.70 |
Weighted average exercise price exercised | 27.70 | |
Weighted average exercise price expired | 27.70 | |
Weighted average exercise price forfeited | $ 27.70 | 27.70 |
Weighted average exercise price outstanding, ending balance | 27.70 | |
Weighted average exercise price exercisable | $ 27.70 | |
Aggregate intrinsic value outstanding, beginning balance | $ 20 | |
Aggregate intrinsic value exercised | $ 134 | |
Aggregate intrinsic value outstanding, ending balance | 20 | |
Aggregate intrinsic value exercisable | $ 20 | |
Weighted-average contractual life remaining in years outstanding (in years) | 6 months | |
Weighted-average contractual life remaining in years exercisable (in years) | 6 months |
Stock-Based Compensation (Sch95
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - Restricted Stock [Member] | 12 Months Ended | |
Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning period, nonvested number of shares | shares | 47,881 | 37,048 |
Number of shares, granted | shares | 6,752 | 27,403 |
Number of shares, vested | shares | (21,738) | (15,912) |
Number of shares, cancelled | shares | (86) | (658) |
Ending period, nonvested number of shares | shares | 32,809 | 47,881 |
Beginning period, weighted average grant date fair value, nonvested number of shares | $ / shares | $ 20.41 | $ 19.83 |
Weighted average grant date fair value, granted | $ / shares | 30.20 | 21 |
Weighted average grant date fair value, vested | $ / shares | $ 20.13 | $ 20.09 |
Weighted average grant date fair value, cancelled | $ / shares | 20.75 | 20.31 |
Ending period, weighted average grant date fair value, nonvested number of shares | $ / shares | $ 22.61 | $ 20.41 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 28, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee Stock Ownership Plan (ESOP), cash contributions to ESOP | $ 242,000 | $ 99,000 | $ 129,000 | ||
Employee Stock Ownership Plan (ESOP), number of allocated shares | 223,344 | 221,106 | |||
Employee Stock Ownership Plan (ESOP), number of unallocated shares | 22,908 | 9,562 | |||
Employee Stock Ownership Plan (ESOP), allocated shares market value | $ 9,400,000 | $ 6,700,000 | |||
Employee Stock Ownership Plan (ESOP), allocated excess of fair market value of leveraged ESOP shares released | $ 110,000 | ||||
Share Price | $ 38.78 | ||||
Employee Stock Ownership Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee Stock Ownership Plan (ESOP) promissory note amortization period | 7 years | ||||
Employee Stock Ownership Plan (ESOP), debt structure offset by purchase of common shares, amount | $ 823,000 | ||||
Promissory notes | $ 755,000 | $ 169,000 | |||
Employee Stock Ownership Plan (ESOP), Debt Structure, Direct Loan, Employer Cash Payments Used for Debt Service | $ 237,000 | ||||
Employee Stock Ownership Plan (ESOP), debt structure direct loan employer shares used for debt service, Shares | 10,157 | ||||
Employee Stock Ownership Plan (ESOP), debt structure offset by purchase of common shares | 23,503 | ||||
Share Price | $ 38.30 | $ 29 | |||
Prime Rate [Member] | Employee Stock Ownership Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee Stock Ownership Plan (ESOP) basis spread on variable rate | 1.00% | ||||
401 (K) Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Retirement plan expense | $ 298,000 | $ 346,000 | 332,000 | ||
Individual Supplemental Retirement Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Retirement plan expense | $ 637,000 | 525,000 | 519,000 | ||
Number of years following retirement benefit is paid | 15 years | ||||
Nonqualified Retirement Plan For Non Employee Directors [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee benefit plan requisite service period | 15 years | ||||
Employee benefit plan vesting period | 2 years | ||||
Retirement plan expense | $ 29,000 | $ 20,000 | $ 22,000 | ||
Maximum annual benefit following retirement | $ 3,500 | ||||
Number of years following retirement benefit is paid | 10 years |
Guaranteed Preferred Benefici97
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") (Narrative) (Details) - USD ($) | Jun. 15, 2005 | Jul. 22, 2004 | Jun. 30, 2005 | Jul. 31, 2004 | Dec. 31, 2017 |
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 ($) $ in Thousands | Feb. 06, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 13, 2015 |
Subordinated notes | $ 23,000 | $ 23,000 | ||
Subordinated note terms and conditions | 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. | |||
Preferred stock, redemption date | Feb. 13, 2015 | |||
Preferred stock, value | $ 20,000 | |||
Subordinated Debt [Member] | ||||
Subordinated notes due date | Feb. 15, 2025 | |||
Subordinated notes interest rate | 6.25% | 6.25% | 6.25% | |
Subordinated notes | $ 23,000 | |||
Debt Instrument, Maturity Date | Feb. 15, 2020 | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt instrument, percent spread on variable rate | 4.79% |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Regulatory Assets | ||||
Common Equity | $ 109,957 | $ 104,426 | ||
Total stockholders' equity | 109,957 | 104,426 | $ 99,783 | $ 116,559 |
AOCI Losses (Gains) | 1,191 | 928 | 251 | 378 |
Common equity Tier 1 capital | 111,148 | 105,354 | ||
TRUPs | 12,000 | 12,000 | ||
Tier 1 capital | 123,148 | 117,354 | ||
Allowable reserve for credit losses and other Tier 2 adjustments | 10,545 | 9,860 | ||
Subordinated notes | 23,000 | 23,000 | ||
Tier 2 capital | 156,693 | 150,214 | ||
Risk-weighted assets ("RWA") | 1,169,341 | 1,104,505 | ||
Average Assets ("AA") | $ 1,401,741 | $ 1,300,445 | ||
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 | 9.51% | 9.54% | ||
Tier 1 capital to RWA | 10.53% | 10.62% | ||
Tier 2 capital to RWA | 13.40% | 13.60% | ||
Tier 1 capital to AA (leverage) | 8.79% | 9.02% | ||
Common Stock [Member] | ||||
Regulatory Assets | ||||
Total stockholders' equity | $ 46 | $ 46 | $ 46 | 47 |
SBLF Preferred Stock [Member] | ||||
Regulatory Assets | ||||
Total stockholders' equity | $ 20,000 | |||
Bank [Member] | ||||
Regulatory Assets | ||||
Common Equity | 139,046 | 136,109 | ||
AOCI Losses (Gains) | 1,191 | 928 | ||
Common equity Tier 1 capital | 140,237 | 137,037 | ||
Tier 1 capital | 140,237 | 137,037 | ||
Allowable reserve for credit losses and other Tier 2 adjustments | 10,545 | 9,860 | ||
Tier 2 capital | 150,782 | 146,897 | ||
Risk-weighted assets ("RWA") | 1,164,478 | 1,102,116 | ||
Average Assets ("AA") | $ 1,398,001 | $ 1,298,145 | ||
Common Tier 1 capital to RWA | 12.04% | 12.43% | ||
Tier 1 capital to RWA | 12.04% | 12.43% | ||
Tier 2 capital to RWA | 12.95% | 13.33% | ||
Tier 1 capital to AA (leverage) | 10.03% | 10.56% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans with impairment, unpaid principal | $ 8,900 | $ 4,200 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ (426) | |||
Small Office Condo [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long Lived Assets To Be Disposed Of Fair Value | $ 345 | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 392 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 47 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | $ 68,285 | $ 53,033 |
US Agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 12,517 | 10,172 |
Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 37 | 37 |
Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 4,507 | 4,413 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available For Sale | 68,285 | 53,033 |
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 | 44,137 | 34,228 |
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 | 7,087 | 4,183 |
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 | 12,517 | 10,172 |
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 | 37 |
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 | 4,507 | 4,413 |
Fair Value, Inputs, Level 1 [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] | ||
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 | 68,285 | 53,033 |
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 | 68,285 | 53,033 |
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 | 44,137 | 34,228 |
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 | 7,087 | 4,183 |
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 | 12,517 | 10,172 |
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 | 37 |
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 | 4,507 | 4,413 |
Fair Value, Inputs, Level 3 [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] | ||
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 (Fai102
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises and equipment held for sale | $ 345 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | $ 3,202 | 7,635 |
Premises and equipment held for sale | 345 | |
Other Real Estate Owned, Fair Value Disclosures | 9,341 | 7,763 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Premises and equipment held for sale | ||
Other Real Estate Owned, Fair Value Disclosures | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Premises and equipment held for sale | 345 | |
Other Real Estate Owned, Fair Value Disclosures | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 3,202 | 7,635 |
Premises and equipment held for sale | ||
Other Real Estate Owned, Fair Value Disclosures | 9,341 | 7,763 |
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 1,638 | 6,275 |
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 1,638 | 6,275 |
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 457 | 468 |
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential First Mortgages Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 457 | 468 |
Residential Rentals Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 377 | 142 |
Residential Rentals Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential Rentals Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Residential Rentals Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 377 | 142 |
Construction And Land Development Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 566 | 673 |
Construction And Land Development Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Construction And Land Development Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Construction And Land Development Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 566 | 673 |
Commercial Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 77 | |
Commercial Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | $ 77 | |
Commercial Equipment Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | 164 | |
Commercial Equipment Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Equipment Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | ||
Commercial Equipment Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Fair Value Disclosures | $ 164 |
Fair Value Measurements (Unobse
Fair Value Measurements (Unobservable Inputs Used in Level 3 Fair Value Measurements) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans With Impairment [Member] | ||
Assets, Fair Value Disclosure | $ 3,202 | $ 7,635 |
Other Real Estate Owned [Member] | ||
Assets, Fair Value Disclosure | $ 9,341 | $ 7,763 |
Maximum [Member] | Loans With Impairment [Member] | ||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% |
Maximum [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% |
Minimum [Member] | Loans With Impairment [Member] | ||
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Minimum [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Weighted Average [Member] | Loans With Impairment [Member] | ||
Fair Value Inputs, Discount Rate | 24.00% | 14.00% |
Weighted Average [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Discount Rate | 12.00% | 12.00% |
Fair Value of Financial Inst104
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value of Financial Instruments [Abstract] | ||
Loans commitments outstanding | $ 65.6 | $ 67 |
Letters of credit outstanding, amount | 17.9 | 17.7 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 162.2 | $ 135.3 |
Fair Value of Financial Inst105
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Investment securities - AFS | $ 68,285 | $ 53,033 |
Investment securities - HTM | 98,007 | 108,034 |
FHLB and FRB stock | 7,276 | 7,235 |
Loans receivable | 1,097,592 | 1,066,975 |
Investments in BOLI | 29,398 | 28,625 |
Liabilities | ||
Savings, NOW and money market accounts | 654,632 | 606,033 |
Time deposits | 453,644 | 433,242 |
Long-term debt | 57,421 | 66,302 |
Short term borrowings | 87,208 | 78,984 |
TRUPs | 9,400 | 8,100 |
Subordinated notes | 22,400 | 23,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Investment securities - AFS | ||
Investment securities - HTM | 1,000 | 850 |
FHLB and FRB stock | ||
Loans receivable | ||
Investments in BOLI | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Subordinated notes | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Investment securities - AFS | 68,285 | 53,033 |
Investment securities - HTM | 97,007 | 107,184 |
FHLB and FRB stock | 7,276 | 7,235 |
Loans receivable | ||
Investments in BOLI | 29,398 | 28,625 |
Liabilities | ||
Savings, NOW and money market accounts | 654,632 | 606,033 |
Time deposits | 453,644 | 433,242 |
Long-term debt | 57,421 | 66,302 |
Short term borrowings | 87,208 | 78,984 |
TRUPs | 9,400 | 8,100 |
Subordinated notes | 22,400 | 23,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Investment securities - AFS | ||
Investment securities - HTM | ||
FHLB and FRB stock | ||
Loans receivable | 1,097,592 | 1,066,975 |
Investments in BOLI | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Subordinated notes | ||
Carrying Amount [Member] | ||
Assets | ||
Investment securities - AFS | 68,285 | 53,033 |
Investment securities - HTM | 99,246 | 109,247 |
FHLB and FRB stock | 7,276 | 7,235 |
Loans receivable | 1,140,615 | 1,079,519 |
Investments in BOLI | 29,398 | 28,625 |
Liabilities | ||
Savings, NOW and money market accounts | 654,632 | 606,033 |
Time deposits | 451,605 | 432,792 |
Long-term debt | 55,498 | 65,559 |
Short term borrowings | 87,500 | 79,000 |
TRUPs | 12,000 | 12,000 |
Subordinated notes | $ 23,000 | $ 23,000 |
Condensed Financial Statemen106
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 13, 2015 | Dec. 31, 2014 |
Assets | |||||
Other assets | $ 10,481 | $ 11,043 | |||
Total assets | 1,405,961 | 1,334,257 | |||
Liabilities and Stockholders' Equity | |||||
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,000 | 12,000 | |||
Subordinated notes - 6.25% | 23,000 | 23,000 | |||
Total liabilities | 1,296,004 | 1,229,831 | |||
Stockholders' Equity | |||||
Preferred stock, value | $ 20,000 | ||||
Common stock | 46 | 46 | |||
Additional paid in capital | 48,209 | 47,377 | |||
Retained earnings | 63,648 | 58,100 | |||
Accumulated other comprehensive income | (1,191) | (928) | $ (251) | $ (378) | |
Unearned ESOP shares | (755) | (169) | |||
Total stockholders' equity | 109,957 | 104,426 | $ 99,783 | $ 116,559 | |
Total Liabilities and Stockholders' Equity | 1,405,961 | 1,334,257 | |||
Parent Company [Member] | |||||
Assets | |||||
Cash - noninterest bearing | 2,812 | 2,366 | |||
Investment in wholly owned subsidiaries | 139,418 | 136,481 | |||
Other assets | 4,491 | 2,017 | |||
Total assets | 146,721 | 140,864 | |||
Liabilities and Stockholders' Equity | |||||
Current liabilities | 1,392 | 1,066 | |||
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,372 | 12,372 | |||
Subordinated notes - 6.25% | 23,000 | 23,000 | |||
Total liabilities | 36,764 | 36,438 | |||
Stockholders' Equity | |||||
Common stock | 46 | 46 | |||
Additional paid in capital | 48,209 | 47,377 | |||
Retained earnings | 63,648 | 58,100 | |||
Accumulated other comprehensive income | (1,191) | (928) | |||
Unearned ESOP shares | (755) | (169) | |||
Total stockholders' equity | 109,957 | 104,426 | |||
Total Liabilities and Stockholders' Equity | $ 146,721 | $ 140,864 |
Condensed Financial Statemen107
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expense | $ 2,800 | $ 2,672 | $ 2,462 | $ 2,248 | $ 2,111 | $ 2,079 | $ 2,033 | $ 1,919 | $ 1,860 | $ 1,918 | $ 1,902 | $ 1,665 | $ 10,182 | $ 8,142 | $ 7,345 |
Net interest income | 10,773 | 11,008 | 10,933 | 10,674 | 10,473 | 10,144 | 9,895 | 9,393 | 9,348 | 9,084 | 9,033 | 9,063 | 43,388 | 39,905 | 36,528 |
Miscellaneous expenses | (746) | (861) | (1,059) | ||||||||||||
(Loss) income before income taxes and equity in undistributed net income of subsidiary | 3,997 | 4,499 | 4,079 | 3,790 | 3,378 | 2,977 | 2,816 | 2,576 | 2,339 | 2,018 | 2,715 | 2,904 | 16,365 | 11,747 | 9,976 |
Federal and state income tax benefit | (4,456) | (1,717) | (1,536) | (1,448) | (1,356) | (1,014) | (1,078) | (968) | (811) | (735) | (1,004) | (1,083) | (9,157) | (4,416) | (3,633) |
Net income | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | 1,528 | 1,283 | 1,711 | 1,821 | 7,208 | 7,331 | 6,343 | ||||
Preferred stock dividends | 23 | 23 | |||||||||||||
Net income available to common shareholders | $ (459) | $ 2,782 | $ 2,543 | $ 2,342 | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,798 | 7,208 | 7,331 | 6,320 | ||||
Parent Company [Member] | |||||||||||||||
Dividends from subsidiary | 7,500 | 5,500 | 2,775 | ||||||||||||
Interest income | 64 | 19 | 51 | ||||||||||||
Interest expense | 1,865 | 1,795 | 1,599 | ||||||||||||
Net interest income | 5,699 | 3,724 | 1,227 | ||||||||||||
Miscellaneous expenses | (2,968) | (2,110) | (1,421) | ||||||||||||
(Loss) income before income taxes and equity in undistributed net income of subsidiary | 2,731 | 1,614 | (194) | ||||||||||||
Federal and state income tax benefit | 1,583 | 1,321 | 1,009 | ||||||||||||
Equity in undistributed net income of subsidiary | 2,894 | 4,396 | 5,528 | ||||||||||||
Net income | 7,208 | 7,331 | 6,343 | ||||||||||||
Preferred stock dividends | 23 | ||||||||||||||
Net income available to common shareholders | $ 7,208 | $ 7,331 | $ 6,320 |
Condensed Financial Statemen108
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,821 | $ 7,208 | $ 7,331 | $ 6,343 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Stock based compensation | 515 | 489 | 319 | ||||||||
(Increase) decrease in other assets | (1,281) | 1,959 | 1,523 | ||||||||
Decrease (increase) deferred income tax benefit | 1,887 | (555) | (750) | ||||||||
Net Cash Provided by Operating Activities | 10,102 | 12,915 | 12,497 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid | (1,804) | (1,814) | (1,916) | ||||||||
Proceeds from subordinated notes | 23,000 | ||||||||||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | ||||||||||
Exercise of stock options | 155 | ||||||||||
Net change in ESOP loan | (586) | 147 | 146 | ||||||||
Repurchase of common stock | (865) | (1,827) | |||||||||
Net cash used in financing activities | 63,616 | 182,335 | 51,863 | ||||||||
(Decrease) increase in cash | 4,154 | 124 | (10,234) | ||||||||
Cash and cash equivalents - January 1 | 11,139 | 21,373 | 11,263 | 11,139 | 21,373 | ||||||
Cash and cash equivalents - December 31 | 11,263 | 11,139 | 15,417 | 11,263 | 11,139 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 7,208 | 7,331 | 6,343 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in undistributed earnings of subsidiary | (2,894) | (4,396) | (5,528) | ||||||||
Stock based compensation | 515 | 489 | 139 | ||||||||
(Increase) decrease in other assets | (2,446) | (145) | (284) | ||||||||
Decrease (increase) deferred income tax benefit | (29) | 55 | 23 | ||||||||
(Decrease) increase in current liabilities | 327 | (157) | 459 | ||||||||
Net Cash Provided by Operating Activities | 2,681 | 3,177 | 1,152 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Dividends paid | (1,804) | (1,814) | (1,916) | ||||||||
Downstream of capital to subsidiary | 180 | (78) | |||||||||
Proceeds from subordinated notes | 23,000 | ||||||||||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | ||||||||||
Exercise of stock options | 155 | ||||||||||
Net change in ESOP loan | (586) | 147 | 146 | ||||||||
Repurchase of common stock | (865) | (1,827) | |||||||||
Net cash used in financing activities | (2,235) | (2,352) | (675) | ||||||||
(Decrease) increase in cash | 446 | 825 | 477 | ||||||||
Cash and cash equivalents - January 1 | $ 1,541 | $ 1,064 | 2,366 | 1,541 | 1,064 | ||||||
Cash and cash equivalents - December 31 | $ 2,366 | $ 1,541 | $ 2,812 | $ 2,366 | $ 1,541 |
Quarterly Financial Comparis109
Quarterly Financial Comparison (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||||
Interest and dividend income | $ 13,573 | $ 13,680 | $ 13,395 | $ 12,922 | $ 12,584 | $ 12,223 | $ 11,928 | $ 11,312 | $ 11,208 | $ 11,002 | $ 10,935 | $ 10,728 | $ 53,570 | $ 48,047 | $ 43,873 | ||||||||||||
Interest expense | 2,800 | 2,672 | 2,462 | 2,248 | 2,111 | 2,079 | 2,033 | 1,919 | 1,860 | 1,918 | 1,902 | 1,665 | 10,182 | 8,142 | 7,345 | ||||||||||||
Net interest income | 10,773 | 11,008 | 10,933 | 10,674 | 10,473 | 10,144 | 9,895 | 9,393 | 9,348 | 9,084 | 9,033 | 9,063 | 43,388 | 39,905 | 36,528 | ||||||||||||
Provision for loan losses | 30 | 224 | 376 | 380 | 670 | 698 | 564 | 427 | 362 | 501 | 392 | 178 | 1,010 | 2,359 | 1,433 | ||||||||||||
Net interest income after provision for loan losses | 10,743 | 10,784 | 10,557 | 10,294 | 9,803 | 9,446 | 9,331 | 8,966 | 8,986 | 8,583 | 8,641 | 8,885 | 42,378 | 37,546 | 35,095 | ||||||||||||
Noninterest income | 1,000 | 1,157 | 1,052 | 875 | 891 | 842 | 777 | 850 | 909 | 466 | 962 | 962 | 4,084 | 3,360 | 3,299 | ||||||||||||
Noninterest expense | 7,746 | 7,442 | 7,530 | 7,379 | 7,316 | 7,311 | 7,292 | 7,240 | 7,556 | 7,031 | 6,888 | 6,943 | 30,097 | 29,159 | 28,418 | ||||||||||||
Income before income taxes | 3,997 | 4,499 | 4,079 | 3,790 | 3,378 | 2,977 | 2,816 | 2,576 | 2,339 | 2,018 | 2,715 | 2,904 | 16,365 | 11,747 | 9,976 | ||||||||||||
Provision for income taxes | 4,456 | 1,717 | 1,536 | 1,448 | 1,356 | 1,014 | 1,078 | 968 | 811 | 735 | 1,004 | 1,083 | 9,157 | 4,416 | 3,633 | ||||||||||||
Net income | $ 2,022 | $ 1,963 | $ 1,738 | $ 1,608 | 1,528 | 1,283 | 1,711 | 1,821 | 7,208 | 7,331 | 6,343 | ||||||||||||||||
Preferred stock dividends | 23 | 23 | |||||||||||||||||||||||||
Net income available to common shareholders | $ (459) | $ 2,782 | $ 2,543 | $ 2,342 | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,798 | $ 7,208 | $ 7,331 | $ 6,320 | ||||||||||||||||
Earnings Per Common Share | |||||||||||||||||||||||||||
Basic | $ (0.10) | [1] | $ 0.60 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.44 | [1] | $ 0.43 | [1] | $ 0.38 | [1] | $ 0.35 | [1] | $ 0.33 | [1] | $ 0.28 | [1] | $ 0.37 | [1] | $ 0.38 | [1] | $ 1.56 | $ 1.59 | $ 1.36 |
Diluted | $ (0.10) | [1] | $ 0.60 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.44 | [1] | $ 0.42 | [1] | $ 0.38 | [1] | $ 0.35 | [1] | $ 0.33 | [1] | $ 0.27 | [1] | $ 0.37 | [1] | $ 0.38 | [1] | $ 1.56 | $ 1.59 | $ 1.35 |
Parent Company [Member] | |||||||||||||||||||||||||||
Interest expense | $ 1,865 | $ 1,795 | $ 1,599 | ||||||||||||||||||||||||
Net interest income | 5,699 | 3,724 | 1,227 | ||||||||||||||||||||||||
Income before income taxes | 2,731 | 1,614 | (194) | ||||||||||||||||||||||||
Provision for income taxes | (1,583) | (1,321) | (1,009) | ||||||||||||||||||||||||
Net income | 7,208 | 7,331 | 6,343 | ||||||||||||||||||||||||
Preferred stock dividends | 23 | ||||||||||||||||||||||||||
Net income available to common shareholders | $ 7,208 | $ 7,331 | $ 6,320 | ||||||||||||||||||||||||
[1] | Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. |
Subsequent Event (Details)
Subsequent Event (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | Dec. 28, 2017$ / shares | Dec. 31, 2016$ / shares |
Subsequent Event [Line Items] | ||||
Common Stock Par Or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||
Share Price | $ / shares | $ 38.78 | |||
County First Acquisition [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ | $ 227,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable Assets | $ | 143,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposit Receivable Assets | $ | 200,000 | |||
Business Acquisition, Transaction Costs | $ | $ 829 | |||
Subsequent Event [Member] | County First Acquisition [Member] | ||||
Subsequent Event [Line Items] | ||||
Common Stock Par Or Stated Value Per Share | $ / shares | $ 1 | |||
Business Acquisition, Share Price | $ / shares | 2.20 | |||
Business Acquisition, Share Price, Cash Consideration | $ / shares | 1 | |||
Business Acquisition, Share Price, Contingent Cash Consideration | $ / shares | $ 1.20 | |||
Payments to Acquire Businesses, Gross | $ | $ 2,100 | |||
Business Combination, Consideration Transferred | $ | $ 37,700 | |||
Subsequent Event [Member] | County First Acquisition [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Acquisition Share Convertion Rate | 0.9543 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 919,000 |