Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EMCLAIRE FINANCIAL CORP | |
Entity Central Index Key | 858,800 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | EMCF | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 2,271,139 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 2,648 | $ 3,072 |
Interest earning deposits with banks | 27,928 | 11,302 |
Cash and cash equivalents | 30,576 | 14,374 |
Securities - available for sale | 99,886 | 99,350 |
Securities - equity investments | 474 | 1,817 |
Loans held for sale | 0 | 504 |
Loans receivable, net of allowance for loan losses of $6,118 and $6,127 | 587,258 | 577,234 |
Federal bank stocks, at cost | 4,403 | 4,662 |
Bank-owned life insurance | 11,890 | 11,724 |
Accrued interest receivable | 2,250 | 2,217 |
Premises and equipment, net | 17,768 | 18,010 |
Goodwill | 10,288 | 10,288 |
Core deposit intangible, net | 345 | 481 |
Prepaid expenses and other assets | 10,181 | 9,423 |
Total Assets | 775,319 | 750,084 |
Deposits: | ||
Non-interest bearing | 129,301 | 126,263 |
Interest bearing | 556,250 | 528,380 |
Total deposits | 685,551 | 654,643 |
Short-term borrowed funds | 2,050 | 2,500 |
Long-term borrowed funds | 18,000 | 23,500 |
Accrued interest payable | 410 | 413 |
Accrued expenses and other liabilities | 9,815 | 9,937 |
Total Liabilities | 715,826 | 690,993 |
Commitments and Contingent Liabilities | ||
Stockholders' Equity: | ||
Common stock, $1.25 par value, 12,000,000 shares authorized; 2,373,156 and 2,373,156 shares issued; 2,271,139 and 2,271,139 shares outstanding, respectively | 2,966 | 2,966 |
Additional paid-in capital | 31,181 | 31,031 |
Treasury stock, at cost; 102,017 shares | (2,114) | (2,114) |
Retained earnings | 34,416 | 32,726 |
Accumulated other comprehensive loss | (6,956) | (5,518) |
Total Stockholders' Equity | 59,493 | 59,091 |
Total Liabilities and Stockholders' Equity | $ 775,319 | $ 750,084 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 6,118 | $ 6,127 |
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock authorized (in shares) | 12,000,000 | 12,000,000 |
Common stock issued (in shares) | 2,373,156 | 2,373,156 |
Common stock outstanding (in shares) | 2,271,139 | 2,271,139 |
Treasury stock (in shares) | 102,017 | 102,017 |
Consolidated Statements of Net
Consolidated Statements of Net Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and dividend income: | ||||
Loans receivable, including fees | $ 6,678 | $ 5,801 | $ 13,015 | $ 11,367 |
Securities: | ||||
Taxable | 439 | 392 | 847 | 787 |
Exempt from federal income tax | 141 | 140 | 293 | 283 |
Federal bank stocks | 93 | 61 | 157 | 115 |
Interest earning deposits with banks | 83 | 38 | 117 | 53 |
Total interest and dividend income | 7,434 | 6,432 | 14,429 | 12,605 |
Interest expense: | ||||
Deposits | 1,102 | 749 | 2,093 | 1,452 |
Borrowed funds | 141 | 318 | 299 | 632 |
Total interest expense | 1,243 | 1,067 | 2,392 | 2,084 |
Net interest income | 6,191 | 5,365 | 12,037 | 10,521 |
Provision for loan losses | 300 | 201 | 680 | 363 |
Net interest income after provision for loan losses | 5,891 | 5,164 | 11,357 | 10,158 |
Noninterest income: | ||||
Fees and service charges | 463 | 435 | 900 | 842 |
Net realized gain (loss) on sales of securities | (2) | 350 | (31) | 350 |
Net gain on sales of loans | 2 | 124 | 24 | 130 |
Other-than-temporary impairment loss | 0 | (508) | 0 | (508) |
Earnings on bank-owned life insurance | 103 | 101 | 206 | 202 |
Other | 483 | 366 | 848 | 707 |
Total noninterest income | 1,049 | 868 | 1,947 | 1,723 |
Noninterest expense: | ||||
Compensation and employee benefits | 2,521 | 2,347 | 4,974 | 4,670 |
Premises and equipment | 758 | 726 | 1,528 | 1,484 |
Intangible asset amortization | 68 | 59 | 136 | 119 |
Professional fees | 254 | 216 | 470 | 417 |
Federal deposit insurance | 151 | 102 | 288 | 210 |
Acquisition costs | 358 | 106 | 358 | 107 |
Other | 1,135 | 1,121 | 2,227 | 2,291 |
Total noninterest expense | 5,245 | 4,677 | 9,981 | 9,298 |
Income before provision for income taxes | 1,695 | 1,355 | 3,323 | 2,583 |
Provision for income taxes | 282 | 314 | 548 | 586 |
Net income | $ 1,413 | $ 1,041 | $ 2,775 | $ 1,997 |
Basic earnings per common share (in dollars per share) | $ 0.62 | $ 0.48 | $ 1.22 | $ 0.93 |
Diluted earnings per common share (in dollars per share) | $ 0.62 | $ 0.48 | $ 1.21 | $ 0.92 |
Average common shares outstanding - basic (in shares) | 2,271,139 | 2,164,747 | 2,271,139 | 2,158,587 |
Average common shares outstanding - diluted (in shares) | 2,288,229 | 2,182,761 | 2,286,802 | 2,175,523 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,413 | $ 1,041 | $ 2,775 | $ 1,997 |
Unrealized gains (losses) on securities available for sale: | ||||
Unrealized holding gain (loss) arising during the period | (301) | 15 | (1,615) | 406 |
Reclassification adjustment for (gains) losses included in net income | 2 | (350) | 31 | (350) |
Reclassification adjustment for other-than-temporary impairment losses included in net income | 0 | 508 | 0 | 508 |
Other comprehensive income total | (299) | 173 | (1,584) | 564 |
Tax effect | 63 | (59) | 333 | (192) |
Net of tax | (236) | 114 | (1,251) | 372 |
Comprehensive income | $ 1,177 | $ 1,155 | $ 1,524 | $ 2,369 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 2,775 | $ 1,997 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 574 | 578 |
Provision for loan losses | 680 | 363 |
Amortization of premiums, net | 223 | 174 |
Amortization of intangible assets and mortgage servicing rights | 162 | 143 |
Impairment loss on security recognized in earnings | 0 | 508 |
Realized (gains) losses on sales of securities, net | 31 | (350) |
Net gains on sales of loans | (24) | (130) |
Net loss on foreclosed real estate | 44 | 0 |
Gain on sale of premises and equipment | (25) | 0 |
Loans originated for sale | (2,038) | (3,265) |
Proceeds from the sale of loans originated for sale | 2,566 | 3,371 |
Write-down of foreclosed real estate | 11 | 0 |
Stock compensation expense | 150 | 110 |
Increase in bank-owned life insurance, net | (166) | (165) |
Increase in accrued interest receivable | (33) | (12) |
(Increase) decrease in prepaid expenses and other assets | (159) | 332 |
Increase (decrease) in accrued interest payable | (3) | 120 |
Increase (decrease) in accrued expenses and other liabilities | (122) | 302 |
Net cash provided by operating activities | 4,646 | 4,076 |
Cash flows from investing activities | ||
Loan originations and principal collections, net | (11,427) | (32,600) |
Proceeds from sales of loans held for sale previously classified as portfolio loans | 0 | 1,817 |
Securities: | ||
Sales | 6,795 | 18,195 |
Maturities, repayments and calls | 4,810 | 5,850 |
Purchases | (12,555) | (21,939) |
Redemption of federal bank stocks | 259 | (1) |
Proceeds from the sale of bank premises and equipment | 155 | 0 |
Proceeds from the sale of foreclosed real estate | 165 | 124 |
Purchases of premises and equipment | (332) | (204) |
Net cash used in investing activities | (12,130) | (28,758) |
Cash flows from financing activities | ||
Net increase in deposits | 30,908 | 44,234 |
Repayments on long-term debt | (5,500) | (500) |
Proceeds from other long-term debt | 0 | 5,000 |
Net change in short-term borrowings | (450) | (7,000) |
Proceeds from exercise of stock options | 0 | 1,263 |
Dividends paid | (1,272) | (1,168) |
Net cash provided by financing activities | 23,686 | 41,829 |
Increase in cash and cash equivalents | 16,202 | 17,147 |
Cash and cash equivalents at beginning of period | 14,374 | 17,568 |
Cash and cash equivalents at end of period | 30,576 | 34,715 |
Supplemental information: | ||
Interest paid | 2,395 | 1,964 |
Income taxes paid | 420 | 575 |
Supplemental noncash disclosure: | ||
Transfers from loans to foreclosed real estate | 526 | 39 |
Transfers from portfolio loans to loans held for sale | $ 0 | $ 1,725 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Previously Reported | Common Stock | Common StockPreviously Reported | Additional Paid-in Capital | Additional Paid-in CapitalPreviously Reported | Treasury Stock | Treasury StockPreviously Reported | Retained Earnings | Retained EarningsPreviously Reported | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossPreviously Reported |
Balance at beginning of period at Dec. 31, 2016 | $ 54,073 | $ 2,818 | $ 27,900 | $ (2,114) | $ 29,960 | $ (4,491) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,997 | 1,997 | ||||||||||
Other comprehensive income (loss) | 372 | 372 | ||||||||||
Stock compensation expense | 110 | 110 | ||||||||||
Exercise of stock options (48,586 shares), including tax benefit | 1,263 | 1,263 | ||||||||||
Cash dividends declared on common stock | (1,168) | (1,168) | ||||||||||
Balance at end of period at Jun. 30, 2017 | 56,647 | 2,818 | 29,273 | (2,114) | 30,789 | (4,119) | ||||||
Balance at beginning of period at Mar. 31, 2017 | (4,233) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,041 | |||||||||||
Balance at end of period at Jun. 30, 2017 | 56,647 | 2,818 | 29,273 | (2,114) | 30,789 | (4,119) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effect of change in accounting principle for marketable equity securities, net of tax | (187) | |||||||||||
Cumulative effect of change in accounting principle for marketable equity securities, net of tax | Accounting Standards Update 2016-01 | 0 | 187 | (187) | |||||||||
Balance at beginning of period at Dec. 31, 2017 | 59,091 | $ 59,091 | 2,966 | $ 2,966 | 31,031 | $ 31,031 | (2,114) | $ (2,114) | 32,913 | $ 32,726 | (5,705) | $ (5,518) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 2,775 | 2,775 | ||||||||||
Other comprehensive income (loss) | (1,251) | (1,251) | ||||||||||
Stock compensation expense | 150 | 150 | ||||||||||
Cash dividends declared on common stock | (1,272) | (1,272) | ||||||||||
Balance at end of period at Jun. 30, 2018 | 59,493 | 2,966 | 31,181 | (2,114) | 34,416 | (6,956) | ||||||
Balance at beginning of period at Mar. 31, 2018 | (6,720) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,413 | |||||||||||
Balance at end of period at Jun. 30, 2018 | $ 59,493 | $ 2,966 | $ 31,181 | $ (2,114) | $ 34,416 | $ (6,956) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock options exercised (in shares) | 48,586 | |
Cash dividend per common share (in dollars per share) | $ 0.56 | $ 0.54 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Emclaire Financial Corp (the Corporation) is a Pennsylvania corporation and the holding company of The Farmers National Bank of Emlenton (the Bank) and Emclaire Settlement Services, LLC (the Title Company). The Corporation provides a variety of financial services to individuals and businesses through its offices in western Pennsylvania and northern West Virginia. Its primary deposit products are checking, savings and term certificate accounts and its primary lending products are residential and commercial mortgages, commercial business loans and consumer loans. The consolidated financial statements include the accounts of the Corporation and its wholly owned subsidiaries, the Bank and the Title Company. All significant intercompany transactions and balances have been eliminated in preparing the consolidated financial statements. The accompanying unaudited consolidated financial statements for the interim periods include all adjustments, consisting of normal recurring accruals, which are necessary, in the opinion of management, to fairly reflect the Corporation’s consolidated financial position and results of operations. Additionally, these consolidated financial statements for the interim periods have been prepared in accordance with instructions for the Securities and Exchange Commission’s (SEC’s) Form 10-Q and Article 10 of Regulation S-X and therefore do not include all information or footnotes necessary for a complete presentation of financial condition, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (GAAP). For further information, refer to the audited consolidated financial statements and footnotes thereto for the year ended December 31, 2017 , as contained in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC. The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for interim quarterly or year-to-date periods are not necessarily indicative of the results that may be expected for the entire year or any other period. Certain amounts previously reported may have been reclassified to conform to the current year’s financial statement presentation. |
Mergers and Acquisitions
Mergers and Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions On May 25, 2018, the Corporation and Community First Bancorp (Community First) announced that they have entered into an Agreement and Plan of Merger providing for the acquisition of Community First by the Corporation. Community First is the holding company for Community First Bank, a Pennsylvania bank headquartered in Reynoldsville, Pennsylvania and operates two offices located in Clarion County, Pennsylvania and two offices located in Jefferson County, Pennsylvania. Under the terms of the merger agreement, Community First will merge into the Corporation and shareholders of Community First will receive 1.2008 shares of the Corporation's common stock and $6.95 in cash for each share of common stock of Community First or approximately $16.3 million in common stock and $2.6 million in cash in the aggregate. The merger is expected to be completed in the fourth quarter of 2018, subject to the satisfaction of customary closing conditions, including regulatory approval and the approval of the shareholders of Community First. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share (EPS) excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares for assumed issuance of restricted stock and shares issued under stock options. The factors used in the Corporation’s earnings per common share computation follow: (Dollar amounts in thousands, except for per share amounts) For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 Earnings per common share - basic Net income $ 1,413 $ 1,041 $ 2,775 $ 1,997 Average common shares outstanding 2,271,139 2,164,747 2,271,139 2,158,587 Basic earnings per common share $ 0.62 $ 0.48 $ 1.22 $ 0.93 Earnings per common share - diluted Net income $ 1,413 $ 1,041 $ 2,775 $ 1,997 Average common shares outstanding 2,271,139 2,164,747 2,271,139 2,158,587 Add: Dilutive effects of assumed issuance of restricted stock and exercise of stock options 17,090 18,014 15,663 16,936 Average shares and dilutive potential common shares 2,288,229 2,182,761 2,286,802 2,175,523 Diluted earnings per common share $ 0.62 $ 0.48 $ 1.21 $ 0.92 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Equity Securities The Corporation held equity securities with fair values of $474,000 and $1.8 million at June 30, 2018 and December 31, 2017, respectively. Beginning January 1, 2018, with the adoption of ASU 2016-01, changes in the fair value of these securities are included in other income on the consolidated statements of net income as opposed to accumulated other comprehensive loss on the consolidated balance sheets. During the three and six months ended June 30, 2018, the Corporation recognized a gain of $67,000 and $62,000 , respectively, on the equity securities held at June 30, 2018. During the three and six months ended June 30, 2018, the Corporation sold $266,000 and $1.2 million of equity securities, respectively, with a realized net loss of $2,000 and $25,000 , respectively. Debt Securities - Available for Sale The following table summarizes the Corporation’s debt securities as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018: U.S. Treasury and federal agency $ 4,536 $ — $ (125 ) $ 4,411 U.S. government sponsored entities and agencies 21,007 20 (437 ) 20,590 U.S. agency mortgage-backed securities: residential 23,236 — (692 ) 22,544 U.S. agency collateralized mortgage obligations: residential 21,168 32 (946 ) 20,254 State and political subdivisions 25,112 12 (464 ) 24,660 Corporate debt securities 7,507 6 (86 ) 7,427 $ 102,566 $ 70 $ (2,750 ) $ 99,886 December 31, 2017: U.S. Treasury and federal agency 4,541 — (69 ) 4,472 U.S. government sponsored entities and agencies 14,136 2 (212 ) 13,926 U.S. agency mortgage-backed securities: residential 20,904 7 (153 ) 20,758 U.S. agency collateralized mortgage obligations: residential 22,607 25 (708 ) 21,924 State and political subdivisions 29,249 87 (96 ) 29,240 Corporate debt securities 9,009 38 (17 ) 9,030 $ 100,446 $ 159 $ (1,255 ) $ 99,350 The following table summarizes scheduled maturities of the Corporation’s debt securities as of June 30, 2018 . Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are not due at a single maturity and are shown separately. (Dollar amounts in thousands) Available for sale Amortized Cost Fair Value Due in one year or less $ 3,120 $ 3,108 Due after one year through five years 34,277 33,640 Due after five through ten years 18,018 17,672 Due after ten years 2,747 2,668 Mortgage-backed securities: residential 23,236 22,544 Collateralized mortgage obligations: residential 21,168 20,254 $ 102,566 $ 99,886 4. Securities (continued) Information pertaining to debt securities with gross unrealized losses at June 30, 2018 and December 31, 2017 , aggregated by investment category and length of time that individual securities have been in a continuous loss position are included in the table below: (Dollar amounts in thousands) Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2018: U.S. Treasury and federal agency $ — $ — $ 4,411 $ (125 ) $ 4,411 $ (125 ) U.S. government sponsored entities and agencies 5,838 (154 ) 8,840 (283 ) 14,678 (437 ) U.S. agency mortgage-backed securities: residential 16,542 (455 ) 6,002 (237 ) 22,544 (692 ) U.S. agency collateralized mortgage obligations: residential 1,700 (6 ) 16,724 (940 ) 18,424 (946 ) State and political subdivisions 16,528 (367 ) 3,364 (97 ) 19,892 (464 ) Corporate debt securities 2,935 (69 ) 486 (17 ) 3,421 (86 ) $ 43,543 $ (1,051 ) $ 39,827 $ (1,699 ) $ 83,370 $ (2,750 ) December 31, 2017: U.S. Treasury and federal agency $ — $ — $ 4,472 $ (69 ) $ 4,472 $ (69 ) U.S. government sponsored entities and agencies 3,447 (42 ) 8,975 (170 ) 12,422 (212 ) U.S. agency mortgage-backed securities: residential 9,659 (48 ) 6,581 (105 ) 16,240 (153 ) U.S. agency collateralized mortgage obligations: residential 954 (16 ) 19,147 (692 ) 20,101 (708 ) State and political subdivisions 10,510 (60 ) 3,487 (36 ) 13,997 (96 ) Corporate debt securities 2,992 (16 ) 999 (1 ) 3,991 (17 ) $ 27,562 $ (182 ) $ 43,661 $ (1,073 ) $ 71,223 $ (1,255 ) Gains/losses on sales of securities for the three and six months ended June 30 were as follows: (Dollar amounts in thousands) For the three months For the six months ended June 30, 2018 2017 2018 2017 Proceeds $ 264 $ 18,195 $ 6,795 $ 18,195 Gains (losses) (2 ) 350 (31 ) 350 Tax (benefit) provision related to gains — 119 (6 ) 119 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic, market or other conditions warrant such evaluation. Consideration is given to: (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, (3) whether the market decline was affected by macroeconomic conditions and (4) whether the Corporation has the intent to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the Corporation intends to sell an impaired security, or if it is more likely than not the Corporation will be required to sell the security before its anticipated recovery, the Corporation records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss on debt securities is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. 4. Securities (continued) There were 120 debt securities in an unrealized loss position as of June 30, 2018 , of which 53 were in an unrealized loss position for more than 12 months. Of these 53 securities, 24 were government-backed collateralized mortgage obligations, nine were state and political subdivision securities, eight were U.S. government sponsored entity and agency securities, six were mortgage-backed securities, five were U.S. Treasury securities and one was a corporate security. The unrealized losses associated with these securities were not due to the deterioration in the credit quality of the issuer that would likely result in the non-collection of contractual principal and interest, but rather have been caused by a rise in interest rates from the time the securities were purchased. Based on that evaluation and other general considerations, and given that the Corporation’s current intention is not to sell any impaired securities and it is more likely than not it will not be required to sell these securities before the recovery of its amortized cost basis, the Corporation does not consider these debt securities with unrealized losses as of June 30, 2018 to be other-than-temporarily impaired. |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans Receivable and Related Allowance for Loan Losses | Loans Receivable and Related Allowance for Loan Losses The Corporation’s loans receivable as of the respective dates are summarized as follows: (Dollar amounts in thousands) June 30, December 31, Mortgage loans on real estate: Residential first mortgages $ 230,504 $ 221,823 Home equity loans and lines of credit 100,454 99,940 Commercial real estate 198,602 193,068 529,560 514,831 Other loans: Commercial business 54,693 58,941 Consumer 9,123 9,589 63,816 68,530 Total loans, gross 593,376 583,361 Less allowance for loan losses 6,118 6,127 Total loans, net $ 587,258 $ 577,234 Included in total loans above are net deferred costs of $1.8 million and $1.5 million at June 30, 2018 and December 31, 2017 , respectively. An allowance for loan losses (ALL) is maintained to absorb probable incurred losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience and the amount of nonperforming loans. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. The allowance for loan losses is based on estimates and actual losses may vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. At June 30, 2018 , there was no allowance for loan losses allocated to loans acquired in the April 2016 acquisition of United American Savings Bank or the September 2017 acquisition of Northern Hancock Bank and Trust Co. 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table details activity in the ALL and the recorded investment by portfolio segment based on impairment method: (Dollar amounts in thousands) Residential Home Equity Commercial Commercial Consumer Total Three months ended June 30, 2018: Allowance for loan losses: Beginning Balance $ 1,919 $ 651 $ 2,751 $ 560 $ 54 $ 5,935 Charge-offs — (63 ) (33 ) — (51 ) (147 ) Recoveries — 10 16 1 3 30 Provision 114 52 148 (62 ) 48 300 Ending Balance $ 2,033 $ 650 $ 2,882 $ 499 $ 54 $ 6,118 Six months ended June 30, 2018: Allowance for loan losses: Beginning Balance $ 2,090 $ 646 $ 2,753 $ 585 $ 53 $ 6,127 Charge-offs (61 ) (83 ) (418 ) — (170 ) (732 ) Recoveries 3 11 18 2 9 43 Provision 1 76 529 (88 ) 162 680 Ending Balance $ 2,033 $ 650 $ 2,882 $ 499 $ 54 $ 6,118 At June 30, 2018: Ending ALL balance attributable to loans: Individually evaluated for impairment $ 7 $ — $ — $ — $ — $ 7 Acquired loans collectively evaluated for impairment — — — — — — Originated loans collectively evaluated for impairment 2,026 650 2,882 499 54 6,111 Total $ 2,033 $ 650 $ 2,882 $ 499 $ 54 $ 6,118 Total loans: Individually evaluated for impairment $ 408 $ 7 $ 43 $ 39 $ — $ 497 Acquired loans collectively evaluated for impairment 18,501 10,203 24,247 2,173 1,307 56,431 Originated loans collectively evaluated for impairment 211,595 90,244 174,312 52,481 7,816 536,448 Total $ 230,504 $ 100,454 $ 198,602 $ 54,693 $ 9,123 $ 593,376 At December 31, 2017: Ending ALL balance attributable to loans: Individually evaluated for impairment $ 7 $ — $ — $ — $ — $ 7 Acquired loans collectively evaluated for impairment — — — — — — Originated loans collectively evaluated for impairment 2,083 646 2,753 585 53 6,120 Total $ 2,090 $ 646 $ 2,753 $ 585 $ 53 $ 6,127 Total loans: Individually evaluated for impairment $ 425 $ 8 $ 914 $ 569 $ — $ 1,916 Acquired loans collectively evaluated for impairment 20,300 10,873 27,404 1,451 2,893 62,921 Originated loans collectively evaluated for impairment 201,098 89,059 164,750 56,921 6,696 518,524 Total $ 221,823 $ 99,940 $ 193,068 $ 58,941 $ 9,589 $ 583,361 Three months ended June 30, 2017: Allowance for loan losses: Beginning Balance $ 1,956 $ 648 $ 2,449 $ 583 $ 52 $ 5,688 Charge-offs (10 ) (10 ) (90 ) (10 ) (8 ) (128 ) Recoveries — 1 2 — 3 6 Provision 48 — 99 48 6 201 Ending Balance $ 1,994 $ 639 $ 2,460 $ 621 $ 53 $ 5,767 Six months ended June 30, 2017: Allowance for loan losses: Beginning Balance $ 1,846 $ 633 $ 2,314 $ 700 $ 52 $ 5,545 Charge-offs (36 ) (11 ) (90 ) (10 ) (27 ) (174 ) Recoveries — 20 4 — 9 33 Provision 184 (3 ) 232 (69 ) 19 363 Ending Balance $ 1,994 $ 639 $ 2,460 $ 621 $ 53 $ 5,767 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2018 : (Dollar amounts in thousands) Impaired Loans with Specific Allowance As of June 30, 2018 For the three months ended June 30, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 74 $ 74 $ 7 $ 75 $ 1 $ 1 Home equity and lines of credit 7 7 — 8 — — Commercial real estate — — — — — — Commercial business — — — — — — Consumer — — — — — — Total $ 81 $ 81 $ 7 $ 83 $ 1 $ 1 For the six months ended June 30, 2018 Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 75 $ 2 $ 2 Home equity and lines of credit 7 — — Commercial real estate — — — Commercial business — — — Consumer — — — Total $ 82 $ 2 $ 2 Impaired Loans with No Specific Allowance As of June 30, 2018 For the three months ended June 30, 2018 Unpaid Principal Balance Recorded Investment Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 446 $ 334 $ 339 $ 2 $ 2 Home equity and lines of credit — — — — — Commercial real estate 43 43 190 73 73 Commercial business 39 39 297 41 41 Consumer — — — — — Total $ 528 $ 416 $ 826 $ 116 $ 116 For the six months ended June 30, 2018 Average Interest Income Cash Basis Residential first mortgages $ 343 $ 2 $ 2 Home equity and lines of credit — — — Commercial real estate 431 73 73 Commercial business 387 42 42 Consumer — — — Total $ 1,161 $ 117 $ 117 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2017 : (Dollar amounts in thousands) Impaired Loans with Specific Allowance As of December 31, 2017 For the year ended Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 75 $ 75 $ 7 $ 88 $ 3 $ 3 Home equity and lines of credit 8 8 — 2 — — Commercial real estate — — — 111 — — Commercial business — — — 118 — — Consumer — — — — — — Total $ 83 $ 83 $ 7 $ 319 $ 3 $ 3 Impaired Loans with No Specific Allowance As of December 31, 2017 For the year ended Unpaid Principal Balance Recorded Investment Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 461 $ 350 $ 289 $ 8 $ 8 Home equity and lines of credit — — — — — Commercial real estate 1,089 914 855 3 3 Commercial business 569 569 498 3 3 Consumer — — — — — Total $ 2,119 $ 1,833 $ 1,642 $ 14 $ 14 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2017 : (Dollar amounts in thousands) Impaired Loans with Specific Allowance As of June 30, 2017 For the three months Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 76 $ 76 $ 8 $ 76 $ 1 $ 1 Home equity and lines of credit — — — — — — Commercial real estate — — — — — — Commercial business — — — — — — Consumer — — — — — — Total $ 76 $ 76 $ 8 $ 76 $ 1 $ 1 For the six months ended June 30, 2017 Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 96 $ 2 $ 2 Home equity and lines of credit — — — Commercial real estate 186 — — Commercial business 196 — — Consumer — — — Total $ 478 $ 2 $ 2 Impaired Loans with No Specific Allowance As of June 30, 2017 For the three months Unpaid Principal Balance Recorded Investment Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 478 $ 366 $ 369 $ 3 $ 3 Home equity and lines of credit — — — — — Commercial real estate 1,149 975 983 — — Commercial business 600 600 620 — — Consumer — — — — — Total $ 2,227 $ 1,941 $ 1,972 $ 3 $ 3 For the six months ended June 30, 2017 Average Interest Income Cash Basis Residential first mortgages $ 246 $ 4 $ 4 Home equity and lines of credit — — — Commercial real estate 807 1 1 Commercial business 446 1 1 Consumer — — — Total $ 1,499 $ 6 $ 6 5. Loans Receivable and Related Allowance for Loan Losses (continued) Unpaid principal balance includes any loans that have been partially charged off but not forgiven. Accrued interest is not included in the recorded investment in loans presented above or in the tables that follow based on the amounts not being material. Troubled debt restructurings (TDR). The Corporation has certain loans that have been modified in order to maximize collection of loan balances. If, for economic or legal reasons related to the customer’s financial difficulties, management grants a concession compared to the original terms and conditions of the loan that it would not have otherwise considered, the modified loan is classified as a TDR. Concessions related to TDRs generally do not include forgiveness of principal balances. The Corporation generally does not extend additional credit to borrowers with loans classified as TDRs. At June 30, 2018 and December 31, 2017 , the Corporation had $415,000 and $433,000 , respectively, of loans classified as TDRs, which are included in impaired loans above. The Corporation had allocated $7,000 and $7,000 of specific allowance for these loans at June 30, 2018 and December 31, 2017 , respectively. During the three and six month periods ended June 30, 2018 , the Corporation did no t modify any loans as TDRs. During the three and six month periods ended June 30, 2017 , the Corporation modified one residential mortgage loan with a recorded investment of $323,000 due to a bankruptcy order. At June 30, 2017 , the Corporation did no t have any specific allowance for loan losses allocated to this specific loan. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. During the three and six month periods ended June 30, 2018 and 2017, the Corporation did no t have any loans which were modified as TDRs for which there was a payment default within twelve months following the modification. Credit Quality Indicators. Management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Commercial real estate and commercial business loans not identified as impaired are evaluated as risk rated pools of loans utilizing a risk rating practice that is supported by a quarterly special asset review. In this review process, strengths and weaknesses are identified, evaluated and documented for each criticized and classified loan and borrower, strategic action plans are developed, risk ratings are confirmed and the loan’s performance status is reviewed. Management has determined certain portions of the loan portfolio to be homogeneous in nature and assigns like reserve factors for the following loan pool types: residential real estate, home equity loans and lines of credit, and consumer installment and personal lines of credit. The reserve allocation for risk rated loan pools is developed by applying the following factors: Historic : Management utilizes a computer model to develop the historical net charge-off experience which is used to formulate the assumptions employed in the migration analysis applied to estimate losses in the portfolio. Outstanding balance and charge-off information are input into the model and historical loss migration rate assumptions are developed to apply to pass, special mention, substandard and doubtful risk rated loans. A twelve-quarter rolling weighted-average is utilized to estimate probable incurred losses in the portfolios. Qualitative : Qualitative adjustment factors for pass, special mention, substandard and doubtful ratings are developed and applied to risk rated loans to allow for: quality of lending policies and procedures; national and local economic and business conditions; changes in the nature and volume of the portfolio; experiences, ability and depth of lending management; changes in trends, volume and severity of past due, nonaccrual and classified loans and loss and recovery trends; quality of loan review systems; concentrations of credit and other external factors. Management uses the following definitions for risk ratings: Pass : Loans classified as pass typically exhibit good payment performance and have underlying borrowers with acceptable financial trends where repayment capacity is evident. These borrowers typically would have a sufficient cash flow that would allow them to weather an economic downturn and the value of any underlying collateral could withstand a moderate degree of depreciation due to economic conditions. 5. Loans Receivable and Related Allowance for Loan Losses (continued) Special Mention : Loans classified as special mention are characterized by potential weaknesses that could jeopardize repayment as contractually agreed. These loans may exhibit adverse trends such as increasing leverage, shrinking profit margins and/or deteriorating cash flows. These borrowers would inherently be more vulnerable to the application of economic pressures. Substandard : Loans classified as substandard exhibit weaknesses that are well-defined to the point that repayment is jeopardized. Typically, the Corporation is no longer adequately protected by both the apparent net worth and repayment capacity of the borrower. Doubtful : Loans classified as doubtful have advanced to the point that collection or liquidation in full, on the basis of currently ascertainable facts, conditions and value, is highly questionable or improbable. The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the Corporation’s internal risk rating system as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Not Rated Pass Special Mention Substandard Doubtful Total June 30, 2018: Residential first mortgages $ 229,401 $ — $ — $ 1,103 $ — $ 230,504 Home equity and lines of credit 99,474 — — 980 — 100,454 Commercial real estate — 187,762 3,831 7,009 — 198,602 Commercial business — 53,355 234 1,104 — 54,693 Consumer 9,037 — — 86 — 9,123 Total $ 337,912 $ 241,117 $ 4,065 $ 10,282 $ — $ 593,376 December 31, 2017: Residential first mortgages $ 220,730 $ — $ — $ 1,093 $ — $ 221,823 Home equity and lines of credit 98,946 — — 994 — 99,940 Commercial real estate — 182,460 2,744 7,864 — 193,068 Commercial business — 56,960 477 1,504 — 58,941 Consumer 9,443 — — 146 — 9,589 Total $ 329,119 $ 239,420 $ 3,221 $ 11,601 $ — $ 583,361 5. Loans Receivable and Related Allowance for Loan Losses (continued) Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonperforming loans as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Performing Nonperforming Accruing Loans Not Past Due Accruing 30-59 Days Past Due Accruing 60-89 Days Past Due Accruing 90+ Days Past Due Nonaccrual Total June 30, 2018: Residential first mortgages $ 227,774 $ 1,264 $ 440 $ 59 $ 967 $ 230,504 Home equity and lines of credit 98,592 753 244 323 542 100,454 Commercial real estate 196,655 1,111 343 184 309 198,602 Commercial business 54,654 — — — 39 54,693 Consumer 8,660 354 46 — 63 9,123 Total loans $ 586,335 $ 3,482 $ 1,073 $ 566 $ 1,920 $ 593,376 December 31, 2017: Residential first mortgages $ 218,515 $ 1,936 $ 357 $ 159 $ 856 $ 221,823 Home equity and lines of credit 98,112 598 370 334 526 99,940 Commercial real estate 190,451 1,026 430 197 964 193,068 Commercial business 58,058 74 225 — 584 58,941 Consumer 9,162 273 81 — 73 9,589 Total loans $ 574,298 $ 3,907 $ 1,463 $ 690 $ 3,003 $ 583,361 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table presents the Corporation’s nonaccrual loans by aging category as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Not Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days + Past Due Total June 30, 2018: Residential first mortgages $ 353 $ — $ 74 $ 540 $ 967 Home equity and lines of credit 7 — 9 526 542 Commercial real estate 205 — — 104 309 Commercial business 39 — — — 39 Consumer — — — 63 63 Total loans $ 604 $ — $ 83 $ 1,233 $ 1,920 December 31, 2017: Residential first mortgages 366 — 75 415 856 Home equity and lines of credit 8 — — 518 526 Commercial real estate 341 — — 623 964 Commercial business 569 — — 15 584 Consumer — — — 73 73 Total loans $ 1,284 $ — $ 75 $ 1,644 $ 3,003 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes the Corporation’s acquired goodwill and intangible assets as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) June 30, 2018 December 31, 2017 Gross Carrying Accumulated Gross Carrying Accumulated Goodwill $ 10,288 $ — $ 10,288 $ — Core deposit intangibles 4,426 4,081 4,426 3,945 Total $ 14,714 $ 4,081 $ 14,714 $ 3,945 Goodwill resulted from four acquisitions. Goodwill represents the excess of the total purchase price paid for the acquisitions over the fair value of the identifiable assets acquired, net of the fair value of the liabilities assumed. Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. The Corporation has selected November 30 as the date to perform the annual impairment test. No goodwill impairment charges were recorded during 2017 or in the first six months of 2018 . The core deposit intangible asset, resulting from three acquisitions, is amortized using the double declining balance method over a weighted average estimated life of the related deposits and is not estimated to have a significant residual value. During the three and six month periods ending June 30, 2018 the Corporation recorded intangible amortization expense totaling $68,000 and $136,000 , respectively, compared to $59,000 and $119,000 , respectively for the same periods in 2017. |
Stock Compensation Plan
Stock Compensation Plan | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plan | Stock Compensation Plan In April 2014, the Corporation adopted the 2014 Stock Incentive Plan (the 2014 Plan), which is shareholder approved and permits the grant of restricted stock awards and options to its directors, officers and employees for up to 176,866 shares of common stock. As of June 30, 2018 , 52,533 shares of restricted stock and 88,433 stock options remain available for issuance under the plan. Incentive stock options, non-incentive or compensatory stock options and share awards may be granted under the Plan. The exercise price of each option shall at least equal the market price of a share of common stock on the date of grant and have a contractual term of ten years . Options shall vest and become exercisable at the rate, to the extent and subject to such limitations as may be specified by the Corporation. Compensation cost related to share-based payment transactions must be recognized in the financial statements with measurement based upon the fair value of the equity instruments issued. At June 30, 2018 there are no options that were granted or outstanding under the Plan. A summary of the status of the Corporation’s nonvested restricted stock awards as of June 30, 2018 , and changes during the period then ended is presented below: Shares Weighted-Average Grant-date Fair Value Nonvested at January 1, 2018 33,400 $ 27.70 Granted — — Vested — — Forfeited — — Nonvested as of June 30, 2018 33,400 $ 27.70 For the three and six month periods ended June 30, 2018 , the Corporation recognized stock compensation expense of $75,000 and $150,000 , respectively, compared to $55,000 and $110,000 , respectively, for the same period in 2017. As of June 30, 2018 , there was $515,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over the next three years . It is the Corporation’s policy to issue shares on the vesting date for restricted stock awards. Unvested restricted stock awards do not receive dividends declared by the Corporation. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sale transaction or exit price on the date indicated. The estimated fair value amounts have been measured as of their respective dates and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value. Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Corporation has the ability to access at the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. 8. Fair Value (continued) Level 3 : Significant unobservable inputs that reflect the Corporation’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. The Corporation used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Securities (debt-available for sale, equities) – The fair value of all investment securities are based upon the assumptions market participants would use in pricing the security. If available, investment securities are determined by quoted market prices (Level 1). Level 1 includes U.S. Treasury, federal agency securities and certain equity securities. For investment securities where quoted market prices are not available, fair values are calculated based on market prices on similar securities (Level 2). Level 2 includes U.S. Government sponsored entities and agencies, mortgage-backed securities, collateralized mortgage obligations, state and political subdivision securities and certain corporate debt securities. For investment securities where quoted prices or market prices of similar securities are not available, fair values are calculated by using unobservable inputs (Level 3) and may include certain corporate debt and equity securities held by the Corporation. The Level 3 corporate debt securities consist of certain subordinated notes which are priced at par because management has determined that the par value approximates the fair value of these instruments. The Level 3 equity security valuations were supported by an analysis prepared by the Corporation which relies on inputs such as the security issuer’s publicly attainable financial information, multiples derived from prices in observed transactions involving comparable businesses and other market, financial and nonfinancial factors. Impaired loans – At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive a specific allowance for loan losses. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. As of June 30, 2018 and December 31, 2017, the Corporation did no t have any impaired loans carried at fair value measured using the fair value of collateral. There was no additional provision for loan losses recorded for impaired loans during the three and six month periods ended June 30, 2018 and 2017. Other real estate owned (OREO) – Assets acquired through or instead of foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to the valuation based upon more recent market sales activity or more current appraisal information derived from properties of similar type and/or locale. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. As of June 30, 2018 , OREO measured at fair value less costs to sell had a net carrying amount of $157,000 , which consisted of the outstanding balance of $168,000 less write-downs of $11,000 . As of December 31, 2017, the Corporation did no t have any OREO measured at fair value. Appraisals for both collateral-dependent impaired loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed by the Corporation. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Corporation compares the actual selling price of OREO that has been sold to the most recent appraisal to determine what additional adjustment should be made to the appraisal value to arrive at fair value. The most recent analysis performed indicated that a discount of 10% should be applied. 8. Fair Value (continued) For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy are as follows: (Dollar amounts in thousands) (Level 1) (Level 2) (Level 3) Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2018: Securities available for sale U.S. Treasury and federal agency $ 4,411 $ 4,411 $ — $ — U.S. government sponsored entities and agencies 20,590 — 20,590 — U.S. agency mortgage-backed securities: residential 22,544 — 22,544 — U.S. agency collateralized mortgage obligations: residential 20,254 — 20,254 — State and political subdivision 24,660 — 24,660 — Corporate debt securities 7,427 — 3,927 3,500 $ 99,886 $ 4,411 $ 91,975 $ 3,500 Equity securities $ 474 $ 474 $ — $ — December 31, 2017: Securities available for sale U.S. Treasury and federal agency 4,472 4,472 — — U.S. government sponsored entities and agencies 13,926 — 13,926 — U.S. agency mortgage-backed securities: residential 20,758 — 20,758 — U.S. agency collateralized mortgage obligations: residential 21,924 — 21,924 — State and political subdivisions 29,240 — 29,240 — Corporate debt securities 9,030 — 1,032 7,998 $ 99,350 $ 4,472 $ 86,880 $ 7,998 Equity securities $ 1,817 $ 1,683 $ — $ 134 8. Fair Value (continued) The Corporation’s policy is to transfer assets or liabilities from one level to another when the methodology to obtain the fair value changes such that there are more or fewer unobservable inputs as of the end of the reporting period. During the three and six month period ended June 30, 2018 the Corporation reclassified a restricted bank stock from the equity security portfolio to other assets and certain corporate securities from Level 3 to Level 2. Also during the three and six month periods, $25,000 in Level 3 equity securities were sold from the portfolio. For the same periods in 2017 , the Corporation had no transfers between levels. The following table presents changes in Level 3 assets measured on a recurring basis for the three and six month periods ended June 30, 2018 and 2017 : (Dollar amounts in thousands) Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at the beginning of the period $ 3,525 $ 136 $ 8,132 $ 136 Total gains or losses (realized/unrealized): Included in earnings — — 1 — Included in other comprehensive income — (1 ) — (1 ) Acquired — — — — Sold out of Level 3 (25 ) — (25 ) — Transfers in and/or out of Level 3 — — (4,608 ) — Balance at the end of the period $ 3,500 $ 135 $ 3,500 $ 135 The Corporation had $157,000 in OREO assets measured at fair value on a non-recurring basis at June 30, 2018 compared to none at December 31, 2017. The Corporation had an impaired residential mortgage loan totaling $67,000 and an impaired home equity loan totaling $7,000 at June 30, 2018 which were classified as TDRs and measured using a discounted cash flow methodology. At December 31, 2017 these loans were valued at $68,000 and $8,000 , respectively. 8. Fair Value (continued) The following table sets forth the carrying amount and estimated fair values of the Corporation’s financial instruments included in the consolidated balance sheet as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Carrying Fair Value Measurements using: Description Amount Total Level 1 Level 2 Level 3 June 30, 2018: Financial Assets: Cash and cash equivalents $ 30,576 $ 30,576 $ 30,576 $ — $ — Securities - available for sale 99,886 99,886 4,411 91,975 3,500 Securities - equities 474 474 474 — — Loans held for sale — — — — — Loans, net 587,258 578,642 — — 578,642 Federal bank stock 4,403 N/A N/A N/A N/A Accrued interest receivable 2,250 2,250 65 382 1,803 $ 724,847 $ 711,828 $ 35,526 $ 92,357 $ 583,945 Financial Liabilities: Deposits 685,551 687,403 515,638 171,765 — Borrowed funds 20,050 19,653 — 19,653 — Accrued interest payable 410 410 32 378 — $ 706,011 $ 707,466 $ 515,670 $ 191,796 $ — Carrying Fair Value Measurements using: Amount Total Level 1 Level 2 Level 3 December 31, 2017: Financial Assets: Cash and cash equivalents $ 14,374 $ 14,374 $ 14,374 $ — $ — Securities - available for sale 99,350 99,350 4,472 86,880 7,998 Securities - equities 1,817 1,817 1,683 — 134 Loans held for sale 504 504 — 504 — Loans, net 577,234 577,616 — — 577,616 Federal bank stock 4,662 — N/A N/A N/A Accrued interest receivable 2,217 2,217 59 338 1,820 $ 700,158 $ 695,878 $ 20,588 $ 87,722 $ 587,568 Financial Liabilities: Deposits 654,643 657,414 483,956 173,458 — Borrowed funds 26,000 25,499 — 25,499 — Accrued interest payable 413 413 23 390 — $ 681,056 $ 683,326 $ 483,979 $ 199,347 $ — |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. In 2015, the Board of Governors of the Federal Reserve System amended its Small Bank Holding Company Policy Statement by increasing the policy’s consolidated assets threshold from $500 million to $1 billion. The primary benefit of being deemed a "small bank holding company" is the exemption from the requirement to maintain consolidated regulatory capital ratios; instead, regulatory capital ratios only apply at the subsidiary bank level. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (BASEL III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the BASEL III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2018 is 1.875% and was 1.25% for 2017 and 0.625% for 2016. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of June 30, 2018 , the Bank meets all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At June 30, 2018 , the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category. The following table sets forth certain information concerning the Bank’s regulatory capital as of the dates presented. The capital adequacy ratios disclosed below are exclusive of the capital conservation buffer. (Dollar amounts in thousands) June 30, 2018 December 31, 2017 Amount Ratio Amount Ratio Total capital to risk-weighted assets: Actual $ 65,901 13.26 % $ 64,221 12.96 % For capital adequacy purposes 39,759 8.00 % 39,630 8.00 % To be well capitalized 49,699 10.00 % 49,537 10.00 % Tier 1 capital to risk-weighted assets: Actual $ 59,783 12.03 % $ 58,088 11.73 % For capital adequacy purposes 29,820 6.00 % 29,722 6.00 % To be well capitalized 39,759 8.00 % 39,630 8.00 % Common Equity Tier 1 capital to risk-weighted assets: Actual $ 59,783 12.03 % $ 58,088 11.73 % For capital adequacy purposes 22,365 4.50 % 22,292 4.50 % To be well capitalized 32,305 6.50 % 32,199 6.50 % Tier 1 capital to average assets: Actual $ 59,783 7.87 % $ 58,088 7.71 % For capital adequacy purposes 30,372 4.00 % 30,117 4.00 % To be well capitalized 37,965 5.00 % 37,647 5.00 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss), net of tax, for the three months ended June 30, 2018 and 2017 and summarizes the significant amounts reclassified out of each component of accumulated other comprehensive income: (Dollar amounts in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Totals Accumulated Other Comprehensive Income (Loss) at April 1, 2018 $ (1,881 ) $ (4,839 ) $ (6,720 ) Other comprehensive income before reclassification (237 ) — (237 ) Amounts reclassified from accumulated other comprehensive income (loss) 1 — 1 Net current period other comprehensive income (236 ) — (236 ) Accumulated Other Comprehensive Income (Loss) at June 30, 2018 $ (2,117 ) $ (4,839 ) $ (6,956 ) (Dollar amounts in thousands) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified Affected Line Item in the Statement Where Net Income is Presented Unrealized gains and losses on available-for-sale securities $ (2 ) Net gain (loss) on sale of securities 1 Provision for income taxes Total reclassifications for the period $ (1 ) Net of tax (Dollar amounts in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Totals Accumulated Other Comprehensive Income (Loss) at April 1, 2017 $ (421 ) $ (3,812 ) $ (4,233 ) Other comprehensive income before reclassification 10 — 10 Amounts reclassified from accumulated other comprehensive income (loss) 104 — 104 Net current period other comprehensive income 114 — 114 Accumulated Other Comprehensive Income (Loss) at June 30, 2017 $ (307 ) $ (3,812 ) $ (4,119 ) 10. Accumulated Other Comprehensive Income (Loss) (Dollar amounts in thousands) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified Affected Line Item in the Statement Where Net Income is Presented Unrealized gains and losses on available-for-sale securities $ 350 Net gain on sale of available-for-sale securities Unrealized gains and losses on available-for-sale securities (508 ) Other than temporary impairment losses 54 Provision for income taxes Total reclassifications for the period $ (104 ) Net of tax The following tables summarize the changes within each classification of accumulated other comprehensive income (loss), net of tax, for the six months ended June 30, 2018 and 2017 and summarized the significant amounts reclassified out of each component of accumulated other comprehensive income: (Dollar amounts in thousands) Unrealized Gains Defined Totals Accumulated Other Comprehensive Income (Loss) at December 31, 2017 $ (679 ) $ (4,839 ) $ (5,518 ) Cumulative effect of change in accounting principle for marketable equity securities, net of tax (187 ) — (187 ) Accumulated Other Comprehensive Income (Loss) at January 1, 2018, as adjusted $ (866 ) $ (4,839 ) $ (5,705 ) Other comprehensive income before reclassification (1,275 ) — (1,275 ) Amounts reclassified from accumulated other comprehensive income (loss) 24 — 24 Net current period other comprehensive income (1,251 ) — (1,251 ) Accumulated Other Comprehensive Income (Loss) at June 30, 2018 (2,117 ) (4,839 ) (6,956 ) (Dollar amount in thousands) Details about Accumulated Other Amount Reclassified Affected Line Item in the Unrealized gains and losses on available-for-sale securities (31 ) Net gain (loss) on sale of available-for-sale securities Unrealized gains and losses on available-for-sale securities — Other than temporary impairment losses 7 Provision for income taxes Total reclassifications for the period (24 ) Net of tax (Dollar amounts in thousands) Unrealized Gains Defined Totals Accumulated Other Comprehensive Income (Loss) at January 1, 2017 $ (679 ) $ (3,812 ) $ (4,491 ) Other comprehensive income before reclassification 268 — 268 Amounts reclassified from accumulated other comprehensive income (loss) 104 — 104 Net current period other comprehensive income 372 — 372 Accumulated Other Comprehensive Income (Loss) at June 30, 2017 $ (307 ) $ (3,812 ) $ (4,119 ) (Dollar amount in thousands) Details about Accumulated Other Amount Reclassified Affected Line Item in the Unrealized gains and losses on available-for-sale securities 350 Net gain on sale of available-for-sale securities Unrealized gains and losses on available-for-sale securities (508 ) Other than temporary impairment losses 54 Provision for income taxes Total reclassifications for the period (104 ) Net of tax |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Corporation adopted ASU 2014-09 "Revenue from Contracts with Customers" (Topic 606) and all subsequent ASUs that modified Topic 606. Interest income, net securities gains (losses) and bank-owned life insurance are not included within the scope of Topic 606. For the revenue streams in the scope of Topic 606, service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All of the Corporation's revenue from contracts with customers is recognized within noninterest income. Service charges on deposits: The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such stop payment charges, statement rendering and other fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Electronic banking fees: The Corporation earns interchange and other ATM related fees from cardholder transactions conducted through the various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The gross amount of these fees are processed through noninterest income. Other fees, such a transaction surcharges and card replacement fees are withdrawn from the customer's account balance at the time of service. The following table presents the Corporation's sources of noninterest income for the three and six months ended June 30, 2018 and 2017. (Dollar amount in thousands) For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 Noninterest income In-scope of Topic 606: Service charges on deposits Maintenance fees $ 37 $ 38 $ 76 $ 78 Overdraft fees 353 326 682 624 Other fees 73 71 142 141 Electronic banking fees 329 292 644 562 Noninterest income (in-scope of Topic 606) 792 727 1,544 1,405 Noninterest income (out-of-scope of Topic 606) (1) 257 141 403 318 Total noninterest income $ 1,049 $ 868 $ 1,947 $ 1,723 (1) Noninterest income items that are out-of-scope include net realized gains (losses) on sales of securities, net gains (losses) on sales of loans, earnings on bank-owned life insurance and certain other noninterest income items. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Newly Issued Not Yet Effective Accounting Standards In February 2016, the FASB issued ASU 2016-02 "Leases". This ASU requires lessees to record most leases on their balance sheet but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods therein. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Corporation is currently analyzing data on leased assets. The adoption of this guidance is expected to increase both assets and liabilities, but is not expected to have a material impact on the consolidated statement of income. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 significantly changes the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial instruments. The main provisions of the guidance include (1) replacing the “incurred loss” approach under current GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for available-for-sale debt securities rather than reduce the carrying amount of the investments, as is required by the other-than-temporary impairment model under current GAAP, and (3) a simplified accounting model for purchased credit-impaired debt securities and loans. The ASU is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted. Management is currently in the developmental stages of collecting available historical information in order to assess the expected credit losses and determine the impact of the adoption of ASU 2016-13 on the Corporation's financial statements. 12. Recent Accounting Pronouncements (continued) In January 2017, FASB ASU 2017-04, "Simplifying the Test for Goodwill Impairment". This ASU simplifies the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under this amendment, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Corporation has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more likely than not reduce the fair value of the reporting unit below its carrying value. The Corporation's most recent annual impairment assessment determined that the Corporation's goodwill was not impaired. Although the Corporation cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated and, therefore, does not anticipate a material impact from these amendments to the Corporation's financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. In March 2017, the FASB issued ASU 2017-08, “Receivable - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 amends guidance on the amortization period of premiums on certain purchased callable debt securities to shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Corporation is currently evaluating the potential impact of ASU 2017-08 on its financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The amendments in this Update are to better reflect the economic results of hedging in the financial statements along with simplification of certain hedge accounting requirements. Specifically, the entire change in the fair value of the hedging instrument is required to be presented in the same income statement line as and in the same period that the earnings effect of the hedged item is recognized. Therefore, hedge ineffectiveness will not be reported separately or in a different period. In addition, hedge effectiveness can be determined qualitatively in periods following inception. The amendments permit an entity to measure the change in fair value of the hedged item on the basis of the benchmark rate component. They also permit an entity to measure the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged. For a closed portfolio of prepayable financial assets, an entity is permitted to designate the amount that is not expected to be affected by prepayments or defaults as the hedged item. For public business entities, the new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Corporation is currently evaluating the impact of adopting the new guidance on the consolidated financial statements, but it is not expected to have a material impact. Adoption of New Accounting Policies In March 2017, the FASB issued ASU 2017-07, "Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments in this update require that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. The amendments in this update improve the consistency, transparency, and usefulness of financial information to users that have communicated that the service cost component generally is analyzed differently from the other components of net benefit cost. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The adoption of the new guidance did not have a material impact on the consolidated financial statements. 12. Recent Accounting Pronouncements (continued) In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-9 “Revenue from Contracts with Customers”. ASU 2014-9 provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance does not apply to revenue associated with financial instruments, including loans and securities. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The Corporation has evaluated revenue streams within noninterest income to assess the applicability of this guidance and determined that service charges on deposits and electronic banking fees within the scope of this ASU. Because performance obligations are satisfied as services are rendered and the fees are fixed, there is little judgment involved in applying the guidance that significantly affects the determination of the amount and timing of revenue from contracts with customers. The adoption of this guidance on January 1, 2018 did not have a material impact on the Corporation's financial statements. In January 2016, the FASB issued ASU 2016-1 “Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-1 revises the accounting for the classification and measurement of investments in equity securities and revises the presentation of certain fair value changes for financial liabilities measured at fair value. For equity securities, the guidance in ASU 2016-1 requires equity investments to be measured at fair value with changes in fair value recognized in net income. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires presenting in other comprehensive income the change in fair value that relates to a change in instrument-specific credit risk. ASU 2016-1 also eliminates the disclosure assumptions used to estimate fair value for financial instruments measured at amortized cost and requires disclosure of an exit price notion in determining the fair value of financial instruments measured at amortized cost. ASU 2016-1 was effective for interim and annual periods beginning after December 15, 2017. The adoption of ASU 2016-1 did not have a significant impact on the Corporation's financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force)” . ASU 2016-15 clarifies the presentation of specific types of cash flow receipts and payments, including the payment of debt prepayment or debt extinguishment costs, contingent consideration cash payments paid subsequent to the acquisition date and proceeds from settlement of BOLI policies. This guidance was effective for fiscal years beginning after December 15, 2017. The adoption of ASU 2016-15 did not have an impact the Corporation's financial statements and disclosures. |
Recent Accounting Pronounceme21
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Newly Issued Not Yet Effective Accounting Standards In February 2016, the FASB issued ASU 2016-02 "Leases". This ASU requires lessees to record most leases on their balance sheet but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods therein. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Corporation is currently analyzing data on leased assets. The adoption of this guidance is expected to increase both assets and liabilities, but is not expected to have a material impact on the consolidated statement of income. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 significantly changes the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial instruments. The main provisions of the guidance include (1) replacing the “incurred loss” approach under current GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for available-for-sale debt securities rather than reduce the carrying amount of the investments, as is required by the other-than-temporary impairment model under current GAAP, and (3) a simplified accounting model for purchased credit-impaired debt securities and loans. The ASU is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted. Management is currently in the developmental stages of collecting available historical information in order to assess the expected credit losses and determine the impact of the adoption of ASU 2016-13 on the Corporation's financial statements. 12. Recent Accounting Pronouncements (continued) In January 2017, FASB ASU 2017-04, "Simplifying the Test for Goodwill Impairment". This ASU simplifies the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under this amendment, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Corporation has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more likely than not reduce the fair value of the reporting unit below its carrying value. The Corporation's most recent annual impairment assessment determined that the Corporation's goodwill was not impaired. Although the Corporation cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated and, therefore, does not anticipate a material impact from these amendments to the Corporation's financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. In March 2017, the FASB issued ASU 2017-08, “Receivable - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 amends guidance on the amortization period of premiums on certain purchased callable debt securities to shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. The Corporation is currently evaluating the potential impact of ASU 2017-08 on its financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The amendments in this Update are to better reflect the economic results of hedging in the financial statements along with simplification of certain hedge accounting requirements. Specifically, the entire change in the fair value of the hedging instrument is required to be presented in the same income statement line as and in the same period that the earnings effect of the hedged item is recognized. Therefore, hedge ineffectiveness will not be reported separately or in a different period. In addition, hedge effectiveness can be determined qualitatively in periods following inception. The amendments permit an entity to measure the change in fair value of the hedged item on the basis of the benchmark rate component. They also permit an entity to measure the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged. For a closed portfolio of prepayable financial assets, an entity is permitted to designate the amount that is not expected to be affected by prepayments or defaults as the hedged item. For public business entities, the new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Corporation is currently evaluating the impact of adopting the new guidance on the consolidated financial statements, but it is not expected to have a material impact. Adoption of New Accounting Policies In March 2017, the FASB issued ASU 2017-07, "Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments in this update require that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. The amendments in this update improve the consistency, transparency, and usefulness of financial information to users that have communicated that the service cost component generally is analyzed differently from the other components of net benefit cost. The amendments in this update become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The adoption of the new guidance did not have a material impact on the consolidated financial statements. 12. Recent Accounting Pronouncements (continued) In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-9 “Revenue from Contracts with Customers”. ASU 2014-9 provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The guidance does not apply to revenue associated with financial instruments, including loans and securities. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The Corporation has evaluated revenue streams within noninterest income to assess the applicability of this guidance and determined that service charges on deposits and electronic banking fees within the scope of this ASU. Because performance obligations are satisfied as services are rendered and the fees are fixed, there is little judgment involved in applying the guidance that significantly affects the determination of the amount and timing of revenue from contracts with customers. The adoption of this guidance on January 1, 2018 did not have a material impact on the Corporation's financial statements. In January 2016, the FASB issued ASU 2016-1 “Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-1 revises the accounting for the classification and measurement of investments in equity securities and revises the presentation of certain fair value changes for financial liabilities measured at fair value. For equity securities, the guidance in ASU 2016-1 requires equity investments to be measured at fair value with changes in fair value recognized in net income. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires presenting in other comprehensive income the change in fair value that relates to a change in instrument-specific credit risk. ASU 2016-1 also eliminates the disclosure assumptions used to estimate fair value for financial instruments measured at amortized cost and requires disclosure of an exit price notion in determining the fair value of financial instruments measured at amortized cost. ASU 2016-1 was effective for interim and annual periods beginning after December 15, 2017. The adoption of ASU 2016-1 did not have a significant impact on the Corporation's financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force)” . ASU 2016-15 clarifies the presentation of specific types of cash flow receipts and payments, including the payment of debt prepayment or debt extinguishment costs, contingent consideration cash payments paid subsequent to the acquisition date and proceeds from settlement of BOLI policies. This guidance was effective for fiscal years beginning after December 15, 2017. The adoption of ASU 2016-15 did not have an impact the Corporation's financial statements and disclosures. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The factors used in the Corporation’s earnings per common share computation follow: (Dollar amounts in thousands, except for per share amounts) For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 Earnings per common share - basic Net income $ 1,413 $ 1,041 $ 2,775 $ 1,997 Average common shares outstanding 2,271,139 2,164,747 2,271,139 2,158,587 Basic earnings per common share $ 0.62 $ 0.48 $ 1.22 $ 0.93 Earnings per common share - diluted Net income $ 1,413 $ 1,041 $ 2,775 $ 1,997 Average common shares outstanding 2,271,139 2,164,747 2,271,139 2,158,587 Add: Dilutive effects of assumed issuance of restricted stock and exercise of stock options 17,090 18,014 15,663 16,936 Average shares and dilutive potential common shares 2,288,229 2,182,761 2,286,802 2,175,523 Diluted earnings per common share $ 0.62 $ 0.48 $ 1.21 $ 0.92 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Classification of Available for Sale Securities Investment | Gains/losses on sales of securities for the three and six months ended June 30 were as follows: (Dollar amounts in thousands) For the three months For the six months ended June 30, 2018 2017 2018 2017 Proceeds $ 264 $ 18,195 $ 6,795 $ 18,195 Gains (losses) (2 ) 350 (31 ) 350 Tax (benefit) provision related to gains — 119 (6 ) 119 The following table summarizes the Corporation’s debt securities as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018: U.S. Treasury and federal agency $ 4,536 $ — $ (125 ) $ 4,411 U.S. government sponsored entities and agencies 21,007 20 (437 ) 20,590 U.S. agency mortgage-backed securities: residential 23,236 — (692 ) 22,544 U.S. agency collateralized mortgage obligations: residential 21,168 32 (946 ) 20,254 State and political subdivisions 25,112 12 (464 ) 24,660 Corporate debt securities 7,507 6 (86 ) 7,427 $ 102,566 $ 70 $ (2,750 ) $ 99,886 December 31, 2017: U.S. Treasury and federal agency 4,541 — (69 ) 4,472 U.S. government sponsored entities and agencies 14,136 2 (212 ) 13,926 U.S. agency mortgage-backed securities: residential 20,904 7 (153 ) 20,758 U.S. agency collateralized mortgage obligations: residential 22,607 25 (708 ) 21,924 State and political subdivisions 29,249 87 (96 ) 29,240 Corporate debt securities 9,009 38 (17 ) 9,030 $ 100,446 $ 159 $ (1,255 ) $ 99,350 The following table summarizes scheduled maturities of the Corporation’s debt securities as of June 30, 2018 . Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are not due at a single maturity and are shown separately. (Dollar amounts in thousands) Available for sale Amortized Cost Fair Value Due in one year or less $ 3,120 $ 3,108 Due after one year through five years 34,277 33,640 Due after five through ten years 18,018 17,672 Due after ten years 2,747 2,668 Mortgage-backed securities: residential 23,236 22,544 Collateralized mortgage obligations: residential 21,168 20,254 $ 102,566 $ 99,886 |
Schedule of Unrealized Loss on Investments | Information pertaining to debt securities with gross unrealized losses at June 30, 2018 and December 31, 2017 , aggregated by investment category and length of time that individual securities have been in a continuous loss position are included in the table below: (Dollar amounts in thousands) Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2018: U.S. Treasury and federal agency $ — $ — $ 4,411 $ (125 ) $ 4,411 $ (125 ) U.S. government sponsored entities and agencies 5,838 (154 ) 8,840 (283 ) 14,678 (437 ) U.S. agency mortgage-backed securities: residential 16,542 (455 ) 6,002 (237 ) 22,544 (692 ) U.S. agency collateralized mortgage obligations: residential 1,700 (6 ) 16,724 (940 ) 18,424 (946 ) State and political subdivisions 16,528 (367 ) 3,364 (97 ) 19,892 (464 ) Corporate debt securities 2,935 (69 ) 486 (17 ) 3,421 (86 ) $ 43,543 $ (1,051 ) $ 39,827 $ (1,699 ) $ 83,370 $ (2,750 ) December 31, 2017: U.S. Treasury and federal agency $ — $ — $ 4,472 $ (69 ) $ 4,472 $ (69 ) U.S. government sponsored entities and agencies 3,447 (42 ) 8,975 (170 ) 12,422 (212 ) U.S. agency mortgage-backed securities: residential 9,659 (48 ) 6,581 (105 ) 16,240 (153 ) U.S. agency collateralized mortgage obligations: residential 954 (16 ) 19,147 (692 ) 20,101 (708 ) State and political subdivisions 10,510 (60 ) 3,487 (36 ) 13,997 (96 ) Corporate debt securities 2,992 (16 ) 999 (1 ) 3,991 (17 ) $ 27,562 $ (182 ) $ 43,661 $ (1,073 ) $ 71,223 $ (1,255 ) |
Loans Receivable and Related 24
Loans Receivable and Related Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Classification of Loans Receivable | The Corporation’s loans receivable as of the respective dates are summarized as follows: (Dollar amounts in thousands) June 30, December 31, Mortgage loans on real estate: Residential first mortgages $ 230,504 $ 221,823 Home equity loans and lines of credit 100,454 99,940 Commercial real estate 198,602 193,068 529,560 514,831 Other loans: Commercial business 54,693 58,941 Consumer 9,123 9,589 63,816 68,530 Total loans, gross 593,376 583,361 Less allowance for loan losses 6,118 6,127 Total loans, net $ 587,258 $ 577,234 |
Allowance for Credit Losses on Financing Receivables | The following table details activity in the ALL and the recorded investment by portfolio segment based on impairment method: (Dollar amounts in thousands) Residential Home Equity Commercial Commercial Consumer Total Three months ended June 30, 2018: Allowance for loan losses: Beginning Balance $ 1,919 $ 651 $ 2,751 $ 560 $ 54 $ 5,935 Charge-offs — (63 ) (33 ) — (51 ) (147 ) Recoveries — 10 16 1 3 30 Provision 114 52 148 (62 ) 48 300 Ending Balance $ 2,033 $ 650 $ 2,882 $ 499 $ 54 $ 6,118 Six months ended June 30, 2018: Allowance for loan losses: Beginning Balance $ 2,090 $ 646 $ 2,753 $ 585 $ 53 $ 6,127 Charge-offs (61 ) (83 ) (418 ) — (170 ) (732 ) Recoveries 3 11 18 2 9 43 Provision 1 76 529 (88 ) 162 680 Ending Balance $ 2,033 $ 650 $ 2,882 $ 499 $ 54 $ 6,118 At June 30, 2018: Ending ALL balance attributable to loans: Individually evaluated for impairment $ 7 $ — $ — $ — $ — $ 7 Acquired loans collectively evaluated for impairment — — — — — — Originated loans collectively evaluated for impairment 2,026 650 2,882 499 54 6,111 Total $ 2,033 $ 650 $ 2,882 $ 499 $ 54 $ 6,118 Total loans: Individually evaluated for impairment $ 408 $ 7 $ 43 $ 39 $ — $ 497 Acquired loans collectively evaluated for impairment 18,501 10,203 24,247 2,173 1,307 56,431 Originated loans collectively evaluated for impairment 211,595 90,244 174,312 52,481 7,816 536,448 Total $ 230,504 $ 100,454 $ 198,602 $ 54,693 $ 9,123 $ 593,376 At December 31, 2017: Ending ALL balance attributable to loans: Individually evaluated for impairment $ 7 $ — $ — $ — $ — $ 7 Acquired loans collectively evaluated for impairment — — — — — — Originated loans collectively evaluated for impairment 2,083 646 2,753 585 53 6,120 Total $ 2,090 $ 646 $ 2,753 $ 585 $ 53 $ 6,127 Total loans: Individually evaluated for impairment $ 425 $ 8 $ 914 $ 569 $ — $ 1,916 Acquired loans collectively evaluated for impairment 20,300 10,873 27,404 1,451 2,893 62,921 Originated loans collectively evaluated for impairment 201,098 89,059 164,750 56,921 6,696 518,524 Total $ 221,823 $ 99,940 $ 193,068 $ 58,941 $ 9,589 $ 583,361 Three months ended June 30, 2017: Allowance for loan losses: Beginning Balance $ 1,956 $ 648 $ 2,449 $ 583 $ 52 $ 5,688 Charge-offs (10 ) (10 ) (90 ) (10 ) (8 ) (128 ) Recoveries — 1 2 — 3 6 Provision 48 — 99 48 6 201 Ending Balance $ 1,994 $ 639 $ 2,460 $ 621 $ 53 $ 5,767 Six months ended June 30, 2017: Allowance for loan losses: Beginning Balance $ 1,846 $ 633 $ 2,314 $ 700 $ 52 $ 5,545 Charge-offs (36 ) (11 ) (90 ) (10 ) (27 ) (174 ) Recoveries — 20 4 — 9 33 Provision 184 (3 ) 232 (69 ) 19 363 Ending Balance $ 1,994 $ 639 $ 2,460 $ 621 $ 53 $ 5,767 |
Schedule of Impaired Loans with and without a Specific Allowance | The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2018 : (Dollar amounts in thousands) Impaired Loans with Specific Allowance As of June 30, 2018 For the three months ended June 30, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 74 $ 74 $ 7 $ 75 $ 1 $ 1 Home equity and lines of credit 7 7 — 8 — — Commercial real estate — — — — — — Commercial business — — — — — — Consumer — — — — — — Total $ 81 $ 81 $ 7 $ 83 $ 1 $ 1 For the six months ended June 30, 2018 Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 75 $ 2 $ 2 Home equity and lines of credit 7 — — Commercial real estate — — — Commercial business — — — Consumer — — — Total $ 82 $ 2 $ 2 Impaired Loans with No Specific Allowance As of June 30, 2018 For the three months ended June 30, 2018 Unpaid Principal Balance Recorded Investment Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 446 $ 334 $ 339 $ 2 $ 2 Home equity and lines of credit — — — — — Commercial real estate 43 43 190 73 73 Commercial business 39 39 297 41 41 Consumer — — — — — Total $ 528 $ 416 $ 826 $ 116 $ 116 For the six months ended June 30, 2018 Average Interest Income Cash Basis Residential first mortgages $ 343 $ 2 $ 2 Home equity and lines of credit — — — Commercial real estate 431 73 73 Commercial business 387 42 42 Consumer — — — Total $ 1,161 $ 117 $ 117 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2017 : (Dollar amounts in thousands) Impaired Loans with Specific Allowance As of December 31, 2017 For the year ended Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 75 $ 75 $ 7 $ 88 $ 3 $ 3 Home equity and lines of credit 8 8 — 2 — — Commercial real estate — — — 111 — — Commercial business — — — 118 — — Consumer — — — — — — Total $ 83 $ 83 $ 7 $ 319 $ 3 $ 3 Impaired Loans with No Specific Allowance As of December 31, 2017 For the year ended Unpaid Principal Balance Recorded Investment Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 461 $ 350 $ 289 $ 8 $ 8 Home equity and lines of credit — — — — — Commercial real estate 1,089 914 855 3 3 Commercial business 569 569 498 3 3 Consumer — — — — — Total $ 2,119 $ 1,833 $ 1,642 $ 14 $ 14 5. Loans Receivable and Related Allowance for Loan Losses (continued) The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2017 : (Dollar amounts in thousands) Impaired Loans with Specific Allowance As of June 30, 2017 For the three months Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 76 $ 76 $ 8 $ 76 $ 1 $ 1 Home equity and lines of credit — — — — — — Commercial real estate — — — — — — Commercial business — — — — — — Consumer — — — — — — Total $ 76 $ 76 $ 8 $ 76 $ 1 $ 1 For the six months ended June 30, 2017 Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 96 $ 2 $ 2 Home equity and lines of credit — — — Commercial real estate 186 — — Commercial business 196 — — Consumer — — — Total $ 478 $ 2 $ 2 Impaired Loans with No Specific Allowance As of June 30, 2017 For the three months Unpaid Principal Balance Recorded Investment Average Recorded Investment Interest Income Recognized in Period Cash Basis Interest Recognized in Period Residential first mortgages $ 478 $ 366 $ 369 $ 3 $ 3 Home equity and lines of credit — — — — — Commercial real estate 1,149 975 983 — — Commercial business 600 600 620 — — Consumer — — — — — Total $ 2,227 $ 1,941 $ 1,972 $ 3 $ 3 For the six months ended June 30, 2017 Average Interest Income Cash Basis Residential first mortgages $ 246 $ 4 $ 4 Home equity and lines of credit — — — Commercial real estate 807 1 1 Commercial business 446 1 1 Consumer — — — Total $ 1,499 $ 6 $ 6 |
Financing Receivable Credit Quality Indicators | The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the Corporation’s internal risk rating system as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Not Rated Pass Special Mention Substandard Doubtful Total June 30, 2018: Residential first mortgages $ 229,401 $ — $ — $ 1,103 $ — $ 230,504 Home equity and lines of credit 99,474 — — 980 — 100,454 Commercial real estate — 187,762 3,831 7,009 — 198,602 Commercial business — 53,355 234 1,104 — 54,693 Consumer 9,037 — — 86 — 9,123 Total $ 337,912 $ 241,117 $ 4,065 $ 10,282 $ — $ 593,376 December 31, 2017: Residential first mortgages $ 220,730 $ — $ — $ 1,093 $ — $ 221,823 Home equity and lines of credit 98,946 — — 994 — 99,940 Commercial real estate — 182,460 2,744 7,864 — 193,068 Commercial business — 56,960 477 1,504 — 58,941 Consumer 9,443 — — 146 — 9,589 Total $ 329,119 $ 239,420 $ 3,221 $ 11,601 $ — $ 583,361 |
Past Due Financing Receivables | The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonperforming loans as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Performing Nonperforming Accruing Loans Not Past Due Accruing 30-59 Days Past Due Accruing 60-89 Days Past Due Accruing 90+ Days Past Due Nonaccrual Total June 30, 2018: Residential first mortgages $ 227,774 $ 1,264 $ 440 $ 59 $ 967 $ 230,504 Home equity and lines of credit 98,592 753 244 323 542 100,454 Commercial real estate 196,655 1,111 343 184 309 198,602 Commercial business 54,654 — — — 39 54,693 Consumer 8,660 354 46 — 63 9,123 Total loans $ 586,335 $ 3,482 $ 1,073 $ 566 $ 1,920 $ 593,376 December 31, 2017: Residential first mortgages $ 218,515 $ 1,936 $ 357 $ 159 $ 856 $ 221,823 Home equity and lines of credit 98,112 598 370 334 526 99,940 Commercial real estate 190,451 1,026 430 197 964 193,068 Commercial business 58,058 74 225 — 584 58,941 Consumer 9,162 273 81 — 73 9,589 Total loans $ 574,298 $ 3,907 $ 1,463 $ 690 $ 3,003 $ 583,361 |
Schedule of Financing Receivables, Non Accrual Status | The following table presents the Corporation’s nonaccrual loans by aging category as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Not Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days + Past Due Total June 30, 2018: Residential first mortgages $ 353 $ — $ 74 $ 540 $ 967 Home equity and lines of credit 7 — 9 526 542 Commercial real estate 205 — — 104 309 Commercial business 39 — — — 39 Consumer — — — 63 63 Total loans $ 604 $ — $ 83 $ 1,233 $ 1,920 December 31, 2017: Residential first mortgages 366 — 75 415 856 Home equity and lines of credit 8 — — 518 526 Commercial real estate 341 — — 623 964 Commercial business 569 — — 15 584 Consumer — — — 73 73 Total loans $ 1,284 $ — $ 75 $ 1,644 $ 3,003 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table summarizes the Corporation’s acquired goodwill and intangible assets as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) June 30, 2018 December 31, 2017 Gross Carrying Accumulated Gross Carrying Accumulated Goodwill $ 10,288 $ — $ 10,288 $ — Core deposit intangibles 4,426 4,081 4,426 3,945 Total $ 14,714 $ 4,081 $ 14,714 $ 3,945 |
Stock Compensation Plan (Tables
Stock Compensation Plan (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of the Corporation’s nonvested restricted stock awards as of June 30, 2018 , and changes during the period then ended is presented below: Shares Weighted-Average Grant-date Fair Value Nonvested at January 1, 2018 33,400 $ 27.70 Granted — — Vested — — Forfeited — — Nonvested as of June 30, 2018 33,400 $ 27.70 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy are as follows: (Dollar amounts in thousands) (Level 1) (Level 2) (Level 3) Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2018: Securities available for sale U.S. Treasury and federal agency $ 4,411 $ 4,411 $ — $ — U.S. government sponsored entities and agencies 20,590 — 20,590 — U.S. agency mortgage-backed securities: residential 22,544 — 22,544 — U.S. agency collateralized mortgage obligations: residential 20,254 — 20,254 — State and political subdivision 24,660 — 24,660 — Corporate debt securities 7,427 — 3,927 3,500 $ 99,886 $ 4,411 $ 91,975 $ 3,500 Equity securities $ 474 $ 474 $ — $ — December 31, 2017: Securities available for sale U.S. Treasury and federal agency 4,472 4,472 — — U.S. government sponsored entities and agencies 13,926 — 13,926 — U.S. agency mortgage-backed securities: residential 20,758 — 20,758 — U.S. agency collateralized mortgage obligations: residential 21,924 — 21,924 — State and political subdivisions 29,240 — 29,240 — Corporate debt securities 9,030 — 1,032 7,998 $ 99,350 $ 4,472 $ 86,880 $ 7,998 Equity securities $ 1,817 $ 1,683 $ — $ 134 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents changes in Level 3 assets measured on a recurring basis for the three and six month periods ended June 30, 2018 and 2017 : (Dollar amounts in thousands) Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance at the beginning of the period $ 3,525 $ 136 $ 8,132 $ 136 Total gains or losses (realized/unrealized): Included in earnings — — 1 — Included in other comprehensive income — (1 ) — (1 ) Acquired — — — — Sold out of Level 3 (25 ) — (25 ) — Transfers in and/or out of Level 3 — — (4,608 ) — Balance at the end of the period $ 3,500 $ 135 $ 3,500 $ 135 |
Schedule of Carrying Amount and Fair Values of Financial Instruments | The following table sets forth the carrying amount and estimated fair values of the Corporation’s financial instruments included in the consolidated balance sheet as of June 30, 2018 and December 31, 2017 : (Dollar amounts in thousands) Carrying Fair Value Measurements using: Description Amount Total Level 1 Level 2 Level 3 June 30, 2018: Financial Assets: Cash and cash equivalents $ 30,576 $ 30,576 $ 30,576 $ — $ — Securities - available for sale 99,886 99,886 4,411 91,975 3,500 Securities - equities 474 474 474 — — Loans held for sale — — — — — Loans, net 587,258 578,642 — — 578,642 Federal bank stock 4,403 N/A N/A N/A N/A Accrued interest receivable 2,250 2,250 65 382 1,803 $ 724,847 $ 711,828 $ 35,526 $ 92,357 $ 583,945 Financial Liabilities: Deposits 685,551 687,403 515,638 171,765 — Borrowed funds 20,050 19,653 — 19,653 — Accrued interest payable 410 410 32 378 — $ 706,011 $ 707,466 $ 515,670 $ 191,796 $ — Carrying Fair Value Measurements using: Amount Total Level 1 Level 2 Level 3 December 31, 2017: Financial Assets: Cash and cash equivalents $ 14,374 $ 14,374 $ 14,374 $ — $ — Securities - available for sale 99,350 99,350 4,472 86,880 7,998 Securities - equities 1,817 1,817 1,683 — 134 Loans held for sale 504 504 — 504 — Loans, net 577,234 577,616 — — 577,616 Federal bank stock 4,662 — N/A N/A N/A Accrued interest receivable 2,217 2,217 59 338 1,820 $ 700,158 $ 695,878 $ 20,588 $ 87,722 $ 587,568 Financial Liabilities: Deposits 654,643 657,414 483,956 173,458 — Borrowed funds 26,000 25,499 — 25,499 — Accrued interest payable 413 413 23 390 — $ 681,056 $ 683,326 $ 483,979 $ 199,347 $ — |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table sets forth certain information concerning the Bank’s regulatory capital as of the dates presented. The capital adequacy ratios disclosed below are exclusive of the capital conservation buffer. (Dollar amounts in thousands) June 30, 2018 December 31, 2017 Amount Ratio Amount Ratio Total capital to risk-weighted assets: Actual $ 65,901 13.26 % $ 64,221 12.96 % For capital adequacy purposes 39,759 8.00 % 39,630 8.00 % To be well capitalized 49,699 10.00 % 49,537 10.00 % Tier 1 capital to risk-weighted assets: Actual $ 59,783 12.03 % $ 58,088 11.73 % For capital adequacy purposes 29,820 6.00 % 29,722 6.00 % To be well capitalized 39,759 8.00 % 39,630 8.00 % Common Equity Tier 1 capital to risk-weighted assets: Actual $ 59,783 12.03 % $ 58,088 11.73 % For capital adequacy purposes 22,365 4.50 % 22,292 4.50 % To be well capitalized 32,305 6.50 % 32,199 6.50 % Tier 1 capital to average assets: Actual $ 59,783 7.87 % $ 58,088 7.71 % For capital adequacy purposes 30,372 4.00 % 30,117 4.00 % To be well capitalized 37,965 5.00 % 37,647 5.00 % |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | (Dollar amounts in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Totals Accumulated Other Comprehensive Income (Loss) at April 1, 2017 $ (421 ) $ (3,812 ) $ (4,233 ) Other comprehensive income before reclassification 10 — 10 Amounts reclassified from accumulated other comprehensive income (loss) 104 — 104 Net current period other comprehensive income 114 — 114 Accumulated Other Comprehensive Income (Loss) at June 30, 2017 $ (307 ) $ (3,812 ) $ (4,119 ) (Dollar amounts in thousands) Unrealized Gains Defined Totals Accumulated Other Comprehensive Income (Loss) at January 1, 2017 $ (679 ) $ (3,812 ) $ (4,491 ) Other comprehensive income before reclassification 268 — 268 Amounts reclassified from accumulated other comprehensive income (loss) 104 — 104 Net current period other comprehensive income 372 — 372 Accumulated Other Comprehensive Income (Loss) at June 30, 2017 $ (307 ) $ (3,812 ) $ (4,119 ) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss), net of tax, for the six months ended June 30, 2018 and 2017 and summarized the significant amounts reclassified out of each component of accumulated other comprehensive income: (Dollar amounts in thousands) Unrealized Gains Defined Totals Accumulated Other Comprehensive Income (Loss) at December 31, 2017 $ (679 ) $ (4,839 ) $ (5,518 ) Cumulative effect of change in accounting principle for marketable equity securities, net of tax (187 ) — (187 ) Accumulated Other Comprehensive Income (Loss) at January 1, 2018, as adjusted $ (866 ) $ (4,839 ) $ (5,705 ) Other comprehensive income before reclassification (1,275 ) — (1,275 ) Amounts reclassified from accumulated other comprehensive income (loss) 24 — 24 Net current period other comprehensive income (1,251 ) — (1,251 ) Accumulated Other Comprehensive Income (Loss) at June 30, 2018 (2,117 ) (4,839 ) (6,956 ) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss), net of tax, for the three months ended June 30, 2018 and 2017 and summarizes the significant amounts reclassified out of each component of accumulated other comprehensive income: (Dollar amounts in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Totals Accumulated Other Comprehensive Income (Loss) at April 1, 2018 $ (1,881 ) $ (4,839 ) $ (6,720 ) Other comprehensive income before reclassification (237 ) — (237 ) Amounts reclassified from accumulated other comprehensive income (loss) 1 — 1 Net current period other comprehensive income (236 ) — (236 ) Accumulated Other Comprehensive Income (Loss) at June 30, 2018 $ (2,117 ) $ (4,839 ) $ (6,956 ) |
Reclassification out of Accumulated Other Comprehensive Income | (Dollar amount in thousands) Details about Accumulated Other Amount Reclassified Affected Line Item in the Unrealized gains and losses on available-for-sale securities (31 ) Net gain (loss) on sale of available-for-sale securities Unrealized gains and losses on available-for-sale securities — Other than temporary impairment losses 7 Provision for income taxes Total reclassifications for the period (24 ) Net of tax (Dollar amounts in thousands) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified Affected Line Item in the Statement Where Net Income is Presented Unrealized gains and losses on available-for-sale securities $ (2 ) Net gain (loss) on sale of securities 1 Provision for income taxes Total reclassifications for the period $ (1 ) Net of tax (Dollar amount in thousands) Details about Accumulated Other Amount Reclassified Affected Line Item in the Unrealized gains and losses on available-for-sale securities 350 Net gain on sale of available-for-sale securities Unrealized gains and losses on available-for-sale securities (508 ) Other than temporary impairment losses 54 Provision for income taxes Total reclassifications for the period (104 ) Net of tax (Dollar amounts in thousands) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified Affected Line Item in the Statement Where Net Income is Presented Unrealized gains and losses on available-for-sale securities $ 350 Net gain on sale of available-for-sale securities Unrealized gains and losses on available-for-sale securities (508 ) Other than temporary impairment losses 54 Provision for income taxes Total reclassifications for the period $ (104 ) Net of tax (Dollar amounts in thousands) Details about Accumulated Other Comprehensive Loss Components Amount Reclassified Affected Line Item in the Statement Where Net Income is Presented Unrealized gains and losses on available-for-sale securities $ (2 ) Net gain (loss) on sale of securities 1 Provision for income taxes Total reclassifications for the period $ (1 ) Net of tax |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Corporation's sources of noninterest income for the three and six months ended June 30, 2018 and 2017. (Dollar amount in thousands) For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 Noninterest income In-scope of Topic 606: Service charges on deposits Maintenance fees $ 37 $ 38 $ 76 $ 78 Overdraft fees 353 326 682 624 Other fees 73 71 142 141 Electronic banking fees 329 292 644 562 Noninterest income (in-scope of Topic 606) 792 727 1,544 1,405 Noninterest income (out-of-scope of Topic 606) (1) 257 141 403 318 Total noninterest income $ 1,049 $ 868 $ 1,947 $ 1,723 (1) Noninterest income items that are out-of-scope include net realized gains (losses) on sales of securities, net gains (losses) on sales of loans, earnings on bank-owned life insurance and certain other noninterest income items. |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2018USD ($)$ / sharesshares | Jun. 30, 2018office | |
Community First | Forecast | ||
Business Acquisition [Line Items] | ||
Equity issuable (in shares) | shares | 1.2008 | |
Cash consideration per share (in dollars per share) | $ / shares | $ 6.95 | |
Equity issuable | $ | $ 16.3 | |
Payments to acquire businesses, gross | $ | $ 2.6 | |
Community First | Clarion County, PA | ||
Business Acquisition [Line Items] | ||
Number of offices | office | 2 | |
Community First | Jefferson County, PA | ||
Business Acquisition [Line Items] | ||
Number of offices | office | 2 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings per common share - basic | ||||
Net income | $ 1,413 | $ 1,041 | $ 2,775 | $ 1,997 |
Average common shares outstanding (in shares) | 2,271,139 | 2,164,747 | 2,271,139 | 2,158,587 |
Basic earnings per common share (in dollars per share) | $ 0.62 | $ 0.48 | $ 1.22 | $ 0.93 |
Earnings per common share - diluted | ||||
Net income | $ 1,413 | $ 1,041 | $ 2,775 | $ 1,997 |
Average common shares outstanding (in shares) | 2,271,139 | 2,164,747 | 2,271,139 | 2,158,587 |
Add: Dilutive effects of assumed issuance of restricted stock and exercise of stock options (in shares) | 17,090 | 18,014 | 15,663 | 16,936 |
Average shares and dilutive potential common shares (in shares) | 2,288,229 | 2,182,761 | 2,286,802 | 2,175,523 |
Diluted earnings per common share (in dollars per share) | $ 0.62 | $ 0.48 | $ 1.21 | $ 0.92 |
Securities - Equity Securities
Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities - equity investments | $ 474 | $ 474 | $ 1,817 |
Equity securities, gross unrealized loss | 67 | 62 | |
Equity securities, sold, amount | 266 | 1,200 | |
Loss on sale of equity investments | $ 2 | $ 25 |
Securities - Summary of Debt Se
Securities - Summary of Debt Securities - Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 102,566 | $ 100,446 |
Gross Unrealized Gains | 70 | 159 |
Gross Unrealized Losses | (2,750) | (1,255) |
Fair Value | 99,886 | 99,350 |
U.S. Treasury and federal agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,536 | 4,541 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (125) | (69) |
Fair Value | 4,411 | 4,472 |
U.S. government sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,007 | 14,136 |
Gross Unrealized Gains | 20 | 2 |
Gross Unrealized Losses | (437) | (212) |
Fair Value | 20,590 | 13,926 |
U.S. agency mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,236 | 20,904 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized Losses | (692) | (153) |
Fair Value | 22,544 | 20,758 |
U.S. agency collateralized mortgage obligations: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,168 | 22,607 |
Gross Unrealized Gains | 32 | 25 |
Gross Unrealized Losses | (946) | (708) |
Fair Value | 20,254 | 21,924 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,112 | 29,249 |
Gross Unrealized Gains | 12 | 87 |
Gross Unrealized Losses | (464) | (96) |
Fair Value | 24,660 | 29,240 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,507 | 9,009 |
Gross Unrealized Gains | 6 | 38 |
Gross Unrealized Losses | (86) | (17) |
Fair Value | $ 7,427 | $ 9,030 |
Securities - Summary of Schedul
Securities - Summary of Scheduled Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 3,120 | |
Due after one year through five years | 34,277 | |
Due after five through ten years | 18,018 | |
Due after ten years | 2,747 | |
Amortized Cost | 102,566 | $ 100,446 |
Fair Value | ||
Due in one year or less | 3,108 | |
Due after one year through five years | 33,640 | |
Due after five through ten years | 17,672 | |
Due after ten years | 2,668 | |
Fair Value | 99,886 | 99,350 |
U.S. agency mortgage-backed securities: residential | ||
Amortized Cost | ||
Amortized Cost | 23,236 | 20,904 |
Fair Value | ||
Fair Value | 22,544 | 20,758 |
U.S. agency collateralized mortgage obligations: residential | ||
Amortized Cost | ||
Amortized Cost | 21,168 | 22,607 |
Fair Value | ||
Fair Value | $ 20,254 | $ 21,924 |
Securities - Schedule of Securi
Securities - Schedule of Securities with Gross Unrealized Loses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than 12 Months | $ 43,543 | $ 27,562 |
12 Months or More | 39,827 | 43,661 |
Total | 83,370 | 71,223 |
Unrealized Loss | ||
Less than 12 Months | (1,051) | (182) |
12 Months or More | (1,699) | (1,073) |
Total | (2,750) | (1,255) |
U.S. Treasury and federal agency | ||
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 4,411 | 4,472 |
Total | 4,411 | 4,472 |
Unrealized Loss | ||
Less than 12 Months | 0 | 0 |
12 Months or More | (125) | (69) |
Total | (125) | (69) |
U.S. government sponsored entities and agencies | ||
Fair Value | ||
Less than 12 Months | 5,838 | 3,447 |
12 Months or More | 8,840 | 8,975 |
Total | 14,678 | 12,422 |
Unrealized Loss | ||
Less than 12 Months | (154) | (42) |
12 Months or More | (283) | (170) |
Total | (437) | (212) |
U.S. agency mortgage-backed securities: residential | ||
Fair Value | ||
Less than 12 Months | 16,542 | 9,659 |
12 Months or More | 6,002 | 6,581 |
Total | 22,544 | 16,240 |
Unrealized Loss | ||
Less than 12 Months | (455) | (48) |
12 Months or More | (237) | (105) |
Total | (692) | (153) |
U.S. agency collateralized mortgage obligations: residential | ||
Fair Value | ||
Less than 12 Months | 1,700 | 954 |
12 Months or More | 16,724 | 19,147 |
Total | 18,424 | 20,101 |
Unrealized Loss | ||
Less than 12 Months | (6) | (16) |
12 Months or More | (940) | (692) |
Total | (946) | (708) |
State and political subdivisions | ||
Fair Value | ||
Less than 12 Months | 16,528 | 10,510 |
12 Months or More | 3,364 | 3,487 |
Total | 19,892 | 13,997 |
Unrealized Loss | ||
Less than 12 Months | (367) | (60) |
12 Months or More | (97) | (36) |
Total | (464) | (96) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 Months | 2,935 | 2,992 |
12 Months or More | 486 | 999 |
Total | 3,421 | 3,991 |
Unrealized Loss | ||
Less than 12 Months | (69) | (16) |
12 Months or More | (17) | (1) |
Total | $ (86) | $ (17) |
Securities - Gains on Sales of
Securities - Gains on Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 264 | $ 18,195 | $ 6,795 | $ 18,195 |
Gains (losses) | (2) | 350 | (31) | 350 |
Tax (benefit) provision related to gains | $ 0 | $ 119 | $ (6) | $ 119 |
Securities - Debt Securities, A
Securities - Debt Securities, Additional Information (Details) | Jun. 30, 2018security |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 120 |
Securities in unrealized loss positions greater than or equal to one year | 53 |
U.S. agency collateralized mortgage obligations: residential | |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 24 |
State and political subdivisions | |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 9 |
U.S. government sponsored entities and agencies | |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 8 |
U.S. agency mortgage-backed securities: residential | |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 6 |
U.S. Treasury and federal agency | |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 5 |
Corporate debt securities | |
Debt Securities, Available-for-sale [Line Items] | |
Number of securities in unrealized loss position | 1 |
Loans Receivable and Related 39
Loans Receivable and Related Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | $ 593,376 | $ 583,361 | ||||
Less allowance for loan losses | 6,118 | $ 5,935 | 6,127 | $ 5,767 | $ 5,688 | $ 5,545 |
Total loans, net | 587,258 | 577,234 | ||||
Residential first mortgages | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 230,504 | 221,823 | ||||
Less allowance for loan losses | 2,033 | 1,919 | 2,090 | 1,994 | 1,956 | 1,846 |
Home equity loans and lines of credit | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 100,454 | 99,940 | ||||
Less allowance for loan losses | 650 | 651 | 646 | 639 | 648 | 633 |
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 198,602 | 193,068 | ||||
Less allowance for loan losses | 2,882 | 2,751 | 2,753 | 2,460 | 2,449 | 2,314 |
Commercial business | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 54,693 | 58,941 | ||||
Less allowance for loan losses | 499 | 560 | 585 | 621 | 583 | 700 |
Consumer | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 9,123 | 9,589 | ||||
Less allowance for loan losses | 54 | $ 54 | 53 | $ 53 | $ 52 | $ 52 |
Mortgage loans on real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 529,560 | 514,831 | ||||
Mortgage loans on real estate | Residential first mortgages | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 230,504 | 221,823 | ||||
Mortgage loans on real estate | Home equity loans and lines of credit | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 100,454 | 99,940 | ||||
Mortgage loans on real estate | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 198,602 | 193,068 | ||||
Other loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 63,816 | 68,530 | ||||
Other loans | Commercial business | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | 54,693 | 58,941 | ||||
Other loans | Consumer | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total | $ 9,123 | $ 9,589 |
Loans Receivable and Related 40
Loans Receivable and Related Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Deferred costs | $ 1,800,000 | $ 1,800,000 | $ 1,500,000 | |||||
Allowance for loan losses | 6,118,000 | $ 5,767,000 | 6,118,000 | $ 5,767,000 | $ 5,935,000 | 6,127,000 | $ 5,688,000 | $ 5,545,000 |
Loans classified as TDRs | 415,000 | 415,000 | 433,000 | |||||
Allowance loan losses allocated to TDRs | $ 7,000 | $ 7,000 | 7,000 | |||||
Number of loans modified | loan | 0 | 0 | ||||||
Threshold period past due for payment default consideration | 30 days | |||||||
Loans modified as TDRs with payment default after 12 months of modification | loan | 0 | 0 | 0 | 0 | ||||
Weighted average period of loss estimate | 3 years | |||||||
United American Savings Bank | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan losses | $ 0 | $ 0 | ||||||
Northern Hancock | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan losses | 0 | 0 | ||||||
Residential first mortgages | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Allowance for loan losses | $ 2,033,000 | $ 1,994,000 | $ 2,033,000 | $ 1,994,000 | $ 1,919,000 | $ 2,090,000 | $ 1,956,000 | $ 1,846,000 |
Loans classified as TDRs | 323,000 | 323,000 | ||||||
Allowance loan losses allocated to TDRs | $ 0 | $ 0 | ||||||
Number of loans modified | loan | 1 | 1 |
Loans Receivable and Related 41
Loans Receivable and Related Allowance for Loan Losses - Activity in Allowance for Loan Losses by Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Allowance for loan losses: | |||||
Beginning Balance | $ 5,935 | $ 5,688 | $ 6,127 | $ 5,545 | $ 5,545 |
Charge-offs | (147) | (128) | (732) | (174) | |
Recoveries | 30 | 6 | 43 | 33 | |
Provision | 300 | 201 | 680 | 363 | |
Ending Balance | 6,118 | 5,767 | 6,118 | 5,767 | 6,127 |
Ending ALL balance attributable to loans: | |||||
Individually evaluated for impairment | 7 | 7 | 7 | ||
Acquired loans collectively evaluated for impairment | 0 | 0 | |||
Originated loans collectively evaluated for impairment | 6,111 | 6,111 | 6,120 | ||
Total loans: | |||||
Individually evaluated for impairment | 497 | 497 | 1,916 | ||
Acquired loans collectively evaluated for impairment | 56,431 | 62,921 | |||
Originated loans collectively evaluated for impairment | 536,448 | 536,448 | 518,524 | ||
Total | 593,376 | 593,376 | 583,361 | ||
Residential Mortgages | |||||
Allowance for loan losses: | |||||
Beginning Balance | 1,919 | 1,956 | 2,090 | 1,846 | 1,846 |
Charge-offs | 0 | (10) | (61) | (36) | |
Recoveries | 0 | 0 | 3 | 0 | |
Provision | 114 | 48 | 1 | 184 | |
Ending Balance | 2,033 | 1,994 | 2,033 | 1,994 | 2,090 |
Ending ALL balance attributable to loans: | |||||
Individually evaluated for impairment | 7 | 7 | 7 | ||
Acquired loans collectively evaluated for impairment | 0 | 0 | |||
Originated loans collectively evaluated for impairment | 2,026 | 2,026 | 2,083 | ||
Total loans: | |||||
Individually evaluated for impairment | 408 | 408 | 425 | ||
Acquired loans collectively evaluated for impairment | 18,501 | 20,300 | |||
Originated loans collectively evaluated for impairment | 211,595 | 211,595 | 201,098 | ||
Total | 230,504 | 230,504 | 221,823 | ||
Home Equity & Lines of Credit | |||||
Allowance for loan losses: | |||||
Beginning Balance | 651 | 648 | 646 | 633 | 633 |
Charge-offs | (63) | (10) | (83) | (11) | |
Recoveries | 10 | 1 | 11 | 20 | |
Provision | 52 | 0 | 76 | (3) | |
Ending Balance | 650 | 639 | 650 | 639 | 646 |
Ending ALL balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired loans collectively evaluated for impairment | 0 | 0 | |||
Originated loans collectively evaluated for impairment | 650 | 650 | 646 | ||
Total loans: | |||||
Individually evaluated for impairment | 7 | 7 | 8 | ||
Acquired loans collectively evaluated for impairment | 10,203 | 10,873 | |||
Originated loans collectively evaluated for impairment | 90,244 | 90,244 | 89,059 | ||
Total | 100,454 | 100,454 | 99,940 | ||
Commercial Real Estate | |||||
Allowance for loan losses: | |||||
Beginning Balance | 2,751 | 2,449 | 2,753 | 2,314 | 2,314 |
Charge-offs | (33) | (90) | (418) | (90) | |
Recoveries | 16 | 2 | 18 | 4 | |
Provision | 148 | 99 | 529 | 232 | |
Ending Balance | 2,882 | 2,460 | 2,882 | 2,460 | 2,753 |
Ending ALL balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired loans collectively evaluated for impairment | 0 | 0 | |||
Originated loans collectively evaluated for impairment | 2,882 | 2,882 | 2,753 | ||
Total loans: | |||||
Individually evaluated for impairment | 43 | 43 | 914 | ||
Acquired loans collectively evaluated for impairment | 24,247 | 27,404 | |||
Originated loans collectively evaluated for impairment | 174,312 | 174,312 | 164,750 | ||
Total | 198,602 | 198,602 | 193,068 | ||
Commercial Business | |||||
Allowance for loan losses: | |||||
Beginning Balance | 560 | 583 | 585 | 700 | 700 |
Charge-offs | 0 | (10) | 0 | (10) | |
Recoveries | 1 | 0 | 2 | 0 | |
Provision | (62) | 48 | (88) | (69) | |
Ending Balance | 499 | 621 | 499 | 621 | 585 |
Ending ALL balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired loans collectively evaluated for impairment | 0 | 0 | |||
Originated loans collectively evaluated for impairment | 499 | 499 | 585 | ||
Total loans: | |||||
Individually evaluated for impairment | 39 | 39 | 569 | ||
Acquired loans collectively evaluated for impairment | 2,173 | 1,451 | |||
Originated loans collectively evaluated for impairment | 52,481 | 52,481 | 56,921 | ||
Total | 54,693 | 54,693 | 58,941 | ||
Consumer | |||||
Allowance for loan losses: | |||||
Beginning Balance | 54 | 52 | 53 | 52 | 52 |
Charge-offs | (51) | (8) | (170) | (27) | |
Recoveries | 3 | 3 | 9 | 9 | |
Provision | 48 | 6 | 162 | 19 | |
Ending Balance | 54 | $ 53 | 54 | $ 53 | 53 |
Ending ALL balance attributable to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired loans collectively evaluated for impairment | 0 | 0 | |||
Originated loans collectively evaluated for impairment | 54 | 54 | 53 | ||
Total loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Acquired loans collectively evaluated for impairment | 1,307 | 2,893 | |||
Originated loans collectively evaluated for impairment | 7,816 | 7,816 | 6,696 | ||
Total | $ 9,123 | $ 9,123 | $ 9,589 |
Loans Receivable and Related 42
Loans Receivable and Related Allowance for Loan Losses - Impaired Loans by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Impaired Loans with Specific Allowance | |||||
Unpaid Principal Balance | $ 81 | $ 76 | $ 81 | $ 76 | $ 83 |
Recorded Investment | 81 | 76 | 81 | 76 | 83 |
Related Allowance | 7 | 8 | 7 | 8 | 7 |
Average Recorded Investment | 83 | 76 | 82 | 478 | 319 |
Interest Income Recognized in Period | 1 | 1 | 2 | 2 | 3 |
Cash Basis Interest Recognized in Period | 1 | 1 | 2 | 2 | 3 |
Impaired Loans with No Specific Allowance | |||||
Unpaid Principal Balance | 528 | 2,227 | 528 | 2,227 | 2,119 |
Recorded Investment | 416 | 1,941 | 416 | 1,941 | 1,833 |
Average Recorded Investment | 826 | 1,972 | 1,161 | 1,499 | 1,642 |
Interest Income Recognized in Period | 116 | 3 | 117 | 6 | 14 |
Cash Basis Interest Recognized in Period | 116 | 3 | 117 | 6 | 14 |
Residential first mortgages | |||||
Impaired Loans with Specific Allowance | |||||
Unpaid Principal Balance | 74 | 76 | 74 | 76 | 75 |
Recorded Investment | 74 | 76 | 74 | 76 | 75 |
Related Allowance | 7 | 8 | 7 | 8 | 7 |
Average Recorded Investment | 75 | 76 | 75 | 96 | 88 |
Interest Income Recognized in Period | 1 | 1 | 2 | 2 | 3 |
Cash Basis Interest Recognized in Period | 1 | 1 | 2 | 2 | 3 |
Impaired Loans with No Specific Allowance | |||||
Unpaid Principal Balance | 446 | 478 | 446 | 478 | 461 |
Recorded Investment | 334 | 366 | 334 | 366 | 350 |
Average Recorded Investment | 339 | 369 | 343 | 246 | 289 |
Interest Income Recognized in Period | 2 | 3 | 2 | 4 | 8 |
Cash Basis Interest Recognized in Period | 2 | 3 | 2 | 4 | 8 |
Home equity loans and lines of credit | |||||
Impaired Loans with Specific Allowance | |||||
Unpaid Principal Balance | 7 | 0 | 7 | 0 | 8 |
Recorded Investment | 7 | 0 | 7 | 0 | 8 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 8 | 0 | 7 | 0 | 2 |
Interest Income Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Cash Basis Interest Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Impaired Loans with No Specific Allowance | |||||
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Interest Income Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Cash Basis Interest Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Commercial real estate | |||||
Impaired Loans with Specific Allowance | |||||
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 186 | 111 |
Interest Income Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Cash Basis Interest Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Impaired Loans with No Specific Allowance | |||||
Unpaid Principal Balance | 43 | 1,149 | 43 | 1,149 | 1,089 |
Recorded Investment | 43 | 975 | 43 | 975 | 914 |
Average Recorded Investment | 190 | 983 | 431 | 807 | 855 |
Interest Income Recognized in Period | 73 | 0 | 73 | 1 | 3 |
Cash Basis Interest Recognized in Period | 73 | 0 | 73 | 1 | 3 |
Commercial business | |||||
Impaired Loans with Specific Allowance | |||||
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 196 | 118 |
Interest Income Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Cash Basis Interest Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Impaired Loans with No Specific Allowance | |||||
Unpaid Principal Balance | 39 | 600 | 39 | 600 | 569 |
Recorded Investment | 39 | 600 | 39 | 600 | 569 |
Average Recorded Investment | 297 | 620 | 387 | 446 | 498 |
Interest Income Recognized in Period | 41 | 0 | 42 | 1 | 3 |
Cash Basis Interest Recognized in Period | 41 | 0 | 42 | 1 | 3 |
Consumer | |||||
Impaired Loans with Specific Allowance | |||||
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Interest Income Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Cash Basis Interest Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Impaired Loans with No Specific Allowance | |||||
Unpaid Principal Balance | 0 | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | 0 | 0 | 0 | 0 | 0 |
Interest Income Recognized in Period | 0 | 0 | 0 | 0 | 0 |
Cash Basis Interest Recognized in Period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and Related 43
Loans Receivable and Related Allowance for Loan Losses - Loan Portfolio by Internal Risk Rating System (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 593,376 | $ 583,361 |
Not Rated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 337,912 | 329,119 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 241,117 | 239,420 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 4,065 | 3,221 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 10,282 | 11,601 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Residential first mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 230,504 | 221,823 |
Residential first mortgages | Not Rated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 229,401 | 220,730 |
Residential first mortgages | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Residential first mortgages | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Residential first mortgages | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,103 | 1,093 |
Residential first mortgages | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Home equity loans and lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 100,454 | 99,940 |
Home equity loans and lines of credit | Not Rated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 99,474 | 98,946 |
Home equity loans and lines of credit | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Home equity loans and lines of credit | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Home equity loans and lines of credit | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 980 | 994 |
Home equity loans and lines of credit | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 198,602 | 193,068 |
Commercial real estate | Not Rated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 187,762 | 182,460 |
Commercial real estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 3,831 | 2,744 |
Commercial real estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 7,009 | 7,864 |
Commercial real estate | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 54,693 | 58,941 |
Commercial Business | Not Rated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Commercial Business | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 53,355 | 56,960 |
Commercial Business | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 234 | 477 |
Commercial Business | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,104 | 1,504 |
Commercial Business | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 9,123 | 9,589 |
Consumer | Not Rated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 9,037 | 9,443 |
Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Consumer | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Consumer | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 86 | 146 |
Consumer | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 0 | $ 0 |
Loans Receivable and Related 44
Loans Receivable and Related Allowance for Loan Losses - Classes of Loan Portfolio by Aging Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Not Past Due | $ 586,335 | $ 574,298 |
Nonaccrual | 1,920 | 3,003 |
Total loans | 593,376 | 583,361 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 3,482 | 3,907 |
Nonaccrual | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 1,073 | 1,463 |
Nonaccrual | 83 | 75 |
90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 566 | 690 |
Nonaccrual | 1,233 | 1,644 |
Residential first mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Not Past Due | 227,774 | 218,515 |
Nonaccrual | 967 | 856 |
Total loans | 230,504 | 221,823 |
Residential first mortgages | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 1,264 | 1,936 |
Nonaccrual | 0 | 0 |
Residential first mortgages | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 440 | 357 |
Nonaccrual | 74 | 75 |
Residential first mortgages | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 59 | 159 |
Nonaccrual | 540 | 415 |
Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Not Past Due | 98,592 | 98,112 |
Nonaccrual | 542 | 526 |
Total loans | 100,454 | 99,940 |
Home equity loans and lines of credit | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 753 | 598 |
Nonaccrual | 0 | 0 |
Home equity loans and lines of credit | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 244 | 370 |
Nonaccrual | 9 | 0 |
Home equity loans and lines of credit | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 323 | 334 |
Nonaccrual | 526 | 518 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Not Past Due | 196,655 | 190,451 |
Nonaccrual | 309 | 964 |
Total loans | 198,602 | 193,068 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 1,111 | 1,026 |
Nonaccrual | 0 | 0 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 343 | 430 |
Nonaccrual | 0 | 0 |
Commercial real estate | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 184 | 197 |
Nonaccrual | 104 | 623 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Not Past Due | 54,654 | 58,058 |
Nonaccrual | 39 | 584 |
Total loans | 54,693 | 58,941 |
Commercial business | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 0 | 74 |
Nonaccrual | 0 | 0 |
Commercial business | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 0 | 225 |
Nonaccrual | 0 | 0 |
Commercial business | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 0 | 0 |
Nonaccrual | 0 | 15 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Not Past Due | 8,660 | 9,162 |
Nonaccrual | 63 | 73 |
Total loans | 9,123 | 9,589 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 354 | 273 |
Nonaccrual | 0 | 0 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 46 | 81 |
Nonaccrual | 0 | 0 |
Consumer | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans Past Due | 0 | 0 |
Nonaccrual | $ 63 | $ 73 |
Loans Receivable and Related 45
Loans Receivable and Related Allowance for Loan Losses - Nonaccrual Loans by Aging Category (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 1,920 | $ 3,003 |
Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 604 | 1,284 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 83 | 75 |
90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,233 | 1,644 |
Residential first mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 967 | 856 |
Residential first mortgages | Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 353 | 366 |
Residential first mortgages | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential first mortgages | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 74 | 75 |
Residential first mortgages | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 540 | 415 |
Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 542 | 526 |
Home equity loans and lines of credit | Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 7 | 8 |
Home equity loans and lines of credit | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Home equity loans and lines of credit | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 9 | 0 |
Home equity loans and lines of credit | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 526 | 518 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 309 | 964 |
Commercial real estate | Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 205 | 341 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial real estate | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 104 | 623 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 39 | 584 |
Commercial business | Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 39 | 569 |
Commercial business | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial business | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial business | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 15 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 63 | 73 |
Consumer | Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer | 90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 63 | $ 73 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Acquired Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Gross Carrying Amount | ||
Goodwill | $ 10,288 | $ 10,288 |
Core deposit intangibles | 4,426 | 4,426 |
Total | 14,714 | 14,714 |
Accumulated Amortization | ||
Core deposit intangibles | $ 4,081 | $ 3,945 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)acquisition | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)acquisition | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of acquisitions resulting in goodwill | acquisition | 4 | 4 | |||
Goodwill impairment loss | $ | $ 0 | $ 0 | |||
Number of acquisitions resulting in intangible assets | acquisition | 3 | 3 | |||
Intangible asset amortization | $ | $ 68,000 | $ 59,000 | $ 136,000 | $ 119,000 |
Stock Compensation Plan - Addit
Stock Compensation Plan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (in shares) | 176,866 | ||||
Options granted (in shares) | 0 | ||||
Options outstanding (in shares) | 0 | 0 | |||
Allocated share-based compensation expense | $ 75 | $ 55 | $ 150 | $ 110 | |
Unrecognized compensation expense related to nonvested share-based plans | $ 515 | $ 515 | |||
Period of recognition for unrecognized compensation expense | 3 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grants (in shares) | 52,533 | 52,533 | |||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grants (in shares) | 88,433 | 88,433 | |||
Expected term | 10 years |
Stock Compensation Plan - Summa
Stock Compensation Plan - Summary of Nonvested Restricted Stock Awards (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Nonvested balance at beginning of period (in shares) | shares | 33,400 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Nonvested balance at end of period (in shares) | shares | 33,400 |
Weighted-Average Grant-date Fair Value | |
Nonvested balance at beginning of period (in dollars per share) | $ / shares | $ 27.70 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested balance at end of period (in dollars per share) | $ / shares | $ 27.70 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision for loan losses | $ 300,000 | $ 201,000 | $ 680,000 | $ 363,000 | |
Other real estate | 157,000 | 157,000 | $ 0 | ||
OREO outstanding | $ 168,000 | 168,000 | |||
OREO write-down expense | $ 11,000 | ||||
Discount Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount rate | 0.10 | 0.10 | |||
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other real estate | $ 157,000 | $ 157,000 | 0 | ||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities, sold, amount | 25,000 | 0 | 25,000 | 0 | |
Level 3 | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities, sold, amount | 25,000 | 25,000 | |||
Real Estate Loan | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans classified as TDRs | 67,000 | 67,000 | 68,000 | ||
Home Equity Loan | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans classified as TDRs | 7,000 | 7,000 | 8,000 | ||
Market and Income Approach Valuation Technique | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired financing receivable, recorded investment | 0 | 0 | $ 0 | ||
Market and Income Approach Valuation Technique | Impaired Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Provision for loan losses | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value - Assets Measured at
Fair Value - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | $ 99,886 | $ 99,350 |
Equity securities | 474 | 1,817 |
U.S. Treasury and federal agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 4,411 | 4,472 |
U.S. government sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 20,590 | 13,926 |
U.S. agency mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 22,544 | 20,758 |
U.S. agency collateralized mortgage obligations: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 20,254 | 21,924 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 24,660 | 29,240 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 7,427 | 9,030 |
Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 4,411 | 4,472 |
Equity securities | 474 | 1,683 |
Level 1 | U.S. Treasury and federal agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 4,411 | 4,472 |
Level 1 | U.S. government sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 1 | U.S. agency mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 1 | U.S. agency collateralized mortgage obligations: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 1 | State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 1 | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 91,975 | 86,880 |
Equity securities | 0 | 0 |
Level 2 | U.S. Treasury and federal agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 2 | U.S. government sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 20,590 | 13,926 |
Level 2 | U.S. agency mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 22,544 | 20,758 |
Level 2 | U.S. agency collateralized mortgage obligations: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 20,254 | 21,924 |
Level 2 | State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 24,660 | 29,240 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 3,927 | 1,032 |
Level 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 3,500 | 7,998 |
Equity securities | 0 | 134 |
Level 3 | U.S. Treasury and federal agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 3 | U.S. government sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 3 | U.S. agency mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 3 | U.S. agency collateralized mortgage obligations: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 3 | State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | 0 | 0 |
Level 3 | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities - available for sale | $ 3,500 | $ 7,998 |
Fair Value - Changes in Level 3
Fair Value - Changes in Level 3 Assets Measured on a Recurring Basis (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at the beginning of the period | $ 3,525 | $ 136 | $ 8,132 | $ 136 |
Total gains or losses (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 1 | 0 |
Included in other comprehensive income | 0 | (1) | 0 | (1) |
Acquired | 0 | 0 | 0 | 0 |
Sold out of Level 3 | (25) | 0 | (25) | 0 |
Transfers in and/or out of Level 3 | 0 | 0 | (4,608) | 0 |
Balance at the end of the period | $ 3,500 | $ 135 | $ 3,500 | $ 135 |
Fair Value - Carrying Amount an
Fair Value - Carrying Amount and Fair Value of Financial Instruments Included in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Cash and cash equivalents | $ 30,576 | $ 14,374 |
Securities - available for sale | 99,886 | 99,350 |
Securities - equity investments | 474 | 1,817 |
Loans held for sale | 0 | 504 |
Loans, net | 578,642 | 577,616 |
Federal bank stock | 0 | |
Accrued interest receivable | 2,250 | 2,217 |
Financial assets | 711,828 | 695,878 |
Financial Liabilities: | ||
Deposits | 687,403 | 657,414 |
FHLB advances | 19,653 | 25,499 |
Accrued interest payable | 410 | 413 |
Financial liabilities | 707,466 | 683,326 |
Level 1 | ||
Financial Assets: | ||
Securities - available for sale | 4,411 | 4,472 |
Securities - equity investments | 474 | 1,683 |
Level 2 | ||
Financial Assets: | ||
Securities - available for sale | 91,975 | 86,880 |
Securities - equity investments | 0 | 0 |
Level 3 | ||
Financial Assets: | ||
Securities - available for sale | 3,500 | 7,998 |
Securities - equity investments | 0 | 134 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 30,576 | 14,374 |
Securities - available for sale | 99,886 | 99,350 |
Securities - equity investments | 474 | 1,817 |
Loans held for sale | 0 | 504 |
Loans, net | 587,258 | 577,234 |
Federal bank stock | 4,403 | 4,662 |
Accrued interest receivable | 2,250 | 2,217 |
Financial assets | 724,847 | 700,158 |
Financial Liabilities: | ||
Deposits | 685,551 | 654,643 |
FHLB advances | 20,050 | 26,000 |
Accrued interest payable | 410 | 413 |
Financial liabilities | 706,011 | 681,056 |
Estimate of Fair Value Measurement | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 30,576 | 14,374 |
Securities - available for sale | 4,411 | 4,472 |
Securities - equity investments | 474 | 1,683 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 65 | 59 |
Financial assets | 35,526 | 20,588 |
Financial Liabilities: | ||
Deposits | 515,638 | 483,956 |
FHLB advances | 0 | 0 |
Accrued interest payable | 32 | 23 |
Financial liabilities | 515,670 | 483,979 |
Estimate of Fair Value Measurement | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities - available for sale | 91,975 | 86,880 |
Securities - equity investments | 0 | 0 |
Loans held for sale | 0 | 504 |
Loans, net | 0 | 0 |
Accrued interest receivable | 382 | 338 |
Financial assets | 92,357 | 87,722 |
Financial Liabilities: | ||
Deposits | 171,765 | 173,458 |
FHLB advances | 19,653 | 25,499 |
Accrued interest payable | 378 | 390 |
Financial liabilities | 191,796 | 199,347 |
Estimate of Fair Value Measurement | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities - available for sale | 3,500 | 7,998 |
Securities - equity investments | 0 | 134 |
Loans held for sale | 0 | 0 |
Loans, net | 578,642 | 577,616 |
Accrued interest receivable | 1,803 | 1,820 |
Financial assets | 583,945 | 587,568 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Financial liabilities | $ 0 | $ 0 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Capital (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Total capital to risk-weighted assets: Amount | ||
Actual | $ 65,901 | $ 64,221 |
For capital adequacy purposes | 39,759 | 39,630 |
To be well capitalized | 49,699 | 49,537 |
Tier 1 capital to risk-weighted assets: Amount | ||
Actual | 59,783 | 58,088 |
For capital adequacy purposes | 29,820 | 29,722 |
To be well capitalized | 39,759 | 39,630 |
Common Equity Tier 1 capital to risk-weighted assets: Amount | ||
Actual | 59,783 | 58,088 |
For capital adequacy purposes | 22,365 | 22,292 |
To be well capitalized | 32,305 | 32,199 |
Tier 1 capital to average assets: Amount | ||
Actual | 59,783 | 58,088 |
For capital adequacy purposes | 30,372 | 30,117 |
To be well capitalized | $ 37,965 | $ 37,647 |
Total capital to risk-weighted assets: Ratio | ||
Actual | 13.26% | 12.96% |
For capital adequacy purposes | 8.00% | 8.00% |
To be well capitalized | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: Ratios | ||
Actual | 12.03% | 11.73% |
For capital adequacy purposes | 6.00% | 6.00% |
To be well capitalized | 8.00% | 8.00% |
Common Equity Tier 1 capital to risk-weighted assets: Ratio | ||
Actual | 12.03% | 11.73% |
For capital adequacy purposes | 4.50% | 4.50% |
To be well capitalized | 6.50% | 6.50% |
Tier 1 capital to average assets: Ratio | ||
Actual | 7.87% | 7.71% |
For capital adequacy purposes | 4.00% | 4.00% |
To be well capitalized | 5.00% | 5.00% |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 59,091 | $ 54,073 | |||
Other comprehensive income before reclassification | $ (237) | $ 10 | (1,275) | 268 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,413) | (1,041) | (2,775) | (1,997) | |
Net of tax | (236) | 114 | (1,251) | 372 | |
Balance at end of period | 59,493 | 56,647 | 59,493 | 56,647 | |
Amount Reclassified From Accumulated Other Comprehensive Income | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | 104 | 24 | 104 | |
Unrealized Gains and Losses on Available-for-Sale Securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (1,881) | (421) | (866) | (679) | |
Cumulative effect of change in accounting principle for marketable equity securities, net of tax | $ (187) | ||||
Other comprehensive income before reclassification | (237) | 10 | (1,275) | 268 | |
Net of tax | (236) | 114 | (1,251) | 372 | |
Balance at end of period | (2,117) | (307) | (2,117) | (307) | |
Unrealized Gains and Losses on Available-for-Sale Securities | Amount Reclassified From Accumulated Other Comprehensive Income | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | 104 | 24 | 104 | |
Defined Benefit Pension Items | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (4,839) | (3,812) | (4,839) | (3,812) | |
Cumulative effect of change in accounting principle for marketable equity securities, net of tax | 0 | ||||
Other comprehensive income before reclassification | 0 | 0 | 0 | 0 | |
Net of tax | 0 | 0 | 0 | 0 | |
Balance at end of period | (4,839) | (3,812) | (4,839) | (3,812) | |
Defined Benefit Pension Items | Amount Reclassified From Accumulated Other Comprehensive Income | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Totals | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (6,720) | (4,233) | (5,705) | (4,491) | |
Cumulative effect of change in accounting principle for marketable equity securities, net of tax | $ (187) | ||||
Balance at end of period | $ (6,956) | $ (4,119) | (6,956) | $ (4,119) | |
Previously Reported | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 59,091 | ||||
Previously Reported | Unrealized Gains and Losses on Available-for-Sale Securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (679) | ||||
Previously Reported | Defined Benefit Pension Items | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (4,839) | ||||
Previously Reported | Totals | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ (5,518) |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) - Significant Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Provision for income taxes | $ (282) | $ (314) | $ (548) | $ (586) |
Net income | 1,413 | 1,041 | 2,775 | 1,997 |
Amount Reclassified From Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net income | (1) | (104) | (24) | (104) |
Amount Reclassified From Accumulated Other Comprehensive Income | Unrealized gains and losses on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Provision for income taxes | 1 | 54 | 7 | 54 |
Net income | (1) | (104) | (24) | (104) |
Net gain on sale of available-for-sale securities | Amount Reclassified From Accumulated Other Comprehensive Income | Unrealized gains and losses on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Unrealized gains and losses on available-for-sale securities | $ (2) | 350 | (31) | 350 |
Other than temporary impairment losses | Amount Reclassified From Accumulated Other Comprehensive Income | Unrealized gains and losses on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Unrealized gains and losses on available-for-sale securities | $ (508) | $ 0 | $ (508) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in-scope of Topic 606) | $ 792 | $ 727 | $ 1,544 | $ 1,405 |
Noninterest income (out-of-scope of Topic 606) | 257 | 141 | 403 | 318 |
Total noninterest income | 1,049 | 868 | 1,947 | 1,723 |
Maintenance fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in-scope of Topic 606) | 37 | 38 | 76 | 78 |
Overdraft fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in-scope of Topic 606) | 353 | 326 | 682 | 624 |
Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in-scope of Topic 606) | 73 | 71 | 142 | 141 |
Electronic banking fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Noninterest income (in-scope of Topic 606) | $ 329 | $ 292 | $ 644 | $ 562 |