Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 13, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SEVERN BANCORP INC | |
Entity Central Index Key | 868,271 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,245,425 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 1,654 | $ 39,396 |
Federal funds sold and interest-bearing deposits in other banks | 39,981 | 27,718 |
Cash and cash equivalents | 41,635 | 67,114 |
Securities available for sale, at fair value | 3,129 | 0 |
Securities held to maturity (fair value of $58,959 at September 30, 2017 and $62,827 at December 31, 2016) | 58,764 | 62,757 |
Loans held for sale, at fair value at September 30, 2017 | 4,871 | 10,307 |
Loans receivable | 650,964 | 610,278 |
Allowance for loan losses | (7,936) | (8,969) |
Loans, net | 643,028 | 601,309 |
Real estate acquired through foreclosure | 1,104 | 973 |
Restricted stock investments | 4,699 | 5,103 |
Premises and equipment, net | 23,398 | 24,030 |
Accrued interest receivable | 2,503 | 2,249 |
Bank owned life insurance | 5,023 | 0 |
Deferred income taxes | 8,002 | 10,081 |
Other assets | 5,174 | 3,562 |
Total assets | 801,330 | 787,485 |
Deposits: | ||
Noninterest bearing | 71,515 | 58,145 |
Interest-bearing | 521,977 | 513,801 |
Total deposits | 593,492 | 571,946 |
Short-term borrowings | 4,950 | 0 |
Long-term borrowings | 88,500 | 103,500 |
Subordinated debentures | 20,619 | 20,619 |
Accrued expenses and other liabilities | 1,759 | 3,490 |
Total liabilities | 709,320 | 699,555 |
Stockholders' Equity: | ||
Common stock, $0.01 par value, 20,000,000 shares authorized; 12,245,425 and 12,123,179 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 122 | 121 |
Additional paid-in capital | 65,290 | 63,960 |
Retained earnings | 26,598 | 23,845 |
Accumulated other comprehensive loss | (4) | 0 |
Total stockholders' equity | 92,010 | 87,930 |
Total liabilities and stockholders' equity | 801,330 | 787,485 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized: Preferred stock series "A," 437,500 shares issued and outstanding and $3,500 liquidation preference at both September 30, 2017 and December 31, 2016 | $ 4 | $ 4 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Securities held to maturity fair value | $ 58,959 | $ 62,827 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 12,245,425 | 12,123,179 |
Common stock, shares outstanding (in shares) | 12,245,425 | 12,123,179 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity: | ||
Preferred stock, shares issued (in shares) | 437,500 | 437,500 |
Preferred stock, shares outstanding (in shares) | 437,500 | 437,500 |
Preferred stock, liquidation preference | $ 3,500 | $ 3,500 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | ||||
Loans | $ 7,742 | $ 7,479 | $ 22,267 | $ 21,847 |
Securities | 330 | 280 | 927 | 890 |
Other earning assets | 167 | 83 | 498 | 251 |
Total interest income | 8,239 | 7,842 | 23,692 | 22,988 |
Interest expense: | ||||
Deposits | 1,011 | 1,019 | 2,924 | 3,002 |
Borrowings and subordinated debentures | 897 | 1,106 | 2,844 | 3,493 |
Total interest expense | 1,908 | 2,125 | 5,768 | 6,495 |
Net interest income | 6,331 | 5,717 | 17,924 | 16,493 |
Provision for (reversal of) loan losses | 0 | 50 | (650) | 150 |
Net interest income after provision for (reversal of) loan losses | 6,331 | 5,667 | 18,574 | 16,343 |
Noninterest income: | ||||
Mortgage-banking revenue | 334 | 1,042 | 1,150 | 2,693 |
Real estate commissions | 311 | 455 | 959 | 1,246 |
Real estate management fees | 197 | 214 | 513 | 564 |
Credit report and appraisal fees | 137 | 99 | 390 | 304 |
Deposit service charges | 190 | 32 | 265 | 105 |
Other noninterest income | 230 | 54 | 485 | 667 |
Total noninterest income | 1,399 | 1,896 | 3,762 | 5,579 |
Noninterest expense: | ||||
Compensation and related expenses | 3,288 | 3,928 | 10,719 | 11,218 |
Occupancy | 354 | 333 | 1,015 | 942 |
Legal fees | 41 | 81 | 104 | 217 |
Write-downs, losses, and costs of real estate acquired through foreclosure, net | 126 | 41 | 166 | 184 |
Federal Deposit Insurance Corporation insurance premiums | 69 | 126 | 133 | 296 |
Professional fees | 124 | 189 | 377 | 528 |
Advertising | 198 | 158 | 649 | 510 |
Online charges | 237 | 117 | 661 | 617 |
Credit report and appraisal fees | 203 | 148 | 478 | 480 |
Licensing and software | 152 | 115 | 326 | 345 |
Mortgage leads purchased | 48 | 205 | 234 | 559 |
Other | 681 | 689 | 2,158 | 2,405 |
Total noninterest expense | 5,521 | 6,130 | 17,020 | 18,301 |
Income before income tax provision (benefit) | 2,209 | 1,433 | 5,316 | 3,621 |
Income tax provision (benefit) | 950 | 378 | 2,150 | (10,816) |
Net income | 1,259 | 1,055 | 3,166 | 14,437 |
Amortization of discount on preferred stock | (68) | (68) | (203) | (203) |
Dividends on preferred stock | (70) | (448) | (210) | (1,370) |
Net income available to common stockholders | $ 1,121 | $ 539 | $ 2,753 | $ 12,864 |
Net income per common share - basic (in dollars per share) | $ 0.09 | $ 0.04 | $ 0.23 | $ 1.14 |
Net income per common share - diluted (in dollars per share) | $ 0.09 | $ 0.04 | $ 0.22 | $ 1.13 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net income | $ 1,259 | $ 1,055 | $ 3,166 | $ 14,437 |
Other comprehensive loss items: | ||||
Unrealized holding losses on available-for-sale securities arising during the period (net of income tax benefit of $6 and $2, respectively, in 2017) | (9) | 0 | (3) | 0 |
Realized gains, net of income taxes of $1 and $1, respectively, in 2017 | (1) | 0 | (1) | 0 |
Total other comprehensive loss | (10) | 0 | (4) | 0 |
Total comprehensive income | $ 1,249 | $ 1,055 | $ 3,162 | $ 14,437 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Other comprehensive loss items: | ||
Unrealized holding losses on available-for-sale securities arising during the period, income taxes | $ (6) | $ (2) |
Realized gains, income taxes | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Comprehensive Income [Member] | Total | Series A Preferred Stock [Member]Preferred Stock [Member] | Series A Preferred Stock [Member]Common Stock [Member] | Series A Preferred Stock [Member]Additional Paid-In Capital [Member] | Series A Preferred Stock [Member]Retained Earnings [Member] | Series A Preferred Stock [Member]Accumulated Comprehensive Income [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member]Common Stock [Member] | Series B Preferred Stock [Member]Additional Paid-In Capital [Member] | Series B Preferred Stock [Member]Retained Earnings [Member] | Series B Preferred Stock [Member]Accumulated Comprehensive Income [Member] | Series B Preferred Stock [Member] |
Beginning balance at Dec. 31, 2015 | $ 4 | $ 101 | $ 76,335 | $ 10,016 | $ 0 | $ 86,456 | ||||||||||||
Balance (in shares) at Dec. 31, 2015 | 460,893 | 10,088,879 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | $ 0 | $ 0 | 0 | 14,437 | 0 | 14,437 | ||||||||||||
Stock-based compensation | 0 | 0 | 143 | 0 | 0 | 143 | ||||||||||||
Stock issued, net of expense | $ 0 | $ 20 | 10,490 | 0 | 0 | 10,510 | ||||||||||||
Stock issued, net of expense (in shares) | 0 | 2,015,500 | ||||||||||||||||
Stock redemption on Series B preferred stock | $ 0 | $ 0 | $ (23,393) | $ 0 | $ 0 | $ (23,393) | ||||||||||||
Stock redemption on Series B preferred stock (in shares) | (23,393) | 0 | ||||||||||||||||
Dividend declared | $ 0 | $ 0 | $ 0 | $ (140) | $ 0 | $ (140) | $ 0 | $ 0 | 0 | (1,230) | 0 | (1,230) | ||||||
Amortization of discount on Series B preferred stock | 0 | 0 | 203 | (203) | 0 | 0 | ||||||||||||
Ending balance at Sep. 30, 2016 | $ 4 | $ 121 | 63,778 | 22,880 | 0 | 86,783 | ||||||||||||
Balance (in shares) at Sep. 30, 2016 | 437,500 | 12,104,379 | ||||||||||||||||
Beginning balance at Dec. 31, 2016 | $ 4 | $ 121 | 63,960 | 23,845 | 0 | 87,930 | ||||||||||||
Balance (in shares) at Dec. 31, 2016 | 437,500 | 12,123,179 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | $ 0 | $ 0 | 0 | 3,166 | 0 | 3,166 | ||||||||||||
Stock-based compensation | 0 | 0 | 146 | 0 | 0 | 146 | ||||||||||||
Stock issued in acquisition | $ 0 | $ 1 | 774 | 0 | 0 | 775 | ||||||||||||
Stock issued in acquisition (in shares) | 0 | 108,084 | ||||||||||||||||
Stock issued, net of expense | $ 0 | $ 0 | 207 | 0 | 0 | 207 | ||||||||||||
Stock issued, net of expense (in shares) | 0 | 14,162 | ||||||||||||||||
Dividend declared | $ 0 | $ 0 | $ 0 | $ (210) | $ 0 | $ (210) | ||||||||||||
Amortization of discount on Series B preferred stock | $ 0 | $ 0 | $ 203 | $ (203) | $ 0 | $ 0 | ||||||||||||
Other comprehensive loss | $ 0 | $ 0 | 0 | 0 | (4) | (4) | ||||||||||||
Ending balance at Sep. 30, 2017 | $ 4 | $ 122 | 65,290 | 26,598 | (4) | 92,010 | ||||||||||||
Balance (in shares) at Sep. 30, 2017 | 437,500 | 12,245,425 | ||||||||||||||||
Beginning balance at Jun. 30, 2017 | 6 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income | 1,259 | |||||||||||||||||
Ending balance at Sep. 30, 2017 | $ 4 | $ 122 | $ 65,290 | $ 26,598 | $ (4) | $ 92,010 | ||||||||||||
Balance (in shares) at Sep. 30, 2017 | 437,500 | 12,245,425 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 3,166 | $ 14,437 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 919 | 863 |
Amortization of deferred loan fees | (847) | (889) |
Net amortization of premiums and discounts on securities | (202) | 318 |
(Reversal of) provision for loan losses | (650) | 150 |
Write-downs and losses on real estate acquired through foreclosure, net of gains | 139 | 149 |
Gain on sale of mortgage loans | (1,150) | (2,693) |
Gain on sale of securities | (2) | 0 |
Proceeds from sale of mortgage loans held for sale | 28,482 | 107,468 |
Originations of loans held for sale | (22,556) | (104,533) |
Stock-based compensation | 146 | 143 |
Increase in cash surrender value of bank owned life insurance | (23) | 0 |
Deferred income taxes | 2,081 | (10,916) |
Increase in accrued interest receivable | (254) | (44) |
(Increase) decrease in other assets | (837) | 384 |
Decrease in accrued expenses and other liabilities | (1,731) | (2,938) |
Net cash provided by operating activities | 6,681 | 1,899 |
Cash flows from investing activities: | ||
Loan principal (disbursements), net of repayments | (40,265) | (14,448) |
Redemption of restricted stock investments | 404 | 396 |
Purchases of premises and equipment, net | (287) | (740) |
Purchase of bank owned life insurance | (5,000) | 0 |
Activity in securities held to maturity: | ||
Purchases | (6,679) | (3,562) |
Maturities/calls/repayments | 10,730 | 11,700 |
Activity in available-for-sale securities: | ||
Purchases | (7,184) | 0 |
Sales | 4,011 | 0 |
Maturities/calls/repayments | 184 | 0 |
Proceeds from sales of real estate acquired through foreclosure | 433 | 1,622 |
Net cash used in investing activities | (43,653) | (5,032) |
Cash flows from financing activities: | ||
Net increase in deposits | 21,546 | 32,839 |
Additional borrowings | 39,950 | 10,500 |
Repayment of borrowings | (50,000) | (18,500) |
Proceeds from common stock issuance | 207 | 10,510 |
Net cash provided by financing activities | 11,493 | 4,035 |
(Decrease) increase in cash and cash equivalents | (25,479) | 902 |
Cash and cash equivalents at beginning of period | 67,114 | 43,591 |
Cash and cash equivalents at end of period | 41,635 | 44,493 |
Supplemental Information: | ||
Interest paid on deposits and borrowed funds | 5,828 | 9,104 |
Income taxes paid (recovered) | 50 | (852) |
Real estate acquired in satisfaction of loans | 703 | 1,370 |
Transfers of loans held for sale to portfolio | 660 | 0 |
Series A Preferred Stock [Member] | ||
Cash flows from financing activities: | ||
Preferred stock dividends | (210) | (140) |
Series B Preferred Stock [Member] | ||
Cash flows from financing activities: | ||
Preferred stock dividends | 0 | (7,781) |
Stock redemption of Series B preferred stock | $ 0 | $ (23,393) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Basis of Presentation The accounting and reporting policies of Severn Bancorp, Inc. and subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) and prevailing practices within the financial services industry for interim financial information and Rule 8-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements and prevailing practices within the banking industry. In the opinion of management, all adjustments (comprising only of those of a normal recurring nature) necessary for a fair presentation of the results of operations for the interim periods presented have been made. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017 or any other interim or future period. Events occurring after the date of the financial statements up to , the date the financial statements were available to be issued, were considered in the preparation of the consolidated financial statements. These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2016 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”). Principles of Consolidation The unaudited consolidated financial statements include the accounts of Severn Bancorp, Inc., and its wholly-owned subsidiaries, Mid-Maryland Title Company, Inc., SBI Mortgage Company and SBI Mortgage Company’s subsidiary, Crownsville Development Corporation, and its subsidiary, Crownsville Holdings I, LLC, and Severn Savings Bank, FSB (the “Bank”), and the Bank’s subsidiaries, Louis Hyatt, Inc., Homeowners Title and Escrow Corporation, Severn Financial Services Corporation, SSB Realty Holdings, LLC, SSB Realty Holdings II, LLC, and HS West, LLC. All intercompany accounts and transactions have been eliminated in the accompanying consolidated financial statements. Acquisition On September 1, 2017, we acquired Mid-Maryland Title Company, Inc. (the “Title Company”) by issuing stock in a business combination. We issued 108,084 shares in the transaction valued at $775,000. We recorded $759,000 in goodwill in the transaction. The acquisition continues our growth strategy and focus on being a full-service provider and complements the mortgage services, commercial banking services, and commercial real estate services we provide. The acquisition of the Title Company has not had a material effect on the Company’s financial condition or results of operations. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for loan losses and the related allowance for loan losses (“Allowance”), determination of impaired loans and the related measurement of impairment, valuation of investment securities, valuation of real estate acquired through foreclosure, valuation of share-based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, and the calculation of current and deferred income taxes and the realizability of net deferred tax assets. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold, and interest-earning deposits with banks. Reclassifications Certain reclassifications have been made to amounts previously reported to conform to current period presentation. Recent Accounting Pronouncements Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting Pronouncements Issued In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers: Deferral of the Effective Date, , Revenue from Contracts with Customers: Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), , Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, , Technical Corrections and Improvements to Topic 606, Revenue form Contracts with Customers, In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU 2016-02, Leases In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other costs, |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Securities | Note 2 - Securities The amortized cost and estimated fair values of our AFS securities portfolio were as follows as of September 30, 2017: Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. government agency notes $ 3,135 $ - $ 6 $ 3,129 We did not hold any AFS securities as of December 31, 2016. The amortized cost and estimated fair values of our held-to-maturity (“HTM”) securities portfolio were as follows: September 30, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. Treasury securities $ 7,996 $ 106 $ - $ 8,102 U.S. government agency notes 19,008 137 43 19,102 Mortgage-backed securities 31,760 97 102 31,755 $ 58,764 $ 340 $ 145 $ 58,959 December 31, 2016 Amortized Unrealized Unrealized Estimated (dollars in thousands) U.S. Treasury securities $ 12,998 $ 167 $ - $ 13,165 U.S. government agency notes 20,027 133 54 20,106 Mortgage-backed securities 29,732 52 228 29,556 $ 62,757 $ 352 $ 282 $ 62,827 Three AFS securities were in an unrealized loss position as of September 30, 2017 for less than twelve months, with the largest single unrealized loss in any one security amounting to Gross unrealized losses and fair value by length of time that the individual HTM securities have been in an unrealized loss position at the dates indicated are presented in the following tables: September 30, 2017 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) U.S. government agency notes $ 4,000 $ 2 $ 7,005 $ 41 $ 11,005 $ 43 Mortgage-backed securities 11,687 39 7,501 63 19,188 102 $ 15,687 $ 41 $ 14,506 $ 104 $ 30,193 $ 145 December 31, 2016 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) U.S. government agency notes $ 5,002 $ 54 $ - $ - $ 5,002 $ 54 Mortgage-backed securities 23,457 228 - - 23,457 228 $ 28,459 $ 282 $ - $ - $ 28,459 $ 282 In the HTM securities portfolio All of the securities that are currently in a gross unrealized loss position are so due to declines in fair values resulting from changes in interest rates or increased liquidity spreads since the time they were purchased. We have the intent and ability to hold these debt securities to maturity (including the AFS securities) and do not intend to sell, nor do we believe it will be more likely than not that we will be required to sell, any impaired securities prior to a recovery of amortized cost. We expect these securities will be repaid in full, with no losses realized. As such, management considers any impairment to be temporary. Contractual maturities of debt securities at September 30, 2017 are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. AFS Securities HTM Securities Amortized Estimated Amortized Estimated (dollars in thousands) Due in one year or less $ - $ - $ 10,009 $ 10,014 Due after one through five years 3,135 3,129 15,030 15,112 Due after five years through ten years - - 1,965 2,078 Mortgage-backed securities - - 31,760 31,755 $ 3,135 $ 3,129 $ 58,764 $ 58,959 During both the three and nine months ended September 30, 2017, we recognized gross gains and losses on the sale of securities of $4,000 and $2,000, respectively. We did not sell any securities during 2016. There were no securities pledged as collateral as of September 30, 2017 or December 31, 2016. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Note 3 - Loans Receivable and Allowance for Loan Losses Loans receivable are summarized as follows: September 30, 2017 December 31, 2016 (dollars in thousands) Residential mortgage $ 292,068 $ 260,603 Commercial 37,485 46,468 Commercial real estate 223,167 195,710 Construction, land acquisition, and development 84,164 90,102 Home equity/2nds 15,861 19,129 Consumer 1,118 1,210 Total loans receivable 653,863 613,222 Unearned loan fees (2,899 ) (2,944 ) Net loans receivable $ 650,964 $ 610,278 Certain loans in the amount of $210.4 Credit Quality An Allowance is provided through charges to income in an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible based on evaluations of the collectability of loans and prior loan loss experience. Management has an established methodology to determine the adequacy of the Allowance that assesses the risks and losses inherent in the loan portfolio. The methodology takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrowers’ ability to pay. Determining the amount of the Allowance requires the use of estimates and assumptions. Actual results could differ significantly from those estimates. While management uses available information to estimate losses on loans, future additions to the Allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies periodically review the Allowance as an integral part of their examination process. Such agencies may require us to recognize additions to the Allowance based on their judgments about information available to them at the time of their examination. Management believes the Allowance is adequate as of September 30, 2017 and December 31, 2016. For purposes of determining the Allowance, we have segmented our loan portfolio by product type. Our portfolio loan segments are residential mortgage, commercial, commercial real estate, construction, land acquisition, and development (“ADC”), Home equity/2nds, and consumer. We have looked at all segments and have determined that no additional subcategorization is warranted based upon our credit review methodology and our portfolio classes are the same as our portfolio segments. Inherent Credit Risks The inherent credit risks within the loan portfolio vary depending upon the loan class as follows: Residential mortgage Commercial underwritten in accordance with our policies and include evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay the obligation as agreed. Commercial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan. Accordingly, the repayment of a commercial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Additionally, lines of credit are subject to the underwriting standards and processes similar to commercial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and, secondarily, as loans secured by real-estate and/or other assets. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan or the principal business conducted on the property securing the loan. Line of credit loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates line of credit loans based on collateral and risk-rating criteria. Commercial real estate subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan or the principal business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates commercial real estate loans based on collateral and risk-rating criteria. The Bank also utilizes third-party experts to provide environmental and market valuations. The nature of commercial real estate loans makes them more difficult to monitor and evaluate. ADC underwritten in accordance with our underwriting policies which include a financial analysis of the developers, property owners, construction cost estimates, and independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation estimates may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project rather than the ability of the borrower or guarantor to repay principal and interest. Additionally, land is underwritten according to our policies which include independent appraisal valuations as well as the estimated value associated with the land upon completion of development. These cost and valuation estimates may be inaccurate. These loans are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest rate sensitivity, and governmental regulation of real property. The sources of repayment of these loans is typically permanent financing expected to be obtained upon completion or sales of developed property. These loans are closely monitored by onsite inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest rate sensitivity, and governmental regulation of real property. If the Bank is forced to foreclose on a project prior to or at completion due to a default, there can be no assurance that the Bank will be able to recover all of the unpaid balance of the loan as well as related foreclosure and holding costs. In addition, the Bank may be required to fund additional amounts to complete the project and may have to hold the property for an unspecified period of time. Home equity/2nds subject to the underwriting standards and processes similar to residential mortgages and secured by one to four family dwelling units. Home equity/2nds loans have greater risk than residential mortgages as a result of the Bank generally being in a second lien position. Consumer consist of loans to individuals through the Bank’s retail network and typically unsecured or secured by personal property. Consumer loans have a greater credit risk than residential loans because of the lower value of the underlying collateral, if any. Risk Ratings Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the Allowance. Loans not classified are rated pass. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed in nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed in nonaccrual status or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, generally after nine months of consecutive current payments and completion of an updated analysis of the borrower’s ability to service the loan. Loans that experience insignificant payment delays and payment shortfalls may not be placed in nonaccrual status or classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Allowance Methodology The Allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. The general component relates to loans that are classified as doubtful, substandard, or special mention that are not considered impaired, as well as loans that are not classified. A loan is considered impaired if it meets any of the following three criteria: · Loans that are 90 days or more in arrears (nonaccrual loans); · Loans where, based on current information and events, it is probable that a borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement; or · Loans that are modified and qualify as troubled debt restructured loans (“TDR” or “TDRs”). If a loan is considered to be impaired, it is then determined to be either cash flow or collateral dependent for purposes of Allowance determination. With respect to all loan segments, we do not charge off a loan, or a portion of a loan, until one of the following conditions have been met: · The loan has been foreclosed. At the time of foreclosure, a charge off is recorded for the difference between the recorded amount of the loan and the fair value of the underlying collateral. · An agreement to accept less than the recorded balance of the loan has been made with the borrower. Once an agreement has been finalized, a charge-off is recorded for the difference between the recorded amount of the loan and the agreed upon proceeds amount. · The loan is considered to be a collateral dependent impaired loan when its collateral valuation is less than the recorded balance. The loan is written down for accounting purposes by the amount of the difference between the recorded balance and collateral value. Specific Allowance Component Impaired loans secured by real estate - when a secured real estate loan becomes impaired, a decision is made as to whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the LTV ratio based on the original appraisal, and the condition of the property. Appraised values are discounted, if appropriate, to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. Impaired loans secured by collateral other than real estate - for loans secured by nonreal estate collateral, such as accounts receivable, inventory, and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging, or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an Allowance is established when the current fair value of the underlying collateral less its estimated disposal costs is lower than the carrying value of the loan. For loans that are not solely collateral dependent, an Allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of the loan. General Allowance Component The general component of the Allowance is based on historical loss experience adjusted for qualitative factors. Loans are pooled by portfolio class and an historical loss percentage, based upon a four-year net charge-off history, is applied to each class. The result of that calculation for each loan class is then applied to the current loan portfolio balances to determine the required general component of the Allowance per loan class. We then apply additional loss multipliers to the different classes of loans to reflect various qualitative factors. These qualitative factors include, but are not limited to: · Levels and trends in delinquencies and nonaccruals; · Inherent risk in the loan portfolio; · Trends in volume and terms of the loan; · Effects of any change in lending policies and procedures; · Experience, ability, and depth of management; · National and local economic trends and conditions; · Effect of any changes in concentration of credit; and · Industry conditions. The following tables present, by portfolio segment, the changes in the Allowance and the recorded investment in loans: Three Months Ended September 30, 2017 Residential Commercial Commercial Real Estate ADC Home Equity/ Consumer Total (dollars in thousands) Beginning Balance $ 3,403 $ 389 $ 2,571 $ 984 $ 367 $ 4 $ 7,718 Charge-offs - - - - - - - Recoveries 156 - 40 - 22 - 218 Net recoveries 156 - 40 - 22 - 218 (Reversal of) provision for loan losses (137 ) 53 (44 ) 158 (28 ) (2 ) - Ending Balance $ 3,422 $ 442 $ 2,567 $ 1,142 $ 361 $ 2 $ 7,936 Nine Months Ended September 30, 2017 (dollars in thousands) Beginning Balance $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Charge-offs (707 ) - - - (98 ) - (805 ) Recoveries 295 - 100 - 27 - 422 Net (charge-offs) recoveries (412 ) - 100 - (71 ) - (383 ) Provision for (reversal of) loan losses 1 (36 ) (68 ) (248 ) (296 ) (3 ) (650 ) Ending Balance $ 3,422 $ 442 $ 2,567 $ 1,142 $ 361 $ 2 $ 7,936 Ending balance - individually evaluated for impairment $ 1,544 $ - $ 186 $ 50 $ - $ 2 $ 1,782 Ending balance - collectively evaluated for impairment 1,878 442 2,381 1,092 361 - 6,154 $ 3,422 $ 442 $ 2,567 $ 1,142 $ 361 $ 2 $ 7,936 Ending loan balance - individually evaluated for impairment $ 20,379 $ - $ 3,419 $ 1,003 $ - $ 87 $ 24,888 Ending loan balance - collectively evaluated for impairment 268,790 37,485 219,748 83,161 15,861 1,031 626,076 $ 289,169 $ 37,485 $ 223,167 $ 84,164 $ 15,861 $ 1,118 $ 650,964 December 31, 2016 Residential Mortgage Commercial Commercial Real Estate ADC Home Equity/ Consumer Total (dollars in thousands) Ending Allowance balance - individually evaluated for impairment $ 1,703 $ 15 $ 196 $ 53 $ 402 $ 4 $ 2,373 Ending Allowance balance - collectively evaluated for impairment 2,130 463 2,339 1,337 326 1 6,596 $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Ending loan balance - individually evaluated for impairment $ 20,403 $ 148 $ 5,656 $ 858 $ 3,137 $ 96 $ 30,298 Ending loan balance - collectively evaluated for impairment 237,256 46,320 190,054 89,244 15,992 1,114 579,980 $ 257,659 $ 46,468 $ 195,710 $ 90,102 $ 19,129 $ 1,210 $ 610,278 Three Months Ended September 30, 2016 Residential Mortgage Commercial Commercial ADC Home Equity/ Consumer Total (dollars in thousands) Beginning Balance $ 3,892 $ 752 $ 2,577 $ 983 $ 593 $ 7 $ 8,804 Charge-offs - - - (72 ) - - (72 ) Recoveries 137 10 4 - 2 50 203 Net recoveries (charge-offs) 137 10 4 (72 ) 2 50 131 (Reversal of) provision for loan losses (161 ) (63 ) (189 ) 289 226 (52 ) 50 Ending Balance $ 3,868 $ 699 $ 2,392 $ 1,200 $ 821 $ 5 $ 8,985 Nine Months Ended September 30, 2016 (dollars in thousands) Beginning Balance $ 4,188 $ 291 $ 2,792 $ 956 $ 528 $ 3 $ 8,758 Charge-offs (151 ) (17 ) (178 ) (72 ) (28 ) - (446 ) Recoveries 322 43 4 100 4 50 523 Net recoveries (charge-offs) 171 26 (174 ) 28 (24 ) 50 77 (Reversal of) provision for loan losses (491 ) 382 (226 ) 216 317 (48 ) 150 Ending Balance $ 3,868 $ 699 $ 2,392 $ 1,200 $ 821 $ 5 $ 8,985 Ending balance - individually evaluated for impairment $ 1,583 $ 15 $ 200 $ 55 $ 402 $ 4 $ 2,259 Ending balance - collectively evaluated for impairment 2,285 684 2,192 1,145 419 1 6,726 $ 3,868 $ 699 $ 2,392 $ 1,200 $ 821 $ 5 $ 8,985 Ending loan balance - individually evaluated for impairment $ 22,521 $ 495 $ 5,696 $ 1,446 $ 3,519 $ 100 $ 33,777 Ending loan balance - collectively evaluated for impairment 246,375 41,864 193,219 79,894 16,220 1,109 578,681 $ 268,896 $ 42,359 $ 198,915 $ 81,340 $ 19,739 $ 1,209 $ 612,458 The following tables present the credit quality breakdown of our loan portfolio by class: September 30, 2017 Pass Special Mention Substandard Total (dollars in thousands) Residential mortgage $ 281,954 $ 1,397 $ 5,818 $ 289,169 Commercial 37,299 50 136 37,485 Commercial real estate 216,373 4,668 2,126 223,167 ADC 82,958 - 1,206 84,164 Home equity/2nds 14,531 471 859 15,861 Consumer 1,118 - - 1,118 $ 634,233 $ 6,586 $ 10,145 $ 650,964 December 31, 2016 Pass Special Substandard Total (dollars in thousands) Residential mortgage $ 248,819 $ 4,316 $ 4,524 $ 257,659 Commercial 46,011 204 253 46,468 Commercial real estate 184,820 7,420 3,470 195,710 ADC 89,324 - 778 90,102 Home equity/2nds 16,056 472 2,601 19,129 Consumer 1,210 - - 1,210 $ 586,240 $ 12,412 $ 11,626 $ 610,278 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 tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans: September 30, 2017 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- Accrual (dollars in thousands) Residential mortgage $ 1,173 $ 1,216 $ 2,364 $ 4,753 $ 284,416 $ 289,169 $ 4,531 Commercial - - - - 37,485 37,485 84 Commercial real estate - 478 - 478 222,689 223,167 160 ADC - - 239 239 83,925 84,164 318 Home equity/2nds - - 458 458 15,403 15,861 1,284 Consumer - - - - 1,118 1,118 - $ 1,173 $ 1,694 $ 3,061 $ 5,928 $ 645,036 $ 650,964 $ 6,377 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- (dollars in thousands) Residential mortgage $ 1,472 $ 2,074 $ 964 $ 4,510 $ 253,149 $ 257,659 $ 3,580 Commercial - - - - 46,468 46,468 151 Commercial real estate - 171 515 686 195,024 195,710 2,938 ADC 106 - 6 112 89,990 90,102 269 Home equity/2nds 34 - 2,174 2,208 16,921 19,129 2,914 Consumer 4 - - 4 1,206 1,210 - $ 1,616 $ 2,245 $ 3,659 $ 7,520 $ 602,758 $ 610,278 $ 9,852 We do not have any greater than 90 days and still accruing loans as of September 30, 2017 or December 31, 2016. The interest which would have been recorded on the above nonaccrual loans if those loans had been performing in accordance with their contractual terms was approximately $1.2 million and $338,000 for the nine months ended September 30, 2017 and 2016, respectively. The actual interest income recorded on those loans was approximately $403,000 and $130,000 for the nine months ended September 30, 2017 and 2016, respectively. The following tables summarize impaired loans: September 30, 2017 December 31, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related Allowance: (dollars in thousands) Residential mortgage $ 12,856 $ 11,306 $ - $ 9,854 $ 9,338 $ - Commercial - - - - - - Commercial real estate 1,576 1,527 - 3,900 3,698 - ADC 636 636 - 441 441 - Home equity/2nds - - - 2,139 1,529 - Consumer - - - - - - With a related Allowance: Residential mortgage 9,306 9,073 1,544 11,176 11,065 1,703 Commercial - - - 148 148 15 Commercial real estate 1,892 1,892 186 1,958 1,958 196 ADC 402 367 50 417 417 53 Home equity/2nds - - - 1,608 1,608 402 Consumer 87 87 2 96 96 4 Totals: Residential mortgage 22,162 20,379 1,544 21,030 20,403 1,703 Commercial - - - 148 148 15 Commercial real estate 3,468 3,419 186 5,858 5,656 196 ADC 1,038 1,003 50 858 858 53 Home equity/2nds - - - 3,747 3,137 402 Consumer 87 87 2 96 96 4 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related Allowance: (dollars in thousands) Residential mortgage $ 10,423 $ 138 $ 12,734 $ 132 $ 9,696 $ 353 $ 13,774 $ 417 Commercial - - 274 2 - - 150 3 Commercial real estate 1,531 22 3,730 57 2,652 69 4,655 134 ADC 637 9 1,031 9 487 21 1,431 36 Home equity/2nds 918 15 1,911 18 679 40 1,991 59 Consumer - - - - - - 23 - With a related Allowance: Residential mortgage 8,910 116 9,831 106 9,231 286 10,684 356 Commercial - - 149 2 37 - 182 7 Commercial real estate 1,896 23 1,977 25 1,919 73 2,040 77 ADC 369 6 426 6 385 16 513 20 Home equity/2nds 180 - 1,078 6 715 - 370 7 Consumer 88 1 102 1 91 2 73 2 Totals: Residential mortgage 19,333 254 22,565 238 18,927 639 24,458 773 Commercial - - 423 4 37 - 332 10 Commercial real estate 3,427 45 5,707 82 4,571 142 6,695 211 ADC 1,006 15 1,457 15 872 37 1,944 56 Home equity/2nds 1,098 15 2,989 24 1,394 40 2,361 66 Consumer 88 1 102 1 91 2 96 2 Residential mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction totaled $3.1 million as of September 30, 2017. Residential mortgage loans in real estate acquired through foreclosure amounted to $287,000 and $393,000 at September 30, 2017 and December 31, 2016, respectively. TDRs In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a TDR. Such concessions could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. At the time that a loan is modified, management evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole remaining source of repayment for the loan is the liquidation of the collateral. In these cases, we use the current fair value of the collateral, less selling costs, instead of discounted cash flows. Any impairment amount is then set up as a specific reserve in the Allowance. The following table presents loans that were modified during the nine months ended September 30: 2017 2016 Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification (dollars in thousands) Residential Mortgage 3 $ 624 $ 624 - $ - $ - 3 $ 624 $ 624 We did not modify any loans during the three months ended September 30, 2017 or 2016. Interest on our portfolio of TDRs was accounted for under the following methods: September 30, 2017 Number of Accrual Number of Nonaccrual Total Total (dollars in thousands) Residential mortgage 43 $ 13,086 4 $ 2,285 47 $ 15,371 Commercial real estate 3 1,875 1 84 4 1,959 ADC 1 138 1 6 2 144 Home equity/2nds 1 230 - - 1 230 Consumer 4 87 - - 4 87 52 $ 15,416 6 $ 2,375 58 $ 17,791 December 31, 2016 Number of Accrual Number of Nonaccrual Total Total (dollars in thousands) Residential mortgage 48 $ 15,886 4 $ 2,137 52 $ 18,023 Commercial real estate 3 1,914 2 249 5 2,163 ADC 2 170 1 6 3 176 Consumer 5 96 - - 5 96 58 $ 18,066 7 $ 2,392 65 $ 20,458 During the three and nine months ended September 30, 2017 and 2016, there were no TDRs that subsequently defaulted during the 12 month period ended September 30, 2017 and 2016. Off-Balance Sheet Instruments The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contract amounts of these instruments express the extent of involvement we have in each class of financial instruments. Our exposure to credit loss from nonperformance by the other party to the above mentioned financial instruments is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Unless otherwise noted, we require collateral or other security to support financial instruments with off-balancesheet credit risk. The following table shows the contract amounts for our off-balance sheet instruments: September 30, 2017 December 31, (dollars in thousands) Standby letters of credit $ 3,854 $ 4,022 Home equity lines of credit 12,425 7,736 Unadvanced construction commitments 72,045 15,728 Mortgage loan commitments - 574 Lines of credit 13,092 34,125 Loans sold and serviced with limited repurchase provisions 19,979 70,773 Standby letters of credit are conditional commitments issued by the Bank guaranteeing performance by a customer to various municipalities. These guarantees are issued primarily to support performance arrangements and are limited to real estate transactions. The majority of these standby letters of credit expire within twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral supporting these letters of credit as deemed necessary. Management believes, except for certain standby letters of credit, that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of September 30, 2017 and December 31, 2016 for guarantees under standby letters of credit issued was $79,000 and $94,000, respectively. Home equity lines of credit are loan commitments to individuals as long as there is no violation of any condition established in the contract. Commitments under home equity lines expire ten years after the date the loan closes and are secured by real estate. We evaluate each customer’s credit worthiness on a case-by-case basis. Unadvanced construction commitments are loan commitments made to borrowers for both residential and commercial projects that are either in process or are expected to begin construction shortly. Mortgage loan commitments not reflected in the accompanying statements of financial condition at Lines of credit are loan commitments to individuals and companies as long as there is no violation of any condition established in the contract. Lines of credit have a fixed expiration date. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The Bank has entered into several agreements to sell mortgage loans to third parties. These agreements contain limited provisions that require the Bank to repurchase a loan if the loan becomes delinquent within a period ranging generally from 120 to 180 days after the sale date depending on the investor’s agreement. The credit risk involved in these financial instruments is essentially the same as that involved in extending loan facilities to customers. We established a reserve for potential repurchases for these loans, which amounted to $59,000 at September 30, 2017 and $48,000 at December 31, 2016. We did not repurchase any loans during the nine months ended September 30, 2017 or 2016. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 4 - Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In July 2015, federal bank regulatory agencies issued final results to revise their risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (“Basel III”). On January 1, 2015, the Basel III rules became effective and include transition provisions which implement certain portions of the rules through January 1, 2019. Under the final rules, the effects of certain accumulated other comprehensive items are not excluded, however, banking organizations like us that are not considered “advanced approaches” banking organizations may make a one-time permanent election to continue to exclude these items. With the submission of the Call Report for the first quarter of 2015, we made this election in order to avoid significant variations in the level of capital that can be caused by interest rate fluctuations on the fair value of the Bank’s AFS securities portfolio. The Basel III rules also establish a “capital conservation buffer” of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. The new capital conservation buffer requirements began to phase in effective January 2016 at 0.625% of risk-weighted assets and increase by that amount each year until fully implemented in January 2019 (1.25% at September 30, 2017). An institution would be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses to executive officers if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. As of the date of the last regulatory exam, the Bank was considered “well capitalized” and as of September 30, 2017, the Bank continued to meet the requirements to be considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements. The Bank’s regulatory capital amounts and ratios were as follows: Actual Minimum Minimum To be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2017 (dollars in thousands) Common Equity Tier 1 Capital (to risk-weighted assets) $ 104,318 16.8 % $ 27,907 4.5 % $ 35,658 5.8 % $ 40,309 6.5 % Total capital (to risk-weighted assets) 112,086 18.1 % 49,612 8.0 % 57,363 9.3 % 62,015 10.0 % Tier 1 capital (to risk-weighted assets) 104,318 16.8 % 37,209 6.0 % 44,961 7.3 % 49,612 8.0 % Tier 1 capital (to average quarterly assets) 104,318 13.3 % 31,313 4.0 % 41,099 5.3 % 39,142 5.0 % December 31, 2016 Common Equity Tier 1 Capital (to risk-weighted assets) $ 98,970 16.5 % $ 26,983 4.5 % $ 30,730 5.1 % $ 38,975 6.5 % Total capital (to risk-weighted assets) 106,517 17.8 % 47,969 8.0 % 51,717 8.6 % 59,962 10.0 % Tier 1 capital (to risk-weighted assets) 98,970 16.5 % 35,977 6.0 % 39,725 6.6 % 47,969 8.0 % Tier 1 capital (to average quarterly assets) 98,970 12.9 % 30,634 4.0 % 35,420 4.6 % 38,292 5.0 % |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5 - Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for each period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options, warrants, and convertible preferred stock, and are determined using the treasury stock method. Not included in the diluted earnings per share calculation for 2017 and 2016 because they were anti-dilutive, were 20,000 and 126,600 shares, respectively, of common stock issuable upon exercise of outstanding stock options, 437,500 shares of common stock issuable upon conversion of the Company’s Series A Preferred Stock, and, in 2016, 556,976 shares of common stock issuable upon the exercise of a warrant were also anti-dilutive and excluded from the calculation. Information relating to the calculations of our income per common share is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (dollars in thousands, except for per share data) Weighted-average shares outstanding - basic 12,172,586 12,104,379 12,140,689 11,324,660 Dilution 150,986 79,360 107,525 51,193 Weighted-average share outstanding - diluted 12,323,572 12,183,739 12,248,214 11,375,853 Net income available to common stockholders $ 1,121 $ 539 $ 2,753 $ 12,864 Net income per share - basic $ 0.09 $ 0.04 $ 0.23 $ 1.14 Net income per share - diluted $ 0.09 $ 0.04 $ 0.22 $ 1.13 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 6 - Stock-Based Compensation We maintain a stock-based compensation plan for directors, officers, and other key employees of the Company. The aggregate number of shares of common stock that may be issued with respect to the awards granted under the plan is 500,000 plus any shares forfeited under the Company’s old stock-based compensation plan. Under the terms of the stock-based compensation plan, the Company has the ability to grant various stock compensation incentives, including stock options, stock appreciation rights, and restricted stock. The stock-based compensation is granted under terms and conditions determined by the Compensation Committee of the Board of Directors. Under the stock-based compensation plan, stock options generally have a maximum term of ten years, and are granted with an exercise price at least equal to the fair market value of the common stock on the date the options are granted. Generally, options granted to directors, officers, and employees of the Company vest over a five-year period, although the Compensation Committee has the authority to provide for different vesting schedules. We account for stock-based compensation in accordance with FASB Accounting Standards Codification Topic 718, Compensation – Stock Compensation, The weighted average fair value of the options issued during the three and nine months ended September 30, 2017 was $2.56. There were no options granted during the three or nine months ended September 30, 2016. The fair value of the options was calculated using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions for the three and nine months ended September 30, 2017: Dividend yield 0.00 % Expected volatility 36.02 % Risk-free interest rate 1.76 % Expected lives 5.5 years Information regarding our stock-based compensation plan is as follows as of and for the nine months ended September 30: 2017 2016 Number Weighted- Weighted- Average Remaining Contractual Term (in years) Aggregate Number Weighted- Weighted- Average Remaining Contractual Term (in years) Aggregate Outstanding at beginning of period 339,500 $ 5.31 339,800 $ 4.83 Granted 20,000 7.10 - - Exercised (5,025 ) 3.37 - - Forfeited (16,000 ) 4.59 (54,500 ) 5.07 Outstanding at end of period 338,475 5.48 7.2 $ 526 285,300 4.79 8.2 $ 491 Exercisable at end of period 173,702 4.78 6.5 $ 398 136,125 4.37 7.0 $ 292 As of September 30, 2017, there was $520,000 of total unrecognized stock-based compensation expense related to nonvested stock options, which is expected to be recognized over the next 59 months. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | Note 7 - Other Comprehensive Income The following table presents the changes in the components of accumulated other comprehensive loss for the three and nine months ended September 30, 2017: Three Months Nine Months (dollars in thousands) Balance at beginning of period $ 6 $ - Other comprehensive loss before reclassification (9 ) (3 ) Amounts reclassified from accumulated other comprehensive loss (1 ) (1 ) Net other comprehensive loss during period (10 ) (4 ) Balance at end of period $ (4 ) $ (4 ) We did not have any accumulated other comprehensive income or loss for the three or nine months ended September 30, 2016. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 8 - Fair Value of Financial Instruments A fair value hierarchy that prioritizes the inputs to valuation methods is used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair market hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets, or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. We record transfers between levels at the end of the reporting period in which the change in significant inputs occurs. Assets Measured on a Recurring Basis The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the nine months ended September 30, 2017: Carrying Quoted Significant Significant Total Changes (dollars in thousands) AFS Securities - U.S. government agency notes $ 3,129 $ - $ 3,129 $ - $ - Loans held for sale ("LHFS") 4,871 - 4,871 - 139 Mortgage servicing rights ("MSRs") 473 - - 473 (84 ) Interest-rate lock commitments ("IRLCs") 42 - 42 - (120 ) Mandatory forward contracts 7 - 7 - (146 ) Best efforts forward contracts 6 - 6 - 6 The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the year ended December 31, 2016: Carrying Quoted Significant Significant Total Changes (dollars in thousands) MSRs $ 557 $ - $ - $ 557 $ 66 IRLCs 162 - 162 - (21 ) Mandatory forward contracts 153 - 153 - 42 The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: Fair Value Valuation Unobservable Range (dollars in thousands) September 30, 2017: MSRs $ 473 Market Approach Weighted average prepayment speed 3.95 % December 31, 2016: MSRs $ 557 Market Approach Weighted average prepayment speed 3.95 % AFS Securities The estimated fair values of AFS debt securities are obtained from a nationally-recognized pricing service. This pricing service develops estimated fair values by analyzing like securities and applying available market information through processes such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare valuations. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things, and are based on market data obtained from sources independent from the Bank. The Level 2 investments in the Bank’s portfolio are priced using those inputs that, based on the analysis prepared by the pricing service, reflect the assumptions that market participants would use to price the assets. The Bank has determined that the Level 2 designation is appropriate for these securities because, as with most fixed-income securities, those in the Bank’s portfolio are not exchange-traded, and such nonexchange-traded fixed income securities are typically priced by correlation to observed market data. LHFS At September 30, 2017, LHFS were carried at fair value, which is determined based on outstanding investor commitments or, in the absence of such commitments, on current investor yield requirements or third party pricing models. At December 31, 2016, LHFS were carried at the lower-of-cost or market value (“LCM”) utilizing the same method. MSRs The fair value of MSRs is determined using a valuation model administered by a third party that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, default rates, cost to service (including delinquency and foreclosure costs), escrow account earnings, contractual servicing fee income, and other ancillary income such as late fees. Management reviews all significant assumptions on a monthly basis. Mortgage loan prepayment speed, a key assumption in the model, is the annual rate at which borrowers are forecasted to repay their mortgage loan principal. The discount rate used to determine the present value of estimated future net servicing income, another key assumption in the model, is an estimate of the required rate of return investors in the market would require for an asset with similar risk. Both assumptions can, and generally will, change as market conditions and interest rates change. IRLCs We utilize a third party specialist model to estimate the fair value of our IRLCs, which are valued based upon mandatory pricing quotes from correspondent lenders less estimated costs to process and settle the loan. Fair value is adjusted for the estimated probability of the loan closing with the borrower. Forward Contracts To avoid interest rate risk, we enter into best efforts forward sales commitments with investors at the time we make an IRLC to a borrower. Once a loan has been closed and funded, the best efforts commitments convert to mandatory forward sales commitments. The mandatory commitments are derivatives, and the bank measures and reports them at fair value. Fair value is based on the gain or loss that would occur if we were to pair-off the transaction with the investor at the measurement date. This is a level 2 input. We have elected to measure and report best efforts commitments at fair value using a valuation methodology similar to that used for our mandatory commitments. Assets Measured on a Nonrecurring Basis We may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from application of LCM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets: September 30, 2017 Carrying Quoted Significant Significant Range of Weighted (dollars in thousands) Impaired loans $ 1,597 $ - $ - $ 1,597 0% - 33 % 25.5 % Real estate acquired through foreclosure 691 - - 691 0% - 26 % 20.9 % December 31, 2016 Carrying Quoted Significant Significant Range of Weighted (dollars in thousands) Impaired loans $ 2,136 $ - $ - $ 2,136 0% - 2 % 2.0 % Real estate acquired through foreclosure 767 - - 767 0% - 10 % 10.0 % Impaired Loans Impaired loans are those for which we have measured impairment based on the present value of expected future cash flows or on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. If it is determined that the repayment of the loan will be provided solely by the underlying collateral, and there are no other available and reliable sources of repayment, the loan is considered collateral dependent. Impaired loans that are considered collateral dependent are carried at the LCM. Collateral may be in the form of real estate or business assets including equipment, inventory, and/or accounts receivable. The use of independent appraisals and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and impaired loans are therefore classified within level 3 of the fair value hierarchy. For such loans that are classified as impaired, an Allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of that loan. For such impaired loans that are classified as collateral dependent, an Allowance is established when the current market value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge-off is taken for the difference between the net collateral value and the carrying value of the loan. Real Estate Acquired Through Foreclosure We record foreclosed real estate assets at the fair value less estimated selling costs on their acquisition dates and at the lower of such initial amount or estimated fair value less estimated selling costs thereafter. We generally obtain certified external appraisals of real estate acquired through foreclosure and estimate fair value using those appraisals. Other valuation sources may be used, including broker price opinions, letters of intent, and executed sale agreements. Fair Value of All Financial Instruments The carrying value and estimated fair value of all financial instruments are summarized in the following tables. The descriptions of the fair value calculations for AFS securities, LHFS, MSRs, IRLCs, best efforts forward contracts, mandatory forward contracts, impaired loans, and real estate acquired through foreclosure are included in the discussions above. September 30, 2017 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 41,635 $ 41,635 $ - $ - $ 41,635 AFS securities 3,129 - 3,129 - 3,129 HTM securities 58,764 8,102 50,857 - 58,959 LHFS 4,871 - 4,871 - 4,871 Loans receivable 643,028 - - 653,381 653,381 Restricted stock investments 4,699 - 4,699 - 4,699 Accrued interest receivable 2,503 - 2,503 - 2,503 MSRs 473 - - 473 473 IRLCs 42 - 42 - 42 Mandatory forward contracts 7 - 7 - 7 Best effort forward contracts 6 - 6 - 6 Liabilities: Deposits 593,492 - 586,594 - 586,594 Borrowings 93,450 - 87,909 - 87,909 Subordinated debentures 20,619 - - 20,619 20,619 Accrued interest payable 478 - 478 - 478 December 31, 2016 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 67,114 $ 67,114 $ - $ - $ 67,114 HTM securities 62,757 13,165 49,662 - 62,827 LHFS 10,307 - 10,313 - 10,313 Loans receivable 601,309 - - 602,953 602,953 Restricted stock investments 5,103 - 5,103 - 5,103 Accrued interest receivable 2,249 - 2,249 - 2,249 MSRs 557 - - 557 557 IRLCs 162 - 162 - 162 Mandatory forward contracts 153 - 153 - 153 Liabilities: Deposits 571,946 - 572,556 - 572,556 Borrowings 103,500 - 97,961 - 97,961 Subordinated debentures 20,619 - - 20,619 20,619 Accrued interest payable 538 - 538 - 538 At September 30, 2017 and December 31, 2016, the Bank had loan funding commitments of $97.6 Cash and Cash Equivalents The carrying amount reported in the consolidated statements of financial condition for cash and cash equivalents approximate those assets’ fair values. HTM securities The Company utilizes a third party source to determine the fair value of its securities. The methodology consists of pricing models based on asset class and includes available trade, bid, other market information, broker quotes, proprietary models, various databases, and trading desk quotes. U.S Treasury Securities are considered Level 1 and all of our other securities are considered Level 2. Loans Receivable The fair values of loans receivable were estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. These rates were used for each aggregated category of loans. Restricted Stock Investments The carrying value of restricted stock investments is a reasonable estimate of fair value as these investments do not have a readily available market. Deposits The fair values disclosed for demand deposit accounts, savings accounts, and money market accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Borrowings Long-term and short-term borrowings were segmented into categories with similar financial characteristics. Carrying values were discounted using a cash flow approach based on market rates. Subordinated debentures Current economic conditions have rendered the market for this liability inactive. As such, the Company is unable to determine a good estimate of fair value. Since the rate paid on the debentures held is lower than what would be required to secure an interest in the same debt at year end and we are unable to obtain a current fair value, the Company has disclosed that the carrying value approximates the fair value. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about financial instruments. These estimates do not reflect any premium or discount that could result from a one-time sale of our total holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect estimates. The above information should not be interpreted as an estimate of the fair value of the Company since a fair value calculation is only provided for a limited portion of our assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between our disclosures and those of other companies may not be meaningful. There were no transfers between any of Levels 1, 2, and 3 for the nine months ended September 30, 2017 or 2016 or for the year ended December 31, 2016. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of Severn Bancorp, Inc. and subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) and prevailing practices within the financial services industry for interim financial information and Rule 8-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements and prevailing practices within the banking industry. In the opinion of management, all adjustments (comprising only of those of a normal recurring nature) necessary for a fair presentation of the results of operations for the interim periods presented have been made. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017 or any other interim or future period. Events occurring after the date of the financial statements up to , the date the financial statements were available to be issued, were considered in the preparation of the consolidated financial statements. These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2016 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”). |
Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements include the accounts of Severn Bancorp, Inc., and its wholly-owned subsidiaries, Mid-Maryland Title Company, Inc., SBI Mortgage Company and SBI Mortgage Company’s subsidiary, Crownsville Development Corporation, and its subsidiary, Crownsville Holdings I, LLC, and Severn Savings Bank, FSB (the “Bank”), and the Bank’s subsidiaries, Louis Hyatt, Inc., Homeowners Title and Escrow Corporation, Severn Financial Services Corporation, SSB Realty Holdings, LLC, SSB Realty Holdings II, LLC, and HS West, LLC. All intercompany accounts and transactions have been eliminated in the accompanying consolidated financial statements. |
Acquisition | Acquisition On September 1, 2017, we acquired Mid-Maryland Title Company, Inc. (the “Title Company”) by issuing stock in a business combination. We issued 108,084 shares in the transaction valued at $775,000. We recorded $759,000 in goodwill in the transaction. The acquisition continues our growth strategy and focus on being a full-service provider and complements the mortgage services, commercial banking services, and commercial real estate services we provide. The acquisition of the Title Company has not had a material effect on the Company’s financial condition or results of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for loan losses and the related allowance for loan losses (“Allowance”), determination of impaired loans and the related measurement of impairment, valuation of investment securities, valuation of real estate acquired through foreclosure, valuation of share-based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, and the calculation of current and deferred income taxes and the realizability of net deferred tax assets. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold, and interest-earning deposits with banks. |
Reclassifications | Reclassifications Certain reclassifications have been made to amounts previously reported to conform to current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting Pronouncements Issued In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers: Deferral of the Effective Date, , Revenue from Contracts with Customers: Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), , Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, , Technical Corrections and Improvements to Topic 606, Revenue form Contracts with Customers, In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU 2016-02, Leases In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other costs, |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Amortized cost and fair value of investment securities AFS | The amortized cost and estimated fair values of our AFS securities portfolio were as follows as of September 30, 2017: Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. government agency notes $ 3,135 $ - $ 6 $ 3,129 |
Amortized cost and fair value of investment securities held to maturity | The amortized cost and estimated fair values of our held-to-maturity (“HTM”) securities portfolio were as follows: September 30, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. Treasury securities $ 7,996 $ 106 $ - $ 8,102 U.S. government agency notes 19,008 137 43 19,102 Mortgage-backed securities 31,760 97 102 31,755 $ 58,764 $ 340 $ 145 $ 58,959 December 31, 2016 Amortized Unrealized Unrealized Estimated (dollars in thousands) U.S. Treasury securities $ 12,998 $ 167 $ - $ 13,165 U.S. government agency notes 20,027 133 54 20,106 Mortgage-backed securities 29,732 52 228 29,556 $ 62,757 $ 352 $ 282 $ 62,827 |
Schedule of temporary impairment losses | Gross unrealized losses and fair value by length of time that the individual HTM securities have been in an unrealized loss position at the dates indicated are presented in the following tables: September 30, 2017 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) U.S. government agency notes $ 4,000 $ 2 $ 7,005 $ 41 $ 11,005 $ 43 Mortgage-backed securities 11,687 39 7,501 63 19,188 102 $ 15,687 $ 41 $ 14,506 $ 104 $ 30,193 $ 145 December 31, 2016 Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (dollars in thousands) U.S. government agency notes $ 5,002 $ 54 $ - $ - $ 5,002 $ 54 Mortgage-backed securities 23,457 228 - - 23,457 228 $ 28,459 $ 282 $ - $ - $ 28,459 $ 282 |
Amortized cost and estimated fair value of debt securities | Contractual maturities of debt securities at September 30, 2017 are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. AFS Securities HTM Securities Amortized Estimated Amortized Estimated (dollars in thousands) Due in one year or less $ - $ - $ 10,009 $ 10,014 Due after one through five years 3,135 3,129 15,030 15,112 Due after five years through ten years - - 1,965 2,078 Mortgage-backed securities - - 31,760 31,755 $ 3,135 $ 3,129 $ 58,764 $ 58,959 |
Loans Receivable and Allowanc19
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans Receivable and Allowance for Loan Losses [Abstract] | |
Summary of loans receivable | Loans receivable are summarized as follows: September 30, 2017 December 31, 2016 (dollars in thousands) Residential mortgage $ 292,068 $ 260,603 Commercial 37,485 46,468 Commercial real estate 223,167 195,710 Construction, land acquisition, and development 84,164 90,102 Home equity/2nds 15,861 19,129 Consumer 1,118 1,210 Total loans receivable 653,863 613,222 Unearned loan fees (2,899 ) (2,944 ) Net loans receivable $ 650,964 $ 610,278 |
Changes in allowance for loan losses and recorded investment | The following tables present, by portfolio segment, the changes in the Allowance and the recorded investment in loans: Three Months Ended September 30, 2017 Residential Commercial Commercial Real Estate ADC Home Equity/ Consumer Total (dollars in thousands) Beginning Balance $ 3,403 $ 389 $ 2,571 $ 984 $ 367 $ 4 $ 7,718 Charge-offs - - - - - - - Recoveries 156 - 40 - 22 - 218 Net recoveries 156 - 40 - 22 - 218 (Reversal of) provision for loan losses (137 ) 53 (44 ) 158 (28 ) (2 ) - Ending Balance $ 3,422 $ 442 $ 2,567 $ 1,142 $ 361 $ 2 $ 7,936 Nine Months Ended September 30, 2017 (dollars in thousands) Beginning Balance $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Charge-offs (707 ) - - - (98 ) - (805 ) Recoveries 295 - 100 - 27 - 422 Net (charge-offs) recoveries (412 ) - 100 - (71 ) - (383 ) Provision for (reversal of) loan losses 1 (36 ) (68 ) (248 ) (296 ) (3 ) (650 ) Ending Balance $ 3,422 $ 442 $ 2,567 $ 1,142 $ 361 $ 2 $ 7,936 Ending balance - individually evaluated for impairment $ 1,544 $ - $ 186 $ 50 $ - $ 2 $ 1,782 Ending balance - collectively evaluated for impairment 1,878 442 2,381 1,092 361 - 6,154 $ 3,422 $ 442 $ 2,567 $ 1,142 $ 361 $ 2 $ 7,936 Ending loan balance - individually evaluated for impairment $ 20,379 $ - $ 3,419 $ 1,003 $ - $ 87 $ 24,888 Ending loan balance - collectively evaluated for impairment 268,790 37,485 219,748 83,161 15,861 1,031 626,076 $ 289,169 $ 37,485 $ 223,167 $ 84,164 $ 15,861 $ 1,118 $ 650,964 December 31, 2016 Residential Mortgage Commercial Commercial Real Estate ADC Home Equity/ Consumer Total (dollars in thousands) Ending Allowance balance - individually evaluated for impairment $ 1,703 $ 15 $ 196 $ 53 $ 402 $ 4 $ 2,373 Ending Allowance balance - collectively evaluated for impairment 2,130 463 2,339 1,337 326 1 6,596 $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Ending loan balance - individually evaluated for impairment $ 20,403 $ 148 $ 5,656 $ 858 $ 3,137 $ 96 $ 30,298 Ending loan balance - collectively evaluated for impairment 237,256 46,320 190,054 89,244 15,992 1,114 579,980 $ 257,659 $ 46,468 $ 195,710 $ 90,102 $ 19,129 $ 1,210 $ 610,278 Three Months Ended September 30, 2016 Residential Mortgage Commercial Commercial ADC Home Equity/ Consumer Total (dollars in thousands) Beginning Balance $ 3,892 $ 752 $ 2,577 $ 983 $ 593 $ 7 $ 8,804 Charge-offs - - - (72 ) - - (72 ) Recoveries 137 10 4 - 2 50 203 Net recoveries (charge-offs) 137 10 4 (72 ) 2 50 131 (Reversal of) provision for loan losses (161 ) (63 ) (189 ) 289 226 (52 ) 50 Ending Balance $ 3,868 $ 699 $ 2,392 $ 1,200 $ 821 $ 5 $ 8,985 Nine Months Ended September 30, 2016 (dollars in thousands) Beginning Balance $ 4,188 $ 291 $ 2,792 $ 956 $ 528 $ 3 $ 8,758 Charge-offs (151 ) (17 ) (178 ) (72 ) (28 ) - (446 ) Recoveries 322 43 4 100 4 50 523 Net recoveries (charge-offs) 171 26 (174 ) 28 (24 ) 50 77 (Reversal of) provision for loan losses (491 ) 382 (226 ) 216 317 (48 ) 150 Ending Balance $ 3,868 $ 699 $ 2,392 $ 1,200 $ 821 $ 5 $ 8,985 Ending balance - individually evaluated for impairment $ 1,583 $ 15 $ 200 $ 55 $ 402 $ 4 $ 2,259 Ending balance - collectively evaluated for impairment 2,285 684 2,192 1,145 419 1 6,726 $ 3,868 $ 699 $ 2,392 $ 1,200 $ 821 $ 5 $ 8,985 Ending loan balance - individually evaluated for impairment $ 22,521 $ 495 $ 5,696 $ 1,446 $ 3,519 $ 100 $ 33,777 Ending loan balance - collectively evaluated for impairment 246,375 41,864 193,219 79,894 16,220 1,109 578,681 $ 268,896 $ 42,359 $ 198,915 $ 81,340 $ 19,739 $ 1,209 $ 612,458 |
Credit quality breakdown of loan portfolio by class | The following tables present the credit quality breakdown of our loan portfolio by class: September 30, 2017 Pass Special Mention Substandard Total (dollars in thousands) Residential mortgage $ 281,954 $ 1,397 $ 5,818 $ 289,169 Commercial 37,299 50 136 37,485 Commercial real estate 216,373 4,668 2,126 223,167 ADC 82,958 - 1,206 84,164 Home equity/2nds 14,531 471 859 15,861 Consumer 1,118 - - 1,118 $ 634,233 $ 6,586 $ 10,145 $ 650,964 December 31, 2016 Pass Special Substandard Total (dollars in thousands) Residential mortgage $ 248,819 $ 4,316 $ 4,524 $ 257,659 Commercial 46,011 204 253 46,468 Commercial real estate 184,820 7,420 3,470 195,710 ADC 89,324 - 778 90,102 Home equity/2nds 16,056 472 2,601 19,129 Consumer 1,210 - - 1,210 $ 586,240 $ 12,412 $ 11,626 $ 610,278 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans: September 30, 2017 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- Accrual (dollars in thousands) Residential mortgage $ 1,173 $ 1,216 $ 2,364 $ 4,753 $ 284,416 $ 289,169 $ 4,531 Commercial - - - - 37,485 37,485 84 Commercial real estate - 478 - 478 222,689 223,167 160 ADC - - 239 239 83,925 84,164 318 Home equity/2nds - - 458 458 15,403 15,861 1,284 Consumer - - - - 1,118 1,118 - $ 1,173 $ 1,694 $ 3,061 $ 5,928 $ 645,036 $ 650,964 $ 6,377 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- (dollars in thousands) Residential mortgage $ 1,472 $ 2,074 $ 964 $ 4,510 $ 253,149 $ 257,659 $ 3,580 Commercial - - - - 46,468 46,468 151 Commercial real estate - 171 515 686 195,024 195,710 2,938 ADC 106 - 6 112 89,990 90,102 269 Home equity/2nds 34 - 2,174 2,208 16,921 19,129 2,914 Consumer 4 - - 4 1,206 1,210 - $ 1,616 $ 2,245 $ 3,659 $ 7,520 $ 602,758 $ 610,278 $ 9,852 |
Summary of Impaired loans | The following tables summarize impaired loans: September 30, 2017 December 31, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related Allowance: (dollars in thousands) Residential mortgage $ 12,856 $ 11,306 $ - $ 9,854 $ 9,338 $ - Commercial - - - - - - Commercial real estate 1,576 1,527 - 3,900 3,698 - ADC 636 636 - 441 441 - Home equity/2nds - - - 2,139 1,529 - Consumer - - - - - - With a related Allowance: Residential mortgage 9,306 9,073 1,544 11,176 11,065 1,703 Commercial - - - 148 148 15 Commercial real estate 1,892 1,892 186 1,958 1,958 196 ADC 402 367 50 417 417 53 Home equity/2nds - - - 1,608 1,608 402 Consumer 87 87 2 96 96 4 Totals: Residential mortgage 22,162 20,379 1,544 21,030 20,403 1,703 Commercial - - - 148 148 15 Commercial real estate 3,468 3,419 186 5,858 5,656 196 ADC 1,038 1,003 50 858 858 53 Home equity/2nds - - - 3,747 3,137 402 Consumer 87 87 2 96 96 4 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related Allowance: (dollars in thousands) Residential mortgage $ 10,423 $ 138 $ 12,734 $ 132 $ 9,696 $ 353 $ 13,774 $ 417 Commercial - - 274 2 - - 150 3 Commercial real estate 1,531 22 3,730 57 2,652 69 4,655 134 ADC 637 9 1,031 9 487 21 1,431 36 Home equity/2nds 918 15 1,911 18 679 40 1,991 59 Consumer - - - - - - 23 - With a related Allowance: Residential mortgage 8,910 116 9,831 106 9,231 286 10,684 356 Commercial - - 149 2 37 - 182 7 Commercial real estate 1,896 23 1,977 25 1,919 73 2,040 77 ADC 369 6 426 6 385 16 513 20 Home equity/2nds 180 - 1,078 6 715 - 370 7 Consumer 88 1 102 1 91 2 73 2 Totals: Residential mortgage 19,333 254 22,565 238 18,927 639 24,458 773 Commercial - - 423 4 37 - 332 10 Commercial real estate 3,427 45 5,707 82 4,571 142 6,695 211 ADC 1,006 15 1,457 15 872 37 1,944 56 Home equity/2nds 1,098 15 2,989 24 1,394 40 2,361 66 Consumer 88 1 102 1 91 2 96 2 |
Loans modified as TDRs | The following table presents loans that were modified during the nine months ended September 30: 2017 2016 Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification (dollars in thousands) Residential Mortgage 3 $ 624 $ 624 - $ - $ - 3 $ 624 $ 624 Interest on our portfolio of TDRs was accounted for under the following methods: September 30, 2017 Number of Accrual Number of Nonaccrual Total Total (dollars in thousands) Residential mortgage 43 $ 13,086 4 $ 2,285 47 $ 15,371 Commercial real estate 3 1,875 1 84 4 1,959 ADC 1 138 1 6 2 144 Home equity/2nds 1 230 - - 1 230 Consumer 4 87 - - 4 87 52 $ 15,416 6 $ 2,375 58 $ 17,791 December 31, 2016 Number of Accrual Number of Nonaccrual Total Total (dollars in thousands) Residential mortgage 48 $ 15,886 4 $ 2,137 52 $ 18,023 Commercial real estate 3 1,914 2 249 5 2,163 ADC 2 170 1 6 3 176 Consumer 5 96 - - 5 96 58 $ 18,066 7 $ 2,392 65 $ 20,458 |
Contract amounts for off-balance sheet instruments | The following table shows the contract amounts for our off-balance sheet instruments: September 30, 2017 December 31, (dollars in thousands) Standby letters of credit $ 3,854 $ 4,022 Home equity lines of credit 12,425 7,736 Unadvanced construction commitments 72,045 15,728 Mortgage loan commitments - 574 Lines of credit 13,092 34,125 Loans sold and serviced with limited repurchase provisions 19,979 70,773 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Matters [Abstract] | |
Bank's actual capital amounts and ratios | The Bank’s regulatory capital amounts and ratios were as follows: Actual Minimum Minimum To be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2017 (dollars in thousands) Common Equity Tier 1 Capital (to risk-weighted assets) $ 104,318 16.8 % $ 27,907 4.5 % $ 35,658 5.8 % $ 40,309 6.5 % Total capital (to risk-weighted assets) 112,086 18.1 % 49,612 8.0 % 57,363 9.3 % 62,015 10.0 % Tier 1 capital (to risk-weighted assets) 104,318 16.8 % 37,209 6.0 % 44,961 7.3 % 49,612 8.0 % Tier 1 capital (to average quarterly assets) 104,318 13.3 % 31,313 4.0 % 41,099 5.3 % 39,142 5.0 % December 31, 2016 Common Equity Tier 1 Capital (to risk-weighted assets) $ 98,970 16.5 % $ 26,983 4.5 % $ 30,730 5.1 % $ 38,975 6.5 % Total capital (to risk-weighted assets) 106,517 17.8 % 47,969 8.0 % 51,717 8.6 % 59,962 10.0 % Tier 1 capital (to risk-weighted assets) 98,970 16.5 % 35,977 6.0 % 39,725 6.6 % 47,969 8.0 % Tier 1 capital (to average quarterly assets) 98,970 12.9 % 30,634 4.0 % 35,420 4.6 % 38,292 5.0 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share reconciliation | Information relating to the calculations of our income per common share is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (dollars in thousands, except for per share data) Weighted-average shares outstanding - basic 12,172,586 12,104,379 12,140,689 11,324,660 Dilution 150,986 79,360 107,525 51,193 Weighted-average share outstanding - diluted 12,323,572 12,183,739 12,248,214 11,375,853 Net income available to common stockholders $ 1,121 $ 539 $ 2,753 $ 12,864 Net income per share - basic $ 0.09 $ 0.04 $ 0.23 $ 1.14 Net income per share - diluted $ 0.09 $ 0.04 $ 0.22 $ 1.13 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock options valuation assumptions | The fair value of the options was calculated using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions for the three and nine months ended September 30, 2017: Dividend yield 0.00 % Expected volatility 36.02 % Risk-free interest rate 1.76 % Expected lives 5.5 years |
Information regarding stock option plan | Information regarding our stock-based compensation plan is as follows as of and for the nine months ended September 30: 2017 2016 Number Weighted- Weighted- Average Remaining Contractual Term (in years) Aggregate Number Weighted- Weighted- Average Remaining Contractual Term (in years) Aggregate Outstanding at beginning of period 339,500 $ 5.31 339,800 $ 4.83 Granted 20,000 7.10 - - Exercised (5,025 ) 3.37 - - Forfeited (16,000 ) 4.59 (54,500 ) 5.07 Outstanding at end of period 338,475 5.48 7.2 $ 526 285,300 4.79 8.2 $ 491 Exercisable at end of period 173,702 4.78 6.5 $ 398 136,125 4.37 7.0 $ 292 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income [Abstract] | |
Components of accumulated other comprehensive income | The following table presents the changes in the components of accumulated other comprehensive loss for the three and nine months ended September 30, 2017: Three Months Nine Months (dollars in thousands) Balance at beginning of period $ 6 $ - Other comprehensive loss before reclassification (9 ) (3 ) Amounts reclassified from accumulated other comprehensive loss (1 ) (1 ) Net other comprehensive loss during period (10 ) (4 ) Balance at end of period $ (4 ) $ (4 ) |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair value measurements for assets on a recurring basis | The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the nine months ended September 30, 2017: Carrying Quoted Significant Significant Total Changes (dollars in thousands) AFS Securities - U.S. government agency notes $ 3,129 $ - $ 3,129 $ - $ - Loans held for sale ("LHFS") 4,871 - 4,871 - 139 Mortgage servicing rights ("MSRs") 473 - - 473 (84 ) Interest-rate lock commitments ("IRLCs") 42 - 42 - (120 ) Mandatory forward contracts 7 - 7 - (146 ) Best efforts forward contracts 6 - 6 - 6 The following tables present fair value measurements for assets that are measured at fair value on a recurring basis as of and for the year ended December 31, 2016: Carrying Quoted Significant Significant Total Changes (dollars in thousands) MSRs $ 557 $ - $ - $ 557 $ 66 IRLCs 162 - 162 - (21 ) Mandatory forward contracts 153 - 153 - 42 |
Assets measured at fair value on a recurring and nonrecurring basis utilizing level 3 input | The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: Fair Value Valuation Unobservable Range (dollars in thousands) September 30, 2017: MSRs $ 473 Market Approach Weighted average prepayment speed 3.95 % December 31, 2016: MSRs $ 557 Market Approach Weighted average prepayment speed 3.95 % For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets: September 30, 2017 Carrying Quoted Significant Significant Range of Weighted (dollars in thousands) Impaired loans $ 1,597 $ - $ - $ 1,597 0% - 33 % 25.5 % Real estate acquired through foreclosure 691 - - 691 0% - 26 % 20.9 % December 31, 2016 Carrying Quoted Significant Significant Range of Weighted (dollars in thousands) Impaired loans $ 2,136 $ - $ - $ 2,136 0% - 2 % 2.0 % Real estate acquired through foreclosure 767 - - 767 0% - 10 % 10.0 % |
Estimated fair values of financial instruments | The carrying value and estimated fair value of all financial instruments are summarized in the following tables. The descriptions of the fair value calculations for AFS securities, LHFS, MSRs, IRLCs, best efforts forward contracts, mandatory forward contracts, impaired loans, and real estate acquired through foreclosure are included in the discussions above. September 30, 2017 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 41,635 $ 41,635 $ - $ - $ 41,635 AFS securities 3,129 - 3,129 - 3,129 HTM securities 58,764 8,102 50,857 - 58,959 LHFS 4,871 - 4,871 - 4,871 Loans receivable 643,028 - - 653,381 653,381 Restricted stock investments 4,699 - 4,699 - 4,699 Accrued interest receivable 2,503 - 2,503 - 2,503 MSRs 473 - - 473 473 IRLCs 42 - 42 - 42 Mandatory forward contracts 7 - 7 - 7 Best effort forward contracts 6 - 6 - 6 Liabilities: Deposits 593,492 - 586,594 - 586,594 Borrowings 93,450 - 87,909 - 87,909 Subordinated debentures 20,619 - - 20,619 20,619 Accrued interest payable 478 - 478 - 478 December 31, 2016 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 67,114 $ 67,114 $ - $ - $ 67,114 HTM securities 62,757 13,165 49,662 - 62,827 LHFS 10,307 - 10,313 - 10,313 Loans receivable 601,309 - - 602,953 602,953 Restricted stock investments 5,103 - 5,103 - 5,103 Accrued interest receivable 2,249 - 2,249 - 2,249 MSRs 557 - - 557 557 IRLCs 162 - 162 - 162 Mandatory forward contracts 153 - 153 - 153 Liabilities: Deposits 571,946 - 572,556 - 572,556 Borrowings 103,500 - 97,961 - 97,961 Subordinated debentures 20,619 - - 20,619 20,619 Accrued interest payable 538 - 538 - 538 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 01, 2017 | Sep. 30, 2017 |
Business Acquisition [Line Items] | ||
Value of shares issued in acquisition | $ 775,000 | |
Mid-Maryland Title Company [Member] | ||
Business Acquisition [Line Items] | ||
Stock issued in a business combination (in shares) | 108,084 | |
Value of shares issued in acquisition | $ 775,000 | |
Goodwill | $ 759,000 |
Securities (Details)
Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)Security | Sep. 30, 2017USD ($)Security | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Amortized cost and fair value of investment securities Available-for-sale [Abstract] | ||||
Amortized Cost | $ 3,135 | $ 3,135 | ||
AFS Securities | 3,129 | 3,129 | $ 0 | |
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||||
Amortized Cost | 58,764 | 58,764 | 62,757 | |
Unrealized Gains | 340 | 340 | 352 | |
Unrealized Losses | 145 | 145 | 282 | |
Fair Value | 58,959 | 58,959 | 62,827 | |
Fair Value [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 15,687 | 15,687 | 28,459 | |
12 Months or More, Estimated Fair Value | 14,506 | 14,506 | 0 | |
Total, Estimated Fair Value | 30,193 | 30,193 | 28,459 | |
Unrealized Losses [Abstract] | ||||
Less than 12 Months, Unrealized Losses | 41 | 41 | 282 | |
12 Months or More, Unrealized Losses | 104 | 104 | 0 | |
Total, Unrealized Losses | $ 145 | $ 145 | 282 | |
AFS securities, Number of securities in continuous unrealized loss position less than twelve months | Security | 3 | 3 | ||
AFS securities, amount of largest loss recorded in one security | $ 3 | $ 3 | ||
HTM securities, Number of securities in continuous unrealized loss position | Security | 21 | 21 | ||
HTM securities, Amount of largest loss recorded in one security | $ 29 | $ 29 | ||
Amortized Cost [Abstract] | ||||
Due in one year or less | 0 | 0 | ||
Due after one through five years | 3,135 | 3,135 | ||
Due after five years through ten years | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
Amortized Cost | 3,135 | 3,135 | ||
Estimated Fair Value [Abstract] | ||||
Due in one year or less | 0 | 0 | ||
Due after one through five years | 3,129 | 3,129 | ||
Due after five years through ten years | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
Fair Value | 3,129 | 3,129 | 0 | |
Amortized Cost [Abstract] | ||||
Due in one year or less | 10,009 | 10,009 | ||
Due after one through five years | 15,030 | 15,030 | ||
Due after five years through ten years | 1,965 | 1,965 | ||
Mortgage-backed securities | 31,760 | 31,760 | ||
Amortized Cost | 58,764 | 58,764 | 62,757 | |
Estimated Fair Value [Abstract] | ||||
Due in one year or less | 10,014 | 10,014 | ||
Due after one through five years | 15,112 | 15,112 | ||
Due after five years through ten years | 2,078 | 2,078 | ||
Mortgage-backed securities | 31,755 | 31,755 | ||
Fair Value | 58,959 | 58,959 | 62,827 | |
Gross gain (loss) on the sale of securities | 4 | (2) | $ 0 | |
U.S. Treasury Securities [Member] | ||||
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||||
Amortized Cost | 7,996 | 7,996 | 12,998 | |
Unrealized Gains | 106 | 106 | 167 | |
Unrealized Losses | 0 | 0 | 0 | |
Fair Value | 8,102 | 8,102 | 13,165 | |
Amortized Cost [Abstract] | ||||
Amortized Cost | 7,996 | 7,996 | 12,998 | |
Estimated Fair Value [Abstract] | ||||
Fair Value | 8,102 | 8,102 | 13,165 | |
U.S. Government Agency Notes [Member] | ||||
Amortized cost and fair value of investment securities Available-for-sale [Abstract] | ||||
Amortized Cost | 3,135 | 3,135 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 6 | 6 | ||
AFS Securities | 3,129 | 3,129 | ||
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||||
Amortized Cost | 19,008 | 19,008 | 20,027 | |
Unrealized Gains | 137 | 137 | 133 | |
Unrealized Losses | 43 | 43 | 54 | |
Fair Value | 19,102 | 19,102 | 20,106 | |
Fair Value [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 4,000 | 4,000 | 5,002 | |
12 Months or More, Estimated Fair Value | 7,005 | 7,005 | 0 | |
Total, Estimated Fair Value | 11,005 | 11,005 | 5,002 | |
Unrealized Losses [Abstract] | ||||
Less than 12 Months, Unrealized Losses | 2 | 2 | 54 | |
12 Months or More, Unrealized Losses | 41 | 41 | 0 | |
Total, Unrealized Losses | 43 | 43 | 54 | |
Amortized Cost [Abstract] | ||||
Amortized Cost | 3,135 | 3,135 | ||
Estimated Fair Value [Abstract] | ||||
Fair Value | 3,129 | 3,129 | ||
Amortized Cost [Abstract] | ||||
Amortized Cost | 19,008 | 19,008 | 20,027 | |
Estimated Fair Value [Abstract] | ||||
Fair Value | 19,102 | 19,102 | 20,106 | |
Mortgage-backed Securities [Member] | ||||
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||||
Amortized Cost | 31,760 | 31,760 | 29,732 | |
Unrealized Gains | 97 | 97 | 52 | |
Unrealized Losses | 102 | 102 | 228 | |
Fair Value | 31,755 | 31,755 | 29,556 | |
Fair Value [Abstract] | ||||
Less than 12 Months, Estimated Fair Value | 11,687 | 11,687 | 23,457 | |
12 Months or More, Estimated Fair Value | 7,501 | 7,501 | 0 | |
Total, Estimated Fair Value | 19,188 | 19,188 | 23,457 | |
Unrealized Losses [Abstract] | ||||
Less than 12 Months, Unrealized Losses | 39 | 39 | 228 | |
12 Months or More, Unrealized Losses | 63 | 63 | 0 | |
Total, Unrealized Losses | 102 | 102 | 228 | |
Amortized Cost [Abstract] | ||||
Amortized Cost | 31,760 | 31,760 | 29,732 | |
Estimated Fair Value [Abstract] | ||||
Fair Value | $ 31,755 | $ 31,755 | $ 29,556 |
Loans Receivable and Allowanc27
Loans Receivable and Allowance for Loan Losses, Summary of Loans Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Summary of loans receivable [Abstract] | |||
Total loans receivable | $ 653,863 | $ 613,222 | |
Unearned loan fees | (2,899) | (2,944) | |
Net loans receivable | 650,964 | 610,278 | $ 612,458 |
Loans pledged as collateral | $ 210,400 | ||
Past due period after which accrual of interest on loans is discontinued | 90 days | ||
Nonaccrual period of loan considered to be impaired | 90 days | ||
Term of historical loss, net charge-off history | 4 years | ||
Residential Mortgage [Member] | |||
Summary of loans receivable [Abstract] | |||
Total loans receivable | $ 292,068 | 260,603 | |
Net loans receivable | $ 289,169 | 257,659 | 268,896 |
Loan to value ratio | 80.00% | ||
Commercial [Member] | |||
Summary of loans receivable [Abstract] | |||
Total loans receivable | $ 37,485 | 46,468 | |
Net loans receivable | 37,485 | 46,468 | 42,359 |
Commercial Real Estate [Member] | |||
Summary of loans receivable [Abstract] | |||
Total loans receivable | 223,167 | 195,710 | |
Net loans receivable | 223,167 | 195,710 | 198,915 |
Construction, Land Acquisition and Development [Member] | |||
Summary of loans receivable [Abstract] | |||
Total loans receivable | 84,164 | 90,102 | |
Net loans receivable | 84,164 | 90,102 | 81,340 |
Home Equity/2nds[Member] | |||
Summary of loans receivable [Abstract] | |||
Total loans receivable | 15,861 | 19,129 | |
Net loans receivable | 15,861 | 19,129 | 19,739 |
Consumer [Member] | |||
Summary of loans receivable [Abstract] | |||
Total loans receivable | 1,118 | 1,210 | |
Net loans receivable | $ 1,118 | $ 1,210 | $ 1,209 |
Loans Receivable and Allowanc28
Loans Receivable and Allowance for Loan Losses, Changes in Allowance for Loan Losses and Recorded Investment(Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | $ 7,718 | $ 8,804 | $ 8,969 | $ 8,758 | |||
Charge-offs | 0 | (72) | (805) | (446) | |||
Recoveries | 218 | 203 | 422 | 523 | |||
Net (charge-offs) recoveries | 218 | 131 | (383) | 77 | |||
Provision for (reversal of) loan losses | 0 | 50 | (650) | 150 | |||
Ending Balance | 7,936 | 8,985 | 7,936 | 8,985 | |||
Ending balance - individually evaluated for impairment | $ 1,782 | $ 2,373 | $ 2,259 | ||||
Ending balance - collectively evaluated for impairment | 6,154 | 6,596 | 6,726 | ||||
Ending balance | 7,936 | 8,804 | 7,936 | 8,758 | 7,936 | 8,969 | 8,985 |
Ending loan balance - individually evaluated for impairment | 24,888 | 30,298 | 33,777 | ||||
Ending loan balance - collectively evaluated for impairment | 626,076 | 579,980 | 578,681 | ||||
Ending loan balance | 650,964 | 610,278 | 612,458 | ||||
Residential Mortgage [Member] | |||||||
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | 3,403 | 3,892 | 3,833 | 4,188 | |||
Charge-offs | 0 | 0 | (707) | (151) | |||
Recoveries | 156 | 137 | 295 | 322 | |||
Net (charge-offs) recoveries | 156 | 137 | (412) | 171 | |||
Provision for (reversal of) loan losses | (137) | (161) | 1 | (491) | |||
Ending Balance | 3,422 | 3,868 | 3,422 | 3,868 | |||
Ending balance - individually evaluated for impairment | 1,544 | 1,703 | 1,583 | ||||
Ending balance - collectively evaluated for impairment | 1,878 | 2,130 | 2,285 | ||||
Ending balance | 3,403 | 3,892 | 3,833 | 4,188 | 3,422 | 3,833 | 3,868 |
Ending loan balance - individually evaluated for impairment | 20,379 | 20,403 | 22,521 | ||||
Ending loan balance - collectively evaluated for impairment | 268,790 | 237,256 | 246,375 | ||||
Ending loan balance | 289,169 | 257,659 | 268,896 | ||||
Commercial [Member] | |||||||
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | 389 | 752 | 478 | 291 | |||
Charge-offs | 0 | 0 | 0 | (17) | |||
Recoveries | 0 | 10 | 0 | 43 | |||
Net (charge-offs) recoveries | 0 | 10 | 0 | 26 | |||
Provision for (reversal of) loan losses | 53 | (63) | (36) | 382 | |||
Ending Balance | 442 | 699 | 442 | 699 | |||
Ending balance - individually evaluated for impairment | 0 | 15 | 15 | ||||
Ending balance - collectively evaluated for impairment | 442 | 463 | 684 | ||||
Ending balance | 389 | 752 | 478 | 291 | 442 | 478 | 699 |
Ending loan balance - individually evaluated for impairment | 0 | 148 | 495 | ||||
Ending loan balance - collectively evaluated for impairment | 37,485 | 46,320 | 41,864 | ||||
Ending loan balance | 37,485 | 46,468 | 42,359 | ||||
Commercial Real Estate [Member] | |||||||
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | 2,571 | 2,577 | 2,535 | 2,792 | |||
Charge-offs | 0 | 0 | 0 | (178) | |||
Recoveries | 40 | 4 | 100 | 4 | |||
Net (charge-offs) recoveries | 40 | 4 | 100 | (174) | |||
Provision for (reversal of) loan losses | (44) | (189) | (68) | (226) | |||
Ending Balance | 2,567 | 2,392 | 2,567 | 2,392 | |||
Ending balance - individually evaluated for impairment | 186 | 196 | 200 | ||||
Ending balance - collectively evaluated for impairment | 2,381 | 2,339 | 2,192 | ||||
Ending balance | 2,571 | 2,577 | 2,535 | 2,792 | 2,567 | 2,535 | 2,392 |
Ending loan balance - individually evaluated for impairment | 3,419 | 5,656 | 5,696 | ||||
Ending loan balance - collectively evaluated for impairment | 219,748 | 190,054 | 193,219 | ||||
Ending loan balance | 223,167 | 195,710 | 198,915 | ||||
ADC [Member] | |||||||
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | 984 | 983 | 1,390 | 956 | |||
Charge-offs | 0 | (72) | 0 | (72) | |||
Recoveries | 0 | 0 | 0 | 100 | |||
Net (charge-offs) recoveries | 0 | (72) | 0 | 28 | |||
Provision for (reversal of) loan losses | 158 | 289 | (248) | 216 | |||
Ending Balance | 1,142 | 1,200 | 1,142 | 1,200 | |||
Ending balance - individually evaluated for impairment | 50 | 53 | 55 | ||||
Ending balance - collectively evaluated for impairment | 1,092 | 1,337 | 1,145 | ||||
Ending balance | 984 | 983 | 1,390 | 956 | 1,142 | 1,390 | 1,200 |
Ending loan balance - individually evaluated for impairment | 1,003 | 858 | 1,446 | ||||
Ending loan balance - collectively evaluated for impairment | 83,161 | 89,244 | 79,894 | ||||
Ending loan balance | 84,164 | 90,102 | 81,340 | ||||
Home Equity/2nds[Member] | |||||||
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | 367 | 593 | 728 | 528 | |||
Charge-offs | 0 | 0 | (98) | (28) | |||
Recoveries | 22 | 2 | 27 | 4 | |||
Net (charge-offs) recoveries | 22 | 2 | (71) | (24) | |||
Provision for (reversal of) loan losses | (28) | 226 | (296) | 317 | |||
Ending Balance | 361 | 821 | 361 | 821 | |||
Ending balance - individually evaluated for impairment | 0 | 402 | 402 | ||||
Ending balance - collectively evaluated for impairment | 361 | 326 | 419 | ||||
Ending balance | 367 | 593 | 728 | 528 | 361 | 728 | 821 |
Ending loan balance - individually evaluated for impairment | 0 | 3,137 | 3,519 | ||||
Ending loan balance - collectively evaluated for impairment | 15,861 | 15,992 | 16,220 | ||||
Ending loan balance | 15,861 | 19,129 | 19,739 | ||||
Consumer [Member] | |||||||
Allowance for Loan losses [Roll Forward] | |||||||
Beginning Balance | 4 | 7 | 5 | 3 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 50 | 0 | 50 | |||
Net (charge-offs) recoveries | 0 | 50 | 0 | 50 | |||
Provision for (reversal of) loan losses | (2) | (52) | (3) | (48) | |||
Ending Balance | 2 | 5 | 2 | 5 | |||
Ending balance - individually evaluated for impairment | 2 | 4 | 4 | ||||
Ending balance - collectively evaluated for impairment | 0 | 1 | 1 | ||||
Ending balance | $ 4 | $ 7 | $ 5 | $ 3 | 2 | 5 | 5 |
Ending loan balance - individually evaluated for impairment | 87 | 96 | 100 | ||||
Ending loan balance - collectively evaluated for impairment | 1,031 | 1,114 | 1,109 | ||||
Ending loan balance | $ 1,118 | $ 1,210 | $ 1,209 |
Loans Receivable and Allowanc29
Loans Receivable and Allowance for Loan Losses, Credit Quality Breakdown of Loan Portfolio by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 650,964 | $ 610,278 | $ 612,458 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 634,233 | 586,240 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,586 | 12,412 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 10,145 | 11,626 | |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 289,169 | 257,659 | 268,896 |
Residential Mortgage [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 281,954 | 248,819 | |
Residential Mortgage [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,397 | 4,316 | |
Residential Mortgage [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,818 | 4,524 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 37,485 | 46,468 | 42,359 |
Commercial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 37,299 | 46,011 | |
Commercial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 50 | 204 | |
Commercial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 136 | 253 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 223,167 | 195,710 | 198,915 |
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 216,373 | 184,820 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,668 | 7,420 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,126 | 3,470 | |
ADC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 84,164 | 90,102 | 81,340 |
ADC [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 82,958 | 89,324 | |
ADC [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
ADC [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,206 | 778 | |
Home Equity/2nds[Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 15,861 | 19,129 | 19,739 |
Home Equity/2nds[Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 14,531 | 16,056 | |
Home Equity/2nds[Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 471 | 472 | |
Home Equity/2nds[Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 859 | 2,601 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,118 | 1,210 | $ 1,209 |
Consumer [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,118 | 1,210 | |
Consumer [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Consumer [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowanc30
Loans Receivable and Allowance for Loan Losses, Classes of Loan Portfolio by Aging Categories of Performing and Nonaccrual Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | $ 5,928 | $ 7,520 | |
Current | 645,036 | 602,758 | |
Total loans | 650,964 | $ 612,458 | 610,278 |
Non-accrual | 6,377 | 9,852 | |
Loans in nonaccrual status | 1,200 | 338 | |
Actual interest income recorded on nonaccrual loans | 403 | 130 | |
30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 1,173 | 1,616 | |
60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 1,694 | 2,245 | |
90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 3,061 | 3,659 | |
Residential Mortgage [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 4,753 | 4,510 | |
Current | 284,416 | 253,149 | |
Total loans | 289,169 | 268,896 | 257,659 |
Non-accrual | 4,531 | 3,580 | |
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 1,173 | 1,472 | |
Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 1,216 | 2,074 | |
Residential Mortgage [Member] | 90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 2,364 | 964 | |
Commercial [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Current | 37,485 | 46,468 | |
Total loans | 37,485 | 42,359 | 46,468 |
Non-accrual | 84 | 151 | |
Commercial [Member] | 30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Commercial [Member] | 60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Commercial [Member] | 90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 478 | 686 | |
Current | 222,689 | 195,024 | |
Total loans | 223,167 | 198,915 | 195,710 |
Non-accrual | 160 | 2,938 | |
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 478 | 171 | |
Commercial Real Estate [Member] | 90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 515 | |
ADC [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 239 | 112 | |
Current | 83,925 | 89,990 | |
Total loans | 84,164 | 81,340 | 90,102 |
Non-accrual | 318 | 269 | |
ADC [Member] | 30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 106 | |
ADC [Member] | 60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
ADC [Member] | 90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 239 | 6 | |
Home Equity/2nds[Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 458 | 2,208 | |
Current | 15,403 | 16,921 | |
Total loans | 15,861 | 19,739 | 19,129 |
Non-accrual | 1,284 | 2,914 | |
Home Equity/2nds[Member] | 30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 34 | |
Home Equity/2nds[Member] | 60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Home Equity/2nds[Member] | 90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 458 | 2,174 | |
Consumer [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 4 | |
Current | 1,118 | 1,206 | |
Total loans | 1,118 | $ 1,209 | 1,210 |
Non-accrual | 0 | 0 | |
Consumer [Member] | 30 to 59 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 4 | |
Consumer [Member] | 60 to 89 Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | 0 | 0 | |
Consumer [Member] | 90+ Days Past Due [Member] | |||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | |||
Total past due | $ 0 | $ 0 |
Loans Receivable and Allowanc31
Loans Receivable and Allowance for Loan Losses, Summary of Impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Interest income recognized [Abstract] | |||||
Real estate acquired through foreclosure | $ 1,104 | $ 1,104 | $ 973 | ||
Residential Mortgage [Member] | |||||
Unpaid principal balance [Abstract] | |||||
With no related allowance | 12,856 | 12,856 | 9,854 | ||
With a related allowance | 9,306 | 9,306 | 11,176 | ||
Total | 22,162 | 22,162 | 21,030 | ||
Recorded investment [Abstract] | |||||
With no related allowance | 11,306 | 11,306 | 9,338 | ||
With a related allowance | 9,073 | 9,073 | 11,065 | ||
Total | 20,379 | 20,379 | 20,403 | ||
Related allowance | 1,544 | 1,544 | 1,703 | ||
Average recorded investment [Abstract] | |||||
With no related allowance | 10,423 | $ 12,734 | 9,696 | $ 13,774 | |
With a related allowance | 8,910 | 9,831 | 9,231 | 10,684 | |
Total | 19,333 | 22,565 | 18,927 | 24,458 | |
Interest income recognized [Abstract] | |||||
With no related allowance | 138 | 132 | 353 | 417 | |
With a related allowance | 116 | 106 | 286 | 356 | |
Total | 254 | 238 | 639 | 773 | |
Commercial [Member] | |||||
Unpaid principal balance [Abstract] | |||||
With no related allowance | 0 | 0 | 0 | ||
With a related allowance | 0 | 0 | 148 | ||
Total | 0 | 0 | 148 | ||
Recorded investment [Abstract] | |||||
With no related allowance | 0 | 0 | 0 | ||
With a related allowance | 0 | 0 | 148 | ||
Total | 0 | 0 | 148 | ||
Related allowance | 0 | 0 | 15 | ||
Average recorded investment [Abstract] | |||||
With no related allowance | 0 | 274 | 0 | 150 | |
With a related allowance | 0 | 149 | 37 | 182 | |
Total | 0 | 423 | 37 | 332 | |
Interest income recognized [Abstract] | |||||
With no related allowance | 0 | 2 | 0 | 3 | |
With a related allowance | 0 | 2 | 0 | 7 | |
Total | 0 | 4 | 0 | 10 | |
Commercial Real Estate [Member] | |||||
Unpaid principal balance [Abstract] | |||||
With no related allowance | 1,576 | 1,576 | 3,900 | ||
With a related allowance | 1,892 | 1,892 | 1,958 | ||
Total | 3,468 | 3,468 | 5,858 | ||
Recorded investment [Abstract] | |||||
With no related allowance | 1,527 | 1,527 | 3,698 | ||
With a related allowance | 1,892 | 1,892 | 1,958 | ||
Total | 3,419 | 3,419 | 5,656 | ||
Related allowance | 186 | 186 | 196 | ||
Average recorded investment [Abstract] | |||||
With no related allowance | 1,531 | 3,730 | 2,652 | 4,655 | |
With a related allowance | 1,896 | 1,977 | 1,919 | 2,040 | |
Total | 3,427 | 5,707 | 4,571 | 6,695 | |
Interest income recognized [Abstract] | |||||
With no related allowance | 22 | 57 | 69 | 134 | |
With a related allowance | 23 | 25 | 73 | 77 | |
Total | 45 | 82 | 142 | 211 | |
ADC [Member] | |||||
Unpaid principal balance [Abstract] | |||||
With no related allowance | 636 | 636 | 441 | ||
With a related allowance | 402 | 402 | 417 | ||
Total | 1,038 | 1,038 | 858 | ||
Recorded investment [Abstract] | |||||
With no related allowance | 636 | 636 | 441 | ||
With a related allowance | 367 | 367 | 417 | ||
Total | 1,003 | 1,003 | 858 | ||
Related allowance | 50 | 50 | 53 | ||
Average recorded investment [Abstract] | |||||
With no related allowance | 637 | 1,031 | 487 | 1,431 | |
With a related allowance | 369 | 426 | 385 | 513 | |
Total | 1,006 | 1,457 | 872 | 1,944 | |
Interest income recognized [Abstract] | |||||
With no related allowance | 9 | 9 | 21 | 36 | |
With a related allowance | 6 | 6 | 16 | 20 | |
Total | 15 | 15 | 37 | 56 | |
Home Equity/2nds[Member] | |||||
Unpaid principal balance [Abstract] | |||||
With no related allowance | 0 | 0 | 2,139 | ||
With a related allowance | 0 | 0 | 1,608 | ||
Total | 0 | 0 | 3,747 | ||
Recorded investment [Abstract] | |||||
With no related allowance | 0 | 0 | 1,529 | ||
With a related allowance | 0 | 0 | 1,608 | ||
Total | 0 | 0 | 3,137 | ||
Related allowance | 0 | 0 | 402 | ||
Average recorded investment [Abstract] | |||||
With no related allowance | 918 | 1,911 | 679 | 1,991 | |
With a related allowance | 180 | 1,078 | 715 | 370 | |
Total | 1,098 | 2,989 | 1,394 | 2,361 | |
Interest income recognized [Abstract] | |||||
With no related allowance | 15 | 18 | 40 | 59 | |
With a related allowance | 0 | 6 | 0 | 7 | |
Total | 15 | 24 | 40 | 66 | |
Consumer [Member] | |||||
Unpaid principal balance [Abstract] | |||||
With no related allowance | 0 | 0 | 0 | ||
With a related allowance | 87 | 87 | 96 | ||
Total | 87 | 87 | 96 | ||
Recorded investment [Abstract] | |||||
With no related allowance | 0 | 0 | 0 | ||
With a related allowance | 87 | 87 | 96 | ||
Total | 87 | 87 | 96 | ||
Related allowance | 2 | 2 | 4 | ||
Average recorded investment [Abstract] | |||||
With no related allowance | 0 | 0 | 0 | 23 | |
With a related allowance | 88 | 102 | 91 | 73 | |
Total | 88 | 102 | 91 | 96 | |
Interest income recognized [Abstract] | |||||
With no related allowance | 0 | 0 | 0 | 0 | |
With a related allowance | 1 | 1 | 2 | 2 | |
Total | 1 | $ 1 | 2 | $ 2 | |
Residential Properties [Member] | |||||
Interest income recognized [Abstract] | |||||
Residential mortgage loans secured by residential real estate properties in formal foreclosure proceedings | 3,100 | 3,100 | |||
Real estate acquired through foreclosure | $ 287 | $ 287 | $ 393 |
Loans Receivable and Allowanc32
Loans Receivable and Allowance for Loan Losses, Loans modified as TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)Contract | Sep. 30, 2016Contract | Sep. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | Dec. 31, 2016USD ($)Contract | |
Loans modified [Abstract] | |||||
Number of modifications | Contract | 0 | 3 | |||
Recorded investment prior to modification | $ 0 | $ 624 | |||
Recorded investment after modification | $ 0 | $ 624 | |||
TDRs loans accounted under method [Abstract] | |||||
Number of modifications | Contract | 52 | 52 | 58 | ||
Accrual status | $ 15,416 | $ 15,416 | $ 18,066 | ||
Number of modifications | Contract | 6 | 6 | 7 | ||
Nonaccrual status | $ 2,375 | $ 2,375 | $ 2,392 | ||
Total number of modifications | Contract | 58 | 58 | 65 | ||
Total balance of modifications | $ 17,791 | $ 17,791 | $ 20,458 | ||
Number of contract, subsequent defaults | Contract | 0 | 0 | 0 | 0 | |
Residential Mortgage [Member] | |||||
Loans modified [Abstract] | |||||
Number of modifications | Contract | 0 | 3 | |||
Recorded investment prior to modification | $ 0 | $ 624 | |||
Recorded investment after modification | $ 0 | $ 624 | |||
TDRs loans accounted under method [Abstract] | |||||
Number of modifications | Contract | 43 | 43 | 48 | ||
Accrual status | $ 13,086 | $ 13,086 | $ 15,886 | ||
Number of modifications | Contract | 4 | 4 | 4 | ||
Nonaccrual status | $ 2,285 | $ 2,285 | $ 2,137 | ||
Total number of modifications | Contract | 47 | 47 | 52 | ||
Total balance of modifications | $ 15,371 | $ 15,371 | $ 18,023 | ||
Commercial Real Estate [Member] | |||||
TDRs loans accounted under method [Abstract] | |||||
Number of modifications | Contract | 3 | 3 | 3 | ||
Accrual status | $ 1,875 | $ 1,875 | $ 1,914 | ||
Number of modifications | Contract | 1 | 1 | 2 | ||
Nonaccrual status | $ 84 | $ 84 | $ 249 | ||
Total number of modifications | Contract | 4 | 4 | 5 | ||
Total balance of modifications | $ 1,959 | $ 1,959 | $ 2,163 | ||
ADC [Member] | |||||
TDRs loans accounted under method [Abstract] | |||||
Number of modifications | Contract | 1 | 1 | 2 | ||
Accrual status | $ 138 | $ 138 | $ 170 | ||
Number of modifications | Contract | 1 | 1 | 1 | ||
Nonaccrual status | $ 6 | $ 6 | $ 6 | ||
Total number of modifications | Contract | 2 | 2 | 3 | ||
Total balance of modifications | $ 144 | $ 144 | $ 176 | ||
Home Equity/2nds[Member] | |||||
TDRs loans accounted under method [Abstract] | |||||
Number of modifications | Contract | 1 | 1 | |||
Accrual status | $ 230 | $ 230 | |||
Number of modifications | Contract | 0 | 0 | |||
Nonaccrual status | $ 0 | $ 0 | |||
Total number of modifications | Contract | 1 | 1 | |||
Total balance of modifications | $ 230 | $ 230 | |||
Consumer [Member] | |||||
TDRs loans accounted under method [Abstract] | |||||
Number of modifications | Contract | 4 | 4 | 5 | ||
Accrual status | $ 87 | $ 87 | $ 96 | ||
Number of modifications | Contract | 0 | 0 | 0 | ||
Nonaccrual status | $ 0 | $ 0 | $ 0 | ||
Total number of modifications | Contract | 4 | 4 | 5 | ||
Total balance of modifications | $ 87 | $ 87 | $ 96 |
Loans Receivable and Allowanc33
Loans Receivable and Allowance for Loan Losses, Contract Amounts for Off-Balance Sheet Instruments (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($)Loan | Sep. 30, 2016Loan | Dec. 31, 2016USD ($)Commitment | |
Standby Letters of Credit [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Letters of credit expiry period | 12 months | ||
Off-balance sheet credit risk | $ 3,854 | $ 4,022 | |
Current liability for guarantees | 79 | 94 | |
Home Equity Lines of Credit [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Off-balance sheet credit risk | $ 12,425 | 7,736 | |
Loan expiry period | 10 years | ||
Unadvanced Construction Commitments [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Off-balance sheet credit risk | $ 72,045 | 15,728 | |
Mortgage Loan Commitments [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Off-balance sheet credit risk | 0 | $ 574 | |
Number of mortgage loan commitments at fixed interest rate | Commitment | 2 | ||
Fixed rate loan commitments | 0 | $ 574 | |
Fixed interest rate | 4.25% | ||
Lines of Credit [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Off-balance sheet credit risk | 13,092 | $ 34,125 | |
Loans Sold and Serviced with Limited Repurchase Provisions [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Off-balance sheet credit risk | 19,979 | 70,773 | |
Mortgage loan, held in reserve | $ 59 | $ 48 | |
Number of repurchased loans | Loan | 0 | 0 | |
Loans Sold and Serviced with Limited Repurchase Provisions [Member] | Minimum [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Period of delinquency under repurchase agreement | 120 days | ||
Loans Sold and Serviced with Limited Repurchase Provisions [Member] | Maximum [Member] | |||
Financial instruments whose contract amount represents credit risk [Abstract] | |||
Period of delinquency under repurchase agreement | 180 days |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Common Equity Tier 1 Capital (to risk-weighted assets) [Abstract] | |||
Common Equity Tier I Capital Actual, Amount | [1] | $ 104,318 | $ 98,970 |
Common Equity Tier I Capital, Ratio | [1] | 16.80% | 16.50% |
Common Equity Tier I Capital for Capital Adequacy Purposes, Amount | [1] | $ 27,907 | $ 26,983 |
Common Equity Tier I Capital for Capital Adequacy Purposes, Ratio | [1] | 4.50% | 4.50% |
Common Equity Tier 1 Capital Minimum Capital Adequacy with Capital Buffer, Amount | [1] | $ 35,658 | $ 30,730 |
Common Equity Tier 1 Capital Minimum Capital Adequacy with Capital Buffer, Ratio | [1] | 5.80% | 5.10% |
Common Equity Tier I Capital To Be Well Capitalized Under Prompt Corrective Provisions, Amount | [1] | $ 40,309 | $ 38,975 |
Common Equity Tier I Capital To Be Well Capitalized Under Prompt Corrective Provisions, Ratio | [1] | 6.50% | 6.50% |
Total capital (to risk-weighted assets) [Abstract] | |||
Total Capital, Actual Amount | [1] | $ 112,086 | $ 106,517 |
Total Capital, Ratio | [1] | 18.10% | 17.80% |
Total For Capital Adequacy Purposes, Amount | [1] | $ 49,612 | $ 47,969 |
Total For Capital Adequacy Purposes, Ratio | [1] | 8.00% | 8.00% |
Total For Capital Adequacy with Capital Buffer, Amount | [1] | $ 57,363 | $ 51,717 |
Total For Capital Adequacy with Capital Buffer, Ratio | [1] | 9.30% | 8.60% |
Total To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | $ 62,015 | $ 59,962 |
Total Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | [1] | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) [Abstract] | |||
Tier I Capital, Actual Amount | [1] | $ 104,318 | $ 98,970 |
Tier I Capital, Ratio | [1] | 16.80% | 16.50% |
Tier I Capital for Capital Adequacy Purposes, Amount | [1] | $ 37,209 | $ 35,977 |
Tier I Capital for Capital Adequacy Purposes, Ratio | [1] | 6.00% | 6.00% |
Tier I Capital Minimum Capital Adequacy with Capital Buffer, Amount | [1] | $ 44,961 | $ 39,725 |
Tier I Capital Minimum Capital Adequacy with Capital Buffer, Ratio | [1] | 7.30% | 6.60% |
Tier I Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | $ 49,612 | $ 47,969 |
Tier I Capital To Be Well Capitalized Under Prompt Corrective Provisions, Ratio | [1] | 8.00% | 8.00% |
Tier 1 capital (to average quarterly assets) [Abstract] | |||
Tier I Capital average, Actual Amount | [2] | $ 104,318 | $ 98,970 |
Tier I Capital average, Ratio | [2] | 13.30% | 12.90% |
Tier I Capital average for Capital Adequacy Purposes, Amount | [2] | $ 31,313 | $ 30,634 |
Tier I Capital average for Capital Adequacy Purposes, Ratio | [2] | 4.00% | 4.00% |
Tier I Capital Average Minimum Capital Adequacy with Capital Buffer, Amount | [2] | $ 41,099 | $ 35,420 |
Tier I Capital Average Minimum Capital Adequacy with Capital Buffer, Ratio | [2] | 5.30% | 4.60% |
Tier I Capital Average To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [2] | $ 39,142 | $ 38,292 |
Tier I Capital Average To Be Well Capitalized Under Prompt Corrective Provisions, Ratio | [2] | 5.00% | 5.00% |
[1] | to risk-weighted assets. | ||
[2] | To average quarterly assets. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average number of shares outstanding reconciliation [Abstract] | ||||
Weighted-average shares outstanding - basic (in shares) | 12,172,586 | 12,104,379 | 12,140,689 | 11,324,660 |
Dilution (in shares) | 150,986 | 79,360 | 107,525 | 51,193 |
Weighted-average share outstanding - diluted (in shares) | 12,323,572 | 12,183,739 | 12,248,214 | 11,375,853 |
Net income available to common stockholders | $ 1,121 | $ 539 | $ 2,753 | $ 12,864 |
Net income per share - basic (in dollars per share) | $ 0.09 | $ 0.04 | $ 0.23 | $ 1.14 |
Net income per share - diluted (in dollars per share) | $ 0.09 | $ 0.04 | $ 0.22 | $ 1.13 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,000 | 126,600 | 20,000 | 126,600 |
Series A Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 437,500 | 437,500 | 437,500 | 437,500 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 556,976 | 556,976 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized under the plan (in shares) | 500,000 | 500,000 | ||
Stock-based compensation expense | $ 44 | $ 48 | $ 146 | $ 143 |
Weighted average fair value of option issued (in dollars per share) | $ 2.56 | $ 2.56 | ||
Fair value assumptions for options granted [Abstract] | ||||
Dividend yield | 0.00% | |||
Expected volatility | 36.02% | |||
Risk-free interest rate | 1.76% | |||
Expected lives | 5 years 6 months | |||
Shares [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 339,500 | 339,800 | ||
Granted (in shares) | 0 | 20,000 | 0 | |
Exercised (in shares) | (5,025) | 0 | ||
Forfeited (in shares) | (16,000) | (54,500) | ||
Outstanding at end of period (in shares) | 338,475 | 285,300 | 338,475 | 285,300 |
Exercisable at end of period (in shares) | 173,702 | 136,125 | 173,702 | 136,125 |
Weighted Average Price [Roll Forward] | ||||
Outstanding at beginning of period (in dollars per share) | $ 5.31 | $ 4.83 | ||
Granted (in dollars per share) | 7.10 | 0 | ||
Exercised (in dollars per share) | 3.37 | 0 | ||
Forfeited (in dollars per share) | 4.59 | 5.07 | ||
Outstanding at end of period (in dollars per share) | $ 5.48 | $ 4.79 | 5.48 | 4.79 |
Exercisable at end of period (in dollars per share) | $ 4.78 | $ 4.37 | $ 4.78 | $ 4.37 |
Weighted Average Remaining Life [Abstract] | ||||
Weighted-average remaining contractual term, outstanding | 7 years 2 months 12 days | 8 years 2 months 12 days | ||
Weighted-average remaining contractual term, exercisable | 6 years 6 months | 7 years | ||
Aggregate Intrinsic Value [Abstract] | ||||
Aggregate intrinsic value of the options outstanding | $ 526 | $ 491 | $ 526 | $ 491 |
Aggregate intrinsic value of the options exercisable | 398 | $ 292 | 398 | $ 292 |
Unrecognized stock-based compensation expense | $ 520 | $ 520 | ||
Unrecognized stock-based compensation expected to be recognized period | 59 months | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period | 5 years | |||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options expiry period | 10 years |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 87,930 | $ 86,456 | ||
Other comprehensive loss before reclassification | $ (9) | (3) | ||
Amounts reclassified from accumulated other comprehensive loss | (1) | (1) | ||
Net other comprehensive loss during period | (10) | $ 0 | (4) | 0 |
Ending balance | 92,010 | 86,783 | 92,010 | 86,783 |
Accumulated Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 6 | 0 | 0 | |
Ending balance | $ (4) | $ 0 | $ (4) | $ 0 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | $ 3,129 | $ 0 |
U.S. Government Agency Notes [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 3,129 | |
Quoted Prices (Level 1) [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 0 | |
Loans held for sale ("LHFS") | 0 | 0 |
Mortgage servicing rights ("MSRs") | 0 | 0 |
Interest rate lock commitments ("IRLCs") | 0 | 0 |
Best efforts forward contracts | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 3,129 | |
Loans held for sale ("LHFS") | 4,871 | 10,313 |
Mortgage servicing rights ("MSRs") | 0 | 0 |
Interest rate lock commitments ("IRLCs") | 42 | 162 |
Best efforts forward contracts | 6 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 0 | |
Loans held for sale ("LHFS") | 0 | 0 |
Mortgage servicing rights ("MSRs") | 473 | 557 |
Interest rate lock commitments ("IRLCs") | 0 | 0 |
Best efforts forward contracts | 0 | |
Recurring [Member] | Quoted Prices (Level 1) [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 0 | |
Loans held for sale ("LHFS") | 0 | |
Mortgage servicing rights ("MSRs") | 0 | 0 |
Interest rate lock commitments ("IRLCs") | 0 | 0 |
Mandatory forward contracts | 0 | 0 |
Best efforts forward contracts | 0 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 3,129 | |
Loans held for sale ("LHFS") | 4,871 | |
Mortgage servicing rights ("MSRs") | 0 | 0 |
Interest rate lock commitments ("IRLCs") | 42 | 162 |
Mandatory forward contracts | 7 | 153 |
Best efforts forward contracts | 6 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 0 | |
Loans held for sale ("LHFS") | 0 | |
Mortgage servicing rights ("MSRs") | 473 | 557 |
Interest rate lock commitments ("IRLCs") | 0 | 0 |
Mandatory forward contracts | 0 | 0 |
Best efforts forward contracts | 0 | |
Carrying Value [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 3,129 | |
Loans held for sale ("LHFS") | 4,871 | 10,307 |
Mortgage servicing rights ("MSRs") | 473 | 557 |
Interest rate lock commitments ("IRLCs") | 42 | 162 |
Best efforts forward contracts | 6 | |
Carrying Value [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
AFS Securities - U.S. government agency notes | 3,129 | |
Loans held for sale ("LHFS") | 4,871 | |
Mortgage servicing rights ("MSRs") | 473 | 557 |
Interest rate lock commitments ("IRLCs") | 42 | 162 |
Mandatory forward contracts | 7 | 153 |
Best efforts forward contracts | 6 | |
U.S. Government Agency Notes [Member] | ||
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items] | ||
Total changes in fair values included in period income - assets | 0 | |
Loans Held for Sale [Member] | ||
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items] | ||
Total changes in fair values included in period income - assets | 139 | |
Mortgage Servicing Rights [Member] | ||
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items] | ||
Total changes in fair values included in period income - assets | (84) | 66 |
Interest Rate Lock Commitments [Member] | ||
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items] | ||
Total changes in fair values included in period income - assets | (120) | (21) |
Mandatory Forward Contracts [Member] | ||
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items] | ||
Total changes in fair values included in period income - assets | (146) | $ 42 |
Best Efforts Forward Contracts [Member] | ||
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items] | ||
Total changes in fair values included in period income - assets | $ 6 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments, Fair Values of Financial Instruments, Assets, Quantitative Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
MSRs [Member] | Market Approach [Member] | Recurring [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | $ 473 | $ 557 |
Valuation techniques | Market Approach | Market Approach |
Unobservable input | Weighted average prepayment speed | Weighted average prepayment speed |
Weighted average | 3.95% | 3.95% |
Impaired Loans [Member] | Nonrecurring [Member] | Minimum [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Weighted average discount rate | 0.00% | 0.00% |
Impaired Loans [Member] | Nonrecurring [Member] | Maximum [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Weighted average discount rate | 33.00% | 2.00% |
Impaired Loans [Member] | Nonrecurring [Member] | Weighted Average [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Weighted average discount rate | 25.50% | 2.00% |
Impaired Loans [Member] | Nonrecurring [Member] | Quoted Prices (Level 1) [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | $ 0 | $ 0 |
Impaired Loans [Member] | Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | 0 | 0 |
Impaired Loans [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | 1,597 | 2,136 |
Impaired Loans [Member] | Nonrecurring [Member] | Carrying Value [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | $ 1,597 | $ 2,136 |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Minimum [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Weighted average discount rate | 0.00% | 0.00% |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Maximum [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Weighted average discount rate | 26.00% | 10.00% |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Weighted Average [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Weighted average discount rate | 20.90% | 10.00% |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Quoted Prices (Level 1) [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | $ 0 | $ 0 |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | 0 | 0 |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | 691 | 767 |
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Carrying Value [Member] | ||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | ||
Fair value estimate | $ 691 | $ 767 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments, Assets, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
AFS Securities | $ 3,129 | $ 0 |
HTM securities | 58,959 | 62,827 |
Bank Commitments [Member] | ||
Liabilities [Abstract] | ||
Loan funding commitments | 97,600 | 58,200 |
Standby Letters of Credit [Member] | ||
Liabilities [Abstract] | ||
Loan funding commitments | 3,900 | 4,000 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 41,635 | 67,114 |
AFS Securities | 0 | |
HTM securities | 8,102 | 13,165 |
LHFS | 0 | 0 |
Loans receivable | 0 | 0 |
Restricted stock investments | 0 | 0 |
Accrued interest receivable | 0 | 0 |
MSRs | 0 | 0 |
IRLCs | 0 | 0 |
Mandatory forward contracts | 0 | 0 |
Best effort forward contracts | 0 | |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
AFS Securities | 3,129 | |
HTM securities | 50,857 | 49,662 |
LHFS | 4,871 | 10,313 |
Loans receivable | 0 | 0 |
Restricted stock investments | 4,699 | 5,103 |
Accrued interest receivable | 2,503 | 2,249 |
MSRs | 0 | 0 |
IRLCs | 42 | 162 |
Mandatory forward contracts | 7 | 153 |
Best effort forward contracts | 6 | |
Liabilities [Abstract] | ||
Deposits | 586,594 | 572,556 |
Borrowings | 87,909 | 97,961 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 478 | 538 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
AFS Securities | 0 | |
HTM securities | 0 | 0 |
LHFS | 0 | 0 |
Loans receivable | 653,381 | 602,953 |
Restricted stock investments | 0 | 0 |
Accrued interest receivable | 0 | 0 |
MSRs | 473 | 557 |
IRLCs | 0 | 0 |
Mandatory forward contracts | 0 | 0 |
Best effort forward contracts | 0 | |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated debentures | 20,619 | 20,619 |
Accrued interest payable | 0 | 0 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 41,635 | 67,114 |
AFS Securities | 3,129 | |
HTM securities | 58,764 | 62,757 |
LHFS | 4,871 | 10,307 |
Loans receivable | 643,028 | 601,309 |
Restricted stock investments | 4,699 | 5,103 |
Accrued interest receivable | 2,503 | 2,249 |
MSRs | 473 | 557 |
IRLCs | 42 | 162 |
Mandatory forward contracts | 7 | 153 |
Best effort forward contracts | 6 | |
Liabilities [Abstract] | ||
Deposits | 593,492 | 571,946 |
Borrowings | 93,450 | 103,500 |
Subordinated debentures | 20,619 | 20,619 |
Accrued interest payable | 478 | 538 |
Total [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 41,635 | 67,114 |
AFS Securities | 3,129 | |
HTM securities | 58,959 | 62,827 |
LHFS | 4,871 | 10,313 |
Loans receivable | 653,381 | 602,953 |
Restricted stock investments | 4,699 | 5,103 |
Accrued interest receivable | 2,503 | 2,249 |
MSRs | 473 | 557 |
IRLCs | 42 | 162 |
Mandatory forward contracts | 7 | 153 |
Best effort forward contracts | 6 | |
Liabilities [Abstract] | ||
Deposits | 586,594 | 572,556 |
Borrowings | 87,909 | 97,961 |
Subordinated debentures | 20,619 | 20,619 |
Accrued interest payable | $ 478 | $ 538 |