Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | MID PENN BANCORP INC | ||
Entity Central Index Key | 879635 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,221,680 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $55,307,574 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $8,869 | $7,407 |
Interest-bearing balances with other financial institutions | 1,013 | 1,216 |
Total cash and cash equivalents | 9,882 | 8,623 |
Interest-bearing time deposits with other financial institutions | 5,772 | 7,513 |
Available for sale investment securities | 141,634 | 122,803 |
Loans and leases, net of unearned interest | 571,533 | 546,462 |
Less: Allowance for loan and lease losses | -6,716 | -6,317 |
Net loans and leases | 564,817 | 540,145 |
Bank premises and equipment, net | 12,225 | 12,469 |
Restricted investment in bank stocks | 3,181 | 2,969 |
Foreclosed assets held for sale | 565 | 965 |
Accrued interest receivable | 3,058 | 2,704 |
Deferred income taxes | 2,125 | 3,235 |
Goodwill | 1,016 | 1,016 |
Core deposit and other intangibles, net | 187 | 249 |
Cash surrender value of life insurance | 8,575 | 8,374 |
Other assets | 2,620 | 2,060 |
Total Assets | 755,657 | 713,125 |
LIABILITIES & SHAREHOLDERS' EQUITY | ||
Deposits: Noninterest bearing demand | 60,613 | 48,346 |
Deposits: Interest bearing demand | 222,712 | 201,090 |
Deposits: Money Market | 197,418 | 196,736 |
Deposits: Savings | 32,394 | 29,585 |
Deposits: Time | 124,785 | 132,373 |
Total Deposits | 637,922 | 608,130 |
Short-term borrowings | 578 | 23,833 |
Long-term debt | 52,961 | 23,145 |
Accrued interest payable | 349 | 393 |
Other liabilities | 4,717 | 4,708 |
Total Liabilities | 696,527 | 660,209 |
Shareholders' Equity: | ||
Series B Preferred stock, par value $1.00; liquidation value $1,000; authorized 5,000 shares; 7% non-cumulative dividend; 5,000 shares issued and outstanding at December 31, 2014 and December 31, 2013; total redemption value $5,100,000 | 5,000 | 5,000 |
Common stock, par value $1.00 per share; authorized 10,000,000 shares; 3,497,829 shares issued and outstanding at December 31, 2014 and 3,494,397 shares at December 31, 2013 | 3,498 | 3,494 |
Additional paid-in capital | 29,902 | 29,853 |
Retained earnings | 19,217 | 15,441 |
Accumulated other comprehensive income (loss) | 1,513 | -872 |
Total Shareholders' Equity | 59,130 | 52,916 |
Total Liabilities and Shareholders' Equity | $755,657 | $713,125 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock, Par or Stated Value Per Share | $1 | $1 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 3,497,829 | 3,494,397 |
Common Stock, Shares, Outstanding | 3,497,829 | 3,494,397 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $1 | $1 |
Preferred Stock, Liquidation Preference Per Share | $1,000 | $1,000 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Dividend Rate, Non-Cumulative, Percentage | 7.00% | 7.00% |
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred Stock, Shares Outstanding | 5,000 | 5,000 |
Preferred Stock, Redemption Amount | $5,100 | $5,100 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME | |||
Interest & fees on loans and leases | $26,905 | $26,305 | $27,233 |
Interest on interest-bearing balances | 41 | 109 | 236 |
Interest and dividends on investment securities: | |||
U.S. Treasury and government agencies | 1,346 | 591 | 1,137 |
State and political subdivision obligations, tax-exempt | 2,180 | 1,921 | 1,722 |
Other securities | 155 | 46 | 22 |
Interest on federal funds sold and securities purchased under agreements to resell | 11 | 16 | |
Total Interest Income | 30,627 | 28,983 | 30,366 |
INTEREST EXPENSE | |||
Interest on deposits | 3,852 | 4,436 | 6,147 |
Interest on short-term borrowings | 55 | 26 | 3 |
Interest on long-term debt | 520 | 595 | 975 |
Total Interest Expense | 4,427 | 5,057 | 7,125 |
Net Interest Income | 26,200 | 23,926 | 23,241 |
PROVISION FOR LOAN AND LEASE LOSSES | 1,617 | 1,685 | 1,036 |
Net Interest Income After Provision for Loan and Lease Losses | 24,583 | 22,241 | 22,205 |
NONINTEREST INCOME | |||
Income from fiduciary activities | 552 | 492 | 575 |
Service charges on deposits | 584 | 576 | 565 |
Net gain on sales of investment securities | 168 | 220 | 267 |
Earnings from cash surrender value of life insurance | 201 | 231 | 247 |
Mortgage banking income | 313 | 348 | 675 |
ATM debit card interchange income | 544 | 508 | 472 |
Merchant services income | 254 | 330 | 256 |
Gain on sales of SBA loans | 119 | ||
Other income | 513 | 585 | 626 |
Total Noninterest Income | 3,248 | 3,290 | 3,683 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 10,879 | 10,788 | 10,518 |
Occupancy expense, net | 1,313 | 1,128 | 1,077 |
Equipment expense | 1,205 | 1,299 | 1,234 |
Pennsylvania Bank Shares tax expense | 365 | 464 | 462 |
FDIC Assessment | 542 | 486 | 1,034 |
Legal and professional fees | 516 | 705 | 604 |
Director fees and benefits expense | 377 | 319 | 335 |
Marketing and advertising expense | 308 | 253 | 378 |
Software licensing | 965 | 947 | 648 |
Telephone expense | 467 | 436 | 411 |
Loss (gain) on sale/write-down of foreclosed assets | 204 | -302 | 96 |
Amortization (accretion) of intangibles | 27 | 29 | 45 |
Loan collection costs | 288 | 214 | 369 |
Merger and acquisition expense | 573 | ||
Other expenses | 2,639 | 2,625 | 2,482 |
Total Noninterest Expense | 20,668 | 19,391 | 19,693 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 7,163 | 6,140 | 6,195 |
Provision for income taxes | 1,462 | 1,201 | 1,244 |
NET INCOME | 5,701 | 4,939 | 4,951 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | 5,351 | 4,616 | 4,437 |
PER COMMON SHARE DATA: | |||
Basic Earnings Per Common Share | $1.53 | $1.32 | $1.27 |
Diluted Earnings Per Common Share | $1.53 | $1.32 | $1.27 |
Cash Dividends | $0.45 | $0.25 | $0.25 |
Series A Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends and discount accretion | 14 | 514 | |
Preferred stock dividends | 500 | ||
Series B Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends | $350 | $309 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Consolidated Statements of Comprehensive Income [Abstract] | ||||||
Net income | $5,701 | $4,939 | $4,951 | |||
Other comprehensive income (loss): | ||||||
Unrealized gains (losses) arising during the period on available for sale securities, net of income taxes | 2,482 | -3,033 | 565 | |||
Reclassification adjustment for net gain on sales of available for sale securities included in net income, net of income taxes | -111 | [1],[2] | -145 | [1],[2] | -176 | [1],[2] |
Change in defined benefit plans, net of income taxes | 14 | [2],[3] | 13 | [2],[3] | -12 | [2],[3] |
Total other comprehensive income (loss) | 2,385 | -3,165 | 377 | |||
Total comprehensive income (loss) | $8,086 | $1,774 | $5,328 | |||
[1] | Amounts are included in net gain on sales of investment securities on the Consolidated Statements of Income as a separate component within total noninterest income | |||||
[2] | Income tax amounts are included in the provision for income taxes in the Consolidated Statements of Income | |||||
[3] | Amounts are included in the computation of net periodic benefit cost and are included in salaries and employee benefits on the Consolidated Statements of Income as a separate element within total noninterest expense |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income (Parenthetical) [Abstract] | |||
Unrealized gains arising during the period on available for sale securities, tax | $1,280 | ($1,563) | $291 |
Reclassification adjustment for net gain on sales of available for sale securities included in net income, tax | -57 | -75 | -91 |
Change in defined benefit plans, tax | $7 | $7 | ($6) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes In Shareholders' Equity (USD $) | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Preferred Stock [Member] | Retained Earnings [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | |||||||||
Balance at Dec. 31, 2011 | $10,000,000 | $3,484,000 | $29,830,000 | $8,222,000 | $1,916,000 | $53,452,000 | |||||||
Net income | 4,951,000 | 4,951,000 | |||||||||||
Total other comprehensive income (loss), net of taxes | 377,000 | 377,000 | |||||||||||
Employee Stock Purchase Plan | 6,000 | 50,000 | 56,000 | ||||||||||
Common stock dividends | -872,000 | -872,000 | |||||||||||
Preferred stock issuance | 4,880,000 | 4,830,000 | |||||||||||
Preferred stock issuance, costs | -50,000 | ||||||||||||
Preferred stock redemption | -10,000,000 | -10,000,000 | |||||||||||
Preferred stock dividends | -560,000 | -560,000 | |||||||||||
Amortization of warrant costs | -14,000 | -14,000 | |||||||||||
Balance at Dec. 31, 2012 | 4,880,000 | 3,490,000 | 29,816,000 | 11,741,000 | 2,293,000 | 52,220,000 | |||||||
Net income | 4,939,000 | 4,939,000 | |||||||||||
Total other comprehensive income (loss), net of taxes | -3,165,000 | -3,165,000 | |||||||||||
Employee Stock Purchase Plan | 4,000 | 51,000 | 55,000 | ||||||||||
Common stock dividends | -872,000 | -872,000 | |||||||||||
Preferred stock issuance | 120,000 | 120,000 | |||||||||||
Preferred stock dividends | -309,000 | -309,000 | |||||||||||
Amortization of warrant costs | -14,000 | -14,000 | |||||||||||
Warrant repurchase | -58,000 | -58,000 | |||||||||||
Balance at Dec. 31, 2013 | 5,000,000 | 3,494,000 | 29,853,000 | 15,441,000 | -872,000 | 52,916,000 | |||||||
Net income | 5,701,000 | 5,701,000 | |||||||||||
Total other comprehensive income (loss), net of taxes | 2,385,000 | 2,385,000 | |||||||||||
Employee Stock Purchase Plan | 4,000 | 49,000 | 53,000 | ||||||||||
Common stock dividends | -1,575,000 | -1,575,000 | |||||||||||
Preferred stock dividends | -350,000 | -350,000 | |||||||||||
Balance at Dec. 31, 2014 | $5,000,000 | $3,498,000 | $29,902,000 | $19,217,000 | $1,513,000 | $59,130,000 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Changes in Shareholder's Equity [Abstract] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 3,432 | 4,713 | 5,175 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | |||
Net Income | $5,701 | $4,939 | $4,951 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan and lease losses | 1,617 | 1,685 | 1,036 |
Depreciation | 1,235 | 1,250 | 1,153 |
Amortization (accretion) of intangibles | 62 | 39 | -14 |
Net amortization of security premiums | 1,250 | 2,557 | 1,809 |
Gain on sales of investment securities | -168 | -220 | -267 |
Earnings on cash surrender value of life insurance | -201 | -231 | -247 |
SBA loans originated for sale | -1,168 | ||
Proceeds from sales of SBA loans originated for sale | 1,287 | ||
Gain on sale of SBA loans | -119 | ||
Loss (gain) on disposal of property, plant, and equipment | 18 | -8 | 1 |
Loss (gain) on sale / write-down of foreclosed assets | 204 | -302 | 96 |
Deferred income tax expense (benefit) | -112 | 192 | 450 |
(Increase) decrease in accrued interest receivable | -354 | 189 | 174 |
(Increase) decrease in other assets | -547 | 500 | 424 |
Decrease in accrued interest payable | -44 | -227 | -444 |
Increase in other liabilities | 9 | 319 | 278 |
Net Cash Provided By Operating Activities | 8,670 | 10,682 | 9,400 |
Investing Activities: | |||
Net decrease in interest-bearing time deposits with other financial institutions | 1,741 | 16,050 | 3,914 |
Proceeds from the maturity of investment securities | 13,585 | 37,101 | 39,453 |
Proceeds from the sale of investment securities | 13,729 | 15,118 | 17,895 |
Purchases of investment securities | -43,633 | -27,881 | -53,553 |
(Purchases) redemptions of restricted investment in bank stock | -212 | -466 | 617 |
Net increase in loans and leases | -27,170 | -65,896 | -6,389 |
Purchases of bank premises and equipment | -1,009 | -588 | -995 |
Proceeds from the sale of bank premises and equipment | 42 | ||
Proceeds from sale of foreclosed assets | 1,077 | 2,957 | 2,579 |
Net Cash (Used In) Provided By Investing Activities | -41,892 | -23,605 | 3,563 |
Financing Activities: | |||
Net increase in demand deposits and savings accounts | 37,380 | 13,949 | 29,645 |
Net decrease in time deposits | -7,588 | -31,280 | -38,239 |
Net (decrease) increase in short-term borrowings | -23,255 | 23,833 | |
Common stock dividend paid | -1,575 | -872 | -872 |
Employee Stock Purchase Plan | 53 | 55 | 56 |
Warrant repurchase | -58 | ||
Long-term debt repayment | -184 | -14,365 | -191 |
Proceeds from long-term debt borrowings | 30,000 | 15,000 | |
Net Cash Provided By (Used In) Financing Activities | 34,481 | 6,073 | -15,331 |
Net increase (decrease) in cash and cash equivalents | 1,259 | -6,850 | -2,368 |
Cash and cash equivalents, beginning of year | 8,623 | 15,473 | 17,841 |
Cash and cash equivalents, end of year | 9,882 | 8,623 | 15,473 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest paid | 4,471 | 5,284 | 7,569 |
Income taxes paid | 1,520 | 775 | 1,700 |
Supplemental Noncash Disclosures: | |||
Loan transfers to foreclosed assets held for sale | 881 | 2,777 | 2,587 |
Series A Preferred Stock [Member] | |||
Financing Activities: | |||
Preferred stock redemption | -10,000 | ||
Preferred stock dividend paid | -560 | ||
Series B Preferred Stock [Member] | |||
Financing Activities: | |||
Preferred Stock issuance | 120 | 4,830 | |
Preferred stock dividend paid | ($350) | ($309) |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation |
The accompanying consolidated financial statements include the accounts of Mid Penn Bancorp, Inc. and its wholly-owned subsidiary Mid Penn Bank (the “Bank”), and the Bank’s wholly-owned subsidiary Mid Penn Insurance Services, LLC (collectively, “Mid Penn”). All material intercompany accounts and transactions have been eliminated in consolidation. | |
Each of Mid Penn’s lines of business are part of the same reporting segment, community banking, whose operating results are regularly reviewed and managed by a centralized executive management group. As a result, Mid Penn has only one reportable segment for financial reporting purposes. | |
For comparative purposes, the December 31, 2013 and December 31, 2012 balances have been reclassified to conform to the 2014 presentation. Such reclassifications had no impact on net income. | |
Nature_of_Business
Nature of Business | 12 Months Ended |
Dec. 31, 2014 | |
Nature of Business [Abstract] | |
Nature of Business | (2) Nature of Business |
The Bank engages in a full-service commercial banking and trust business, making available to the community a wide range of financial services, including, but not limited to, installment loans, mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities and local government loans and various types of time and demand deposits, including but not limited to, checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit and IRAs. In addition, the Bank provides a full range of trust services through its Trust Department. Deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) to the extent provided by law. | |
The financial services are provided to individuals, partnerships, non-profit organizations, and corporations through its 19 offices located in eastern Cumberland, Dauphin, northwestern Lancaster, western Luzerne, southern Northumberland, and Schuylkill Counties. | |
Mid Penn Insurance Services, LLC, a wholly-owned subsidiary of the Bank, provides a wide array of personal and commercial insurance products. Income from Mid Penn Insurance Services, LLC is not material to Mid Penn. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||
Summary of Significant Accouting Policies | (3) Summary of Significant Accounting Policies | ||||||||
The accounting and reporting policies of Mid Penn conform with accounting principles generally accepted in the United States of America (“GAAP”) and to general practice within the financial industry. The following is a description of the more significant accounting policies. | |||||||||
(a)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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |||||||||
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan and lease losses, and the assessment of other-than-temporary impairment of investment securities. | |||||||||
(b)Cash and Cash Equivalents | |||||||||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. | |||||||||
(c)Interest-bearing Time Deposits with Other Financial Institutions | |||||||||
Interest-bearing time deposits with other financial institutions consist of certificates of deposits in other financial institutions with maturities within one year. | |||||||||
(d) Investment Securities | |||||||||
Available for sale securities include debt and equity securities. Debt and equity securities are reported at fair value, with unrealized holding gains and losses excluded from earnings and reported, net of deferred income taxes, as a component of accumulated other comprehensive income (loss) within shareholders’ equity. Realized gains and losses on sales of investment securities are computed on the basis of specific identification of the cost of each security. Net gains on sales of investment securities were $168,000 in 2014, $220,000 in 2013, and $267,000 in 2012. Mid Penn had no held to maturity securities in 2014 and 2013. | |||||||||
(e) Loans and Allowance for Loan and Lease Losses | |||||||||
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. These amounts are generally being amortized over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. | |||||||||
The loan portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, commercial real estate-construction and lease financing. Consumer loans consist of the following classes: residential mortgage loans, home equity loans and other consumer loans. | |||||||||
For all classes of loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days or more past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan and lease losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. | |||||||||
Commercial and industrial | |||||||||
Mid Penn originates commercial and industrial loans. Most of the Bank’s commercial and industrial loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory, and accounts receivable. Commercial loans also involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. | |||||||||
The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage lines of credit is one year. The loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan. The Bank’s commercial business lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower. Analysis of the borrower’s past, present, and future cash flows is also an important aspect of the Bank’s current credit analysis. Nonetheless, such loans are believed to carry higher credit risk than other extensions of credit. | |||||||||
Commercial and industrial loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial business loans may be substantially dependent on the success of the business itself, which, in turn, is likely to be dependent upon the general economic environment. Mid Penn’s commercial and industrial loans are usually, but not always, secured by business assets and personal guarantees. However, the collateral securing the loans may depreciate over time, may be difficult to appraise, and may fluctuate in value based on the success of the business. | |||||||||
Commercial real estate and commercial real estate - construction | |||||||||
Commercial real estate and commercial real estate construction loans generally present a higher level of risk than loans secured by one to four family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, and the increased difficulty of evaluating and monitoring these types of loans. In addition, the repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired. | |||||||||
Lease financing | |||||||||
Mid Penn originates leases for select commercial and state and municipal government lessees. The nature of the leased asset is often subject to rapid depreciation in salvage value over a relatively short time frame or may be of an industry specific nature, making appraisal or liquidation of the asset difficult. These factors have led the Bank to severely curtail the origination of new leases to state or municipal government agencies where default risk is extremely limited and to only the most credit-worthy commercial customers. These commercial customers are primarily leasing fleet vehicles for use in their primary line of business, mitigating some of the asset value concerns within the portfolio. Leasing has been a declining percentage of the Mid Penn’s portfolio since 2006, representing 0.20% of the portfolio at December 31, 2014. | |||||||||
Residential mortgage | |||||||||
Mid Penn offers a wide array of residential mortgage loans for both permanent structures and those under construction. The Bank’s residential mortgage originations are secured primarily by properties located in its primary market and surrounding areas. Residential mortgage loans have terms up to a maximum of 30 years and with loan to value ratios up to 100% of the lesser of the appraised value of the security property or the contract price. Private mortgage insurance is generally required in an amount sufficient to reduce the Bank’s exposure to at or below the 85% loan to value level. Residential mortgage loans generally do not include prepayment penalties. | |||||||||
In underwriting residential mortgage loans, the Bank evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Most properties securing real estate loans made by Mid Penn are appraised by independent fee appraisers. The Bank generally requires borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Bank generally contain a “due on sale” clause allowing the Bank to declare the unpaid principal balance due and payable upon the sale of the security property. | |||||||||
The Bank underwrites residential mortgage loans to the standards established by the secondary mortgage market, i.e., Fannie Mae, Ginnie Mae, Freddie Mac, or Pennsylvania Housing Finance Agency standards, with the intention of selling the majority of residential mortgages originated into the secondary market. In the event that the facts and circumstances surrounding a residential mortgage application do not meet all underwriting conditions of the secondary mortgage market, the Bank will evaluate the failed conditions and evaluate the potential risk of holding the residential mortgage in the Bank’s portfolio rather than rejecting the loan request. In the event that the loan is held in the Bank’s portfolio, the interest rate on the residential mortgage would be increased to compensate for the added portfolio risk. | |||||||||
Consumer, including home equity | |||||||||
Mid Penn offers a variety of secured consumer loans, including home equity, automobile, and deposit secured loans. In addition, the Bank offers other secured and unsecured consumer loans. Most consumer loans are originated in Mid Penn’s primary market and surrounding areas. | |||||||||
The largest component of Mid Penn’s consumer loan portfolio consists of fixed rate home equity loans and variable rate home equity lines of credit. Substantially all home equity loans and lines of credit are secured by second mortgages on principal residences. The Bank will lend amounts, which, together with all prior leins, typically may be up to 85% of the appraised value of the property securing the loan. Home equity term loans may have maximum terms up to 20 years while home equity lines of credit generally have maximum terms of five years. | |||||||||
Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount. | |||||||||
Consumer loans may entail greater credit risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | |||||||||
Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. | |||||||||
Allowance for Loan and Lease Losses | |||||||||
The allowance for credit losses consists of the allowance for loan and lease losses and the reserve for unfunded lending commitments. The allowance for loan and lease losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet and was $60,000 at December 31, 2014 and $90,000 at December 31, 2013. The allowance for loan and lease losses is increased by the provision for loan and lease losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan and lease losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance for loan and lease losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. | |||||||||
The allowance for credit losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. | |||||||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in the experience of the lending staff and loan review systems, growth or changes in the mix of loans originated, and shifting industry or portfolio concentrations. | |||||||||
Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. | |||||||||
Mid Penn considers a commercial loan (consisting of commercial and industrial, commercial real estate, commercial real estate-construction, and lease financing loan classes) to be impaired when it becomes 90 days or more past due and not in the process of collection. This methodology assumes the borrower cannot or will not continue to make additional payments. At that time the loan would be considered collateral dependent as the discounted cash flow (“DCF”) method indicates no operating income is available for evaluating the collateral position; therefore, all impaired loans are deemed to be collateral dependent. | |||||||||
In addition, Mid Penn’s rating system assumes any loans classified as sub-standard non-accrual to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allocation or not, are considered collateral dependent. | |||||||||
Mid Penn evaluates loans for charge-off on a monthly basis. Policies that govern the recommendation for charge-off are unique to the type of loan being considered. Commercial loans rated as nonaccrual or lower will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. If the loan is secured, it will undergo a 90 day waiting period to ensure the collateral shortfall identified in the evaluation is accurate and then charged down by the specific allocation. Once the charge down is taken, the remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). Commercial loans secured by real estate rated as impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall and a 90 day waiting period begins to ensure the accuracy of the collateral shortfall. The loan is then charged down by the specific allocation. Once the charge down is taken, the remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). The process of charge-off for residential mortgage loans begins upon a loan becoming delinquent for 90 days and not in the process of collection. The existing appraisal is reviewed and a lien search is obtained to determine lien position and any instances of intervening liens. A new appraisal of the property will be ordered if deemed necessary by management and a collateral evaluation is completed. The loan will then be charged down to the value indicated in the evaluation. Consumer loans (including home equity loans and other consumer loans) are recommended for charge-off after reaching delinquency of 90 days and the loan is not in the process of collection. The entire balance of the consumer loan is recommended for charge-off at this point. | |||||||||
As noted above, Mid Penn assesses a specific allocation for commercial loans prior to charging down or charging off the loan. Once the charge down is taken, the remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). In addition, Mid Penn takes a preemptive step when any commercial loan becomes classified under its internal classification system. A preliminary collateral evaluation in accordance with the guidance on impaired loans is prepared using the existing collateral information in the loan file. This process allows Mid Penn to review both the credit and documentation files to determine the status of the information needed to make a collateral evaluation. This collateral evaluation is preliminary but allows Mid Penn to determine if any potential collateral shortfalls exist. | |||||||||
It is Mid Penn’s policy to obtain updated third party valuations on all impaired loans collateralized by real estate within 30 days of the credit being classified as sub-standard non-accrual. Prior to receipt of the updated real estate valuation Mid Penn will use any existing real estate valuation to determine any potential allowance issues; however no allowance recommendation will be made until which time Mid Penn is in receipt of the updated valuation. The credit department employs an electronic tracking system to monitor the receipt of and need for updated appraisals. To date, there have been no significant time lapses noted with the above processes. | |||||||||
In some instances Mid Penn is not holding real estate as collateral and is relying on business assets (personal property) for repayment. In these circumstances a collateral inspection is performed by Mid Penn personnel to determine an estimated value. The value is based on net book value, as provided by the financial statements, and discounted accordingly based on determinations made by management. Occasionally, Mid Penn will employ an outside service to provide a fair estimate of value based on auction sales or private sales. Management reviews the estimates of these third parties and discounts them accordingly based on management’s judgment, if deemed necessary. | |||||||||
For impaired loans with no valuation allowance required, Mid Penn’s practice of obtaining independent third party market valuations on the subject property within 30 days of being placed on non-accrual status sometimes indicates that the loan to value ratio is sufficient to obviate the need for a specific allocation in spite of significant deterioration in real estate values in Mid Penn’s primary market area. These circumstances are determined on a case by case analysis of the impaired loans. | |||||||||
Mid Penn actively monitors the values of collateral on impaired loans. This monitoring may require the modification of collateral values over time or changing circumstances by some factor, either positive or negative, from the original values. All collateral values will be assessed by management at least every 18 months for possible revaluation by an independent third party. | |||||||||
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |||||||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, Mid Penn does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | |||||||||
Loans whose terms are modified are classified as troubled debt restructurings if the borrowers have been granted concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. | |||||||||
The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans criticized 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 for loan losses. Any loans not classified as noted above are rated pass. | |||||||||
In addition, Federal and State regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan and lease losses and may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. | |||||||||
(f) Bank Premises and Equipment | |||||||||
Land is carried at cost. Buildings, furniture, fixtures, equipment, land improvements, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Building assets are depreciated using an estimated useful life of five to fifty years. Furniture, fixtures, and equipment are depreciated using an estimated useful life of three to ten years. Land improvements are depreciated over an estimated useful life of ten to twenty years. Leasehold improvements are depreciated using an estimated useful life that is the lesser of the remaining life of the lease or ten to thirty years. Maintenance and normal repairs are charged to expense when incurred, while major additions and improvements are capitalized. Gains and losses on disposals are reflected in current operations. | |||||||||
(g)Restricted Investment in Federal Home Loan Bank Stock | |||||||||
The Bank owns restricted stock investments in the FHLB. Federal law requires a member institution of the FHLB to hold stock according to a predetermined formula. The stock is carried at cost. Total dividends received in 2014 and 2013 totaled $123,000 and $20,000, respectively. During 2014 and 2013, the FHLB performed limited excess capital stock repurchases each calendar quarter. Any future capital stock repurchases will be made on a quarterly basis if conditions warrant such repurchases. | |||||||||
Management evaluates the restricted stock for impairment on an annual basis. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. | |||||||||
Management believes no impairment charge is necessary related to the FHLB restricted stock as of December 31, 2014 and 2013. | |||||||||
(h) Foreclosed Assets Held for Sale | |||||||||
Foreclosed assets held for sale consist primarily of real estate acquired through, or in lieu of, foreclosure in settlement of debt and are recorded at fair value less cost to sell at the date of transfer, establishing a new cost basis. Any valuation adjustments required at the date of transfer are charged to the allowance for loan losses. Subsequent to acquisition, foreclosed assets are carried at fair value less costs of disposal, based upon periodic evaluations that consider changes in market conditions and development and disposal costs. Operating results from assets acquired in satisfaction of debt, including rental income less operating costs and gains or losses on the sale of, or the periodic evaluation of foreclosed assets, are recorded in noninterest expense. | |||||||||
(i)Mortgage Servicing Rights | |||||||||
Mortgage servicing rights are recognized as assets upon the sale of a mortgage loan. A portion of the cost of the loan is allocated to the servicing right based upon relative fair value. The fair value of servicing rights is based on the present value of estimated future cash flows of mortgages sold stratified by rate and maturity date. Assumptions that are incorporated in the valuation of servicing rights include assumptions about prepayment speeds on mortgages and the cost to service loans. Servicing rights are reported in other intangibles and are amortized over the estimated period of future servicing income to be received on the underlying mortgage loans. The carrying amount of mortgage servicing rights was $187,000 and $223,000 at December 31, 2014 and 2013, respectively. Amortization expense is netted against loan servicing fee income and is reflected in the Consolidated Statements of Income in mortgage banking income. Servicing rights are evaluated for impairment based upon estimated fair value as compared to unamortized book value. | |||||||||
(j)Investment in Limited Partnership | |||||||||
Mid Penn is a limited partner in a partnership that provides low-income housing in Enola, Pennsylvania. The carrying value of Mid Penn’s investment in the limited partnership was $408,000 at December 31, 2014 and $452,000 at December 31, 2013, net of amortization, using the straight-line method. Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. The partnership received $46,000 in low-income housing tax credits during 2014, 2013 and 2012. | |||||||||
(k)Income Taxes | |||||||||
Mid Penn accounts for income taxes in accordance with income tax accounting guidance ASC Topic 740, Income Taxes. | |||||||||
Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Mid Penn determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |||||||||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||
Mid Penn accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. | |||||||||
Mid Penn recognizes interest and penalties on income taxes, if any, as a component of income tax expense. | |||||||||
(l)Core Deposit Intangible | |||||||||
Core deposit intangible is a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. The core deposit intangible is being amortized over an 8-year life on a straight-line basis. The core deposit intangible is subject to impairment testing whenever events or changes in circumstances indicate its carrying amount may not reflect benefit. | |||||||||
(m)Goodwill | |||||||||
Goodwill is the excess of the purchase price over the fair value of assets acquired in connection with 2004 and 2006 business acquisitions accounted for as acquisitions. If certain events occur, which indicate goodwill might be impaired between annual tests, goodwill must be tested when such events occur. In making this assessment, Mid Penn considers a number of factors including operating results, business plans, economic projections, anticipated future cash flows, current market data, stock price, etc. There are inherent uncertainties related to these factors and Mid Penn’s judgment in applying them to the analysis of goodwill impairment. Changes in economic and operating conditions could result in goodwill impairment in future periods. Mid Penn did not identify any impairment on its outstanding goodwill form its most recent testing, which was performed as of December 31, 2014 using a qualitative analysis. In addition, Mid Penn did not identify any impairment in 2013 or 2012 using a quantitative analysis in accordance with ASC 350. | |||||||||
(n)Bank Owned Life Insurance | |||||||||
Mid Penn is the owner and beneficiary of bank owned life insurance (“BOLI”) policies on current and former directors. The earnings from the BOLI policies are an asset that can be liquidated, if necessary, with associated tax costs. However, Mid Penn intends to hold these policies and, accordingly, Mid Penn has not provided deferred income taxes on the earnings from the increase in cash surrender value. | |||||||||
GAAP requires Split-Dollar Life Insurance Arrangements to have a liability recognized related to the postretirement benefits covered by an endorsement split-dollar life insurance arrangement, and a liability for the future death benefit. | |||||||||
(o)Marketing and Advertising Costs | |||||||||
Marketing and advertising costs are expensed as incurred. | |||||||||
(p)Postretirement Benefit Plans | |||||||||
Mid Penn follows the guidance in ASC Topic 715, Compensation-Retirement Benefits related to postretirement benefit plans. This guidance requires additional disclosures about defined benefit pension plans and other postretirement defined benefit plans. | |||||||||
(q)Other Benefit Plan | |||||||||
A funded contributory defined-contribution plan is maintained for substantially all employees. The cost of the Mid Penn defined contribution plan is charged to current operating expenses and is funded annually. | |||||||||
(r)Trust Assets and Income | |||||||||
Assets held by the Bank in a fiduciary or agency capacity for customers of the Trust Department are not included in the consolidated financial statements since such items are not assets of the Bank. Trust income is recognized on the cash basis, which is not materially different than if it were reported on the accrual basis. | |||||||||
(s)Earnings Per Share | |||||||||
Earnings per share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each of the years presented. The following data show the amounts used in computing basic and diluted earnings per share. As shown in the table that follows, diluted earnings per share is computed using weighted average common shares outstanding, plus weighted average common shares available from the exercise of all dilutive stock warrants issued to the U.S. Treasury under the provisions of the Capital Purchase Program, based on the average share price of Mid Penn’s common stock during the period. | |||||||||
The computations of basic earnings per common share follow: | |||||||||
(Dollars in thousands, except per share data) | |||||||||
2014 | 2013 | 2012 | |||||||
Net Income | $ | 5,701 | $ | 4,939 | $ | 4,951 | |||
Less: Dividends on Series A preferred stock | - | - | 500 | ||||||
Accretion of Series A preferred stock discount | - | 14 | 14 | ||||||
Dividends on Series B preferred stock | 350 | 309 | - | ||||||
Net income available to common shareholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Weighted average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Basic earnings per common share | $ | 1.53 | $ | 1.32 | $ | 1.27 | |||
The computations of diluted earnings per common share follow: | |||||||||
(Dollars in thousands, except per share data) | |||||||||
2014 | 2013 | 2012 | |||||||
Net income available to common stockholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Weighted average number of common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Dilutive effect of potential common stock arising from stock warrants: | |||||||||
Exercise of outstanding stock warrants issued to U.S. Treasury | |||||||||
under the Capital Repurchase Program | - | - | - | ||||||
Adjusted weighted-average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Diluted earnings per common share | $ | 1.53 | $ | 1.32 | $ | 1.27 | |||
Mid Penn repurchased all warrants in 2013; therefore, there were none remaining as of December 31, 2014 and December 31, 2013. Mid Penn had 73,099 warrants that were anti-dilutive because the fair value of the common stock was below the $20.52 exercise price of these warrants as of December 31, 2012. | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accumulated Other Comprehensive (Loss) Income [Abstract] | |||||||||
Accumulated Other Comprehensive (Loss) Income | (4) Accumulated Other Comprehensive (Loss) Income | ||||||||
The components of accumulated other comprehensive (loss) income, net of taxes, are as follows: | |||||||||
(Dollars in thousands) | Unrealized Gain (Loss) on Securities | Defined Benefit Plan Liability | Accumulated Other Comprehensive Income (Loss) | ||||||
Balance - December 31, 2013 | $ | -745 | $ | -127 | $ | -872 | |||
Balance - December 31, 2014 | $ | 1,626 | $ | -113 | $ | 1,513 | |||
Restrictions_on_Cash_and_Due_f
Restrictions on Cash and Due from Bank Accounts | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Cash and Due from Bank Accounts [Abstract] | |
Restrictions on Cash and Due from Bank Accounts | (5) Restrictions on Cash and Due from Bank Accounts |
The Bank is required to maintain reserve balances with the Federal Reserve Bank of Philadelphia. There was no required reserve balance at December 31, 2014 and December 31, 2013 because the Bank had sufficient vault cash available. | |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investment Securities [Abstract] | ||||||||||||||||||||
Investment Securities | (6) Investment Securities | |||||||||||||||||||
Securities to be held for indefinite periods, but not intended to be held to maturity, are classified as available for sale and carried at fair value. Securities held for indefinite periods include securities that management intends to use as part of its asset and liability management strategy and that may be sold in response to liquidity needs, changes in interest rates, resultant prepayment risk, and other factors related to interest rate and resultant prepayment risk changes. | ||||||||||||||||||||
Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive income (loss), whereas realized gains and losses flow through Mid Penn’s consolidated statements of income. | ||||||||||||||||||||
ASC Topic 320, Investments – Debt and Equity Securities, clarifies the interaction of the factors that should be considered when determining whether a debt security is other-than-temporarily impaired. For debt securities, management must assess whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery. These steps are done before assessing whether the entity will recover the cost basis of the investment. | ||||||||||||||||||||
In instances when a determination is made that other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, this guidance changes the presentation and amount of the other-than-temporary impairment recognized in the income statement. The other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income (loss). | ||||||||||||||||||||
In assessing potential other-than-temporary impairment for equity securities, consideration is given to management’s intent and ability to hold the securities until recovery of unrealized losses. | ||||||||||||||||||||
At December 31, 2014 and 2013, amortized cost, fair value, and unrealized gains and losses on investment securities are as follows: | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 26,343 | $ | 752 | $ | 29 | $ | 27,066 | ||||||||||||
Mortgage-backed U.S. government agencies | 33,763 | 190 | 177 | 33,776 | ||||||||||||||||
State and political subdivision obligations | 77,482 | 2,007 | 318 | 79,171 | ||||||||||||||||
Equity securities | 1,584 | 60 | 23 | 1,621 | ||||||||||||||||
$ | 139,172 | $ | 3,009 | $ | 547 | $ | 141,634 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 12,134 | $ | 700 | $ | - | $ | 12,834 | ||||||||||||
Mortgage-backed U.S. government agencies | 39,481 | 349 | 438 | 39,392 | ||||||||||||||||
State and political subdivision obligations | 70,770 | 744 | 2,476 | 69,038 | ||||||||||||||||
Equity securities | 1,550 | 20 | 31 | 1,539 | ||||||||||||||||
$ | 123,935 | $ | 1,813 | $ | 2,945 | $ | 122,803 | |||||||||||||
Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments, adjusted for differences between the quoted instruments and the instruments being valued. | ||||||||||||||||||||
Investment securities having a fair value of $134,740,000 at December 31, 2014, and $114,600,000 at December 31, 2013, were pledged to secure public deposits and other borrowings. | ||||||||||||||||||||
The following table presents gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013. | ||||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
31-Dec-14 | Number of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available for sale securities: | ||||||||||||||||||||
U.S. Treasury and U.S. government agencies | 5 | $ | 6,059 | $ | 29 | $ | - | $ | - | $ | 6,059 | $ | 29 | |||||||
Mortgage-backed U.S. government agencies | 20 | 9,511 | 62 | 4,416 | 115 | 13,927 | 177 | |||||||||||||
State and political subdivision obligations | 37 | 4,444 | 33 | 13,947 | 285 | 18,391 | 318 | |||||||||||||
Equity securities | 2 | - | - | 583 | 23 | 583 | 23 | |||||||||||||
Total temporarily impaired | ||||||||||||||||||||
available for sale securities | 64 | $ | 20,014 | $ | 124 | $ | 18,946 | $ | 423 | $ | 38,960 | $ | 547 | |||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
31-Dec-13 | Number of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available for sale securities: | ||||||||||||||||||||
Mortgage-backed U.S. government agencies | 29 | $ | 9,799 | $ | 182 | $ | 9,866 | $ | 256 | $ | 19,665 | $ | 438 | |||||||
State and political subdivision obligations | 90 | 39,611 | 2,150 | 4,288 | 326 | 43,899 | 2,476 | |||||||||||||
Equity securities | 1 | - | - | 550 | 31 | 550 | 31 | |||||||||||||
Total temporarily impaired | ||||||||||||||||||||
available for sale securities | 120 | $ | 49,410 | $ | 2,332 | $ | 14,704 | $ | 613 | $ | 64,114 | $ | 2,945 | |||||||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis; and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, and the financial condition and near term prospects of the issuer. In addition, for debt securities, Mid Penn considers (a) whether management has the intent to sell the security, (b) it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and (c) whether management expects to recover the entire amortized cost basis. For equity securities, management considers the intent and ability to hold securities until recovery of unrealized losses. | ||||||||||||||||||||
The majority of the investment portfolio is comprised of mortgage-backed U.S. government agencies and state and political subdivision obligations. For the investment securities with an unrealized loss, Mid Penn has concluded, based on its analysis, that the unrealized losses in the investments are primarily caused by the movement of interest rates, and the contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. | ||||||||||||||||||||
At December 31, 2014, Mid Penn had 62 debt securities and 2 equity securities with unrealized losses totaling $547,000 that depreciated 1.40% from their amortized cost basis. At December 31, 2014, the unrealized loss on securities in an unrealized loss position for twelve months or longer totaled $423,000 of which the majority was attributed to mortgage-backed U.S. government agencies and state and political subdivision obligations with $115,000 and $285,000 in unrealized losses, respectively. At December 31, 2013, 119 debt securities and 1 equity security with unrealized losses totaling $2,945,000, depreciated 4.59% from the amortized cost basis. At December 31, 2013, the unrealized loss on securities in an unrealized loss position for twelve months or longer totaled $613,000 of which the majority was attributed to mortgage-backed U.S. government agencies and state and political subdivision obligations with $256,000 and $326,000 in unrealized losses, respectively. | ||||||||||||||||||||
Because Mid Penn does not intend to sell these investments and it is not likely it will be required to sell these investments before a recovery of fair value, which may be maturity, Mid Penn does not consider the securities with unrealized losses to be other-than-temporarily impaired as losses relate to changes in interest rates and not erosion of credit quality. | ||||||||||||||||||||
The table below is the maturity distribution of investment securities at amortized cost and fair value at December 31, 2014. | ||||||||||||||||||||
(Dollars in thousands) | 31-Dec-14 | |||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Due in 1 year or less | $ | 2,164 | $ | 2,201 | ||||||||||||||||
Due after 1 year but within 5 years | 15,386 | 15,891 | ||||||||||||||||||
Due after 5 years but within 10 years | 46,544 | 47,496 | ||||||||||||||||||
Due after 10 years | 39,731 | 40,649 | ||||||||||||||||||
103,825 | 106,237 | |||||||||||||||||||
Mortgage-backed securities | 33,763 | 33,776 | ||||||||||||||||||
Equity securities | 1,584 | 1,621 | ||||||||||||||||||
$ | 139,172 | $ | 141,634 | |||||||||||||||||
Loans_and_Allowance_for_Loan_a
Loans and Allowance for Loan and Lease Losses | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Loans and Allowance for Loan and Lease Losses [Abstract] | |||||||||||||||||||||||||||
Loans and Allowance for Loan and Lease Losses | (7) Loans and Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||
The classes of the loan portfolio, summarized by the aggregate pass rating and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||||
(Dollars in thousands) December 31, 2014 | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||
Commercial and industrial | $ | 117,166 | $ | 654 | $ | 1,190 | $ | - | $ | 119,010 | |||||||||||||||||
Commercial real estate | 280,817 | 4,859 | 11,681 | - | 297,357 | ||||||||||||||||||||||
Commercial real estate - construction | 55,834 | 242 | - | - | 56,076 | ||||||||||||||||||||||
Lease financing | 1,121 | - | - | - | 1,121 | ||||||||||||||||||||||
Residential mortgage | 64,900 | 252 | 1,290 | - | 66,442 | ||||||||||||||||||||||
Home equity | 28,167 | 138 | 201 | - | 28,506 | ||||||||||||||||||||||
Consumer | 3,021 | - | - | - | 3,021 | ||||||||||||||||||||||
$ | 551,026 | $ | 6,145 | $ | 14,362 | $ | - | $ | 571,533 | ||||||||||||||||||
(Dollars in thousands) December 31, 2013 | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||
Commercial and industrial | $ | 103,330 | $ | 938 | $ | 1,576 | $ | - | $ | 105,844 | |||||||||||||||||
Commercial real estate | 277,232 | 2,771 | 12,771 | - | 292,774 | ||||||||||||||||||||||
Commercial real estate - construction | 45,265 | 382 | - | - | 45,647 | ||||||||||||||||||||||
Lease financing | 1,356 | - | - | - | 1,356 | ||||||||||||||||||||||
Residential mortgage | 69,447 | 27 | 356 | - | 69,830 | ||||||||||||||||||||||
Home equity | 26,056 | 96 | 169 | - | 26,321 | ||||||||||||||||||||||
Consumer | 4,690 | - | - | - | 4,690 | ||||||||||||||||||||||
$ | 527,376 | $ | 4,214 | $ | 14,872 | $ | - | $ | 546,462 | ||||||||||||||||||
Impaired loans by loan portfolio class as of December 31, 2014 and 2013 are summarized as follows: | |||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 395 | $ | 430 | $ | - | $ | 185 | $ | 671 | $ | - | |||||||||||||||
Commercial real estate | 1,971 | 4,481 | - | 2,596 | 5,898 | - | |||||||||||||||||||||
Residential mortgage | 1,146 | 1,286 | - | 266 | 282 | - | |||||||||||||||||||||
Home equity | 29 | 88 | - | 27 | 40 | - | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 223 | $ | 231 | $ | 137 | $ | 115 | $ | 243 | $ | 42 | |||||||||||||||
Commercial real estate | 6,954 | 7,255 | 1,382 | 7,649 | 7,972 | 1,860 | |||||||||||||||||||||
Residential mortgage | - | - | - | 25 | 25 | 25 | |||||||||||||||||||||
Home equity | 211 | 213 | 115 | 49 | 49 | 6 | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 618 | $ | 661 | $ | 137 | $ | 300 | $ | 914 | $ | 42 | |||||||||||||||
Commercial real estate | 8,925 | 11,736 | 1,382 | 10,245 | 13,870 | 1,860 | |||||||||||||||||||||
Residential mortgage | 1,146 | 1,286 | - | 291 | 307 | 25 | |||||||||||||||||||||
Home equity | 240 | 301 | 115 | 76 | 89 | 6 | |||||||||||||||||||||
Average recorded investment of impaired loans and related interest income recognized for the years ended December 31, 2014, 2013, and 2012 are summarized as follows: | |||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 72 | $ | - | $ | 188 | $ | - | $ | 313 | $ | 1 | |||||||||||||||
Commercial real estate | 1,966 | 346 | 2,506 | 187 | 5,834 | 21 | |||||||||||||||||||||
Residential mortgage | 541 | - | 299 | - | 465 | - | |||||||||||||||||||||
Home equity | 29 | - | 31 | - | 44 | 4 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 93 | $ | - | $ | 51 | $ | - | $ | 239 | $ | - | |||||||||||||||
Commercial real estate | 6,823 | - | 4,349 | - | 2,175 | - | |||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 16 | - | |||||||||||||||||||||
Residential mortgage | - | - | 13 | - | - | - | |||||||||||||||||||||
Home equity | 76 | - | 54 | - | 66 | - | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 165 | $ | - | $ | 239 | $ | - | $ | 552 | $ | 1 | |||||||||||||||
Commercial real estate | 8,789 | 346 | 6,855 | 187 | 8,009 | 21 | |||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 16 | - | |||||||||||||||||||||
Residential mortgage | 541 | - | 312 | - | 465 | - | |||||||||||||||||||||
Home equity | 105 | - | 85 | - | 110 | 4 | |||||||||||||||||||||
Non-accrual loans by loan portfolio class as of December 31, 2014 and 2013 are summarized as follows: | |||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||||
Commercial and industrial | $ | 267 | $ | 300 | |||||||||||||||||||||||
Commercial real estate | 7,249 | 9,648 | |||||||||||||||||||||||||
Residential mortgage | 1,152 | 803 | |||||||||||||||||||||||||
Home equity | 239 | 126 | |||||||||||||||||||||||||
$ | 8,907 | $ | 10,877 | ||||||||||||||||||||||||
If nonaccrual loans and leases had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, Mid Penn would have recorded interest income on these loans of $798,000, $861,000, and $774,000, in the years ended December 31, 2014, 2013, and 2012, respectively. Mid Penn has no commitments to lend additional funds to borrowers with impaired or nonaccrual loans | |||||||||||||||||||||||||||
The performance and credit quality of the loan portfolio is also monitored by the analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of December 31, 2014 and 2013 are summarized as follows: | |||||||||||||||||||||||||||
(Dollars in thousands) December 31, 2014 | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans | Loans Receivable > 90 Days and Accruing | ||||||||||||||||||||
Commercial and industrial | $ | 172 | $ | 290 | $ | 87 | $ | 549 | $ | 118,461 | $ | 119,010 | $ | - | |||||||||||||
Commercial real estate | 403 | 197 | 6,585 | 7,185 | 290,172 | 297,357 | - | ||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 56,076 | 56,076 | - | ||||||||||||||||||||
Lease financing | - | - | - | - | 1,121 | 1,121 | - | ||||||||||||||||||||
Residential mortgage | 328 | 82 | 1,117 | 1,527 | 64,915 | 66,442 | - | ||||||||||||||||||||
Home equity | 93 | 63 | 157 | 313 | 28,193 | 28,506 | - | ||||||||||||||||||||
Consumer | 6 | - | - | 6 | 3,015 | 3,021 | - | ||||||||||||||||||||
Total | $ | 1,002 | $ | 632 | $ | 7,946 | $ | 9,580 | $ | 561,953 | $ | 571,533 | $ | - | |||||||||||||
(Dollars in thousands) December 31, 2013 | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans | Loans Receivable > 90 Days and Accruing | ||||||||||||||||||||
Commercial and industrial | $ | 291 | $ | 38 | $ | 300 | $ | 629 | $ | 105,215 | $ | 105,844 | $ | - | |||||||||||||
Commercial real estate | 1,472 | 570 | 8,241 | 10,283 | 282,491 | 292,774 | - | ||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 45,647 | 45,647 | - | ||||||||||||||||||||
Lease financing | - | - | - | - | 1,356 | 1,356 | - | ||||||||||||||||||||
Residential mortgage | 952 | - | 785 | 1,737 | 68,093 | 69,830 | - | ||||||||||||||||||||
Home equity | 9 | 50 | 99 | 158 | 26,163 | 26,321 | - | ||||||||||||||||||||
Consumer | 24 | 12 | - | 36 | 4,654 | 4,690 | - | ||||||||||||||||||||
Total | $ | 2,748 | $ | 670 | $ | 9,425 | $ | 12,843 | $ | 533,619 | $ | 546,462 | $ | - | |||||||||||||
The allowance for loan and lease losses and recorded investment in financing receivables for the years ended December 31, 2014, 2013, and 2012, and as of December 31, 2014, 2013, and 2012 are as follows: | |||||||||||||||||||||||||||
(Dollars in thousands) December 31, 2014 | Commercial and industrial | Commercial real estate | Commercial real estate - construction | Lease financing | Residential mortgage | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||
Beginning balance | $ | 1,187 | $ | 4,006 | $ | 9 | $ | - | $ | 581 | $ | 441 | $ | 72 | $ | 21 | $ | 6,317 | |||||||||
Charge-offs | -62 | -1,057 | - | - | -133 | -43 | -33 | - | -1,328 | ||||||||||||||||||
Recoveries | 13 | 13 | - | - | 20 | 1 | 63 | - | 110 | ||||||||||||||||||
Provisions | 255 | 963 | 24 | 2 | -18 | 254 | -67 | 204 | 1,617 | ||||||||||||||||||
Ending balance | $ | 1,393 | $ | 3,925 | $ | 33 | $ | 2 | $ | 450 | $ | 653 | $ | 35 | $ | 225 | $ | 6,716 | |||||||||
Ending balance: individually evaluated for impairment | $ | 137 | $ | 1,382 | $ | - | $ | - | $ | - | $ | 115 | $ | - | $ | - | $ | 1,634 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 1,256 | $ | 2,543 | $ | 33 | $ | 2 | $ | 450 | $ | 538 | $ | 35 | $ | 225 | $ | 5,082 | |||||||||
Loans receivables: | |||||||||||||||||||||||||||
Ending balance | $ | 119,010 | $ | 297,357 | $ | 56,076 | $ | 1,121 | $ | 66,442 | $ | 28,506 | $ | 3,021 | $ | - | $ | 571,533 | |||||||||
Ending balance: individually evaluated for impairment | $ | 618 | $ | 8,925 | $ | - | $ | - | $ | 1,146 | 240 | $ | - | $ | - | $ | 10,929 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 118,392 | $ | 288,432 | $ | 56,076 | $ | 1,121 | $ | 65,296 | $ | 28,266 | $ | 3,021 | $ | - | $ | 560,604 | |||||||||
(Dollars in thousands) December 31, 2013 | Commercial and industrial | Commercial real estate | Commercial real estate - construction | Lease financing | Residential mortgage | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||
Beginning Balance | $ | 1,298 | $ | 3,112 | $ | 64 | $ | 1 | $ | 581 | $ | 343 | $ | 101 | $ | 9 | $ | 5,509 | |||||||||
Charge-offs | -183 | -919 | -17 | - | -167 | -91 | -96 | - | -1,473 | ||||||||||||||||||
Recoveries | 193 | 279 | 7 | 2 | 23 | 8 | 84 | - | 596 | ||||||||||||||||||
Provisions | -121 | 1,534 | -45 | -3 | 144 | 181 | -17 | 12 | 1,685 | ||||||||||||||||||
Ending balance | $ | 1,187 | $ | 4,006 | $ | 9 | $ | - | $ | 581 | $ | 441 | $ | 72 | $ | 21 | $ | 6,317 | |||||||||
Ending balance: individually evaluated for impairment | $ | 42 | $ | 1,860 | $ | - | $ | - | $ | 25 | $ | 6 | $ | - | $ | - | $ | 1,933 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 1,145 | $ | 2,146 | $ | 9 | $ | - | $ | 556 | $ | 435 | $ | 72 | $ | 21 | $ | 4,384 | |||||||||
Loans receivables: | |||||||||||||||||||||||||||
Ending balance | $ | 105,844 | $ | 292,774 | $ | 45,647 | $ | 1,356 | $ | 69,830 | $ | 26,321 | $ | 4,690 | $ | - | $ | 546,462 | |||||||||
Ending balance: individually evaluated for impairment | $ | 300 | $ | 10,245 | $ | - | $ | - | $ | 291 | 76 | $ | - | $ | - | $ | 10,912 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 105,544 | $ | 282,529 | $ | 45,647 | $ | 1,356 | $ | 69,539 | $ | 26,245 | $ | 4,690 | $ | - | $ | 535,550 | |||||||||
(Dollars in thousands) December 31, 2012 | Commercial and industrial | Commercial real estate | Commercial real estate - construction | Lease financing | Residential mortgage | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||
Beginning Balance | $ | 2,274 | $ | 3,544 | $ | 23 | $ | 2 | $ | 362 | $ | 337 | $ | 87 | $ | 143 | $ | 6,772 | |||||||||
Charge-offs | -834 | -493 | -6 | - | -195 | -268 | -592 | - | -2,388 | ||||||||||||||||||
Recoveries | 31 | 13 | 2 | - | - | 10 | 33 | - | 89 | ||||||||||||||||||
Provisions | -173 | 48 | 45 | -1 | 414 | 264 | 573 | -134 | 1,036 | ||||||||||||||||||
Ending balance | $ | 1,298 | $ | 3,112 | $ | 64 | $ | 1 | $ | 581 | $ | 343 | $ | 101 | $ | 9 | $ | 5,509 | |||||||||
Ending balance: individually evaluated for impairment | $ | 111 | $ | 1,200 | $ | 54 | $ | - | $ | - | $ | 18 | $ | - | $ | - | $ | 1,383 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 1,187 | $ | 1,912 | $ | 10 | $ | 1 | $ | 581 | $ | 325 | $ | 101 | $ | 9 | $ | 4,126 | |||||||||
Loans receivables: | |||||||||||||||||||||||||||
Ending balance | $ | 77,883 | $ | 284,867 | $ | 33,231 | $ | 1,305 | $ | 57,455 | $ | 22,920 | $ | 6,559 | $ | - | $ | 484,220 | |||||||||
Ending balance: individually evaluated for impairment | $ | 415 | $ | 9,084 | $ | 54 | $ | - | $ | 448 | 191 | $ | - | $ | - | $ | 10,192 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 77,468 | $ | 275,783 | $ | 33,177 | $ | 1,305 | $ | 57,007 | $ | 22,729 | $ | 6,559 | $ | - | $ | 474,028 | |||||||||
The recorded investments in troubled debt restructured loans at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-14 | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Commercial and industrial | $ | 40 | $ | 35 | $ | 23 | |||||||||||||||||||||
Commercial real estate | 11,189 | 9,443 | 8,005 | ||||||||||||||||||||||||
Residential mortgage | 903 | 897 | 713 | ||||||||||||||||||||||||
Home equity | 50 | 7 | 5 | ||||||||||||||||||||||||
$ | 12,182 | $ | 10,382 | $ | 8,746 | ||||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-13 | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Commercial and industrial | $ | 40 | $ | 417 | $ | 266 | |||||||||||||||||||||
Commercial real estate | 10,581 | 8,686 | 7,470 | ||||||||||||||||||||||||
Residential mortgage | 423 | 35 | 29 | ||||||||||||||||||||||||
$ | 11,044 | $ | 9,138 | $ | 7,765 | ||||||||||||||||||||||
At December 31, 2014, Mid Penn’s troubled debt restructured loans totaled $8,746,000, of which six loans totaling $2,035,000, represented accruing impaired loans in compliance with the terms of the modification. Of the $2,035,000, three are accruing impaired residential mortgages to unrelated borrowers totaling $71,000 and the other three are accruing impaired commercial real estate loans spread among two relationships totaling $1,964,000. The remaining $6,711,000, representing 14 loans among nine relationships, are nonaccrual impaired loans, and resulted in a collateral evaluation in accordance with the guidance on impaired loans. Two large relationships account for $4,680,000 of the $6,711,000 nonaccrual impaired troubled debt restructured loan total. As a result of the evaluation, a specific allocation and, subsequently, charge offs have been taken as appropriate. As of December 31, 2014, charge offs associated with troubled debt restructured loans while under a forbearance agreement totaled $87,000. As of December 31, 2014, there were no defaulted troubled debt restructured loans as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2014. One forbearance agreement was negotiated during 2008, 10 forbearance agreements were negotiated during 2009, one was negotiated during 2010, four were negotiated during 2013, and four were negotiated during 2014. | |||||||||||||||||||||||||||
At December 31, 2013, Mid Penn’s troubled debt restructured loans totaled $7,765,000, of which, $833,000, representing five loans, are accruing impaired mortgages in compliance with the terms of the modification. Of the $833,000, four are accruing impaired residential mortgages totaling $235,000 and one is an accruing impaired commercial real estate loan totaling $598,000. The remaining $6,932,000, representing 12 loans, are nonaccrual impaired loans, and resulted in a collateral evaluation in accordance with the guidance on impaired loans. Two large relationships account for $4,819,000 of the $6,932,000 nonaccrual impaired troubled debt restructured loan total. As a result of the evaluation, a specific allocation and, subsequently, charge offs have been taken as appropriate. As of December 31, 2013, charge offs associated with troubled debt restructured loans while under a forbearance agreement totaled $0. As of December 31, 2013, there were no defaulted troubled debt restructured loans as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2013. One forbearance agreement was negotiated during 2008, 10 forbearance agreements were negotiated during 2009, one was negotiated during 2010, and five were negotiated during 2013. | |||||||||||||||||||||||||||
Mid Penn entered into forbearance agreements on all loans currently classified as troubled debt restructures and all of these agreements have resulted in additional principal repayment. The terms of these forbearance agreements vary whereby principal payments have been decreased, interest rates have been reduced and/or the loan will be repaid as collateral is sold. | |||||||||||||||||||||||||||
There were four loans modified in 2014 and five loans modified in 2013 that resulted in troubled debt restructurings. The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the year ended December 31, 2014. | |||||||||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-14 | Number of Contracts | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | |||||||||||||||||||||||
Commercial real estate | 2 | $ | 1,057 | $ | 757 | $ | 734 | ||||||||||||||||||||
Residential mortgage | 1 | 540 | 540 | 520 | |||||||||||||||||||||||
Home equity | 1 | 50 | 7 | 5 | |||||||||||||||||||||||
4 | $ | 1,647 | $ | 1,304 | $ | 1,259 | |||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-13 | Number of Contracts | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | |||||||||||||||||||||||
Commercial real estate | 3 | $ | 6,091 | $ | 5,588 | $ | 5,417 | ||||||||||||||||||||
Residential mortgage | 2 | 74 | 74 | 28 | |||||||||||||||||||||||
5 | $ | 6,165 | $ | 5,662 | $ | 5,445 | |||||||||||||||||||||
The Bank has granted loans to certain of its executive officers, directors, and their related interests. These loans were made on substantially the same basis, including interest rates and collateral as those prevailing for comparable transactions with other borrowers at the same time. The aggregate amount of these loans was $6,559,000 and $8,402,000 at December 31, 2014 and 2013, respectively. During 2014, $3,340,000 of new loans and advances were extended and repayments totaled $5,181,000. $2,000 of these loans is no longer considered related parties as of December 31, 2014. None of these loans were past due, in non-accrual status, or restructured at December 31, 2014. | |||||||||||||||||||||||||||
Bank_Premises_and_Equipment
Bank Premises and Equipment | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Bank Premises and Equipment [Abstract] | ||||||
Bank Premises and Equipment | (8) Bank Premises and Equipment | |||||
At December 31, 2014 and 2013, bank premises and equipment are as follows: | ||||||
(Dollars in thousands) | 2014 | 2013 | ||||
Land | $ | 2,712 | $ | 2,712 | ||
Buildings | 10,116 | 10,087 | ||||
Furniture, fixtures, and equipment | 7,236 | 9,483 | ||||
Leasehold improvements | 826 | 828 | ||||
Construction in progress | 497 | 13 | ||||
21,387 | 23,123 | |||||
Less accumulated depreciation | -9,162 | -10,654 | ||||
$ | 12,225 | $ | 12,469 | |||
Depreciation expense was $1,235,000 in 2014, $1,250,000 in 2013, and $1,153,000 in 2012. | ||||||
Deposits
Deposits | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Deposits [Abstract] | ||||||
Deposits | (9) Deposits | |||||
At December 31, 2014 and 2013, time deposits amounted to $124,785,000 and $132,373,000, respectively. Interest expense on such certificates of deposit amounted to $1,971,000, $2,568,000, and $3,683,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||
These time deposits at December 31, 2014, mature as follows: | ||||||
(Dollars in thousands) | Time Deposits | |||||
Less than $100,000 | $100,000 or more | |||||
Maturing in 2015 | $ | 35,364 | $ | 25,814 | ||
Maturing in 2016 | 22,943 | 11,018 | ||||
Maturing in 2017 | 5,388 | 2,210 | ||||
Maturing in 2018 | 4,528 | 3,077 | ||||
Maturing in 2019 | 6,966 | 6,299 | ||||
Maturing thereafter | 1,178 | - | ||||
$ | 76,367 | $ | 48,418 | |||
Brokered deposits included in the deposit totals equaled $4,462,000, at December 31, 2014 and $2,750,000 at December 31, 2013. Deposits and other funds from related parties held by Mid Penn at December 31, 2014 and 2013 amounted to $9,987,000 and $9,010,000, respectively. | ||||||
Shortterm_Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2014 | |
Short-term Borrowings [Abstract] | |
Short-term Borrowings | (10) Short-term Borrowings |
Short-term borrowings totaled $578,000 at December 31, 2014 and $23,833,000 at December 31, 2013. The Bank has a line of credit commitment from the FHLB for overnight borrowings up to $40,000,000. This line is collateralized by certain qualifying loans and investment securities of the Bank. The Bank also has unused lines of credit with correspondent banks amounting to $12,500,000 at December 31, 2014. | |
Longterm_Debt
Long-term Debt | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Long-term Debt [Abstract] | ||||||
Long-term Debt | (11) Long-term Debt | |||||
The Bank is a member of the FHLB and through its membership, the Bank can access a number of credit products, which are utilized to provide liquidity. The maximum borrowing capacity available to the Bank at the FHLB at December 31, 2014 was $272,397,000, which includes the line of credit commitment for overnight borrowings. As of December 31, 2014 and 2013, the Bank had long-term debt in the amount of $52,961,000 and $23,145,000, respectively, consisting of: | ||||||
(Dollars in thousands) | At December 31, | |||||
2014 | 2013 | |||||
Loans maturing in 2015 with rates ranging from 0.58% to 4.18% | 15,000 | 15,000 | ||||
Loans maturing in 2016 with rates ranging from 0.54% to 0.89% | 25,000 | 5,000 | ||||
Loan maturing in 2019 at a rate of 1.87% | 10,000 | - | ||||
Loan maturing in 2026 at a rate of 4.80% | 2,892 | 3,073 | ||||
Loan maturing in 2027 at a rate of 6.71% | 69 | 72 | ||||
$ | 52,961 | $ | 23,145 | |||
The aggregate amounts due on long-term debt subsequent to December 31, 2014 are $15,193,000 (2015), $25,203,000 (2016), $213,000 (2017), $223,000 (2018), $10,235,000 (2019), and $1,894,000 thereafter. | ||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Measurement [Abstract] | ||||||||||||||||
Fair Value Measurement | (12) Fair Value Measurement | |||||||||||||||
Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This guidance provides additional information on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes information on identifying circumstances when a transaction may not be considered orderly. | ||||||||||||||||
Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with the fair value measurement and disclosure guidance. | ||||||||||||||||
This guidance clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. | ||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own belief about the assumptions market participants would use in pricing the asset or liability based upon the best information available in the circumstances. Fair value measurement and disclosure guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | ||||||||||||||||
Level 1 Inputs - Unadjusted quoted prices in active markets that are accessible at the measurement date for | ||||||||||||||||
identical, unrestricted assets or liabilities; | ||||||||||||||||
Level 2 Inputs - 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 Inputs - Prices or valuation techniques that require inputs that are both significant to the fair value | ||||||||||||||||
measurement and unobservable (i.e., supported by little or no market activity). | ||||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. | ||||||||||||||||
There were no transfers of assets between fair value Level 1 and Level 2 for the year ended December 31, 2014. The following table illustrates the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels: | ||||||||||||||||
Fair value measurements at December 31, 2014 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
U.S. Treasury and U.S. government agencies | $ | 27,066 | $ | - | $ | 27,066 | $ | - | ||||||||
Mortgage-backed U.S. government agencies | 33,776 | - | 33,776 | - | ||||||||||||
State and political subdivision obligations | 79,171 | - | 79,171 | - | ||||||||||||
Equity securities | 1,621 | 561 | 1,060 | - | ||||||||||||
$ | 141,634 | $ | 561 | $ | 141,073 | $ | - | |||||||||
Fair value measurements at December 31, 2013 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
U.S. Treasury and U.S. government agencies | $ | 12,834 | $ | - | $ | 12,834 | $ | - | ||||||||
Mortgage-backed U.S. government agencies | 39,392 | - | 39,392 | - | ||||||||||||
State and political subdivision obligations | 69,038 | - | 69,038 | - | ||||||||||||
Equity securities | 1,539 | 519 | 1,020 | - | ||||||||||||
$ | 122,803 | $ | 519 | $ | 122,284 | $ | - | |||||||||
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). | ||||||||||||||||
The following tables illustrate the assets measured at fair value on a nonrecurring basis segregated by hierarchy fair value levels. | ||||||||||||||||
Fair value measurements at December 31, 2014 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans | $ | 6,664 | $ | - | $ | - | $ | 6,664 | ||||||||
Foreclosed Assets Held for Sale | 142 | - | - | 142 | ||||||||||||
Mortgage Servicing Rights | 187 | - | - | 187 | ||||||||||||
Fair value measurements at December 31, 2013 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans | $ | 6,535 | $ | - | $ | - | $ | 6,535 | ||||||||
Foreclosed Assets Held for Sale | 465 | - | - | 465 | ||||||||||||
Mortgage Servicing Rights | 223 | - | - | 223 | ||||||||||||
The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Mid Penn has utilized Level 3 inputs to determine the fair value. | ||||||||||||||||
(Dollars in thousands) | Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||
31-Dec-14 | Fair Value Estimate | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||
Impaired Loans | $ | 6,664 | Appraisal of collateral (1) | Appraisal adjustments (2) | 10% - 95% | 32% | ||||||||||
Foreclosed Assets Held for Sale | 142 | Appraisal of collateral (1), (3) | Appraisal adjustments (2) | 15% - 40% | 27% | |||||||||||
Mortgage Servicing Rights | 187 | Multiple of annual service fee | Estimated prepayment speed based on rate and term | 210% - 400% | 353% | |||||||||||
(Dollars in thousands) | Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||
31-Dec-13 | Fair Value Estimate | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||
Impaired Loans | $ | 6,535 | Appraisal of collateral (1) | Appraisal adjustments (2) | 10% - 95% | 25% | ||||||||||
Foreclosed Assets Held for Sale | 465 | Appraisal of collateral (1), (3) | Appraisal adjustments (2) | 15% - 40% | 24% | |||||||||||
Mortgage Servicing Rights | 223 | Multiple of annual service fee | Estimated prepayment speed based on rate and term | 240% - 400% | 349% | |||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. | |||||||||||||||
-2 | Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. | |||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. | |||||||||||||||
The following methodologies and assumptions were used to estimate the fair value of certain assets and liabilities: | ||||||||||||||||
Cash and Cash Equivalents: | ||||||||||||||||
The carrying value of cash and cash equivalents is considered to be a reasonable estimate of fair value. | ||||||||||||||||
Interest-bearing Balances with other Financial Institutions: | ||||||||||||||||
The estimate of fair value was determined by comparing the present value of quoted interest rates on like deposits with the weighted average yield and weighted average maturity of the balances. | ||||||||||||||||
Securities Available for Sale: | ||||||||||||||||
The fair value of securities classified as available for sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted prices. | ||||||||||||||||
Impaired Loans (included in “Net Loans and Leases” in the following tables): | ||||||||||||||||
Mid Penn’s rating system assumes any loans classified as sub-standard non-accrual to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allocation or not, are considered collateral dependent. | ||||||||||||||||
It is Mid Penn’s policy to obtain updated third party valuations on all impaired loans collateralized by real estate within 30 days of the credit being classified as sub-standard non-accrual. Prior to receipt of the updated real estate valuation Mid Penn will use any existing real estate valuation to determine any potential allowance issues; however, no allowance recommendation will be made until which time Mid Penn is in receipt of the updated valuation. | ||||||||||||||||
In some instances Mid Penn is not holding real estate as collateral and is relying on business assets (personal property) for repayment. In these circumstances a collateral inspection is performed by Mid Penn personnel to determine an estimated value. The value is based on net book value, as provided by the financial statements, and discounted accordingly based on determinations made by management. Occasionally, Mid Penn will employ an outside service to provide a fair estimate of value based on auction sales or private sales. Management reviews the estimates of these third parties and discounts them accordingly based on management’s judgment, if deemed necessary. Mid Penn considers the estimates used in its impairment analysis to be Level 3 inputs. | ||||||||||||||||
Mid Penn actively monitors the values of collateral on impaired loans. This monitoring may require the modification of collateral values over time or changing circumstances by some factor, either positive or negative, from the original values. All collateral values will be assessed by management at least every 18 months for possible revaluation by an independent third party. | ||||||||||||||||
Loans: | ||||||||||||||||
For variable-rate loans that reprice frequently and which entail no significant changes in credit risk, carrying values approximated fair value. The fair value of other loans are estimated by calculating the present value of the cash flow difference between the current rate and the market rate, for the average maturity, discounted quarterly at the market rate. | ||||||||||||||||
Foreclosed Assets Held for Sale: | ||||||||||||||||
Assets included in foreclosed assets held for sale are carried at fair value, less costs to sell, and accordingly is presented as measured on a non-recurring basis. Values are estimated using Level 3 inputs, based on appraisals that consider the sales prices of property in the proximate vicinity. | ||||||||||||||||
Accrued Interest Receivable and Payable: | ||||||||||||||||
The carrying amount of accrued interest receivable and payable approximates their fair values. | ||||||||||||||||
Restricted Investment in Bank Stocks: | ||||||||||||||||
The carrying amount of required and restricted investment in correspondent bank stock approximates fair value, and considers the limited marketability of such securities. | ||||||||||||||||
Mortgage Servicing Rights: | ||||||||||||||||
The fair value of servicing rights is based on the present value of estimated future cash flows on pools of mortgages stratified by rate and maturity date. | ||||||||||||||||
Deposits: | ||||||||||||||||
The fair value for demand deposits (e.g., interest and noninterest checking, savings, and money market deposit accounts) is by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amounts). Fair value for fixed-rate certificates of deposit was estimated using a discounted cash flow calculation by combining all fixed-rate certificates into a pool with a weighted average yield and a weighted average maturity for the pool and comparing the pool with interest rates currently being offered on a similar maturity. | ||||||||||||||||
Short-term Borrowings: | ||||||||||||||||
Because of time to maturity, the estimated fair value of short-term borrowings approximates the book value. | ||||||||||||||||
Long-term Debt: | ||||||||||||||||
The estimated fair values of long-term debt were determined using discounted cash flow analysis, based on currently available borrowing rates for similar types of borrowing arrangements. | ||||||||||||||||
Commitments to Extend Credit and Letters of Credit: | ||||||||||||||||
The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account market interest rates, the remaining terms and present credit worthiness of the counterparties. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements. | ||||||||||||||||
The following table summarizes the carrying value and fair value of financial instruments at December 31, 2014 and 2013. | ||||||||||||||||
(Dollars in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 9,882 | $ | 9,882 | $ | 8,623 | $ | 8,623 | ||||||||
Interest-bearing time balances with other financial institutions | 5,772 | 5,772 | 7,513 | 7,513 | ||||||||||||
Available for sale investment securities | 141,634 | 141,634 | 122,803 | 122,803 | ||||||||||||
Net loans and leases | 564,817 | 572,487 | 540,145 | 548,923 | ||||||||||||
Restricted investment in bank stocks | 3,181 | 3,181 | 2,969 | 2,969 | ||||||||||||
Accrued interest receivable | 3,058 | 3,058 | 2,704 | 2,704 | ||||||||||||
Mortgage servicing rights | 187 | 187 | 223 | 223 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | $ | 637,922 | $ | 639,226 | $ | 608,130 | $ | 610,419 | ||||||||
Short-term borrowings | 578 | 578 | 23,833 | 23,833 | ||||||||||||
Long-term debt | 52,961 | 52,514 | 23,145 | 22,988 | ||||||||||||
Accrued interest payable | 349 | 349 | 393 | 393 | ||||||||||||
Off-balance sheet financial instruments: | ||||||||||||||||
Commitments to extend credit | $ | - | $ | - | $ | - | $ | - | ||||||||
Financial standby letters of credit | - | - | - | - | ||||||||||||
The following presents the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of December 31, 2014 and 2013. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs, these instruments are Level 2 Inputs. The following tables exclude financial instruments for which the placement in the fair value hierarchy has been disclosed elsewhere or for which the carrying amount approximates fair value. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active Markets | Significant | |||||||||||||||
(Dollars in thousands) | for Identical Assets | Significant Other | Unobservable | |||||||||||||
Carrying | or Liabilities | Observable Inputs | Inputs | |||||||||||||
31-Dec-14 | Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Financial instruments - assets | ||||||||||||||||
Net loans and leases | $ | 564,817 | $ | 572,487 | $ | - | $ | - | $ | 572,487 | ||||||
Financial instruments - liabilities | ||||||||||||||||
Deposits | $ | 637,922 | $ | 639,226 | $ | - | $ | 639,226 | $ | - | ||||||
Long-term debt | 52,961 | 52,514 | - | 52,514 | - | |||||||||||
Fair Value Measurements | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active Markets | Significant | |||||||||||||||
(Dollars in thousands) | for Identical Assets | Significant Other | Unobservable | |||||||||||||
Carrying | or Liabilities | Observable Inputs | Inputs | |||||||||||||
31-Dec-13 | Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Financial instruments - assets | ||||||||||||||||
Net loans and leases | $ | 540,145 | $ | 548,923 | $ | - | $ | - | $ | 548,923 | ||||||
Financial instruments - liabilities | ||||||||||||||||
Deposits | $ | 608,130 | $ | 610,419 | $ | - | $ | 610,419 | $ | - | ||||||
Long-term debt | 23,145 | 22,988 | - | 22,988 | - | |||||||||||
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Postretirement Benefit Plans [Abstract] | |||||||||
Postretirement Benefit Plans | (13) Postretirement Benefit Plans | ||||||||
Mid Penn has an unfunded noncontributory defined benefit Plan for directors. The Plan provides defined benefits based on years of service. | |||||||||
Mid Penn also has other postretirement benefit Plans covering full-time employees. These health care and life insurance Plans are noncontributory. | |||||||||
The significant aspects of each Plan are as follows: | |||||||||
(a) | Health Insurance | ||||||||
For full-time employees who retire after at least 20 years of service, Mid Penn will pay premiums for major medical insurance (as provided to active employees) for a period ending on the earlier of the date the participant obtains other employment where major medical coverage is available or the date of the participant's death; however, in all cases payment of medical premiums by Mid Penn will not exceed five years. If the retiree becomes eligible for Medicare within the five-year period beginning on his/her retirement date, the Bank may pay, at its discretion, premiums for 65 Special coverage or a similar supplemental coverage. After the five-year period has expired, all Mid Penn paid benefits cease; however, the retiree may continue coverage through the Bank at his/her own expense. This Plan was amended in 2008 to encompass only those employees that had achieved ten years of full-time continuous service to Mid Penn as of January 1, 2008. Employees hired after that date and those that had not achieved the service requirements are not eligible for the Plan. | |||||||||
(b) | Life Insurance | ||||||||
For full-time employees who retire after at least 20 years of service, Mid Penn will provide term life insurance. The amount of coverage prior to age 65 will be three times the participant's annual salary at retirement or $50,000, whichever is less. After age 65, the life insurance coverage amount will decrease by 10% per year, subject to a minimum amount of $2,000. | |||||||||
(c) | Directors’ Retirement Plan | ||||||||
Mid Penn has an unfunded defined benefit retirement Plan for directors with benefits based on years of service. The adoption of this Plan generated unrecognized prior service cost of $274,000, which is being amortized over the expected future years of service of active directors. The unamortized balance at December 31, 2014, was $86,000. | |||||||||
Health and Life | |||||||||
The following tables provide a reconciliation of the changes in the Plan’s health and life insurance benefit obligations and fair value of Plan assets for the years ended December 31, 2014 and 2013, and a statement of the funded status at December 31, 2014 and 2013. | |||||||||
(Dollars in thousands) | December 31, | ||||||||
Change in benefit obligations: | 2014 | 2013 | |||||||
Benefit obligations, January 1 | $ | 836 | $ | 894 | |||||
Service cost | 13 | 17 | |||||||
Interest cost | 38 | 34 | |||||||
Actuarial gain | -26 | -15 | |||||||
Change in assumptions | 40 | -55 | |||||||
Benefit payments | -40 | -39 | |||||||
Benefit obligations, December 31 | $ | 861 | $ | 836 | |||||
Change in fair value of plan assets: | |||||||||
Fair value of plan assets, January 1 | $ | - | $ | - | |||||
Employer contributions | 40 | 39 | |||||||
Benefit payments | -40 | -39 | |||||||
Fair value of plan assets, December 31 | $ | - | $ | - | |||||
Funded status at year end | $ | -861 | $ | -836 | |||||
The amount recognized in the consolidated balance sheet at December 31, 2014 and 2013, is as follows: | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Accrued benefit liability | $ | 861 | $ | 836 | |||||
The amounts recognized in accumulated other comprehensive (loss) consist of: | |||||||||
(Dollars in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Net gain, pretax | $ | -19 | $ | -33 | |||||
Net prior service cost, pretax | - | -1 | |||||||
The accumulated benefit obligation for health and life insurance plans was $861,000 and $836,000 at December 31, 2014 and 2013, respectively. | |||||||||
The estimated prior service costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2015 is ($1,052). | |||||||||
The components of net periodic postretirement benefit cost for 2014, 2013 and 2012 are as follows: | |||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Service cost | $ | 13 | $ | 17 | $ | 21 | |||
Interest cost | 38 | 34 | 37 | ||||||
Amortization of prior service cost | -1 | -1 | -1 | ||||||
Net periodic postretirement benefit cost | $ | 50 | $ | 50 | $ | 57 | |||
Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2014 and 2013 are as follows: | |||||||||
Weighted-average assumptions: | 2014 | 2013 | |||||||
Discount rate | 4.00% | 4.75% | |||||||
Rate of compensation increase | 3.00% | 3.75% | |||||||
Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||
Weighted-average assumptions: | 2014 | 2013 | 2012 | ||||||
Discount rate | 4.75% | 4.00% | 4.50% | ||||||
Rate of compensation increase | 3.75% | 3.00% | 3.50% | ||||||
Assumed health care cost trend rates at December 31, 2014, 2013 and 2012 are as follows: | |||||||||
2014 | 2013 | 2012 | |||||||
Health care cost trend rate assumed for next year | 6.50% | 7.00% | 7.50% | ||||||
Rate to which the cost trend rate is assumed to decline (the | |||||||||
ultimate trend rate) | 5.50% | 5.50% | 5.50% | ||||||
Year that the rate reaches the ultimate trend rate | 2016 | 2016 | 2016 | ||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care Plans. At December 31, 2014, a one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||
(Dollars in thousands) | One-Percentage Point | ||||||||
Increase | Decrease | ||||||||
Effect on total of service and interest cost | $ | 4 | $ | 3 | |||||
Effect on accumulated postretirement benefit obligation | 61 | 54 | |||||||
Mid Penn expects to contribute $57,000 to its life and health benefit Plans in 2015. The following table shows the estimated benefit payments for future periods. | |||||||||
(Dollars in thousands) | |||||||||
1/1/2015 to 12/31/2015 | $ | 57 | |||||||
1/1/2016 to 12/31/2016 | 67 | ||||||||
1/1/2017 to 12/31/2017 | 62 | ||||||||
1/1/2018 to 12/31/2018 | 67 | ||||||||
1/1/2019 to 12/31/2019 | 69 | ||||||||
1/1/2020 to 12/31/2024 | 328 | ||||||||
Benefit obligations were measured as of December 31, 2014, for the postretirement benefit Plan. | |||||||||
Retirement Plan | |||||||||
The following tables provide a reconciliation of the changes in the directors’ defined benefit Plan’s benefit obligations and fair value of Plan assets for the years ended December 31, 2014 and 2013 and a statement of the status at December 31, 2014 and 2013. This Plan is unfunded. | |||||||||
(Dollars in thousands) | December 31, | ||||||||
Change in benefit obligations: | 2014 | 2013 | |||||||
Benefit obligations, January 1 | $ | 1,130 | $ | 1,139 | |||||
Service cost | 33 | 32 | |||||||
Interest cost | 51 | 44 | |||||||
Actuarial (gain) loss | -8 | 4 | |||||||
Change in assumptions | 69 | -5 | |||||||
Benefit payments | -89 | -84 | |||||||
Benefit obligations, December 31 | $ | 1,186 | $ | 1,130 | |||||
Change in fair value of plan assets: | |||||||||
Fair value of plan assets, January 1 | $ | - | $ | - | |||||
Employer contributions | 89 | 84 | |||||||
Benefit payments | -89 | -84 | |||||||
Fair value of plan assets, December 31 | $ | - | $ | - | |||||
Funded status at year end | $ | -1,186 | $ | -1,130 | |||||
Amounts recognized in the consolidated balance sheet at December 31, 2014 and 2013 are as follows: | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Accrued benefit liability | $ | 1,186 | $ | 1,130 | |||||
Amounts recognized in accumulated other comprehensive income consist of: | |||||||||
(Dollars in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Net prior service cost, pretax | $ | 86 | $ | 108 | |||||
Net loss, pretax | 101 | 40 | |||||||
The accumulated benefit obligation for the retirement Plan was $1,186,000 at December 31, 2014 and $1,130,000 at December 31, 2013. | |||||||||
The estimated prior service costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2015 is $21,525. | |||||||||
The components of net periodic retirement cost for 2014, 2013 and 2012 are as follows: | |||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Service cost | $ | 33 | $ | 32 | $ | 22 | |||
Interest cost | 51 | 44 | 49 | ||||||
Amortization of prior-service cost | 22 | 22 | 22 | ||||||
Net periodic retirement cost | $ | 106 | $ | 98 | $ | 93 | |||
Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2014 and 2013 are as follows: | |||||||||
Weighted-average assumptions: | 2014 | 2013 | |||||||
Discount rate | 4.00% | 4.75% | |||||||
Change in consumer price index | 2.00% | 2.75% | |||||||
Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||
Weighted-average assumptions: | 2014 | 2013 | 2012 | ||||||
Discount rate | 4.75% | 4.00% | 4.50% | ||||||
Change in consumer price index | 2.75% | 2.00% | 2.50% | ||||||
Mid Penn expects to contribute $92,000 to its retirement Plan in 2015. The following table shows the estimated benefit payments for future periods. | |||||||||
(Dollars in thousands) | |||||||||
1/1/2015 to 12/31/2015 | $ | 92 | |||||||
1/1/2016 to 12/31/2016 | 95 | ||||||||
1/1/2017 to 12/31/2017 | 97 | ||||||||
1/1/2018 to 12/31/2018 | 100 | ||||||||
1/1/2019 to 12/31/2019 | 98 | ||||||||
1/1/2020 to 12/31/2024 | 514 | ||||||||
Plan benefit obligations were measured as of December 31, 2014 for the directors’ defined benefit Plan. | |||||||||
The Bank is the owner and beneficiary of insurance policies on the lives of certain officers and directors, which informally fund the retirement plan obligation. The aggregate cash surrender value of these policies was $3,689,000 and $3,609,000 at December 31, 2014 and 2013, respectively. | |||||||||
Other_Benefit_Plans
Other Benefit Plans | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Other Benefit Plans [Abstract] | ||||
Other Benefit Plans | (14) Other Benefit Plans | |||
(a) | Defined-Contribution Plan | |||
The Bank has a funded contributory defined-contribution Plan covering substantially all employees. The Bank did not contribute to the Plan in 2014, 2013, or 2012. | ||||
(b) | Deferred Compensation Plans | |||
The Bank has an executive deferred compensation Plan, which allows an executive officer to defer compensation for a specified period in order to provide future retirement income. The only participant in this Plan is a former executive officer. The Bank accrued a liability for this Plan of approximately $177,000 at December 31, 2014 and $192,000 at December 31, 2013. The expense related to the Plan was $6,000 in 2014, $0 in 2013, and $10,000 in 2012. | ||||
The Bank also has a directors’ deferred compensation Plan, which allows directors to defer receipt of fees for a specified period in order to provide future retirement income. At December 31, 2014 and 2013, the Bank accrued a liability of approximately $453,000 and $405,000, respectively, for this Plan. The expense related to the Plan in 2014 and 2013 was $16,000 and $11,000, respectively. Income of $13,000 was recorded in 2012. | ||||
(c) | Salary Continuation Agreement | |||
The Bank maintains a Salary Continuation Agreement (“Agreement”) for a former executive officer. The Agreement provides the former executive officer with a fixed annual benefit. The benefit is payable beginning at age 65 for a period of 15 years. At December 31, 2014 and 2013, the Bank accrued a liability of approximately $221,000 and $206,000, respectively, for the Agreement. The expense related to the Agreement was $15,000 for 2014, $14,000 for 2013, and $13,000 for 2012. | ||||
The Bank is the owner and beneficiary of an insurance policy on the life of the participating former executive officer, which informally funds the benefit obligation. The aggregate cash surrender value of this policy was approximately $1,215,000 and $1,178,000 at December 31, 2014 and 2013, respectively. | ||||
(d) | Employee Stock Ownership Plan | |||
The Employee Stock Ownership Plan (“ESOP”) was terminated in 2013. Total expense related to Mid Penn’s contribution to the ESOP for 2013 and 2012 was $0, respectively. Contributions to the ESOP were made at the discretion of the Board of Directors. The ESOP held no common shares as of December 31, 2013, and 38,799 common shares as of December 31, 2012, all of which were allocated to Plan participants. The ESOP shares were valued using Level 1 inputs as there was an active market for identical assets at the measurement date. At December 31, 2013, the total fair value of the ESOP was $0. | ||||
(e) | Split Dollar Life Insurance Arrangements | |||
At December 31, 2014 and 2013, the Bank had Split Dollar Life Insurance arrangements with two former executives for which the aggregate collateral assignment and cash surrender values are approximately $1,776,000 and $1,739,000, respectively. | ||||
(f) | 401(k) Plan | |||
The Bank has a 401(k) Plan that covers substantially all full-time employees. The Plan allows employees to contribute a portion of their salaries and wages to the Plan. The Plan provides for the Bank to match a portion of employee-elected salary deferrals, subject to certain percentage maximums of their salaries and wages. The Bank’s contribution to the Plan was $216,000, $129,000, and $111,000 for the years ending December 31, 2014, 2013, and 2012, respectively. | ||||
(g) | Employee Stock Purchase Plan | |||
Mid Penn has an Employee Stock Purchase Plan (“ESPP”) in which all employees are eligible to participate. The Plan allows employees to use a portion of their salaries and wages to purchase common shares of Mid Penn stock at the market value of shares at the end of each calendar quarter. | ||||
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Federal Income Taxes [Abstract] | |||||||||
Federal Income Taxes | (15) Federal Income Taxes | ||||||||
The following temporary differences gave rise to the net deferred tax asset at December 31, 2014 and 2013. | |||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Deferred tax assets: | |||||||||
Allowance for loan and lease losses | $ | 2,283 | $ | 2,148 | |||||
Loan fees | 68 | 167 | |||||||
Benefit plans | 985 | 976 | |||||||
Nonaccrual interest | 955 | 895 | |||||||
Unrealized loss on securities | - | 385 | |||||||
Other | 111 | 127 | |||||||
4,402 | 4,698 | ||||||||
Deferred tax liabilities: | |||||||||
Depreciation | -801 | -945 | |||||||
Bond accretion | -106 | -92 | |||||||
Goodwill and intangibles | -264 | -254 | |||||||
Unrealized gain on securities | -837 | - | |||||||
Prepaid expenses | -266 | -170 | |||||||
Other | -3 | -2 | |||||||
-2,277 | -1,463 | ||||||||
Deferred tax asset, net | $ | 2,125 | $ | 3,235 | |||||
In assessing the realizability of federal or state deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that Mid Penn will realize the benefits of these deferred tax assets. | |||||||||
The provision for (benefit from) income taxes consists of the following: | |||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Current | $ | 1,574 | $ | 1,009 | $ | 794 | |||
Deferred | -112 | 192 | 450 | ||||||
Total provision for income taxes | $ | 1,462 | $ | 1,201 | $ | 1,244 | |||
A reconciliation of income tax at the statutory rate to Mid Penn's effective rate is as follows: | |||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Provision at the expected statutory rate | $ | 2,435 | $ | 2,088 | $ | 2,106 | |||
Effect of tax-exempt income | -1,086 | -873 | -827 | ||||||
Effect of investment in life insurance | -68 | -78 | -84 | ||||||
Nondeductible interest | 42 | 40 | 49 | ||||||
Nondeductible merger and acquisition expense | 163 | - | - | ||||||
Other items | -24 | 24 | - | ||||||
Provision for income taxes | $ | 1,462 | $ | 1,201 | $ | 1,244 | |||
Mid Penn has no unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. Mid Penn does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. | |||||||||
No amounts for interest and penalties were recorded in income tax expense in the consolidated statement of income for the years ended December 31, 2014, 2013, or 2012. There were no amounts accrued for interest and penalties at December 31, 2014 or 2013. | |||||||||
Mid Penn and its subsidiaries are subject to U.S. federal income tax and income tax for the state of Pennsylvania. Mid Penn is no longer subject to examination by taxing authorities for years before 2011. Tax years 2011 through the present, with limited exception, remain open to examination. | |||||||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||
Regulatory Matters | (16) Regulatory Matters | ||||||||||||||
Mid Penn Bancorp, Inc., is a bank holding company and, as such, chooses to maintain a well-capitalized status in its bank subsidiary. Quantitative measures established by regulation to ensure capital adequacy require Mid Penn to maintain minimum amounts and ratios (set forth below) of Tier 1 capital to average assets and of total capital (as defined in the regulations) to risk-weighted assets. As of December 31, 2014 and December 31, 2013, Mid Penn met all capital adequacy requirements to which the Bank is subject, and the Bank is considered “well-capitalized”. However, future changes in regulations could increase capital requirements and may have an adverse effect on capital resources. | |||||||||||||||
Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. The amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years. At December 31, 2014, $6,298,000 of undistributed earnings of the Bank included in the consolidated shareholders’ equity was available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements below. | |||||||||||||||
Mid Penn maintained the following regulatory capital levels, leverage ratios, and risk-based capital ratios as of December 31, 2014, and December 31, 2013, as follows: | |||||||||||||||
(Dollars in thousands) | Capital Adequacy | ||||||||||||||
To Be Well-Capitalized | |||||||||||||||
Under Prompt | |||||||||||||||
Minimum Capital | Corrective | ||||||||||||||
Actual | Required | Action Provisions | |||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||
Corporation | |||||||||||||||
As of December 31, 2014: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 56,560 | 7.4% | $ | 30,429 | 4.0% | $ | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 56,560 | 10.1% | 22,295 | 4.0% | N/A | N/A | |||||||||
Total Capital (to Risk Weighted Assets) | 63,336 | 11.4% | 44,590 | 8.0% | N/A | N/A | |||||||||
Bank | |||||||||||||||
As of December 31, 2014: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 56,647 | 7.5% | $ | 30,360 | 4.0% | $ | 37,950 | 5.0% | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 56,647 | 10.2% | 22,295 | 4.0% | 33,442 | 6.0% | |||||||||
Total Capital (to Risk Weighted Assets) | 63,423 | 11.4% | 44,590 | 8.0% | 55,737 | 10.0% | |||||||||
Corporation | |||||||||||||||
As of December 31, 2013: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 52,693 | 7.5% | $ | 28,031 | 4.0% | $ | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 52,693 | 9.9% | 21,234 | 4.0% | N/A | N/A | |||||||||
Total Capital (to Risk Weighted Assets) | 59,100 | 11.1% | 42,467 | 8.0% | N/A | N/A | |||||||||
Bank | |||||||||||||||
As of December 31, 2013: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 52,598 | 7.5% | $ | 28,041 | 4.0% | $ | 35,051 | 5.0% | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 52,598 | 9.9% | 21,234 | 4.0% | 31,850 | 6.0% | |||||||||
Total Capital (to Risk Weighted Assets) | 59,005 | 11.1% | 42,467 | 8.0% | 53,084 | 10.0% | |||||||||
Concentration_of_Risk_and_OffB
Concentration of Risk and Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2014 | |
Concentration of Risk and Off-Balance Sheet Risk [Abstract] | |
Concentration Risk and Off-Balance Sheet Risk | (17) Concentration of Risk and Off-Balance Sheet Risk |
The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. | |
The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for direct, funded loans. | |
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. | |
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The term of these standby letters of credit is generally one year or less. The amount of the liability as of December 31, 2014 and 2013 for guarantees under letters of credit issued is not material. | |
As of December 31, 2014, commitments to extend credit amounted to $125,279,000 and standby letters of credit amounted to $9,837,000. | |
Additionally, Mid Penn has committed to fund and sell qualifying residential mortgage loans to the FHLB in the total amount of $15,000,000. As of December 31, 2014, $7,558,000 remains to be delivered on that commitment. | |
Significant concentration of credit risk may occur when obligations of parties engaged in similar activities occur and accumulate in significant amounts. | |
In analyzing the Bank's exposure to significant concentration of credit risk, management set a parameter of 10% or more of the Bank's total net loans outstanding as the threshold in determining whether the obligations of the same or affiliated parties would be classified as significant concentration of credit risk. Concentrations by industry, product line, type of collateral, etc., are also considered. U.S. Treasury securities, obligations of U.S. government agencies and corporations, and any assets collateralized by the same were excluded. | |
As of December 31, 2014, commercial real estate financing was the only similar activity that met the requirements to be classified as a significant concentration of credit risk. However, there is a geographical concentration in that most of the Bank's business activity is with customers located in Central Pennsylvania, specifically within the Bank's trading area made up of Dauphin County, lower Northumberland County, western Schuylkill County and eastern Cumberland County. | |
The Bank's highest concentrations of credit within the loan portfolio are in the areas of Commercial Real Estate financing (50.6%) as of December 31, 2014. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingencies [Abstract] | ||||||
Commitments and Contingencies | (18) Commitments and Contingencies | |||||
Operating Leases: | ||||||
Mid Penn has entered into a non-cancelable operating lease agreement to lease approximately 2,500 square feet of office space in the downtown Harrisburg area through July 2020. Mid Penn also has a non-cancelable lease on a drive-up ATM site in Halifax, PA that runs through October 2015. Mid Penn has a non-cancelable operating lease agreement with a related party to lease approximately 5,900 square feet of office space on Derry Street in Harrisburg. The initial term ended in November 2014. Mid Penn has the option to renew this lease for two additional three-year periods and has exercised the first of these options, extending the term of the lease through November 2017. | ||||||
In August 2014, Mid Penn entered into a non-cancelable operating lease agreement to lease two office suites, one approximately 2,350 square feet and the second approximately 7,000 square feet, on North Front Street in Harrisburg. The initial lease term extends through February 2020 and can be renewed for one additional three-year period. In October 2014, Mid Penn entered into a non-cancelable operating lease agreement with a related party to lease a retail branch property located at 5288 Simpson Ferry Road in Mechanicsburg, with the initial term of 20 years. Mid Penn has the option to renew this lease for two additional five-year periods. In November 2014, Mid Penn entered into a non-cancelable operating lease agreement to lease a retail branch property located at 2305 South Market Street in Elizabethtown, with the initial term extending through December 2019. Mid Penn has the option to renew this lease for two additional five-year terms. | ||||||
Minimum future rental payments under these operating leases as of December 31, 2014 are as follows: | ||||||
(Dollars in thousands) | ||||||
Lease Obligation | Obligation to Related Parties | |||||
2015 | $ | 411 | $ | 114 | ||
2016 | 439 | 128 | ||||
2017 | 441 | 125 | ||||
2018 | 400 | 79 | ||||
2019 | 393 | 66 | ||||
thereafter | 874 | - | ||||
$ | 2,958 | $ | 512 | |||
Rental expense in connection with leases in 2014, 2013, and 2012 were $151,000, $121,000, and $120,000, respectively. | ||||||
Litigation: | ||||||
Mid Penn is subject to lawsuits and claims arising out of its business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of Mid Penn. | ||||||
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2014 | |
Common Stock [Abstract] | |
Common Stock | (19) Common Stock |
Mid Penn has reserved 50,000 of authorized, but unissued shares of its common stock for issuance under a Stock Bonus Plan (the “Plan”). Shares issued under the Plan are at the discretion of the Board of Directors. | |
Under Mid Penn’s amended and restated dividend reinvestment plan, (“DRIP”), 200,000 of Mid Penn’s authorized but unissued common stock are reserved for issuance. The DRIP also allows for voluntary cash payments within specified limits, for the purchase of additional shares. | |
On June 25, 2014, the 2014 Restricted Stock Plan was registered, which awards shall not exceed, in the aggregate 100,000 shares of common stock. The Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to advance the best interest of Mid Penn and its shareholders. The Plan provides those persons who have a responsibility for its growth with additional incentives by allowing them to acquire an ownership interest in Mid Penn and thereby encouraging them to contribute to the success of the company. As of December 31, 2014, 3,500 shares have been granted under the plan. | |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock [Abstract] | |
Preferred Stock | (20) Preferred Stock |
On December 19, 2008, Mid Penn entered into and closed a Letter Agreement with the United States Department of the Treasury (the “Treasury”) pursuant to which the Treasury invested $10,000,000 in the Mid Penn Bank under the Treasury’s TARP Capital Purchase Program (the “CPP”). Under the letter agreement, the Treasury received (1) 10,000 shares of Series A Fixed Rate Cumulative Perpetual Preferred Stock, $1,000 liquidation preference (“Series A Preferred Stock”), and (2) a warrant to purchase up to 73,099 shares of Mid Penn common stock at an exercise price of $20.52 per share (the “Warrant”). | |
On December 28, 2012, Mid Penn entered into a letter agreement with the Treasury pursuant to which Mid Penn repurchased from the Treasury all 10,000 shares of the Series A Preferred Stock issued to the Treasury which constitutes all of the issued and outstanding shares of Series A Preferred Stock. Mid Penn repurchased the Series A Preferred Stock for a purchase price equal to the aggregate liquidation amount of the Preferred Stock of $10,000,000, plus accrued but unpaid dividends of $59,722. All 10,000 shares of Series A Preferred Stock have subsequently been cancelled. | |
On January 23, 2013, Mid Penn entered into a letter agreement with the Treasury pursuant to which Mid Penn repurchased from the Treasury on that date the Warrant for $58,479. The Warrant was subsequently cancelled. | |
As of December 31, 2014, Mid Penn has no further financial obligations under the Series A Preferred Stock, the Warrant or the CPP. | |
Stock_Issued_Under_Private_Pla
Stock Issued Under Private Placement Offering | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Stock Issued Under Private Placement Offering | (20) Preferred Stock | ||||||
On December 19, 2008, Mid Penn entered into and closed a Letter Agreement with the United States Department of the Treasury (the “Treasury”) pursuant to which the Treasury invested $10,000,000 in the Mid Penn Bank under the Treasury’s TARP Capital Purchase Program (the “CPP”). Under the letter agreement, the Treasury received (1) 10,000 shares of Series A Fixed Rate Cumulative Perpetual Preferred Stock, $1,000 liquidation preference (“Series A Preferred Stock”), and (2) a warrant to purchase up to 73,099 shares of Mid Penn common stock at an exercise price of $20.52 per share (the “Warrant”). | |||||||
On December 28, 2012, Mid Penn entered into a letter agreement with the Treasury pursuant to which Mid Penn repurchased from the Treasury all 10,000 shares of the Series A Preferred Stock issued to the Treasury which constitutes all of the issued and outstanding shares of Series A Preferred Stock. Mid Penn repurchased the Series A Preferred Stock for a purchase price equal to the aggregate liquidation amount of the Preferred Stock of $10,000,000, plus accrued but unpaid dividends of $59,722. All 10,000 shares of Series A Preferred Stock have subsequently been cancelled. | |||||||
On January 23, 2013, Mid Penn entered into a letter agreement with the Treasury pursuant to which Mid Penn repurchased from the Treasury on that date the Warrant for $58,479. The Warrant was subsequently cancelled. | |||||||
As of December 31, 2014, Mid Penn has no further financial obligations under the Series A Preferred Stock, the Warrant or the CPP. | |||||||
Preferred Class B [Member] | |||||||
Stock Issued Under Private Placement Offering | (21) Stock Issued Under Private Placement Offering | ||||||
On September 26, 2012, Mid Penn filed with the Pennsylvania Department of State a Statement with Respect to Shares which, effective upon filing, designated a series of preferred stock as “7% Non-Cumulative Non-Voting Non-Convertible Perpetual Preferred Stock, Series B” (“Series B Preferred Stock”), and set forth the voting and other powers, designations, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions of the Series B Preferred Stock. | |||||||
Sales of Preferred Stock | |||||||
Mid Penn sold shares of the Series B Preferred Stock in transactions exempt from registration under the Securities Act of 1933. | |||||||
Between September 26, 2012 and December 31, 2012, Mid Penn sold 4,880 shares of its Series B Preferred Stock for total gross proceeds of $4,880,000, which have been offset by issuance costs of $50,000. On January 3, 2013, 120 additional shares of the Series B Preferred Stock were sold resulting in total gross proceeds of $5,000,000 for the Series B Preferred Stock offering. | |||||||
The following table summarizes the Series B Preferred Stock shares sold and the gross proceeds received through the private placement offering as of December 31, 2014: | |||||||
(Dollars in thousands) | |||||||
Period | Shares | Gross Proceeds | |||||
September 26, 2012 - September 30, 2012 | 345 | $ | 345,000 | ||||
October 1, 2012 - December 31, 2012 | 4,535 | 4,535,000 | |||||
January 1, 2013 - December 31, 2013 | 120 | 120,000 | |||||
January 1, 2014 - December 31, 2014 | - | - | |||||
Total | 5,000 | $ | 5,000,000 | ||||
Terms of the Series B Preferred Stock | |||||||
The annual dividend rate for the Series B Preferred Stock is 7% per annum of the liquidation preference of the Series B Preferred Stock or $70.00 per annum for each share of Series B Preferred Stock. The Board of Directors must approve each dividend payment from legally available funds. Dividends are payable to holders of record of the Series B Preferred Stock as they appear on our books on the record dates fixed by our Board of Directors. Dividends on any of Series B Preferred Stock are non-cumulative and we currently expect them to be declared quarterly for payment on February 15, May 15, August 15, and November 15 of each year. If a dividend payment date is not a business day, the dividend will be paid on the immediately preceding business day but no additional dividend payment will be prorated from the date of purchase to the first dividend payment date over a quarterly dividend period of 90 days. | |||||||
Mid Penn may redeem shares of its Series B Preferred Stock at its option, in whole or in part, at any time subject to prior approval of the Federal Reserve, if then required, at a redemption price of $1,020 per share of Series B Preferred Stock plus an amount equal to any declared but unpaid dividends and in accordance with the terms and conditions set forth in a Certificate of Designations for the Series B Preferred Stock as filed with the Pennsylvania Department of State. | |||||||
Parent_Company_Statements
Parent Company Statements | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Parent Company Statements [Abstract] | |||||||||
Parent Company Statements | (22) Parent Company Statements | ||||||||
CONDENSED BALANCE SHEETS | |||||||||
(Dollars in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 554 | $ | 437 | |||||
Investment in subsidiaries | 59,217 | 52,821 | |||||||
Other assets | - | 7 | |||||||
Total assets | $ | 59,771 | $ | 53,265 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Other liabilities | $ | 641 | $ | 349 | |||||
Shareholders' equity | 59,130 | 52,916 | |||||||
Total liabilities and shareholders' equity | $ | 59,771 | $ | 53,265 | |||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
(Dollars in thousands) | For Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | |||||||
Income | |||||||||
Dividends from subsidiaries | $ | 2,325 | $ | 1,237 | $ | 6,628 | |||
Other income | - | - | 4 | ||||||
Total Income | 2,325 | 1,237 | 6,632 | ||||||
Expense | |||||||||
Other expenses | -716 | -184 | -217 | ||||||
Total Expense | -716 | -184 | -217 | ||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiaries | 1,609 | 1,053 | 6,415 | ||||||
Equity in undistributed earnings (loss) of subsidiaries | 4,012 | 3,823 | -1,538 | ||||||
Income before income tax | 5,621 | 4,876 | 4,877 | ||||||
Income tax benefit | 80 | 63 | 74 | ||||||
Net income | 5,701 | 4,939 | 4,951 | ||||||
Series A preferred stock dividends & discount accretion | - | 14 | 514 | ||||||
Series B preferred stock dividends | 350 | 309 | - | ||||||
Net income available to common shareholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Comprehensive income | $ | 8,086 | $ | 1,774 | $ | 5,328 | |||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||
(Dollars in thousands) | For Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net income | $ | 5,701 | $ | 4,939 | $ | 4,951 | |||
Equity in undistributed (earnings) loss of subsidiaries | -4,012 | -3,823 | 1,538 | ||||||
Decrease in other assets | 8 | 3 | 40 | ||||||
Increase in other liabilities | 292 | 334 | 15 | ||||||
Net cash provided by operating activities | 1,989 | 1,453 | 6,544 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Dividends paid | -1,925 | -1,181 | -1,432 | ||||||
Series A preferred stock redemption | - | - | -10,000 | ||||||
Series B preferred stock issuance, net of costs | - | 120 | 4,830 | ||||||
Employee Stock Purchase Plan | 53 | 55 | 56 | ||||||
Warrant repurchase | - | -58 | - | ||||||
Net cash used in financing activities | -1,872 | -1,064 | -6,546 | ||||||
Net increase (decrease) in cash and cash equivalents | 117 | 389 | -2 | ||||||
Cash and cash equivalents, beginning of year | 437 | 48 | 50 | ||||||
Cash and cash equivalents, end of year | $ | 554 | $ | 437 | $ | 48 | |||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (23) Recent Accounting Pronouncements |
ASU 2014-01: The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force). | |
The amendments in this Update permit a reporting entity that invests in qualified affordable housing projects to account for the investments using a proportional amortization method if certain conditions are met. The Low Income Housing Tax Credit is a program designed to encourage investment of private capital for use in the construction and rehabilitation of low income housing, which provides certain tax benefits to investors in those projects. If an entity elects the proportional amortization method, it will amortize the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. Otherwise, the entity would apply either the equity method or the cost method, as appropriate. | |
Amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. If adopted, the amendments should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. | |
ASU 2014-04: The FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). | |
The Update clarifies that when an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. | |
Amendments in this Update are effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. If adopted, and entity can elect to adopt the amendments in this update using either a modified retrospective transition method or a prospective transition method. | |
ASU 2014-09: The FASB issued ASU Update 2014-09, Revenue from Contracts with Customers (Topic 606). | |
The amendments in this Update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. | |
The ASU is effective for annual periods beginning after December 15, 2016, including interim periods therein. Three basic transition methods are available – full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the this alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited. | |
ASU 2014-14: The FASB issued ASU Update 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). | |
The amendments in this Update address a practice issue related to the classification of certain foreclosed residential and nonresidential mortgage loans that are either fully or partially guaranteed under government programs. Specifically, creditors should reclassify loans that meet certain conditions to "other receivables" upon foreclosure, rather than reclassifying them to other real estate owned (OREO). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor. | |
The ASU is effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted, if the entity has already adopted ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. Transition methods include a prospective method and a modified retrospective method; however, entities must apply the same transition method as elected under ASU 2014-04. | |
Mid Penn is evaluating the effects these Updates will have on its consolidated financial statements. | |
Subequent_Event
Subequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Abstract] | |
Subsequent Event | (24) Subsequent Event |
Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2014, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. Other than the Merger information identified and disclosed below, there were no other subsequent events identified from the period subsequent to the balance sheet date of December 31, 2014 through the date these consolidated financial statements were issued. | |
On March 1, 2015, Mid Penn consummated the merger with Phoenix Bancorp, Inc., a Pennsylvania corporation (“Phoenix”). Under the terms of a merger agreement between the parties, Phoenix merged with, and into Mid Penn, with Mid Penn continuing as the surviving entity. Simultaneously with the consummation of the foregoing merger, Miners Bank, a Pennsylvania-state chartered bank and wholly-owned subsidiary of Phoenix, merged with and into Mid Penn Bank, a Pennsylvania-state chartered bank and wholly-owned subsidiary of Mid Penn. | |
Additionally, as part of this transaction, on March 1, 2015, Mid Penn assumed all of the liabilities and obligations of Phoenix with respect to 1,750 shares of Phoenix’s preferred stock issued to the Treasury in connection with the Small Business Lending Fund and issued 1,750 shares of Mid Penn’s Senior Non-Cumulative Perpetual Preferred Stock, Series C, having a $1,000 liquidation preference per share (the “SBLF Preferred Shares”), to the Treasury. The SBLF Preferred Shares qualify as Tier 1 Capital and have terms and conditions identical to those shares of preferred stock issued by Phoenix to Treasury. | |
As part of this transaction, Phoenix shareholders received either 3.167 shares of Mid Penn’s common stock or $51.60 in cash in exchange for each share of Phoenix common stock. Holders of contingent rights issued by Phoenix received approximately 0.414 shares of Mid Penn’s common stock as settlement of such rights. As a result, Mid Penn issued approximately 724,000 shares of common stock with an acquisition date fair value of approximately $11,294,000, based on Mid Penn’s closing stock price of $15.60 on February 27, 2015, and cash of approximately $2,949,000. Based on the merger agreement, outstanding stock appreciation rights of Phoenix were settled in cash in accordance with their terms. Including an insignificant amount of cash paid in lieu of fractional shares, the fair value of total consideration paid was approximately $14,243,000. | |
As of the date that these consolidated financial statements were issued, the final determinations of the fair value of assets acquired and liabilities assumed have not been finalized, due to the timing of the transaction. | |
Summary_of_Quarterly_Consolida
Summary of Quarterly Consolidated Financial Data | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Quarterly Consolidated Financial Data [Abstract] | ||||||||||||
Summary of Quarterly Consolidated Financial Data | (25) Summary of Quarterly Consolidated Financial Data (Unaudited) | |||||||||||
The following table presents summarized quarterly financial data for 2014 and 2013. | ||||||||||||
(Dollars in thousands, except per share data) | 2014 Quarter Ended | |||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Interest Income | $ | 7,380 | $ | 7,870 | $ | 7,633 | $ | 7,744 | ||||
Interest Expense | 1,108 | 1,119 | 1,089 | 1,111 | ||||||||
Net Interest Income | 6,272 | 6,751 | 6,544 | 6,633 | ||||||||
Provision for Loan and Lease Losses | 547 | 275 | 395 | 400 | ||||||||
Net Interest Income After Provision for Loan Losses | 5,725 | 6,476 | 6,149 | 6,233 | ||||||||
Noninterest Income | 894 | 774 | 741 | 839 | ||||||||
Noninterest Expense | 4,738 | 5,068 | 4,929 | 5,933 | ||||||||
Income Before Provision for Income Taxes | 1,881 | 2,182 | 1,961 | 1,139 | ||||||||
Provision for Income Taxes | 370 | 475 | 366 | 251 | ||||||||
Net Income | 1,511 | 1,707 | 1,595 | 888 | ||||||||
Preferred Stock Dividends and Discount Accretion | 87 | 88 | 88 | 87 | ||||||||
Net Income Available to Common Shareholders | $ | 1,424 | $ | 1,619 | $ | 1,507 | $ | 801 | ||||
Per Share Data: | ||||||||||||
Basic Earnings Per Share | $ | 0.41 | $ | 0.46 | $ | 0.43 | $ | 0.23 | ||||
Diluted Earnings Per Share | 0.41 | 0.46 | 0.43 | 0.23 | ||||||||
Cash Dividends | 0.05 | 0.10 | 0.10 | 0.20 | ||||||||
(Dollars in thousands, except per share data) | 2013 Quarter Ended | |||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Interest Income | $ | 6,902 | $ | 7,153 | $ | 7,633 | $ | 7,295 | ||||
Interest Expense | 1,443 | 1,306 | 1,192 | 1,116 | ||||||||
Net Interest Income | 5,459 | 5,847 | 6,441 | 6,179 | ||||||||
Provision for Loan and Lease Losses | 495 | 415 | 575 | 200 | ||||||||
Net Interest Income After Provision for Loan Losses | 4,964 | 5,432 | 5,866 | 5,979 | ||||||||
Noninterest Income | 850 | 838 | 808 | 794 | ||||||||
Noninterest Expense | 5,037 | 4,612 | 4,746 | 4,996 | ||||||||
Income Before Provision for Income Taxes | 777 | 1,658 | 1,928 | 1,777 | ||||||||
Provision for Income Taxes | 92 | 292 | 440 | 377 | ||||||||
Net Income | 685 | 1,366 | 1,488 | 1,400 | ||||||||
Preferred Stock Dividends and Discount Accretion | 61 | 87 | 88 | 87 | ||||||||
Net Income Available to Common Shareholders | $ | 624 | $ | 1,279 | $ | 1,400 | $ | 1,313 | ||||
Per Share Data: | ||||||||||||
Basic Earnings Per Share | $ | 0.18 | $ | 0.37 | $ | 0.40 | $ | 0.37 | ||||
Diluted Earnings Per Share | 0.18 | 0.37 | 0.40 | 0.37 | ||||||||
Cash Dividends | - | 0.05 | 0.05 | 0.15 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||
Use of Estimates | (a)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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |||||||||
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan and lease losses, and the assessment of other-than-temporary impairment of investment securities. | |||||||||
Cash and Cash Equivalents | (b)Cash and Cash Equivalents | ||||||||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. | |||||||||
Investment Securities | (c)Interest-bearing Time Deposits with Other Financial Institutions | ||||||||
Interest-bearing time deposits with other financial institutions consist of certificates of deposits in other financial institutions with maturities within one year. | |||||||||
(d) Investment Securities | |||||||||
Available for sale securities include debt and equity securities. Debt and equity securities are reported at fair value, with unrealized holding gains and losses excluded from earnings and reported, net of deferred income taxes, as a component of accumulated other comprehensive income (loss) within shareholders’ equity. Realized gains and losses on sales of investment securities are computed on the basis of specific identification of the cost of each security. Net gains on sales of investment securities were $168,000 in 2014, $220,000 in 2013, and $267,000 in 2012. Mid Penn had no held to maturity securities in 2014 and 2013. | |||||||||
Loans and Allowance for Loan and Lease Losses | (e) Loans and Allowance for Loan and Lease Losses | ||||||||
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. These amounts are generally being amortized over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. | |||||||||
The loan portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, commercial real estate-construction and lease financing. Consumer loans consist of the following classes: residential mortgage loans, home equity loans and other consumer loans. | |||||||||
For all classes of loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days or more past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan and lease losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. | |||||||||
Commercial and industrial | |||||||||
Mid Penn originates commercial and industrial loans. Most of the Bank’s commercial and industrial loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory, and accounts receivable. Commercial loans also involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. | |||||||||
The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage lines of credit is one year. The loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan. The Bank’s commercial business lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower. Analysis of the borrower’s past, present, and future cash flows is also an important aspect of the Bank’s current credit analysis. Nonetheless, such loans are believed to carry higher credit risk than other extensions of credit. | |||||||||
Commercial and industrial loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial business loans may be substantially dependent on the success of the business itself, which, in turn, is likely to be dependent upon the general economic environment. Mid Penn’s commercial and industrial loans are usually, but not always, secured by business assets and personal guarantees. However, the collateral securing the loans may depreciate over time, may be difficult to appraise, and may fluctuate in value based on the success of the business. | |||||||||
Commercial real estate and commercial real estate - construction | |||||||||
Commercial real estate and commercial real estate construction loans generally present a higher level of risk than loans secured by one to four family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, and the increased difficulty of evaluating and monitoring these types of loans. In addition, the repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired. | |||||||||
Lease financing | |||||||||
Mid Penn originates leases for select commercial and state and municipal government lessees. The nature of the leased asset is often subject to rapid depreciation in salvage value over a relatively short time frame or may be of an industry specific nature, making appraisal or liquidation of the asset difficult. These factors have led the Bank to severely curtail the origination of new leases to state or municipal government agencies where default risk is extremely limited and to only the most credit-worthy commercial customers. These commercial customers are primarily leasing fleet vehicles for use in their primary line of business, mitigating some of the asset value concerns within the portfolio. Leasing has been a declining percentage of the Mid Penn’s portfolio since 2006, representing 0.20% of the portfolio at December 31, 2014. | |||||||||
Residential mortgage | |||||||||
Mid Penn offers a wide array of residential mortgage loans for both permanent structures and those under construction. The Bank’s residential mortgage originations are secured primarily by properties located in its primary market and surrounding areas. Residential mortgage loans have terms up to a maximum of 30 years and with loan to value ratios up to 100% of the lesser of the appraised value of the security property or the contract price. Private mortgage insurance is generally required in an amount sufficient to reduce the Bank’s exposure to at or below the 85% loan to value level. Residential mortgage loans generally do not include prepayment penalties. | |||||||||
In underwriting residential mortgage loans, the Bank evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Most properties securing real estate loans made by Mid Penn are appraised by independent fee appraisers. The Bank generally requires borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Bank generally contain a “due on sale” clause allowing the Bank to declare the unpaid principal balance due and payable upon the sale of the security property. | |||||||||
The Bank underwrites residential mortgage loans to the standards established by the secondary mortgage market, i.e., Fannie Mae, Ginnie Mae, Freddie Mac, or Pennsylvania Housing Finance Agency standards, with the intention of selling the majority of residential mortgages originated into the secondary market. In the event that the facts and circumstances surrounding a residential mortgage application do not meet all underwriting conditions of the secondary mortgage market, the Bank will evaluate the failed conditions and evaluate the potential risk of holding the residential mortgage in the Bank’s portfolio rather than rejecting the loan request. In the event that the loan is held in the Bank’s portfolio, the interest rate on the residential mortgage would be increased to compensate for the added portfolio risk. | |||||||||
Consumer, including home equity | |||||||||
Mid Penn offers a variety of secured consumer loans, including home equity, automobile, and deposit secured loans. In addition, the Bank offers other secured and unsecured consumer loans. Most consumer loans are originated in Mid Penn’s primary market and surrounding areas. | |||||||||
The largest component of Mid Penn’s consumer loan portfolio consists of fixed rate home equity loans and variable rate home equity lines of credit. Substantially all home equity loans and lines of credit are secured by second mortgages on principal residences. The Bank will lend amounts, which, together with all prior leins, typically may be up to 85% of the appraised value of the property securing the loan. Home equity term loans may have maximum terms up to 20 years while home equity lines of credit generally have maximum terms of five years. | |||||||||
Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount. | |||||||||
Consumer loans may entail greater credit risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | |||||||||
Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market continues to be weak and property values deteriorate. | |||||||||
Allowance for Loan and Lease Losses | |||||||||
The allowance for credit losses consists of the allowance for loan and lease losses and the reserve for unfunded lending commitments. The allowance for loan and lease losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet and was $60,000 at December 31, 2014 and $90,000 at December 31, 2013. The allowance for loan and lease losses is increased by the provision for loan and lease losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan and lease losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance for loan and lease losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. | |||||||||
The allowance for credit losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. | |||||||||
The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in the experience of the lending staff and loan review systems, growth or changes in the mix of loans originated, and shifting industry or portfolio concentrations. | |||||||||
Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. | |||||||||
Mid Penn considers a commercial loan (consisting of commercial and industrial, commercial real estate, commercial real estate-construction, and lease financing loan classes) to be impaired when it becomes 90 days or more past due and not in the process of collection. This methodology assumes the borrower cannot or will not continue to make additional payments. At that time the loan would be considered collateral dependent as the discounted cash flow (“DCF”) method indicates no operating income is available for evaluating the collateral position; therefore, all impaired loans are deemed to be collateral dependent. | |||||||||
In addition, Mid Penn’s rating system assumes any loans classified as sub-standard non-accrual to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allocation or not, are considered collateral dependent. | |||||||||
Mid Penn evaluates loans for charge-off on a monthly basis. Policies that govern the recommendation for charge-off are unique to the type of loan being considered. Commercial loans rated as nonaccrual or lower will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. If the loan is secured, it will undergo a 90 day waiting period to ensure the collateral shortfall identified in the evaluation is accurate and then charged down by the specific allocation. Once the charge down is taken, the remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). Commercial loans secured by real estate rated as impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall and a 90 day waiting period begins to ensure the accuracy of the collateral shortfall. The loan is then charged down by the specific allocation. Once the charge down is taken, the remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). The process of charge-off for residential mortgage loans begins upon a loan becoming delinquent for 90 days and not in the process of collection. The existing appraisal is reviewed and a lien search is obtained to determine lien position and any instances of intervening liens. A new appraisal of the property will be ordered if deemed necessary by management and a collateral evaluation is completed. The loan will then be charged down to the value indicated in the evaluation. Consumer loans (including home equity loans and other consumer loans) are recommended for charge-off after reaching delinquency of 90 days and the loan is not in the process of collection. The entire balance of the consumer loan is recommended for charge-off at this point. | |||||||||
As noted above, Mid Penn assesses a specific allocation for commercial loans prior to charging down or charging off the loan. Once the charge down is taken, the remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). In addition, Mid Penn takes a preemptive step when any commercial loan becomes classified under its internal classification system. A preliminary collateral evaluation in accordance with the guidance on impaired loans is prepared using the existing collateral information in the loan file. This process allows Mid Penn to review both the credit and documentation files to determine the status of the information needed to make a collateral evaluation. This collateral evaluation is preliminary but allows Mid Penn to determine if any potential collateral shortfalls exist. | |||||||||
It is Mid Penn’s policy to obtain updated third party valuations on all impaired loans collateralized by real estate within 30 days of the credit being classified as sub-standard non-accrual. Prior to receipt of the updated real estate valuation Mid Penn will use any existing real estate valuation to determine any potential allowance issues; however no allowance recommendation will be made until which time Mid Penn is in receipt of the updated valuation. The credit department employs an electronic tracking system to monitor the receipt of and need for updated appraisals. To date, there have been no significant time lapses noted with the above processes. | |||||||||
In some instances Mid Penn is not holding real estate as collateral and is relying on business assets (personal property) for repayment. In these circumstances a collateral inspection is performed by Mid Penn personnel to determine an estimated value. The value is based on net book value, as provided by the financial statements, and discounted accordingly based on determinations made by management. Occasionally, Mid Penn will employ an outside service to provide a fair estimate of value based on auction sales or private sales. Management reviews the estimates of these third parties and discounts them accordingly based on management’s judgment, if deemed necessary. | |||||||||
For impaired loans with no valuation allowance required, Mid Penn’s practice of obtaining independent third party market valuations on the subject property within 30 days of being placed on non-accrual status sometimes indicates that the loan to value ratio is sufficient to obviate the need for a specific allocation in spite of significant deterioration in real estate values in Mid Penn’s primary market area. These circumstances are determined on a case by case analysis of the impaired loans. | |||||||||
Mid Penn actively monitors the values of collateral on impaired loans. This monitoring may require the modification of collateral values over time or changing circumstances by some factor, either positive or negative, from the original values. All collateral values will be assessed by management at least every 18 months for possible revaluation by an independent third party. | |||||||||
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |||||||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, Mid Penn does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | |||||||||
Loans whose terms are modified are classified as troubled debt restructurings if the borrowers have been granted concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. | |||||||||
The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans criticized 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 for loan losses. Any loans not classified as noted above are rated pass. | |||||||||
In addition, Federal and State regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan and lease losses and may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. | |||||||||
Bank Premises and Equipment | (f) Bank Premises and Equipment | ||||||||
Land is carried at cost. Buildings, furniture, fixtures, equipment, land improvements, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Building assets are depreciated using an estimated useful life of five to fifty years. Furniture, fixtures, and equipment are depreciated using an estimated useful life of three to ten years. Land improvements are depreciated over an estimated useful life of ten to twenty years. Leasehold improvements are depreciated using an estimated useful life that is the lesser of the remaining life of the lease or ten to thirty years. Maintenance and normal repairs are charged to expense when incurred, while major additions and improvements are capitalized. Gains and losses on disposals are reflected in current operations. | |||||||||
Restricted Investment in Federal Home Loan Bank Stock | (g)Restricted Investment in Federal Home Loan Bank Stock | ||||||||
The Bank owns restricted stock investments in the FHLB. Federal law requires a member institution of the FHLB to hold stock according to a predetermined formula. The stock is carried at cost. Total dividends received in 2014 and 2013 totaled $123,000 and $20,000, respectively. During 2014 and 2013, the FHLB performed limited excess capital stock repurchases each calendar quarter. Any future capital stock repurchases will be made on a quarterly basis if conditions warrant such repurchases. | |||||||||
Management evaluates the restricted stock for impairment on an annual basis. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. | |||||||||
Management believes no impairment charge is necessary related to the FHLB restricted stock as of December 31, 2014 and 2013. | |||||||||
Foreclosed Assets Held for Sale | (h) Foreclosed Assets Held for Sale | ||||||||
Foreclosed assets held for sale consist primarily of real estate acquired through, or in lieu of, foreclosure in settlement of debt and are recorded at fair value less cost to sell at the date of transfer, establishing a new cost basis. Any valuation adjustments required at the date of transfer are charged to the allowance for loan losses. Subsequent to acquisition, foreclosed assets are carried at fair value less costs of disposal, based upon periodic evaluations that consider changes in market conditions and development and disposal costs. Operating results from assets acquired in satisfaction of debt, including rental income less operating costs and gains or losses on the sale of, or the periodic evaluation of foreclosed assets, are recorded in noninterest expense. | |||||||||
( | |||||||||
Mortgage Servicing Rights | (i)Mortgage Servicing Rights | ||||||||
Mortgage servicing rights are recognized as assets upon the sale of a mortgage loan. A portion of the cost of the loan is allocated to the servicing right based upon relative fair value. The fair value of servicing rights is based on the present value of estimated future cash flows of mortgages sold stratified by rate and maturity date. Assumptions that are incorporated in the valuation of servicing rights include assumptions about prepayment speeds on mortgages and the cost to service loans. Servicing rights are reported in other intangibles and are amortized over the estimated period of future servicing income to be received on the underlying mortgage loans. The carrying amount of mortgage servicing rights was $187,000 and $223,000 at December 31, 2014 and 2013, respectively. Amortization expense is netted against loan servicing fee income and is reflected in the Consolidated Statements of Income in mortgage banking income. Servicing rights are evaluated for impairment based upon estimated fair value as compared to unamortized book value. | |||||||||
( | |||||||||
Investment in Limited Partnership | (j)Investment in Limited Partnership | ||||||||
Mid Penn is a limited partner in a partnership that provides low-income housing in Enola, Pennsylvania. The carrying value of Mid Penn’s investment in the limited partnership was $408,000 at December 31, 2014 and $452,000 at December 31, 2013, net of amortization, using the straight-line method. Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. The partnership received $46,000 in low-income housing tax credits during 2014, 2013 and 2012. | |||||||||
Income Taxes | (k)Income Taxes | ||||||||
Mid Penn accounts for income taxes in accordance with income tax accounting guidance ASC Topic 740, Income Taxes. | |||||||||
Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Mid Penn determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |||||||||
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||
Mid Penn accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. | |||||||||
Mid Penn recognizes interest and penalties on income taxes, if any, as a component of income tax expense. | |||||||||
Core Deposit Intangible | (l)Core Deposit Intangible | ||||||||
Core deposit intangible is a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. The core deposit intangible is being amortized over an 8-year life on a straight-line basis. The core deposit intangible is subject to impairment testing whenever events or changes in circumstances indicate its carrying amount may not reflect benefit. | |||||||||
Goodwill | (m)Goodwill | ||||||||
Goodwill is the excess of the purchase price over the fair value of assets acquired in connection with 2004 and 2006 business acquisitions accounted for as acquisitions. If certain events occur, which indicate goodwill might be impaired between annual tests, goodwill must be tested when such events occur. In making this assessment, Mid Penn considers a number of factors including operating results, business plans, economic projections, anticipated future cash flows, current market data, stock price, etc. There are inherent uncertainties related to these factors and Mid Penn’s judgment in applying them to the analysis of goodwill impairment. Changes in economic and operating conditions could result in goodwill impairment in future periods. Mid Penn did not identify any impairment on its outstanding goodwill form its most recent testing, which was performed as of December 31, 2014 using a qualitative analysis. In addition, Mid Penn did not identify any impairment in 2013 or 2012 using a quantitative analysis in accordance with ASC 350. | |||||||||
Bank Owned Life Insurance | (n)Bank Owned Life Insurance | ||||||||
Mid Penn is the owner and beneficiary of bank owned life insurance (“BOLI”) policies on current and former directors. The earnings from the BOLI policies are an asset that can be liquidated, if necessary, with associated tax costs. However, Mid Penn intends to hold these policies and, accordingly, Mid Penn has not provided deferred income taxes on the earnings from the increase in cash surrender value. | |||||||||
GAAP requires Split-Dollar Life Insurance Arrangements to have a liability recognized related to the postretirement benefits covered by an endorsement split-dollar life insurance arrangement, and a liability for the future death benefit. | |||||||||
Marketing and Advertising Costs | (o)Marketing and Advertising Costs | ||||||||
Marketing and advertising costs are expensed as incurred. | |||||||||
Postretirement and Other Benefit Plans | (p)Postretirement Benefit Plans | ||||||||
Mid Penn follows the guidance in ASC Topic 715, Compensation-Retirement Benefits related to postretirement benefit plans. This guidance requires additional disclosures about defined benefit pension plans and other postretirement defined benefit plans. | |||||||||
(q)Other Benefit Plan | |||||||||
A funded contributory defined-contribution plan is maintained for substantially all employees. The cost of the Mid Penn defined contribution plan is charged to current operating expenses and is funded annually. | |||||||||
Trust Assets and Income | (r)Trust Assets and Income | ||||||||
Assets held by the Bank in a fiduciary or agency capacity for customers of the Trust Department are not included in the consolidated financial statements since such items are not assets of the Bank. Trust income is recognized on the cash basis, which is not materially different than if it were reported on the accrual basis. | |||||||||
Earning (Loss) Per Share | (s)Earnings Per Share | ||||||||
Earnings per share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each of the years presented. The following data show the amounts used in computing basic and diluted earnings per share. As shown in the table that follows, diluted earnings per share is computed using weighted average common shares outstanding, plus weighted average common shares available from the exercise of all dilutive stock warrants issued to the U.S. Treasury under the provisions of the Capital Purchase Program, based on the average share price of Mid Penn’s common stock during the period. | |||||||||
The computations of basic earnings per common share follow: | |||||||||
(Dollars in thousands, except per share data) | |||||||||
2014 | 2013 | 2012 | |||||||
Net Income | $ | 5,701 | $ | 4,939 | $ | 4,951 | |||
Less: Dividends on Series A preferred stock | - | - | 500 | ||||||
Accretion of Series A preferred stock discount | - | 14 | 14 | ||||||
Dividends on Series B preferred stock | 350 | 309 | - | ||||||
Net income available to common shareholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Weighted average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Basic earnings per common share | $ | 1.53 | $ | 1.32 | $ | 1.27 | |||
The computations of diluted earnings per common share follow: | |||||||||
(Dollars in thousands, except per share data) | |||||||||
2014 | 2013 | 2012 | |||||||
Net income available to common stockholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Weighted average number of common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Dilutive effect of potential common stock arising from stock warrants: | |||||||||
Exercise of outstanding stock warrants issued to U.S. Treasury | |||||||||
under the Capital Repurchase Program | - | - | - | ||||||
Adjusted weighted-average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Diluted earnings per common share | $ | 1.53 | $ | 1.32 | $ | 1.27 | |||
Mid Penn repurchased all warrants in 2013; therefore, there were none remaining as of December 31, 2014 and December 31, 2013. Mid Penn had 73,099 warrants that were anti-dilutive because the fair value of the common stock was below the $20.52 exercise price of these warrants as of December 31, 2012. | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings per Common Share [Abstract] | |||||||||
Basic Earnings (Loss) Per Share | The computations of basic earnings per common share follow: | ||||||||
(Dollars in thousands, except per share data) | |||||||||
2014 | 2013 | 2012 | |||||||
Net Income | $ | 5,701 | $ | 4,939 | $ | 4,951 | |||
Less: Dividends on Series A preferred stock | - | - | 500 | ||||||
Accretion of Series A preferred stock discount | - | 14 | 14 | ||||||
Dividends on Series B preferred stock | 350 | 309 | - | ||||||
Net income available to common shareholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Weighted average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Basic earnings per common share | $ | 1.53 | $ | 1.32 | $ | 1.27 | |||
Diluted Earnings (Loss) Per Share | The computations of diluted earnings per common share follow: | ||||||||
(Dollars in thousands, except per share data) | |||||||||
2014 | 2013 | 2012 | |||||||
Net income available to common stockholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Weighted average number of common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Dilutive effect of potential common stock arising from stock warrants: | |||||||||
Exercise of outstanding stock warrants issued to U.S. Treasury | |||||||||
under the Capital Repurchase Program | - | - | - | ||||||
Adjusted weighted-average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||
Diluted earnings per common share | $ | 1.53 | $ | 1.32 | $ | 1.27 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accumulated Other Comprehensive (Loss) Income [Abstract] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of accumulated other comprehensive (loss) income, net of taxes, are as follows: | ||||||||
(Dollars in thousands) | Unrealized Gain (Loss) on Securities | Defined Benefit Plan Liability | Accumulated Other Comprehensive Income (Loss) | ||||||
Balance - December 31, 2013 | $ | -745 | $ | -127 | $ | -872 | |||
Balance - December 31, 2014 | $ | 1,626 | $ | -113 | $ | 1,513 | |||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investment Securities [Abstract] | ||||||||||||||||||||
Unrealized Gain (Loss) on Investments | At December 31, 2014 and 2013, amortized cost, fair value, and unrealized gains and losses on investment securities are as follows: | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 26,343 | $ | 752 | $ | 29 | $ | 27,066 | ||||||||||||
Mortgage-backed U.S. government agencies | 33,763 | 190 | 177 | 33,776 | ||||||||||||||||
State and political subdivision obligations | 77,482 | 2,007 | 318 | 79,171 | ||||||||||||||||
Equity securities | 1,584 | 60 | 23 | 1,621 | ||||||||||||||||
$ | 139,172 | $ | 3,009 | $ | 547 | $ | 141,634 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 12,134 | $ | 700 | $ | - | $ | 12,834 | ||||||||||||
Mortgage-backed U.S. government agencies | 39,481 | 349 | 438 | 39,392 | ||||||||||||||||
State and political subdivision obligations | 70,770 | 744 | 2,476 | 69,038 | ||||||||||||||||
Equity securities | 1,550 | 20 | 31 | 1,539 | ||||||||||||||||
$ | 123,935 | $ | 1,813 | $ | 2,945 | $ | 122,803 | |||||||||||||
Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013. | |||||||||||||||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
31-Dec-14 | Number of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available for sale securities: | ||||||||||||||||||||
U.S. Treasury and U.S. government agencies | 5 | $ | 6,059 | $ | 29 | $ | - | $ | - | $ | 6,059 | $ | 29 | |||||||
Mortgage-backed U.S. government agencies | 20 | 9,511 | 62 | 4,416 | 115 | 13,927 | 177 | |||||||||||||
State and political subdivision obligations | 37 | 4,444 | 33 | 13,947 | 285 | 18,391 | 318 | |||||||||||||
Equity securities | 2 | - | - | 583 | 23 | 583 | 23 | |||||||||||||
Total temporarily impaired | ||||||||||||||||||||
available for sale securities | 64 | $ | 20,014 | $ | 124 | $ | 18,946 | $ | 423 | $ | 38,960 | $ | 547 | |||||||
(Dollars in thousands) | Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||
31-Dec-13 | Number of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available for sale securities: | ||||||||||||||||||||
Mortgage-backed U.S. government agencies | 29 | $ | 9,799 | $ | 182 | $ | 9,866 | $ | 256 | $ | 19,665 | $ | 438 | |||||||
State and political subdivision obligations | 90 | 39,611 | 2,150 | 4,288 | 326 | 43,899 | 2,476 | |||||||||||||
Equity securities | 1 | - | - | 550 | 31 | 550 | 31 | |||||||||||||
Total temporarily impaired | ||||||||||||||||||||
available for sale securities | 120 | $ | 49,410 | $ | 2,332 | $ | 14,704 | $ | 613 | $ | 64,114 | $ | 2,945 | |||||||
Investments Classified by Contractual Maturity Date | The table below is the maturity distribution of investment securities at amortized cost and fair value at December 31, 2014. | |||||||||||||||||||
(Dollars in thousands) | 31-Dec-14 | |||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Due in 1 year or less | $ | 2,164 | $ | 2,201 | ||||||||||||||||
Due after 1 year but within 5 years | 15,386 | 15,891 | ||||||||||||||||||
Due after 5 years but within 10 years | 46,544 | 47,496 | ||||||||||||||||||
Due after 10 years | 39,731 | 40,649 | ||||||||||||||||||
103,825 | 106,237 | |||||||||||||||||||
Mortgage-backed securities | 33,763 | 33,776 | ||||||||||||||||||
Equity securities | 1,584 | 1,621 | ||||||||||||||||||
$ | 139,172 | $ | 141,634 | |||||||||||||||||
Loans_and_Allowance_for_Loan_a1
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Loans and Allowance for Loan and Lease Losses [Abstract] | |||||||||||||||||||||||||||
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | The classes of the loan portfolio, summarized by the aggregate pass rating and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) December 31, 2014 | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||
Commercial and industrial | $ | 117,166 | $ | 654 | $ | 1,190 | $ | - | $ | 119,010 | |||||||||||||||||
Commercial real estate | 280,817 | 4,859 | 11,681 | - | 297,357 | ||||||||||||||||||||||
Commercial real estate - construction | 55,834 | 242 | - | - | 56,076 | ||||||||||||||||||||||
Lease financing | 1,121 | - | - | - | 1,121 | ||||||||||||||||||||||
Residential mortgage | 64,900 | 252 | 1,290 | - | 66,442 | ||||||||||||||||||||||
Home equity | 28,167 | 138 | 201 | - | 28,506 | ||||||||||||||||||||||
Consumer | 3,021 | - | - | - | 3,021 | ||||||||||||||||||||||
$ | 551,026 | $ | 6,145 | $ | 14,362 | $ | - | $ | 571,533 | ||||||||||||||||||
(Dollars in thousands) December 31, 2013 | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||
Commercial and industrial | $ | 103,330 | $ | 938 | $ | 1,576 | $ | - | $ | 105,844 | |||||||||||||||||
Commercial real estate | 277,232 | 2,771 | 12,771 | - | 292,774 | ||||||||||||||||||||||
Commercial real estate - construction | 45,265 | 382 | - | - | 45,647 | ||||||||||||||||||||||
Lease financing | 1,356 | - | - | - | 1,356 | ||||||||||||||||||||||
Residential mortgage | 69,447 | 27 | 356 | - | 69,830 | ||||||||||||||||||||||
Home equity | 26,056 | 96 | 169 | - | 26,321 | ||||||||||||||||||||||
Consumer | 4,690 | - | - | - | 4,690 | ||||||||||||||||||||||
$ | 527,376 | $ | 4,214 | $ | 14,872 | $ | - | $ | 546,462 | ||||||||||||||||||
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class as of December 31, 2014 and 2013 are summarized as follows: | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 395 | $ | 430 | $ | - | $ | 185 | $ | 671 | $ | - | |||||||||||||||
Commercial real estate | 1,971 | 4,481 | - | 2,596 | 5,898 | - | |||||||||||||||||||||
Residential mortgage | 1,146 | 1,286 | - | 266 | 282 | - | |||||||||||||||||||||
Home equity | 29 | 88 | - | 27 | 40 | - | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 223 | $ | 231 | $ | 137 | $ | 115 | $ | 243 | $ | 42 | |||||||||||||||
Commercial real estate | 6,954 | 7,255 | 1,382 | 7,649 | 7,972 | 1,860 | |||||||||||||||||||||
Residential mortgage | - | - | - | 25 | 25 | 25 | |||||||||||||||||||||
Home equity | 211 | 213 | 115 | 49 | 49 | 6 | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 618 | $ | 661 | $ | 137 | $ | 300 | $ | 914 | $ | 42 | |||||||||||||||
Commercial real estate | 8,925 | 11,736 | 1,382 | 10,245 | 13,870 | 1,860 | |||||||||||||||||||||
Residential mortgage | 1,146 | 1,286 | - | 291 | 307 | 25 | |||||||||||||||||||||
Home equity | 240 | 301 | 115 | 76 | 89 | 6 | |||||||||||||||||||||
Average Recorded Investment of Impaired Loans and Related Interest Income by Loan Portfolio Class | Average recorded investment of impaired loans and related interest income recognized for the years ended December 31, 2014, 2013, and 2012 are summarized as follows: | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 72 | $ | - | $ | 188 | $ | - | $ | 313 | $ | 1 | |||||||||||||||
Commercial real estate | 1,966 | 346 | 2,506 | 187 | 5,834 | 21 | |||||||||||||||||||||
Residential mortgage | 541 | - | 299 | - | 465 | - | |||||||||||||||||||||
Home equity | 29 | - | 31 | - | 44 | 4 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 93 | $ | - | $ | 51 | $ | - | $ | 239 | $ | - | |||||||||||||||
Commercial real estate | 6,823 | - | 4,349 | - | 2,175 | - | |||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 16 | - | |||||||||||||||||||||
Residential mortgage | - | - | 13 | - | - | - | |||||||||||||||||||||
Home equity | 76 | - | 54 | - | 66 | - | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||
Commercial and industrial | $ | 165 | $ | - | $ | 239 | $ | - | $ | 552 | $ | 1 | |||||||||||||||
Commercial real estate | 8,789 | 346 | 6,855 | 187 | 8,009 | 21 | |||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 16 | - | |||||||||||||||||||||
Residential mortgage | 541 | - | 312 | - | 465 | - | |||||||||||||||||||||
Home equity | 105 | - | 85 | - | 110 | 4 | |||||||||||||||||||||
Non-accrual Loans by Classes of the Loan Portfolio | Non-accrual loans by loan portfolio class as of December 31, 2014 and 2013 are summarized as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||||
Commercial and industrial | $ | 267 | $ | 300 | |||||||||||||||||||||||
Commercial real estate | 7,249 | 9,648 | |||||||||||||||||||||||||
Residential mortgage | 1,152 | 803 | |||||||||||||||||||||||||
Home equity | 239 | 126 | |||||||||||||||||||||||||
$ | 8,907 | $ | 10,877 | ||||||||||||||||||||||||
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of December 31, 2014 and 2013 are summarized as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) December 31, 2014 | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans | Loans Receivable > 90 Days and Accruing | ||||||||||||||||||||
Commercial and industrial | $ | 172 | $ | 290 | $ | 87 | $ | 549 | $ | 118,461 | $ | 119,010 | $ | - | |||||||||||||
Commercial real estate | 403 | 197 | 6,585 | 7,185 | 290,172 | 297,357 | - | ||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 56,076 | 56,076 | - | ||||||||||||||||||||
Lease financing | - | - | - | - | 1,121 | 1,121 | - | ||||||||||||||||||||
Residential mortgage | 328 | 82 | 1,117 | 1,527 | 64,915 | 66,442 | - | ||||||||||||||||||||
Home equity | 93 | 63 | 157 | 313 | 28,193 | 28,506 | - | ||||||||||||||||||||
Consumer | 6 | - | - | 6 | 3,015 | 3,021 | - | ||||||||||||||||||||
Total | $ | 1,002 | $ | 632 | $ | 7,946 | $ | 9,580 | $ | 561,953 | $ | 571,533 | $ | - | |||||||||||||
(Dollars in thousands) December 31, 2013 | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans | Loans Receivable > 90 Days and Accruing | ||||||||||||||||||||
Commercial and industrial | $ | 291 | $ | 38 | $ | 300 | $ | 629 | $ | 105,215 | $ | 105,844 | $ | - | |||||||||||||
Commercial real estate | 1,472 | 570 | 8,241 | 10,283 | 282,491 | 292,774 | - | ||||||||||||||||||||
Commercial real estate - construction | - | - | - | - | 45,647 | 45,647 | - | ||||||||||||||||||||
Lease financing | - | - | - | - | 1,356 | 1,356 | - | ||||||||||||||||||||
Residential mortgage | 952 | - | 785 | 1,737 | 68,093 | 69,830 | - | ||||||||||||||||||||
Home equity | 9 | 50 | 99 | 158 | 26,163 | 26,321 | - | ||||||||||||||||||||
Consumer | 24 | 12 | - | 36 | 4,654 | 4,690 | - | ||||||||||||||||||||
Total | $ | 2,748 | $ | 670 | $ | 9,425 | $ | 12,843 | $ | 533,619 | $ | 546,462 | $ | - | |||||||||||||
Allowance for Loan Losses and Recorded Investment in Financing Receivables | The allowance for loan and lease losses and recorded investment in financing receivables for the years ended December 31, 2014, 2013, and 2012, and as of December 31, 2014, 2013, and 2012 are as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) December 31, 2014 | Commercial and industrial | Commercial real estate | Commercial real estate - construction | Lease financing | Residential mortgage | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||
Beginning balance | $ | 1,187 | $ | 4,006 | $ | 9 | $ | - | $ | 581 | $ | 441 | $ | 72 | $ | 21 | $ | 6,317 | |||||||||
Charge-offs | -62 | -1,057 | - | - | -133 | -43 | -33 | - | -1,328 | ||||||||||||||||||
Recoveries | 13 | 13 | - | - | 20 | 1 | 63 | - | 110 | ||||||||||||||||||
Provisions | 255 | 963 | 24 | 2 | -18 | 254 | -67 | 204 | 1,617 | ||||||||||||||||||
Ending balance | $ | 1,393 | $ | 3,925 | $ | 33 | $ | 2 | $ | 450 | $ | 653 | $ | 35 | $ | 225 | $ | 6,716 | |||||||||
Ending balance: individually evaluated for impairment | $ | 137 | $ | 1,382 | $ | - | $ | - | $ | - | $ | 115 | $ | - | $ | - | $ | 1,634 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 1,256 | $ | 2,543 | $ | 33 | $ | 2 | $ | 450 | $ | 538 | $ | 35 | $ | 225 | $ | 5,082 | |||||||||
Loans receivables: | |||||||||||||||||||||||||||
Ending balance | $ | 119,010 | $ | 297,357 | $ | 56,076 | $ | 1,121 | $ | 66,442 | $ | 28,506 | $ | 3,021 | $ | - | $ | 571,533 | |||||||||
Ending balance: individually evaluated for impairment | $ | 618 | $ | 8,925 | $ | - | $ | - | $ | 1,146 | 240 | $ | - | $ | - | $ | 10,929 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 118,392 | $ | 288,432 | $ | 56,076 | $ | 1,121 | $ | 65,296 | $ | 28,266 | $ | 3,021 | $ | - | $ | 560,604 | |||||||||
(Dollars in thousands) December 31, 2013 | Commercial and industrial | Commercial real estate | Commercial real estate - construction | Lease financing | Residential mortgage | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||
Beginning Balance | $ | 1,298 | $ | 3,112 | $ | 64 | $ | 1 | $ | 581 | $ | 343 | $ | 101 | $ | 9 | $ | 5,509 | |||||||||
Charge-offs | -183 | -919 | -17 | - | -167 | -91 | -96 | - | -1,473 | ||||||||||||||||||
Recoveries | 193 | 279 | 7 | 2 | 23 | 8 | 84 | - | 596 | ||||||||||||||||||
Provisions | -121 | 1,534 | -45 | -3 | 144 | 181 | -17 | 12 | 1,685 | ||||||||||||||||||
Ending balance | $ | 1,187 | $ | 4,006 | $ | 9 | $ | - | $ | 581 | $ | 441 | $ | 72 | $ | 21 | $ | 6,317 | |||||||||
Ending balance: individually evaluated for impairment | $ | 42 | $ | 1,860 | $ | - | $ | - | $ | 25 | $ | 6 | $ | - | $ | - | $ | 1,933 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 1,145 | $ | 2,146 | $ | 9 | $ | - | $ | 556 | $ | 435 | $ | 72 | $ | 21 | $ | 4,384 | |||||||||
Loans receivables: | |||||||||||||||||||||||||||
Ending balance | $ | 105,844 | $ | 292,774 | $ | 45,647 | $ | 1,356 | $ | 69,830 | $ | 26,321 | $ | 4,690 | $ | - | $ | 546,462 | |||||||||
Ending balance: individually evaluated for impairment | $ | 300 | $ | 10,245 | $ | - | $ | - | $ | 291 | 76 | $ | - | $ | - | $ | 10,912 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 105,544 | $ | 282,529 | $ | 45,647 | $ | 1,356 | $ | 69,539 | $ | 26,245 | $ | 4,690 | $ | - | $ | 535,550 | |||||||||
(Dollars in thousands) December 31, 2012 | Commercial and industrial | Commercial real estate | Commercial real estate - construction | Lease financing | Residential mortgage | Home equity | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||
Beginning Balance | $ | 2,274 | $ | 3,544 | $ | 23 | $ | 2 | $ | 362 | $ | 337 | $ | 87 | $ | 143 | $ | 6,772 | |||||||||
Charge-offs | -834 | -493 | -6 | - | -195 | -268 | -592 | - | -2,388 | ||||||||||||||||||
Recoveries | 31 | 13 | 2 | - | - | 10 | 33 | - | 89 | ||||||||||||||||||
Provisions | -173 | 48 | 45 | -1 | 414 | 264 | 573 | -134 | 1,036 | ||||||||||||||||||
Ending balance | $ | 1,298 | $ | 3,112 | $ | 64 | $ | 1 | $ | 581 | $ | 343 | $ | 101 | $ | 9 | $ | 5,509 | |||||||||
Ending balance: individually evaluated for impairment | $ | 111 | $ | 1,200 | $ | 54 | $ | - | $ | - | $ | 18 | $ | - | $ | - | $ | 1,383 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 1,187 | $ | 1,912 | $ | 10 | $ | 1 | $ | 581 | $ | 325 | $ | 101 | $ | 9 | $ | 4,126 | |||||||||
Loans receivables: | |||||||||||||||||||||||||||
Ending balance | $ | 77,883 | $ | 284,867 | $ | 33,231 | $ | 1,305 | $ | 57,455 | $ | 22,920 | $ | 6,559 | $ | - | $ | 484,220 | |||||||||
Ending balance: individually evaluated for impairment | $ | 415 | $ | 9,084 | $ | 54 | $ | - | $ | 448 | 191 | $ | - | $ | - | $ | 10,192 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 77,468 | $ | 275,783 | $ | 33,177 | $ | 1,305 | $ | 57,007 | $ | 22,729 | $ | 6,559 | $ | - | $ | 474,028 | |||||||||
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-14 | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Commercial and industrial | $ | 40 | $ | 35 | $ | 23 | |||||||||||||||||||||
Commercial real estate | 11,189 | 9,443 | 8,005 | ||||||||||||||||||||||||
Residential mortgage | 903 | 897 | 713 | ||||||||||||||||||||||||
Home equity | 50 | 7 | 5 | ||||||||||||||||||||||||
$ | 12,182 | $ | 10,382 | $ | 8,746 | ||||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-13 | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Commercial and industrial | $ | 40 | $ | 417 | $ | 266 | |||||||||||||||||||||
Commercial real estate | 10,581 | 8,686 | 7,470 | ||||||||||||||||||||||||
Residential mortgage | 423 | 35 | 29 | ||||||||||||||||||||||||
$ | 11,044 | $ | 9,138 | $ | 7,765 | ||||||||||||||||||||||
Schedule of Troubled Debt Restructurings Modified in the Period | The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the year ended December 31, 2014. | ||||||||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-14 | Number of Contracts | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | |||||||||||||||||||||||
Commercial real estate | 2 | $ | 1,057 | $ | 757 | $ | 734 | ||||||||||||||||||||
Residential mortgage | 1 | 540 | 540 | 520 | |||||||||||||||||||||||
Home equity | 1 | 50 | 7 | 5 | |||||||||||||||||||||||
4 | $ | 1,647 | $ | 1,304 | $ | 1,259 | |||||||||||||||||||||
(Dollars in thousands) | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
31-Dec-13 | Number of Contracts | Outstanding Recorded Investment | Outstanding Recorded Investment | Recorded Investment | |||||||||||||||||||||||
Commercial real estate | 3 | $ | 6,091 | $ | 5,588 | $ | 5,417 | ||||||||||||||||||||
Residential mortgage | 2 | 74 | 74 | 28 | |||||||||||||||||||||||
5 | $ | 6,165 | $ | 5,662 | $ | 5,445 | |||||||||||||||||||||
Bank_Premises_and_Equipment_Ta
Bank Premises and Equipment (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Bank Premises and Equipment [Abstract] | ||||||
Premises and Equipment | At December 31, 2014 and 2013, bank premises and equipment are as follows: | |||||
(Dollars in thousands) | 2014 | 2013 | ||||
Land | $ | 2,712 | $ | 2,712 | ||
Buildings | 10,116 | 10,087 | ||||
Furniture, fixtures, and equipment | 7,236 | 9,483 | ||||
Leasehold improvements | 826 | 828 | ||||
Construction in progress | 497 | 13 | ||||
21,387 | 23,123 | |||||
Less accumulated depreciation | -9,162 | -10,654 | ||||
$ | 12,225 | $ | 12,469 | |||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Deposits [Abstract] | ||||||
Time Deposits By Maturity Date | These time deposits at December 31, 2014, mature as follows: | |||||
(Dollars in thousands) | Time Deposits | |||||
Less than $100,000 | $100,000 or more | |||||
Maturing in 2015 | $ | 35,364 | $ | 25,814 | ||
Maturing in 2016 | 22,943 | 11,018 | ||||
Maturing in 2017 | 5,388 | 2,210 | ||||
Maturing in 2018 | 4,528 | 3,077 | ||||
Maturing in 2019 | 6,966 | 6,299 | ||||
Maturing thereafter | 1,178 | - | ||||
$ | 76,367 | $ | 48,418 | |||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Long-term Debt [Abstract] | ||||||
Long-term Debt by Maturity Date | As of December 31, 2014 and 2013, the Bank had long-term debt in the amount of $52,961,000 and $23,145,000, respectively, consisting of: | |||||
(Dollars in thousands) | At December 31, | |||||
2014 | 2013 | |||||
Loans maturing in 2015 with rates ranging from 0.58% to 4.18% | 15,000 | 15,000 | ||||
Loans maturing in 2016 with rates ranging from 0.54% to 0.89% | 25,000 | 5,000 | ||||
Loan maturing in 2019 at a rate of 1.87% | 10,000 | - | ||||
Loan maturing in 2026 at a rate of 4.80% | 2,892 | 3,073 | ||||
Loan maturing in 2027 at a rate of 6.71% | 69 | 72 | ||||
$ | 52,961 | $ | 23,145 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Measurement [Abstract] | ||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | The following table illustrates the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels: | |||||||||||||||
Fair value measurements at December 31, 2014 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
U.S. Treasury and U.S. government agencies | $ | 27,066 | $ | - | $ | 27,066 | $ | - | ||||||||
Mortgage-backed U.S. government agencies | 33,776 | - | 33,776 | - | ||||||||||||
State and political subdivision obligations | 79,171 | - | 79,171 | - | ||||||||||||
Equity securities | 1,621 | 561 | 1,060 | - | ||||||||||||
$ | 141,634 | $ | 561 | $ | 141,073 | $ | - | |||||||||
Fair value measurements at December 31, 2013 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
U.S. Treasury and U.S. government agencies | $ | 12,834 | $ | - | $ | 12,834 | $ | - | ||||||||
Mortgage-backed U.S. government agencies | 39,392 | - | 39,392 | - | ||||||||||||
State and political subdivision obligations | 69,038 | - | 69,038 | - | ||||||||||||
Equity securities | 1,539 | 519 | 1,020 | - | ||||||||||||
$ | 122,803 | $ | 519 | $ | 122,284 | $ | - | |||||||||
Fair Value Measurements, Nonrecurring | The following tables illustrate the assets measured at fair value on a nonrecurring basis segregated by hierarchy fair value levels. | |||||||||||||||
Fair value measurements at December 31, 2014 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans | $ | 6,664 | $ | - | $ | - | $ | 6,664 | ||||||||
Foreclosed Assets Held for Sale | 142 | - | - | 142 | ||||||||||||
Mortgage Servicing Rights | 187 | - | - | 187 | ||||||||||||
Fair value measurements at December 31, 2013 using: | ||||||||||||||||
(Dollars in thousands) | Total carrying value at | Quoted prices in active markets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||
Assets: | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans | $ | 6,535 | $ | - | $ | - | $ | 6,535 | ||||||||
Foreclosed Assets Held for Sale | 465 | - | - | 465 | ||||||||||||
Mortgage Servicing Rights | 223 | - | - | 223 | ||||||||||||
Fair Value Inputs, Assets, Quantitative Information | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Mid Penn has utilized Level 3 inputs to determine the fair value. | |||||||||||||||
(Dollars in thousands) | Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||
31-Dec-14 | Fair Value Estimate | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||
Impaired Loans | $ | 6,664 | Appraisal of collateral (1) | Appraisal adjustments (2) | 10% - 95% | 32% | ||||||||||
Foreclosed Assets Held for Sale | 142 | Appraisal of collateral (1), (3) | Appraisal adjustments (2) | 15% - 40% | 27% | |||||||||||
Mortgage Servicing Rights | 187 | Multiple of annual service fee | Estimated prepayment speed based on rate and term | 210% - 400% | 353% | |||||||||||
(Dollars in thousands) | Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||
31-Dec-13 | Fair Value Estimate | Valuation Technique | Unobservable Input | Range | Weighted Average | |||||||||||
Impaired Loans | $ | 6,535 | Appraisal of collateral (1) | Appraisal adjustments (2) | 10% - 95% | 25% | ||||||||||
Foreclosed Assets Held for Sale | 465 | Appraisal of collateral (1), (3) | Appraisal adjustments (2) | 15% - 40% | 24% | |||||||||||
Mortgage Servicing Rights | 223 | Multiple of annual service fee | Estimated prepayment speed based on rate and term | 240% - 400% | 349% | |||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. | |||||||||||||||
-2 | Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. | |||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. | |||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying value and fair value of financial instruments at December 31, 2014 and 2013. | |||||||||||||||
(Dollars in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 9,882 | $ | 9,882 | $ | 8,623 | $ | 8,623 | ||||||||
Interest-bearing time balances with other financial institutions | 5,772 | 5,772 | 7,513 | 7,513 | ||||||||||||
Available for sale investment securities | 141,634 | 141,634 | 122,803 | 122,803 | ||||||||||||
Net loans and leases | 564,817 | 572,487 | 540,145 | 548,923 | ||||||||||||
Restricted investment in bank stocks | 3,181 | 3,181 | 2,969 | 2,969 | ||||||||||||
Accrued interest receivable | 3,058 | 3,058 | 2,704 | 2,704 | ||||||||||||
Mortgage servicing rights | 187 | 187 | 223 | 223 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Deposits | $ | 637,922 | $ | 639,226 | $ | 608,130 | $ | 610,419 | ||||||||
Short-term borrowings | 578 | 578 | 23,833 | 23,833 | ||||||||||||
Long-term debt | 52,961 | 52,514 | 23,145 | 22,988 | ||||||||||||
Accrued interest payable | 349 | 349 | 393 | 393 | ||||||||||||
Off-balance sheet financial instruments: | ||||||||||||||||
Commitments to extend credit | $ | - | $ | - | $ | - | $ | - | ||||||||
Financial standby letters of credit | - | - | - | - | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of December 31, 2014 and 2013. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs, these instruments are Level 2 Inputs. The following tables exclude financial instruments for which the placement in the fair value hierarchy has been disclosed elsewhere or for which the carrying amount approximates fair value. | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active Markets | Significant | |||||||||||||||
(Dollars in thousands) | for Identical Assets | Significant Other | Unobservable | |||||||||||||
Carrying | or Liabilities | Observable Inputs | Inputs | |||||||||||||
31-Dec-14 | Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Financial instruments - assets | ||||||||||||||||
Net loans and leases | $ | 564,817 | $ | 572,487 | $ | - | $ | - | $ | 572,487 | ||||||
Financial instruments - liabilities | ||||||||||||||||
Deposits | $ | 637,922 | $ | 639,226 | $ | - | $ | 639,226 | $ | - | ||||||
Long-term debt | 52,961 | 52,514 | - | 52,514 | - | |||||||||||
Fair Value Measurements | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active Markets | Significant | |||||||||||||||
(Dollars in thousands) | for Identical Assets | Significant Other | Unobservable | |||||||||||||
Carrying | or Liabilities | Observable Inputs | Inputs | |||||||||||||
31-Dec-13 | Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Financial instruments - assets | ||||||||||||||||
Net loans and leases | $ | 540,145 | $ | 548,923 | $ | - | $ | - | $ | 548,923 | ||||||
Financial instruments - liabilities | ||||||||||||||||
Deposits | $ | 608,130 | $ | 610,419 | $ | - | $ | 610,419 | $ | - | ||||||
Long-term debt | 23,145 | 22,988 | - | 22,988 | - | |||||||||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Defined Benefit Postretirement Health And Life Coverage [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Schedule of Net Funded Status | The following tables provide a reconciliation of the changes in the Plan’s health and life insurance benefit obligations and fair value of Plan assets for the years ended December 31, 2014 and 2013, and a statement of the funded status at December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | December 31, | ||||||||
Change in benefit obligations: | 2014 | 2013 | |||||||
Benefit obligations, January 1 | $ | 836 | $ | 894 | |||||
Service cost | 13 | 17 | |||||||
Interest cost | 38 | 34 | |||||||
Actuarial gain | -26 | -15 | |||||||
Change in assumptions | 40 | -55 | |||||||
Benefit payments | -40 | -39 | |||||||
Benefit obligations, December 31 | $ | 861 | $ | 836 | |||||
Change in fair value of plan assets: | |||||||||
Fair value of plan assets, January 1 | $ | - | $ | - | |||||
Employer contributions | 40 | 39 | |||||||
Benefit payments | -40 | -39 | |||||||
Fair value of plan assets, December 31 | $ | - | $ | - | |||||
Funded status at year end | $ | -861 | $ | -836 | |||||
Schedule of Amounts Recognized in Balance Sheet | The amount recognized in the consolidated balance sheet at December 31, 2014 and 2013, is as follows: | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Accrued benefit liability | $ | 861 | $ | 836 | |||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts recognized in accumulated other comprehensive (loss) consist of: | ||||||||
(Dollars in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Net gain, pretax | $ | -19 | $ | -33 | |||||
Net prior service cost, pretax | - | -1 | |||||||
Schedule of Net Periodic Benefit Costs | The components of net periodic postretirement benefit cost for 2014, 2013 and 2012 are as follows: | ||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Service cost | $ | 13 | $ | 17 | $ | 21 | |||
Interest cost | 38 | 34 | 37 | ||||||
Amortization of prior service cost | -1 | -1 | -1 | ||||||
Net periodic postretirement benefit cost | $ | 50 | $ | 50 | $ | 57 | |||
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2014 and 2013 are as follows: | ||||||||
Weighted-average assumptions: | 2014 | 2013 | |||||||
Discount rate | 4.00% | 4.75% | |||||||
Rate of compensation increase | 3.00% | 3.75% | |||||||
Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||
Weighted-average assumptions: | 2014 | 2013 | 2012 | ||||||
Discount rate | 4.75% | 4.00% | 4.50% | ||||||
Rate of compensation increase | 3.75% | 3.00% | 3.50% | ||||||
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31, 2014, 2013 and 2012 are as follows: | ||||||||
2014 | 2013 | 2012 | |||||||
Health care cost trend rate assumed for next year | 6.50% | 7.00% | 7.50% | ||||||
Rate to which the cost trend rate is assumed to decline (the | |||||||||
ultimate trend rate) | 5.50% | 5.50% | 5.50% | ||||||
Year that the rate reaches the ultimate trend rate | 2016 | 2016 | 2016 | ||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care Plans. At December 31, 2014, a one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||
(Dollars in thousands) | One-Percentage Point | ||||||||
Increase | Decrease | ||||||||
Effect on total of service and interest cost | $ | 4 | $ | 3 | |||||
Effect on accumulated postretirement benefit obligation | 61 | 54 | |||||||
Schedule of Expected Benefit Payments | Mid Penn expects to contribute $57,000 to its life and health benefit Plans in 2015. The following table shows the estimated benefit payments for future periods. | ||||||||
(Dollars in thousands) | |||||||||
1/1/2015 to 12/31/2015 | $ | 57 | |||||||
1/1/2016 to 12/31/2016 | 67 | ||||||||
1/1/2017 to 12/31/2017 | 62 | ||||||||
1/1/2018 to 12/31/2018 | 67 | ||||||||
1/1/2019 to 12/31/2019 | 69 | ||||||||
1/1/2020 to 12/31/2024 | 328 | ||||||||
Director's Retirement Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Schedule of Net Funded Status | The following tables provide a reconciliation of the changes in the directors’ defined benefit Plan’s benefit obligations and fair value of Plan assets for the years ended December 31, 2014 and 2013 and a statement of the status at December 31, 2014 and 2013. This Plan is unfunded. | ||||||||
(Dollars in thousands) | December 31, | ||||||||
Change in benefit obligations: | 2014 | 2013 | |||||||
Benefit obligations, January 1 | $ | 1,130 | $ | 1,139 | |||||
Service cost | 33 | 32 | |||||||
Interest cost | 51 | 44 | |||||||
Actuarial (gain) loss | -8 | 4 | |||||||
Change in assumptions | 69 | -5 | |||||||
Benefit payments | -89 | -84 | |||||||
Benefit obligations, December 31 | $ | 1,186 | $ | 1,130 | |||||
Change in fair value of plan assets: | |||||||||
Fair value of plan assets, January 1 | $ | - | $ | - | |||||
Employer contributions | 89 | 84 | |||||||
Benefit payments | -89 | -84 | |||||||
Fair value of plan assets, December 31 | $ | - | $ | - | |||||
Funded status at year end | $ | -1,186 | $ | -1,130 | |||||
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheet at December 31, 2014 and 2013 are as follows: | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Accrued benefit liability | $ | 1,186 | $ | 1,130 | |||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income consist of: | ||||||||
(Dollars in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
Net prior service cost, pretax | $ | 86 | $ | 108 | |||||
Net loss, pretax | 101 | 40 | |||||||
Schedule of Net Periodic Benefit Costs | The components of net periodic retirement cost for 2014, 2013 and 2012 are as follows: | ||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Service cost | $ | 33 | $ | 32 | $ | 22 | |||
Interest cost | 51 | 44 | 49 | ||||||
Amortization of prior-service cost | 22 | 22 | 22 | ||||||
Net periodic retirement cost | $ | 106 | $ | 98 | $ | 93 | |||
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2014 and 2013 are as follows: | ||||||||
Weighted-average assumptions: | 2014 | 2013 | |||||||
Discount rate | 4.00% | 4.75% | |||||||
Change in consumer price index | 2.00% | 2.75% | |||||||
Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||
Weighted-average assumptions: | 2014 | 2013 | 2012 | ||||||
Discount rate | 4.75% | 4.00% | 4.50% | ||||||
Change in consumer price index | 2.75% | 2.00% | 2.50% | ||||||
Schedule of Expected Benefit Payments | Mid Penn expects to contribute $92,000 to its retirement Plan in 2015. The following table shows the estimated benefit payments for future periods. | ||||||||
(Dollars in thousands) | |||||||||
1/1/2015 to 12/31/2015 | $ | 92 | |||||||
1/1/2016 to 12/31/2016 | 95 | ||||||||
1/1/2017 to 12/31/2017 | 97 | ||||||||
1/1/2018 to 12/31/2018 | 100 | ||||||||
1/1/2019 to 12/31/2019 | 98 | ||||||||
1/1/2020 to 12/31/2024 | 514 | ||||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Federal Income Taxes [Abstract] | |||||||||
Net Deferred Tax Asset | The following temporary differences gave rise to the net deferred tax asset at December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||
Deferred tax assets: | |||||||||
Allowance for loan and lease losses | $ | 2,283 | $ | 2,148 | |||||
Loan fees | 68 | 167 | |||||||
Benefit plans | 985 | 976 | |||||||
Nonaccrual interest | 955 | 895 | |||||||
Unrealized loss on securities | - | 385 | |||||||
Other | 111 | 127 | |||||||
4,402 | 4,698 | ||||||||
Deferred tax liabilities: | |||||||||
Depreciation | -801 | -945 | |||||||
Bond accretion | -106 | -92 | |||||||
Goodwill and intangibles | -264 | -254 | |||||||
Unrealized gain on securities | -837 | - | |||||||
Prepaid expenses | -266 | -170 | |||||||
Other | -3 | -2 | |||||||
-2,277 | -1,463 | ||||||||
Deferred tax asset, net | $ | 2,125 | $ | 3,235 | |||||
Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes consists of the following: | ||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Current | $ | 1,574 | $ | 1,009 | $ | 794 | |||
Deferred | -112 | 192 | 450 | ||||||
Total provision for income taxes | $ | 1,462 | $ | 1,201 | $ | 1,244 | |||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax at the statutory rate to Mid Penn's effective rate is as follows: | ||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||
Provision at the expected statutory rate | $ | 2,435 | $ | 2,088 | $ | 2,106 | |||
Effect of tax-exempt income | -1,086 | -873 | -827 | ||||||
Effect of investment in life insurance | -68 | -78 | -84 | ||||||
Nondeductible interest | 42 | 40 | 49 | ||||||
Nondeductible merger and acquisition expense | 163 | - | - | ||||||
Other items | -24 | 24 | - | ||||||
Provision for income taxes | $ | 1,462 | $ | 1,201 | $ | 1,244 | |||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||
Regulatory Capital Levels And Related Ratios | Mid Penn maintained the following regulatory capital levels, leverage ratios, and risk-based capital ratios as of December 31, 2014, and December 31, 2013, as follows: | ||||||||||||||
(Dollars in thousands) | Capital Adequacy | ||||||||||||||
To Be Well-Capitalized | |||||||||||||||
Under Prompt | |||||||||||||||
Minimum Capital | Corrective | ||||||||||||||
Actual | Required | Action Provisions | |||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||
Corporation | |||||||||||||||
As of December 31, 2014: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 56,560 | 7.4% | $ | 30,429 | 4.0% | $ | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 56,560 | 10.1% | 22,295 | 4.0% | N/A | N/A | |||||||||
Total Capital (to Risk Weighted Assets) | 63,336 | 11.4% | 44,590 | 8.0% | N/A | N/A | |||||||||
Bank | |||||||||||||||
As of December 31, 2014: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 56,647 | 7.5% | $ | 30,360 | 4.0% | $ | 37,950 | 5.0% | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 56,647 | 10.2% | 22,295 | 4.0% | 33,442 | 6.0% | |||||||||
Total Capital (to Risk Weighted Assets) | 63,423 | 11.4% | 44,590 | 8.0% | 55,737 | 10.0% | |||||||||
Corporation | |||||||||||||||
As of December 31, 2013: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 52,693 | 7.5% | $ | 28,031 | 4.0% | $ | N/A | N/A | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 52,693 | 9.9% | 21,234 | 4.0% | N/A | N/A | |||||||||
Total Capital (to Risk Weighted Assets) | 59,100 | 11.1% | 42,467 | 8.0% | N/A | N/A | |||||||||
Bank | |||||||||||||||
As of December 31, 2013: | |||||||||||||||
Tier 1 Capital (to Average Assets) | $ | 52,598 | 7.5% | $ | 28,041 | 4.0% | $ | 35,051 | 5.0% | ||||||
Tier 1 Capital (to Risk Weighted Assets) | 52,598 | 9.9% | 21,234 | 4.0% | 31,850 | 6.0% | |||||||||
Total Capital (to Risk Weighted Assets) | 59,005 | 11.1% | 42,467 | 8.0% | 53,084 | 10.0% | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingencies [Abstract] | ||||||
Minimum Future Rental Payments | Minimum future rental payments under these operating leases as of December 31, 2014 are as follows: | |||||
(Dollars in thousands) | ||||||
Lease Obligation | Obligation to Related Parties | |||||
2015 | $ | 411 | $ | 114 | ||
2016 | 439 | 128 | ||||
2017 | 441 | 125 | ||||
2018 | 400 | 79 | ||||
2019 | 393 | 66 | ||||
thereafter | 874 | - | ||||
$ | 2,958 | $ | 512 | |||
Stock_Issued_Under_Private_Pla1
Stock Issued Under Private Placement Offering (Tables) (Preferred Class B [Member]) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Preferred Class B [Member] | |||||||
Proceeds from Private Placement | The following table summarizes the Series B Preferred Stock shares sold and the gross proceeds received through the private placement offering as of December 31, 2014: | ||||||
(Dollars in thousands) | |||||||
Period | Shares | Gross Proceeds | |||||
September 26, 2012 - September 30, 2012 | 345 | $ | 345,000 | ||||
October 1, 2012 - December 31, 2012 | 4,535 | 4,535,000 | |||||
January 1, 2013 - December 31, 2013 | 120 | 120,000 | |||||
January 1, 2014 - December 31, 2014 | - | - | |||||
Total | 5,000 | $ | 5,000,000 | ||||
Parent_Company_Statements_Tabl
Parent Company Statements (Tables) (Parent Company [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Parent Company [Member] | |||||||||
Condensed Balance Sheets | |||||||||
CONDENSED BALANCE SHEETS | |||||||||
(Dollars in thousands) | December 31, | ||||||||
2014 | 2013 | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 554 | $ | 437 | |||||
Investment in subsidiaries | 59,217 | 52,821 | |||||||
Other assets | - | 7 | |||||||
Total assets | $ | 59,771 | $ | 53,265 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Other liabilities | $ | 641 | $ | 349 | |||||
Shareholders' equity | 59,130 | 52,916 | |||||||
Total liabilities and shareholders' equity | $ | 59,771 | $ | 53,265 | |||||
Condensed Statements of Operations | |||||||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||
(Dollars in thousands) | For Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | |||||||
Income | |||||||||
Dividends from subsidiaries | $ | 2,325 | $ | 1,237 | $ | 6,628 | |||
Other income | - | - | 4 | ||||||
Total Income | 2,325 | 1,237 | 6,632 | ||||||
Expense | |||||||||
Other expenses | -716 | -184 | -217 | ||||||
Total Expense | -716 | -184 | -217 | ||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiaries | 1,609 | 1,053 | 6,415 | ||||||
Equity in undistributed earnings (loss) of subsidiaries | 4,012 | 3,823 | -1,538 | ||||||
Income before income tax | 5,621 | 4,876 | 4,877 | ||||||
Income tax benefit | 80 | 63 | 74 | ||||||
Net income | 5,701 | 4,939 | 4,951 | ||||||
Series A preferred stock dividends & discount accretion | - | 14 | 514 | ||||||
Series B preferred stock dividends | 350 | 309 | - | ||||||
Net income available to common shareholders | $ | 5,351 | $ | 4,616 | $ | 4,437 | |||
Comprehensive income | $ | 8,086 | $ | 1,774 | $ | 5,328 | |||
Condensed Statement of Cash Flows | |||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||
(Dollars in thousands) | For Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net income | $ | 5,701 | $ | 4,939 | $ | 4,951 | |||
Equity in undistributed (earnings) loss of subsidiaries | -4,012 | -3,823 | 1,538 | ||||||
Decrease in other assets | 8 | 3 | 40 | ||||||
Increase in other liabilities | 292 | 334 | 15 | ||||||
Net cash provided by operating activities | 1,989 | 1,453 | 6,544 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Dividends paid | -1,925 | -1,181 | -1,432 | ||||||
Series A preferred stock redemption | - | - | -10,000 | ||||||
Series B preferred stock issuance, net of costs | - | 120 | 4,830 | ||||||
Employee Stock Purchase Plan | 53 | 55 | 56 | ||||||
Warrant repurchase | - | -58 | - | ||||||
Net cash used in financing activities | -1,872 | -1,064 | -6,546 | ||||||
Net increase (decrease) in cash and cash equivalents | 117 | 389 | -2 | ||||||
Cash and cash equivalents, beginning of year | 437 | 48 | 50 | ||||||
Cash and cash equivalents, end of year | $ | 554 | $ | 437 | $ | 48 | |||
Summary_of_Quarterly_Consolida1
Summary of Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Quarterly Consolidated Financial Data [Abstract] | ||||||||||||
Quarterly Condensed Financials | The following table presents summarized quarterly financial data for 2014 and 2013. | |||||||||||
(Dollars in thousands, except per share data) | 2014 Quarter Ended | |||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Interest Income | $ | 7,380 | $ | 7,870 | $ | 7,633 | $ | 7,744 | ||||
Interest Expense | 1,108 | 1,119 | 1,089 | 1,111 | ||||||||
Net Interest Income | 6,272 | 6,751 | 6,544 | 6,633 | ||||||||
Provision for Loan and Lease Losses | 547 | 275 | 395 | 400 | ||||||||
Net Interest Income After Provision for Loan Losses | 5,725 | 6,476 | 6,149 | 6,233 | ||||||||
Noninterest Income | 894 | 774 | 741 | 839 | ||||||||
Noninterest Expense | 4,738 | 5,068 | 4,929 | 5,933 | ||||||||
Income Before Provision for Income Taxes | 1,881 | 2,182 | 1,961 | 1,139 | ||||||||
Provision for Income Taxes | 370 | 475 | 366 | 251 | ||||||||
Net Income | 1,511 | 1,707 | 1,595 | 888 | ||||||||
Preferred Stock Dividends and Discount Accretion | 87 | 88 | 88 | 87 | ||||||||
Net Income Available to Common Shareholders | $ | 1,424 | $ | 1,619 | $ | 1,507 | $ | 801 | ||||
Per Share Data: | ||||||||||||
Basic Earnings Per Share | $ | 0.41 | $ | 0.46 | $ | 0.43 | $ | 0.23 | ||||
Diluted Earnings Per Share | 0.41 | 0.46 | 0.43 | 0.23 | ||||||||
Cash Dividends | 0.05 | 0.10 | 0.10 | 0.20 | ||||||||
(Dollars in thousands, except per share data) | 2013 Quarter Ended | |||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||
Interest Income | $ | 6,902 | $ | 7,153 | $ | 7,633 | $ | 7,295 | ||||
Interest Expense | 1,443 | 1,306 | 1,192 | 1,116 | ||||||||
Net Interest Income | 5,459 | 5,847 | 6,441 | 6,179 | ||||||||
Provision for Loan and Lease Losses | 495 | 415 | 575 | 200 | ||||||||
Net Interest Income After Provision for Loan Losses | 4,964 | 5,432 | 5,866 | 5,979 | ||||||||
Noninterest Income | 850 | 838 | 808 | 794 | ||||||||
Noninterest Expense | 5,037 | 4,612 | 4,746 | 4,996 | ||||||||
Income Before Provision for Income Taxes | 777 | 1,658 | 1,928 | 1,777 | ||||||||
Provision for Income Taxes | 92 | 292 | 440 | 377 | ||||||||
Net Income | 685 | 1,366 | 1,488 | 1,400 | ||||||||
Preferred Stock Dividends and Discount Accretion | 61 | 87 | 88 | 87 | ||||||||
Net Income Available to Common Shareholders | $ | 624 | $ | 1,279 | $ | 1,400 | $ | 1,313 | ||||
Per Share Data: | ||||||||||||
Basic Earnings Per Share | $ | 0.18 | $ | 0.37 | $ | 0.40 | $ | 0.37 | ||||
Diluted Earnings Per Share | 0.18 | 0.37 | 0.40 | 0.37 | ||||||||
Cash Dividends | - | 0.05 | 0.05 | 0.15 | ||||||||
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Nature_of_Business_Narrative_D
Nature of Business (Narrative) (Details) | Dec. 31, 2014 |
store | |
Nature of Business [Abstract] | |
Number of offices | 19 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Gain (Loss) on Sale of Securities, Net | $168,000 | $220,000 | $267,000 |
Held-to-maturity Securities | 0 | 0 | |
Other Interest and Dividend Income | 155,000 | 46,000 | 22,000 |
Mortgage Servicing Rights | 187,000 | 223,000 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 408,000 | 452,000 | |
Low Income Housing Tax Credit | 46,000 | 46,000 | 46,000 |
Core Deposit Intangible, Amortization Period | 8 years | ||
Goodwill, Impairment Loss | 0 | 0 | |
Marketing and Advertising Expense | 308,000 | 253,000 | 378,000 |
Class of warrant or right, outstanding | 0 | 0 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 73,099 | ||
Share price | $20.52 | ||
Commercial and industrial [Member] | |||
Loan Terms | 1 year | ||
Loan To Value Ratio | 80.00% | ||
Lease financing [Member] | |||
Portfolio Percentage | 0.20% | ||
Maximum [Member] | Residential Mortgage Portfolio [Member] | |||
Loan Terms | 30 years | ||
Loan To Value Ratio | 100.00% | ||
Loan To Value Ratio, Exposure After Private Mortgage Insurance | 85.00% | ||
Maximum [Member] | Home equity lines of credit [Member] | |||
Loan Terms | 20 years | ||
Loan To Value Ratio | 85.00% | ||
Maximum [Member] | Home Equity Lines Of Credit [Member] | |||
Loan Terms | 5 years | ||
Parent Company [Member] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 59,217,000 | 52,821,000 | |
Building Assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Building Assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Furniture, Fixtures, and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture, Fixtures, and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Land Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Land Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Reserve for Off-balance Sheet Activities [Member] | |||
Valuation Allowances and Reserves, Balance | 60,000 | 90,000 | |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Other Interest and Dividend Income | $123,000 | $20,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Basic Earnings (Loss) Per Common Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 19, 2008 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income | $888 | $1,595 | $1,707 | $1,511 | $1,400 | $1,488 | $1,366 | $685 | $5,701 | $4,939 | $4,951 | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | 801 | 1,507 | 1,619 | 1,424 | 1,313 | 1,400 | 1,279 | 624 | 5,351 | 4,616 | 4,437 | |
Weighted average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | |||||||||
Basic Earnings Per Common Share | $0.23 | $0.43 | $0.46 | $0.41 | $0.37 | $0.40 | $0.37 | $0.18 | $1.53 | $1.32 | $1.27 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $20.52 | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Dividends on preferred stock | 500 | |||||||||||
Less: Accretion on preferred stock discounts | 14 | 14 | ||||||||||
Series B Preferred Stock [Member] | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Dividends on preferred stock | $350 | $309 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Diluted Earnings (Loss) Per Common Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income available to common shareholders | $801 | $1,507 | $1,619 | $1,424 | $1,313 | $1,400 | $1,279 | $624 | $5,351 | $4,616 | $4,437 |
Weighted average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||||
Dilutive effect of potential common stock arising from stock warrants: Exercise of outstanding stock warrants issued to U.S. Treasury | |||||||||||
Adjusted weighted-average common shares outstanding | 3,495,705 | 3,491,653 | 3,486,543 | ||||||||
Diluted Earnings Per Common Share | $0.23 | $0.43 | $0.46 | $0.41 | $0.37 | $0.40 | $0.37 | $0.18 | $1.53 | $1.32 | $1.27 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Accumulated Other Comprehensive Income, Net of Taxes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive (Loss) Income [Abstract] | ||
Unrealized (Loss) Gains on Securities | $1,626 | ($745) |
Defined Benefit Plan Liability | -113 | -127 |
Accumulated Other Comprehensive Income (Loss) | $1,513 | ($872) |
Investment_Securities_Narrativ
Investment Securities (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
security | security | |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $134,740 | $114,600 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 64 | 120 |
Available-for-sale, Securities in Unrealized Loss Positions, Depreciation Percentage | 1.40% | 4.59% |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 423 | 613 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 547 | 2,945 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 62 | 119 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 23 | 31 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 23 | 31 |
State and municipal [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 37 | 90 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 285 | 326 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 318 | 2,476 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 20 | 29 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 115 | 256 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $177 | $438 |
Investment_Securities_Unrealiz
Investment Securities (Unrealized Gain (Loss) on Investments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | $139,172 | $123,935 |
Unrealized Gains | 3,009 | 1,813 |
Unrealized Losses | 547 | 2,945 |
Available for sale Securities, Fair Value | 141,634 | 122,803 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 26,343 | 12,134 |
Unrealized Gains | 752 | 700 |
Unrealized Losses | 29 | |
Available for sale Securities, Fair Value | 27,066 | 12,834 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 33,763 | 39,481 |
Unrealized Gains | 190 | 349 |
Unrealized Losses | 177 | 438 |
Available for sale Securities, Fair Value | 33,776 | 39,392 |
State and municipal [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 77,482 | 70,770 |
Unrealized Gains | 2,007 | 744 |
Unrealized Losses | 318 | 2,476 |
Available for sale Securities, Fair Value | 79,171 | 69,038 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,584 | 1,550 |
Unrealized Gains | 60 | 20 |
Unrealized Losses | 23 | 31 |
Available for sale Securities, Fair Value | $1,621 | $1,539 |
Investment_Securities_Schedule
Investment Securities (Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | security | security |
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 64 | 120 |
Less than 12 Months: Fair Value | $20,014 | $49,410 |
Less than 12 Months: Unrealized Losses | 124 | 2,332 |
12 Months or More: Fair Value | 18,946 | 14,704 |
12 Months or More: Unrealized Losses | 423 | 613 |
Total: Fair Value | 38,960 | 64,114 |
Total: Unrealized Losses | 547 | 2,945 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 5 | |
Less than 12 Months: Fair Value | 6,059 | |
Less than 12 Months: Unrealized Losses | 29 | |
Total: Fair Value | 6,059 | |
Total: Unrealized Losses | 29 | |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 20 | 29 |
Less than 12 Months: Fair Value | 9,511 | 9,799 |
Less than 12 Months: Unrealized Losses | 62 | 182 |
12 Months or More: Fair Value | 4,416 | 9,866 |
12 Months or More: Unrealized Losses | 115 | 256 |
Total: Fair Value | 13,927 | 19,665 |
Total: Unrealized Losses | 177 | 438 |
State and municipal [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 37 | 90 |
Less than 12 Months: Fair Value | 4,444 | 39,611 |
Less than 12 Months: Unrealized Losses | 33 | 2,150 |
12 Months or More: Fair Value | 13,947 | 4,288 |
12 Months or More: Unrealized Losses | 285 | 326 |
Total: Fair Value | 18,391 | 43,899 |
Total: Unrealized Losses | 318 | 2,476 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | 1 |
12 Months or More: Fair Value | 583 | 550 |
12 Months or More: Unrealized Losses | 23 | 31 |
Total: Fair Value | 583 | 550 |
Total: Unrealized Losses | $23 | $31 |
Investment_Securities_Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, Due in 1 year or less | $2,164 | |
Available for sale Securities, Amortized Cost, Due after 1 year but within 5 years | 15,386 | |
Available for sale Securities, Amortized Cost, Due after 5 years but within 10 years | 46,544 | |
Available for sale Securities, Amortized Cost, Due after 10 years | 39,731 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 103,825 | |
Equity Securities, Amortized Cost | 1,584 | |
Available-for-sale Securities, Amortized Cost Basis | 139,172 | 123,935 |
Available for sale Securities, Fair Value, Due in 1 year or less | 2,201 | |
Available for sale Securities, Fair Value, Due after 1 year but within 5 years | 15,891 | |
Available for sale Securities, Fair Value, Due after 5 years but within 10 years | 47,496 | |
Available for sale Securities, Fair Value, Due after 10 years | 40,649 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 106,237 | |
Equity Securities, Fair Value | 1,621 | |
Available for sale Securities, Fair Value | 141,634 | 122,803 |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale Securities without a Single Maturity Date, Amortized Cost | 33,763 | |
Available for sale securities without a Single Maturity Date, Fair Value | $33,776 |
Loans_and_Allowance_for_Loan_a2
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | |
contract | loan | contract | contract | contract | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans to certain executive officers, directors, and their related interests | $6,559,000 | $8,402,000 | ||||
Loans to certain executive officers, directors, and their related interests, new loans and advances | 3,340,000 | |||||
Loans to certain executive officers, directors, and their related interests, Repayments | 5,181,000 | |||||
Financing Receivable, Modifications, Recorded Investment | 8,746,000 | 7,765,000 | ||||
Financing Receivable, Modifications, Number of Contracts | 0 | |||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 0 | |||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | |||||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 798,000 | 861,000 | 774,000 | |||
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | |||||
Loans and leases receivable, related parties, period increase (decrease) | 0 | |||||
Under Forbearance Agreement [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | 4 | 4 | 1 | 10 | 1 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 87,000 | |||||
Home equity lines of credit [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 5,000 | |||||
Impaired Financing Receivable, Interest Income, Cash Basis Method | 4,000 | |||||
Six Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 2,035,000 | |||||
Residential Mortgage Portfolio [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 713,000 | 29,000 | ||||
Commercial and industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loan Terms | 1 year | |||||
Loan To Value Ratio | 80.00% | |||||
Financing Receivable, Modifications, Recorded Investment | 23,000 | 266,000 | ||||
Impaired Financing Receivable, Interest Income, Cash Basis Method | 1,000 | |||||
Commercial real estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 8,005,000 | 7,470,000 | ||||
Impaired Financing Receivable, Interest Income, Cash Basis Method | 346,000 | 187,000 | 21,000 | |||
Lease financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Portfolio Percentage | 0.20% | |||||
Nonaccruing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,932,000 | |||||
Financing Receivable, Modifications, Number of Contracts | 12 | |||||
Nonaccruing [Member] | Two Large Relationships [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 4,819,000 | |||||
Nonaccruing [Member] | Fourteen Loans Nine Related Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 6,711,000 | |||||
Financing Receivable, Modifications, Number of Contracts | 14 | |||||
Nonaccruing [Member] | Two of Nine Relationships Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 4,680,000 | |||||
Accruing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 833,000 | |||||
Financing Receivable, Modifications, Number of Contracts | 5 | |||||
Accruing [Member] | Six Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | 6 | |||||
Accruing [Member] | Three Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | 3 | |||||
Accruing [Member] | Three Remaining Two Relationship Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | 3 | |||||
Accruing [Member] | Residential Mortgage Portfolio [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 235,000 | |||||
Financing Receivable, Modifications, Number of Contracts | 4 | |||||
Accruing [Member] | Residential Mortgage Portfolio [Member] | Three Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 71,000 | |||||
Accruing [Member] | Commercial and industrial [Member] | Three Remaining Two Relationship Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | 1,964,000 | |||||
Accruing [Member] | Commercial real estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $598,000 | |||||
Financing Receivable, Modifications, Number of Contracts | 1 | |||||
Maximum [Member] | Residential Mortgage Portfolio [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loan Terms | 30 years | |||||
Loan To Value Ratio | 100.00% | |||||
Loan To Value Ratio, Exposure After Private Mortgage Insurance | 85.00% |
Loans_and_Allowance_for_Loan_a3
Loans and Allowance for Loan and Lease Losses (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $571,533 | $546,462 | $484,220 |
Home equity lines of credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 28,506 | 26,321 | 22,920 |
Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 66,442 | 69,830 | 57,455 |
Commercial and industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 119,010 | 105,844 | 77,883 |
Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 297,357 | 292,774 | 284,867 |
Commercial real estate construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 56,076 | 45,647 | 33,231 |
Lease financing [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,121 | 1,356 | 1,305 |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,021 | 4,690 | 6,559 |
Pass [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 551,026 | 527,376 | |
Pass [Member] | Home equity lines of credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 28,167 | 26,056 | |
Pass [Member] | Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 64,900 | 69,447 | |
Pass [Member] | Commercial and industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 117,166 | 103,330 | |
Pass [Member] | Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 280,817 | 277,232 | |
Pass [Member] | Commercial real estate construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 55,834 | 45,265 | |
Pass [Member] | Lease financing [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,121 | 1,356 | |
Pass [Member] | Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,021 | 4,690 | |
Special Mention [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 6,145 | 4,214 | |
Special Mention [Member] | Home equity lines of credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 138 | 96 | |
Special Mention [Member] | Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 252 | 27 | |
Special Mention [Member] | Commercial and industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 654 | 938 | |
Special Mention [Member] | Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 4,859 | 2,771 | |
Special Mention [Member] | Commercial real estate construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 242 | 382 | |
Substandard [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 14,362 | 14,872 | |
Substandard [Member] | Home equity lines of credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 201 | 169 | |
Substandard [Member] | Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,290 | 356 | |
Substandard [Member] | Commercial and industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,190 | 1,576 | |
Substandard [Member] | Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 11,681 | 12,771 | |
Doubtful [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Home equity lines of credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Commercial and industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Commercial real estate construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Lease financing [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount |
Loans_and_Allowance_for_Loan_a4
Loans and Allowance for Loan and Lease Losses (Impaired Loans by Loan Portfolio Class) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Residential Mortgage Portfolio [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | $1,146 | $266 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,286 | 282 |
Impaired Loans with Allowance: Recorded Investment | 25 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 25 | |
Impaired Loans with Allowance: Related Allowance | 25 | |
Impaired Loans: Total Recorded Investment | 1,146 | 291 |
Impaired Loans: Total Unpaid Principal Balance | 1,286 | 307 |
Commercial and industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 395 | 185 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 430 | 671 |
Impaired Loans with Allowance: Recorded Investment | 223 | 115 |
Impaired Loans with Allowance: Unpaid Principal Balance | 231 | 243 |
Impaired Loans with Allowance: Related Allowance | 137 | 42 |
Impaired Loans: Total Recorded Investment | 618 | 300 |
Impaired Loans: Total Unpaid Principal Balance | 661 | 914 |
Commercial real estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,971 | 2,596 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 4,481 | 5,898 |
Impaired Loans with Allowance: Recorded Investment | 6,954 | 7,649 |
Impaired Loans with Allowance: Unpaid Principal Balance | 7,255 | 7,972 |
Impaired Loans with Allowance: Related Allowance | 1,382 | 1,860 |
Impaired Loans: Total Recorded Investment | 8,925 | 10,245 |
Impaired Loans: Total Unpaid Principal Balance | 11,736 | 13,870 |
Home equity lines of credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 29 | 27 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 88 | 40 |
Impaired Loans with Allowance: Recorded Investment | 211 | 49 |
Impaired Loans with Allowance: Unpaid Principal Balance | 213 | 49 |
Impaired Loans with Allowance: Related Allowance | 115 | 6 |
Impaired Loans: Total Recorded Investment | 240 | 76 |
Impaired Loans: Total Unpaid Principal Balance | $301 | $89 |
Loans_and_Allowance_for_Loan_a5
Loans and Allowance for Loan and Lease Losses (Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Home equity lines of credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | $29 | $31 | $44 |
Impaired Loans with No Allowance: Interest Income Recognized | 4 | ||
Impaired Loans with Allowance: Average Recorded Investment | 76 | 54 | 66 |
Impaired Financing Receivable, Average Recorded Investment, Total | 105 | 85 | 110 |
Impaired Financing Receivable, Interest Income Recognized, Total | 4 | ||
Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 541 | 299 | 465 |
Impaired Loans with Allowance: Average Recorded Investment | 13 | ||
Impaired Financing Receivable, Average Recorded Investment, Total | 541 | 312 | 465 |
Commercial and industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 72 | 188 | 313 |
Impaired Loans with No Allowance: Interest Income Recognized | 1 | ||
Impaired Loans with Allowance: Average Recorded Investment | 93 | 51 | 239 |
Impaired Financing Receivable, Average Recorded Investment, Total | 165 | 239 | 552 |
Impaired Financing Receivable, Interest Income Recognized, Total | 1 | ||
Commercial real estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 1,966 | 2,506 | 5,834 |
Impaired Loans with No Allowance: Interest Income Recognized | 346 | 187 | 21 |
Impaired Loans with Allowance: Average Recorded Investment | 6,823 | 4,349 | 2,175 |
Impaired Financing Receivable, Average Recorded Investment, Total | 8,789 | 6,855 | 8,009 |
Impaired Financing Receivable, Interest Income Recognized, Total | 346 | 187 | 21 |
Commercial real estate construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | 16 | ||
Impaired Financing Receivable, Average Recorded Investment, Total | $16 |
Loans_and_Allowance_for_Loan_a6
Loans and Allowance for Loan and Lease Losses (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $8,907 | $10,877 |
Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 239 | 126 |
Residential Mortgage Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,152 | 803 |
Commercial and industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 267 | 300 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $7,249 | $9,648 |
Loans_and_Allowance_for_Loan_a7
Loans and Allowance for Loan and Lease Losses (Loan Portfolio Summarized By The Past Due Status) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due | $1,002 | $2,748 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 632 | 670 | |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 7,946 | 9,425 | |
Total Past Due | 9,580 | 12,843 | |
Financing Receivable, Recorded Investment, Current | 561,953 | 533,619 | |
Total Loans | 571,533 | 546,462 | 484,220 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Home equity lines of credit [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due | 93 | 9 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 63 | 50 | |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 157 | 99 | |
Total Past Due | 313 | 158 | |
Financing Receivable, Recorded Investment, Current | 28,193 | 26,163 | |
Total Loans | 28,506 | 26,321 | 22,920 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Residential Mortgage Portfolio [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due | 328 | 952 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 82 | ||
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 1,117 | 785 | |
Total Past Due | 1,527 | 1,737 | |
Financing Receivable, Recorded Investment, Current | 64,915 | 68,093 | |
Total Loans | 66,442 | 69,830 | 57,455 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial and industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due | 172 | 291 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 290 | 38 | |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 87 | 300 | |
Total Past Due | 549 | 629 | |
Financing Receivable, Recorded Investment, Current | 118,461 | 105,215 | |
Total Loans | 119,010 | 105,844 | 77,883 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due | 403 | 1,472 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 197 | 570 | |
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due | 6,585 | 8,241 | |
Total Past Due | 7,185 | 10,283 | |
Financing Receivable, Recorded Investment, Current | 290,172 | 282,491 | |
Total Loans | 297,357 | 292,774 | 284,867 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial real estate construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 56,076 | 45,647 | |
Total Loans | 56,076 | 45,647 | 33,231 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Lease financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 1,121 | 1,356 | |
Total Loans | 1,121 | 1,356 | 1,305 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, 30 to 59 Days Past Due | 6 | 24 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 12 | ||
Total Past Due | 6 | 36 | |
Financing Receivable, Recorded Investment, Current | 3,015 | 4,654 | |
Total Loans | 3,021 | 4,690 | 6,559 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing |
Loans_and_Allowance_for_Loan_a8
Loans and Allowance for Loan and Lease Losses (Allowance For Loan Losses And Recorded Investment In Financing Receivables) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | $6,317 | $5,509 | $6,317 | $5,509 | $6,772 | ||||||
Charge-offs | -1,328 | -1,473 | -2,388 | ||||||||
Recoveries | 110 | 596 | 89 | ||||||||
Provision for loan and lease losses | 400 | 395 | 275 | 547 | 200 | 575 | 415 | 495 | 1,617 | 1,685 | 1,036 |
Allowance for Loan Losses, Ending Balance | 6,716 | 6,317 | 6,716 | 6,317 | 5,509 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 1,634 | 1,933 | 1,634 | 1,933 | 1,383 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 5,082 | 4,384 | 5,082 | 4,384 | 4,126 | ||||||
Loans receivables, Ending Balance | 571,533 | 546,462 | 571,533 | 546,462 | 484,220 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 10,929 | 10,912 | 10,929 | 10,912 | 10,192 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 560,604 | 535,550 | 560,604 | 535,550 | 474,028 | ||||||
Home equity lines of credit [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 441 | 343 | 441 | 343 | 337 | ||||||
Charge-offs | -43 | -91 | -268 | ||||||||
Recoveries | 1 | 8 | 10 | ||||||||
Provision for loan and lease losses | 254 | 181 | 264 | ||||||||
Allowance for Loan Losses, Ending Balance | 653 | 441 | 653 | 441 | 343 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 115 | 6 | 115 | 6 | 18 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 538 | 435 | 538 | 435 | 325 | ||||||
Loans receivables, Ending Balance | 28,506 | 26,321 | 28,506 | 26,321 | 22,920 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 240 | 76 | 240 | 76 | 191 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 28,266 | 26,245 | 28,266 | 26,245 | 22,729 | ||||||
Residential Mortgage Portfolio [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 581 | 581 | 581 | 581 | 362 | ||||||
Charge-offs | -133 | -167 | -195 | ||||||||
Recoveries | 20 | 23 | |||||||||
Provision for loan and lease losses | -18 | 144 | 414 | ||||||||
Allowance for Loan Losses, Ending Balance | 450 | 581 | 450 | 581 | 581 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 25 | 25 | |||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 450 | 556 | 450 | 556 | 581 | ||||||
Loans receivables, Ending Balance | 66,442 | 69,830 | 66,442 | 69,830 | 57,455 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 1,146 | 291 | 1,146 | 291 | 448 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 65,296 | 69,539 | 65,296 | 69,539 | 57,007 | ||||||
Commercial and industrial [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 1,187 | 1,298 | 1,187 | 1,298 | 2,274 | ||||||
Charge-offs | -62 | -183 | -834 | ||||||||
Recoveries | 13 | 193 | 31 | ||||||||
Provision for loan and lease losses | 255 | -121 | -173 | ||||||||
Allowance for Loan Losses, Ending Balance | 1,393 | 1,187 | 1,393 | 1,187 | 1,298 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 137 | 42 | 137 | 42 | 111 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1,256 | 1,145 | 1,256 | 1,145 | 1,187 | ||||||
Loans receivables, Ending Balance | 119,010 | 105,844 | 119,010 | 105,844 | 77,883 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 618 | 300 | 618 | 300 | 415 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 118,392 | 105,544 | 118,392 | 105,544 | 77,468 | ||||||
Commercial real estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 4,006 | 3,112 | 4,006 | 3,112 | 3,544 | ||||||
Charge-offs | -1,057 | -919 | -493 | ||||||||
Recoveries | 13 | 279 | 13 | ||||||||
Provision for loan and lease losses | 963 | 1,534 | 48 | ||||||||
Allowance for Loan Losses, Ending Balance | 3,925 | 4,006 | 3,925 | 4,006 | 3,112 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 1,382 | 1,860 | 1,382 | 1,860 | 1,200 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2,543 | 2,146 | 2,543 | 2,146 | 1,912 | ||||||
Loans receivables, Ending Balance | 297,357 | 292,774 | 297,357 | 292,774 | 284,867 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 8,925 | 10,245 | 8,925 | 10,245 | 9,084 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 288,432 | 282,529 | 288,432 | 282,529 | 275,783 | ||||||
Commercial real estate construction [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 9 | 64 | 9 | 64 | 23 | ||||||
Charge-offs | -17 | -6 | |||||||||
Recoveries | 7 | 2 | |||||||||
Provision for loan and lease losses | 24 | -45 | 45 | ||||||||
Allowance for Loan Losses, Ending Balance | 33 | 9 | 33 | 9 | 64 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 54 | ||||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 33 | 9 | 33 | 9 | 10 | ||||||
Loans receivables, Ending Balance | 56,076 | 45,647 | 56,076 | 45,647 | 33,231 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 54 | ||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 56,076 | 45,647 | 56,076 | 45,647 | 33,177 | ||||||
Lease financing [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 1 | 1 | 2 | ||||||||
Recoveries | 2 | ||||||||||
Provision for loan and lease losses | 2 | -3 | -1 | ||||||||
Allowance for Loan Losses, Ending Balance | 2 | 2 | 1 | ||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2 | 2 | 1 | ||||||||
Loans receivables, Ending Balance | 1,121 | 1,356 | 1,121 | 1,356 | 1,305 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,121 | 1,356 | 1,121 | 1,356 | 1,305 | ||||||
Consumer [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 72 | 101 | 72 | 101 | 87 | ||||||
Charge-offs | -33 | -96 | -592 | ||||||||
Recoveries | 63 | 84 | 33 | ||||||||
Provision for loan and lease losses | -67 | -17 | 573 | ||||||||
Allowance for Loan Losses, Ending Balance | 35 | 72 | 35 | 72 | 101 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 35 | 72 | 35 | 72 | 101 | ||||||
Loans receivables, Ending Balance | 3,021 | 4,690 | 3,021 | 4,690 | 6,559 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 3,021 | 4,690 | 3,021 | 4,690 | 6,559 | ||||||
Unallocated [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 21 | 9 | 21 | 9 | 143 | ||||||
Provision for loan and lease losses | 204 | 12 | -134 | ||||||||
Allowance for Loan Losses, Ending Balance | 225 | 21 | 225 | 21 | 9 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | $225 | $21 | $225 | $21 | $9 |
Loans_and_Allowance_for_Loan_a9
Loans and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
contract | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | 0 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $12,182,000 | $11,044,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 10,382,000 | 9,138,000 |
Recorded Investment | 8,746,000 | 7,765,000 |
Troubled Debt Restructurings Occurring During The Current Reporting Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | 4 | 5 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,647,000 | 6,165,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,304,000 | 5,662,000 |
Recorded Investment | 1,259,000 | 5,445,000 |
Home equity lines of credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 50,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 7,000 | |
Recorded Investment | 5,000 | |
Home equity lines of credit [Member] | Troubled Debt Restructurings Occurring During The Current Reporting Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 50,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 7,000 | |
Recorded Investment | 5,000 | |
Residential Mortgage Portfolio [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 903,000 | 423,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 897,000 | 35,000 |
Recorded Investment | 713,000 | 29,000 |
Residential Mortgage Portfolio [Member] | Troubled Debt Restructurings Occurring During The Current Reporting Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 2 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 540,000 | 74,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 540,000 | 74,000 |
Recorded Investment | 520,000 | 28,000 |
Commercial and industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 40,000 | 40,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 35,000 | 417,000 |
Recorded Investment | 23,000 | 266,000 |
Commercial real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 11,189,000 | 10,581,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 9,443,000 | 8,686,000 |
Recorded Investment | 8,005,000 | 7,470,000 |
Commercial real estate [Member] | Troubled Debt Restructurings Occurring During The Current Reporting Period [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | 2 | 3 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,057,000 | 6,091,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 757,000 | 5,588,000 |
Recorded Investment | $734,000 | $5,417,000 |
Bank_Premises_and_Equipment_Pr
Bank Premises and Equipment (Premises and Equipment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $21,387 | $23,123 | |
Less Accumulated Depreciation | -9,162 | -10,654 | |
Property, Plant and Equipment, Net, Total | 12,225 | 12,469 | |
Depreciation | 1,235 | 1,250 | 1,153 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,712 | 2,712 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 10,116 | 10,087 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 7,236 | 9,483 | |
Land and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 826 | 828 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $497 | $13 |
Deposits_Time_Deposits_By_Matu
Deposits (Time Deposits By Maturity Date) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Time Deposits, Total | $124,785 | $132,373 | |
Interest Expense, Time Deposits | 1,971 | 2,568 | 3,683 |
Brokered Deposits | 4,462 | 2,750 | |
Related Party Deposit Liabilities | 9,987 | 9,010 | |
Time Deposits, Less than $100,000 [Member] | |||
Maturing in 2015 | 35,364 | ||
Maturing in 2016 | 22,943 | ||
Maturing in 2017 | 5,388 | ||
Maturing in 2018 | 4,528 | ||
Maturing in 2019 | 6,966 | ||
Maturing thereafter | 1,178 | ||
Time Deposits, Total | 76,367 | ||
Time Deposits, $100,000 or More [Member] | |||
Maturing in 2015 | 25,814 | ||
Maturing in 2016 | 11,018 | ||
Maturing in 2017 | 2,210 | ||
Maturing in 2018 | 3,077 | ||
Maturing in 2019 | 6,299 | ||
Time Deposits, Total | $48,418 |
Shortterm_Borrowings_Schedule_
Short-term Borrowings (Schedule of Short-term Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Short term borrowings | $578 | $23,833 |
Federal Home Loan Bank [Member] | ||
Short-term Debt [Line Items] | ||
Current borrowing avaliable | 40,000 | |
Correspondent Banks [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $12,500 |
Longterm_Debt_Narrative_Detail
Long-term Debt (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt [Abstract] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | $272,397 | |
Long-term debt | $52,961 | $23,145 |
Longterm_Debt_Longterm_Debt_by
Long-term Debt (Long-term Debt by Maturity Date) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $52,961 | $23,145 |
Long-Term Debt, Aggregate Amounts Due, 2015 | 15,193 | |
Long-Term Debt, Aggregate Amounts Due, 2016 | 25,203 | |
Long-Term Debt, Aggregate Amounts Due, 2017 | 213 | |
Long-Term Debt, Aggregate Amounts Due, 2018 | 223 | |
Long-Term Debt, Aggregate Amounts Due, 2019 | 10,235 | |
Long-Term Debt, Aggregate Amounts Due, Thereafter | 1,894 | |
Maturing in 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 15,000 | 15,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range from | 0.58% | 0.58% |
Maturing in 2015 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range to | 4.18% | 4.18% |
Maturing in 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 25,000 | 5,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range from | 0.54% | 0.54% |
Maturing in 2016 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range to | 0.89% | 0.89% |
Maturing In 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,000 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 1.87% | |
Maturing in 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,892 | 3,073 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 4.80% | 4.80% |
Maturing in 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $69 | $72 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 6.71% | 6.71% |
Fair_Value_Measurement_Assets_
Fair Value Measurement (Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $141,634 | $122,803 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 561 | 519 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 141,073 | 122,284 |
U.S. Treasury and U.S. government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 27,066 | 12,834 |
U.S. Treasury and U.S. government agencies [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 27,066 | 12,834 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 33,776 | 39,392 |
Mortgage-backed U.S. Government Agencies [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 33,776 | 39,392 |
State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,171 | 69,038 |
State and municipal [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,171 | 69,038 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,621 | 1,539 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 561 | 519 |
Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $1,060 | $1,020 |
Fair_Value_Measurement_Fair_Va
Fair Value Measurement (Fair Value Measurements, Nonrecurring) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $6,664 | $6,535 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 142 | 465 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 187 | 223 |
Level 3 [Member] | Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,664 | 6,535 |
Level 3 [Member] | Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 142 | 465 |
Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $187 | $223 |
Fair_Value_Measurement_Fair_Va1
Fair Value Measurement (Fair Value Inputs, Assets, Quantitative Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired Loan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 6,664 | 6,535 | |
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | [1] | |
Fair Value Disclosure, Unbservable Input Range | Appraisal adjustments | [2] | |
Impaired Loan [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 6,664 | 6,535 | |
Foreclosed Assets Held for Sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 142 | 465 | |
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | [1],[3] | |
Fair Value Disclosure, Unbservable Input Range | Appraisal adjustments | [2] | |
Foreclosed Assets Held for Sale [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 142 | 465 | |
Mortgage Servicing Rights [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 187 | 223 | |
Mortgage Servicing Rights [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 187 | 223 | |
Minimum [Member] | Impaired Loan [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 10.00% | 10.00% | |
Minimum [Member] | Foreclosed Assets Held for Sale [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 15.00% | 15.00% | |
Minimum [Member] | Mortgage Servicing Rights [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 210.00% | 240.00% | |
Maximum [Member] | Impaired Loan [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 95.00% | 95.00% | |
Maximum [Member] | Foreclosed Assets Held for Sale [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 40.00% | 40.00% | |
Maximum [Member] | Mortgage Servicing Rights [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 400.00% | 400.00% | |
Weighted Average [Member] | Impaired Loan [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 32.00% | 25.00% | |
Weighted Average [Member] | Foreclosed Assets Held for Sale [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 27.00% | 24.00% | |
Weighted Average [Member] | Mortgage Servicing Rights [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs Rate | 353.00% | 349.00% | |
Unobservable Input - Appraisal Adjustments [Member] | Impaired Loan [Member] | Appraisal of Collateral [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 6,664 | 6,535 | |
Unobservable Input - Appraisal Adjustments [Member] | Foreclosed Assets Held for Sale [Member] | Appraisal of Collateral [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 142 | 465 | |
Unobservable Input Estimated Prepayment Speed [Member] | Mortgage Servicing Rights [Member] | Multiple of Annual Service [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 187 | 223 | |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. | ||
[2] | Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. | ||
[3] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair_Value_Measurement_Fair_Va2
Fair Value Measurement (Fair Value, by Balance Sheet Grouping) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets: Cash and cash equivalents | $9,882 | $8,623 |
Financial Assets: Interest-bearing time balances with other financial institutions | 5,772 | 7,513 |
Available-for-sale Securities | 141,634 | 122,803 |
Financial Assets: Net loans and leases | 572,487 | 548,923 |
Financial Assets: Restricted investment in bank stocks | 3,181 | 2,969 |
Financial Assets: Accrued interest receivable | 3,058 | 2,704 |
Financial Assets: Mortgage servicing rights | 187 | 223 |
Financial Liabilities: Deposits | 639,226 | 610,419 |
Financial Liabilities: Short-term borrowings | 578 | 23,833 |
Financial Liabilities: Long-term debt | 52,514 | 22,988 |
Financial Liabilities: Accrued interest payable | 349 | 393 |
Financial Assets: Cash and cash equivalents, Carrying Value | 9,882 | 8,623 |
Financial Assets: Interest bearing time balances with other financial institutions, Carrying Value | 5,772 | 7,513 |
Financial Assets: Net loans and leases, Carrying Value | 564,817 | 540,145 |
Financial Assets: Restricted investment in bank stocks, Carrying Value | 3,181 | 2,969 |
Financial Assets: Acrued interest receivable, Carrying Value | 3,058 | 2,704 |
Financial Assets: Mortgage Servicing Rights, Carrying Value | 187 | 223 |
Financial Liabilities: Deposits, Carrying Value | 637,922 | 608,130 |
Financial Liabilities: Short-term borrowings, Carrying Value | 578 | 23,833 |
Financial Liabilities: Long-term debt, Carrying Value | 52,961 | 23,145 |
Financial Liabilities: Accrued interest payable, Carrying Value | 349 | 393 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 561 | 519 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 141,073 | 122,284 |
Financial Liabilities: Deposits | 639,226 | 610,419 |
Financial Liabilities: Long-term debt | 52,514 | 22,988 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets: Net loans and leases | 572,487 | 548,923 |
Parent Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets: Cash and cash equivalents, Carrying Value | $554 | $437 |
Postretirement_Benefit_Plans_N
Postretirement Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Postretirement Health Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Minimum Service Period Requirement | 20 years | |
Defined Benefit Plan, Maximum Coverage Period | 5 years | |
Defined Benefit Plan, Amended Eligibility Criteria | This Plan was amended in 2008 to encompass only those employees that had achieved ten years of full-time continuous service to Mid Penn as of January 1, 2008. Employees hired after that date and those that had not achieved the service requirements are not eligible for the Plan. | |
Defined Benefit Postretirement Life Insurance [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Minimum Service Period Requirement | 20 years | |
Defined Benefit Plan, Benefit Description, Prior To Age 65 | be three times the participant's annual salary at retirement or $50,000, whichever is less | |
Defined Benefit Plan, Benefit Description, After Age 65 | life insurance coverage amount will decrease by 10% per year, subject to a minimum amount of $2,000 | |
Prior to age 65, life insurance maximum, coverage amount | $50,000 | |
Life insurance minimum amount coverage | 2,000 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 861,000 | 836,000 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | -1,052 | |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized Prior Service Cost Generated By Adoption of the Plan | 274,000 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost, before Tax | 86,000 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,186,000 | 1,130,000 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 21,525 | |
Cash Surrender Value of Bank Owned Life Insurance | $3,689,000 | $3,609,000 |
Postretirement_Benefit_Plans_N1
Postretirement Benefit Plans (Net Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Change in benefit obligations: | |||
Benefit obligations | $836 | $894 | |
Change in benefit obligations: Service cost | 13 | 17 | 21 |
Change in benefit obligations: Interest cost | 38 | 34 | 37 |
Change in benefit obligations: Actuarial (gain) loss | -26 | -15 | |
Change in benefit obligations: Change in assumptions | 40 | -55 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | -40 | -39 | |
Benefit obligations | 861 | 836 | 894 |
Change in fair value of plan assets: | |||
Fair value of plan assets | |||
Change in fair value of plan assets: Employer contributions | 40 | 39 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | -40 | -39 | |
Fair value of plan assets | |||
Funded status at year end | -861 | -836 | |
Director's Retirement Plan [Member] | |||
Change in benefit obligations: | |||
Benefit obligations | 1,130 | 1,139 | |
Change in benefit obligations: Service cost | 33 | 32 | 22 |
Change in benefit obligations: Interest cost | 51 | 44 | 49 |
Change in benefit obligations: Actuarial (gain) loss | -8 | 4 | |
Change in benefit obligations: Change in assumptions | 69 | -5 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | -89 | -84 | |
Benefit obligations | 1,186 | 1,130 | 1,139 |
Change in fair value of plan assets: | |||
Fair value of plan assets | |||
Change in fair value of plan assets: Employer contributions | 89 | 84 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | -89 | -84 | |
Fair value of plan assets | |||
Funded status at year end | ($1,186) | ($1,130) |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans (Amounts Recognized in Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $861 | $836 |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $1,186 | $1,130 |
Postretirement_Benefit_Plans_A1
Postretirement Benefit Plans (Amounts Recognized in Other Comprehensive Income) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss, pretax | ($19) | ($33) |
Net prior service cost, pretax | -1 | |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss, pretax | 101 | 40 |
Net prior service cost, pretax | $86 | $108 |
Postretirement_Benefit_Plans_N2
Postretirement Benefit Plans (Net Periodic Benefit Costs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $13 | $17 | $21 |
Interest Cost | 38 | 34 | 37 |
Amortization of prior service cost | -1 | -1 | -1 |
Net periodic postretirement benefit cost | 50 | 50 | 57 |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 33 | 32 | 22 |
Interest Cost | 51 | 44 | 49 |
Amortization of prior service cost | 22 | 22 | 22 |
Net periodic postretirement benefit cost | $106 | $98 | $93 |
Postretirement_Benefit_Plans_A2
Postretirement Benefit Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.75% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.75% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.75% | 4.00% | 4.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.75% | 3.00% | 3.50% |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.75% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Change In Consumer Price Index | 2.00% | 2.75% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.75% | 4.00% | 4.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Changes In Consumer Price Index | 2.75% | 2.00% | 2.50% |
Postretirement_Benefit_Plans_H
Postretirement Benefit Plans (Health Care Cost Trend Rates) (Details) (Defined Benefit Postretirement Health And Life Coverage [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 6.50% | 7.00% | 7.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.50% | 5.50% | 5.50% |
Year that the rate reaches the ultimate trend rate | 2016 | 2016 | 2016 |
Postretirement_Benefit_Plans_E
Postretirement Benefit Plans (Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates) (Details) (Defined Benefit Postretirement Health And Life Coverage [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Postretirement Health And Life Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $4 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 3 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 61 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $54 |
Postretirement_Benefit_Plans_E1
Postretirement Benefit Plans (Expected Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
1/1/2015 to 12/31/2015 | $57 |
1/1/2016 to 12/31/2016 | 67 |
1/1/2017 to 12/31/2017 | 62 |
1/1/2018 to 12/31/2018 | 67 |
1/1/2019 to 12/31/2019 | 69 |
1/1/2020 to 12/31/2024 | 328 |
Director's Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
1/1/2015 to 12/31/2015 | 92 |
1/1/2016 to 12/31/2016 | 95 |
1/1/2017 to 12/31/2017 | 97 |
1/1/2018 to 12/31/2018 | 100 |
1/1/2019 to 12/31/2019 | 98 |
1/1/2020 to 12/31/2024 | $514 |
Other_Benefit_Plans_Narrative_
Other Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, associated expense | $0 | $0 | $0 |
401(k) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, associated expense | 216,000 | 129,000 | 111,000 |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | 6,000 | 0 | 10,000 |
Deferred Compensation Arrangement with Individual, Recorded Liability | 177,000 | 192,000 | |
Salary Continuation Agreement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | 15,000 | 14,000 | 13,000 |
Deferred Compensation Arrangement with Individual, Recorded Liability | 221,000 | 206,000 | |
Defined Benefit Plan, Maximum Coverage Period | 15 years | ||
Cash Surrender Value of Bank Owned Life Insurance | 1,215,000 | 1,178,000 | |
Employee Stock Ownership Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Compensation Expense | 0 | 0 | |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 0 | 38,799 | |
Employee Stock Ownership Plan (ESOP), Shares In ESOP, Fair Value | 0 | ||
Split Dollar Life Insurance Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash Surrender Value of Bank Owned Life Insurance | 1,776,000 | 1,739,000 | |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | 16,000 | 11,000 | 13,000 |
Deferred Compensation Arrangement with Individual, Recorded Liability | 453,000 | 405,000 | |
Cash Surrender Value of Bank Owned Life Insurance | $3,689,000 | $3,609,000 |
Federal_Income_Taxes_Net_Defer
Federal Income Taxes (Net Deferred Tax Asset) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Income Taxes [Abstract] | ||
Deferred Tax Assets, Allowance for loan and lease losses | $2,283 | $2,148 |
Deferred Tax Assets, Loan Fees | 68 | 167 |
Deferred Tax Assets, Benefit plans | 985 | 976 |
Deferred Tax Assets, Nonaccrual interest | 955 | 895 |
Deferred Tax Assets, Unrealized loss on securities | 385 | |
Deferred Tax Assets, Other | 111 | 127 |
Deferred Tax Assets, Gross, Total | 4,402 | 4,698 |
Deferred Tax Liabilities, Depreciation | -801 | -945 |
Deferred Tax Liabilities, Bond accretion | -106 | -92 |
Deferred Tax Liabilities, Goodwill and intangibles | -264 | -254 |
Deferred Tax Liabilities, Unrealized gain on securities | -837 | |
Deferred Tax Liabilities, Prepaid expenses | -266 | -170 |
Deferred Tax Liabilities, Other | -3 | -2 |
Deferred Tax Liabilities, Gross, Total | -2,277 | -1,463 |
Deferred Tax Assets, Net, Total | $2,125 | $3,235 |
Federal_Income_Taxes_Schedule_
Federal Income Taxes (Schedule of Current and Deferred Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Income Taxes [Abstract] | |||||||||||
Current Income Tax Expense (Benefit) | $1,574 | $1,009 | $794 | ||||||||
Deferred Income Tax Expense (Benefit) | -112 | 192 | 450 | ||||||||
Provision for income taxes | $251 | $366 | $475 | $370 | $377 | $440 | $292 | $92 | $1,462 | $1,201 | $1,244 |
Federal_Income_Taxes_Income_Ta
Federal Income Taxes (Income Tax Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Income Taxes [Abstract] | |||||||||||
Provision at the expected statutory rate | $2,435 | $2,088 | $2,106 | ||||||||
Effect of tax-exempt income | -1,086 | -873 | -827 | ||||||||
Effect of investment in life insurance | -68 | -78 | -84 | ||||||||
Nondeductible interest | 42 | 40 | 49 | ||||||||
Nondeductible merger and acquisition expense | 163 | ||||||||||
Other items | -24 | 24 | |||||||||
Provision for income taxes | 251 | 366 | 475 | 370 | 377 | 440 | 292 | 92 | 1,462 | 1,201 | 1,244 |
Income Tax Examination, Penalties and Interest Expense | 0 | 0 | 0 | ||||||||
Income Tax Examination, Penalties and Interest Accrued | $0 | $0 | $0 | $0 | |||||||
Open Tax Year | 2011 |
Regulatory_Matters_Narratvie_D
Regulatory Matters (Narratvie) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $6,298 | |
Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital (To Average Assets) | 56,560 | 52,693 |
Tier 1 Capital (To Risk Weighted Assets) | 56,560 | 52,693 |
Total Capital (To Risk Weighted Assets) | 63,336 | 59,100 |
Tier 1 Capital to Average Assets), Ratio | 7.40% | 7.50% |
Tier 1 Capital To Risk Weighted Assets), Ratio | 10.10% | 9.90% |
Total Capital (To Risk Weighted Assets), Ratio | 11.40% | 11.10% |
Tier 1 Capital for Capital Adequacy (To Average Assets) | 30,429 | 28,031 |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets) | 22,295 | 21,234 |
Total Capital for Capital Adequacy (To Risk Weighted Assets) | 44,590 | 42,467 |
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | 4.00% |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 4.00% | 4.00% |
Total Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 8.00% | 8.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital (To Average Assets) | 56,647 | 52,598 |
Tier 1 Capital (To Risk Weighted Assets) | 56,647 | 52,598 |
Total Capital (To Risk Weighted Assets) | 63,423 | 59,005 |
Tier 1 Capital to Average Assets), Ratio | 7.50% | 7.50% |
Tier 1 Capital To Risk Weighted Assets), Ratio | 10.20% | 9.90% |
Total Capital (To Risk Weighted Assets), Ratio | 11.40% | 11.10% |
Tier 1 Capital for Capital Adequacy (To Average Assets) | 30,360 | 28,041 |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets) | 22,295 | 21,234 |
Total Capital for Capital Adequacy (To Risk Weighted Assets) | 44,590 | 42,467 |
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | 4.00% |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 4.00% | 4.00% |
Total Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 8.00% | 8.00% |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Average Assets) | 37,950 | 35,051 |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | 33,442 | 31,850 |
Total Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | $55,737 | $53,084 |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Average Assets), Ratio | 5.00% | 5.00% |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets), Ratio | 6.00% | 6.00% |
Total Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets), Ratio | 10.00% | 10.00% |
Concentration_of_Risk_and_OffB1
Concentration of Risk and Off-Balance Sheet Risk (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Concentration Risk [Line Items] | |
Commitments to Extend Credit | $125,279,000 |
Concentration Risk, Benchmark Description | 10% or more of the Bank's total net loans outstanding |
Mortgage loans commited amount to fund and sell | 15,000,000 |
Mortgage loans commited amount to fund and sell, remaining | 7,558,000 |
Standby Letters of Credit [Member] | |
Concentration Risk [Line Items] | |
Commitments to Extend Credit | $9,837,000 |
Benchmark - Loans Receivable, Net [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 50.60% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2014 | Oct. 31, 2014 | Nov. 30, 2014 |
contract | contract | contract | ||||
Operating leases, rent expense, net | $151 | $121 | $120 | |||
Office Space - Downtown Harrisburg Lease [Member] | ||||||
Lease expiration date | 1-Jul-20 | |||||
Area of real estate property | 2,500 | |||||
Drive-Up ATM - Halifax Lease [Member] | ||||||
Lease expiration date | 1-Oct-15 | |||||
Office Space - Derry Street Lease [Member] | ||||||
Lease expiration date | 1-Nov-14 | |||||
Area of real estate property | 5,900 | |||||
Number of renewal options for lease | 2 | |||||
Renewal options period for lease | 3 years | |||||
North Front Street Harrisburg [Member] | ||||||
Lease expiration date | 1-Feb-20 | |||||
Number of renewal options for lease | 1 | |||||
Renewal options period for lease | 3 years | |||||
North Front Street Harrisburg One [Member] | ||||||
Area of real estate property | 2,350 | |||||
North Front Street Harrisburg Two [Member] | ||||||
Area of real estate property | 7,000 | |||||
Simpson Ferry Road Mechanicsburg [Member] | ||||||
Number of renewal options for lease | 2 | |||||
Length of lease | 20 years | |||||
Renewal options period for lease | 5 years | |||||
South Market Street Elizabethtown [Member] | ||||||
Number of renewal options for lease | 2 | |||||
Renewal options period for lease | 5 years |
Commitments_and_Contingencies_2
Commitments and Contingencies (Minimum Future Rental Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $114 |
2016 | 128 |
2017 | 125 |
2018 | 79 |
2019 | 66 |
Total Future Minimum Lease Payments | 512 |
Property Subject to Operating Lease [Member] | |
Operating Leased Assets [Line Items] | |
2015 | 411 |
2016 | 439 |
2017 | 441 |
2018 | 400 |
2019 | 393 |
thereafter | 874 |
Total Future Minimum Lease Payments | $2,958 |
Common_Stock_Details
Common Stock (Details) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 25, 2014 | |
Stock Bonus Plan [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized under the plan | 50,000 | |
Dividend Reinvestment Plan [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized under the plan | 200,000 | |
2014 Restricted Stock Plan [Member] | ||
Class of Stock [Line Items] | ||
Shares authorized under the plan | 100,000 | |
Shares granted | 3,500 |
Preferred_Stock_Narrative_Deta
Preferred Stock (Narrative) (Details) (USD $) | 0 Months Ended | ||
Jan. 23, 2013 | Dec. 28, 2012 | Dec. 19, 2008 | |
Class of Stock [Line Items] | |||
Warrants and Rights Outstanding | $73,099 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $20.52 | ||
Stock Warrants Repurchased and Retired During Period, Purchase Price | 58,479 | ||
Preferred Class A [Member] | |||
Class of Stock [Line Items] | |||
U.S. Department of the Treasury Investment under the Treasury's Capital Purchase Program | 10,000,000 | ||
Preferred stock, shares issued | 10,000 | ||
Preferred Stock, Liquidation Preference, Value | 1,000 | ||
Stock Repurchased and Retired During Period, Shares | 10,000 | ||
Stock Repurchased and Retired During Period, Value | 10,000,000 | ||
Dividends, Preferred Stock, Cash | $59,722 |
Stock_Issued_Under_Private_Pla2
Stock Issued Under Private Placement Offering (Narrative) (Details) (Preferred Class B [Member], USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Jan. 03, 2013 | Dec. 31, 2014 | |
Preferred Class B [Member] | |||
Shares issued | 4,880 | 120 | |
Proceeds from Issuance of Private Placement | $4,880,000 | $5,000,000 | |
Preferred stock issuance, costs | $50,000 | ||
Preferred Stock, Dividend Rate, Percentage | 7.00% | ||
Preferred Stock, Dividend Rate, Per Share Amount | $70 | ||
Preferred Stock, Dividend Payment Terms | Dividends on any of Series B Preferred Stock are non-cumulative and we currently expect them to be declared quarterly for payment on February 15, May 15, August 15, and November 15 of each year | ||
Preferred Stock, Redemption Price Per Share | $1,020 |
Stock_Issued_Under_Private_Pla3
Stock Issued Under Private Placement Offering (Proceeds from Private Placement) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 27 Months Ended | 3 Months Ended | |
Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Jan. 03, 2013 | |
Private Placement [Member] | ||||||
Proceeds from Issuance of Private Placement | $345,000 | $4,535,000 | $120,000 | $5,000,000 | ||
Preferred Class B [Member] | ||||||
Shares issued | 4,880 | 4,880 | 120 | |||
Proceeds from Issuance of Private Placement | $4,880,000 | $5,000,000 | ||||
Preferred Class B [Member] | Private Placement [Member] | ||||||
Shares issued | 345 | 4,535 | 120 | 5,000 | 4,535 |
Parent_Company_Statements_Cond
Parent Company Statements (Condensed Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and cash equivalents | $9,882,000 | $8,623,000 | ||
Investment in subsidiaries | 408,000 | 452,000 | ||
Other assets | 2,620,000 | 2,060,000 | ||
Total Assets | 755,657,000 | 713,125,000 | ||
Other liabilities | 4,717,000 | 4,708,000 | ||
Shareholders' Equity | 59,130,000 | 52,916,000 | 52,220,000 | 53,452,000 |
Total Liabilities & Shareholders' Equity | 755,657,000 | 713,125,000 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 554,000 | 437,000 | ||
Investment in subsidiaries | 59,217,000 | 52,821,000 | ||
Other assets | 7,000 | |||
Total Assets | 59,771,000 | 53,265,000 | ||
Other liabilities | 641,000 | 349,000 | ||
Shareholders' Equity | 59,130,000 | 52,916,000 | ||
Total Liabilities & Shareholders' Equity | $59,771,000 | $53,265,000 |
Parent_Company_Statements_Cond1
Parent Company Statements (Condensed Statement of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other expenses | ($2,639) | ($2,625) | ($2,482) | ||||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiary | 1,139 | 1,961 | 2,182 | 1,881 | 1,777 | 1,928 | 1,658 | 777 | 7,163 | 6,140 | 6,195 |
Income tax benefit | -251 | -366 | -475 | -370 | -377 | -440 | -292 | -92 | -1,462 | -1,201 | -1,244 |
Net income | 888 | 1,595 | 1,707 | 1,511 | 1,400 | 1,488 | 1,366 | 685 | 5,701 | 4,939 | 4,951 |
Preferred stock dividends and discount accretion | 87 | 88 | 88 | 87 | 87 | 88 | 87 | 61 | |||
Net income available to common shareholders | 801 | 1,507 | 1,619 | 1,424 | 1,313 | 1,400 | 1,279 | 624 | 5,351 | 4,616 | 4,437 |
Comprehensive income | 8,086 | 1,774 | 5,328 | ||||||||
Parent Company [Member] | |||||||||||
Dividends from subsidaries | 2,325 | 1,237 | 6,628 | ||||||||
Other Income | 4 | ||||||||||
Revenues | 2,325 | 1,237 | 6,632 | ||||||||
Other expenses | -716 | -184 | -217 | ||||||||
Total Expense | -716 | -184 | -217 | ||||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiary | 1,609 | 1,053 | 6,415 | ||||||||
Equity in undistributed earnings (loss) of subsidiaries | 4,012 | 3,823 | -1,538 | ||||||||
Income before income taxes | 5,621 | 4,876 | 4,877 | ||||||||
Income tax benefit | 80 | 63 | 74 | ||||||||
Net income | 5,701 | 4,939 | 4,951 | ||||||||
Net income available to common shareholders | 5,351 | 4,616 | 4,437 | ||||||||
Comprehensive income | 8,086 | 1,774 | 5,328 | ||||||||
Series A Preferred Stock [Member] | |||||||||||
Preferred stock dividends and discount accretion | 14 | 514 | |||||||||
Preferred stock dividends | 500 | ||||||||||
Series A Preferred Stock [Member] | Parent Company [Member] | |||||||||||
Preferred stock dividends and discount accretion | 14 | 514 | |||||||||
Series B Preferred Stock [Member] | |||||||||||
Preferred stock dividends | 350 | 309 | |||||||||
Series B Preferred Stock [Member] | Parent Company [Member] | |||||||||||
Preferred stock dividends | $350 | $309 |
Parent_Company_Statements_Cond2
Parent Company Statements (Condensed Statement of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $5,701 | $4,939 | $4,951 |
(Increase) decrease in other assets | -547 | 500 | 424 |
Increase in other liabilities | 9 | 319 | 278 |
Net cash provided by operating activities | 8,670 | 10,682 | 9,400 |
Employee Stock Purchase Plan | 53 | 55 | 56 |
Warrant repurchase | -58 | ||
Net cash used in financing activities | 34,481 | 6,073 | -15,331 |
Net increase (decrease) in cash and cash equivalents | 1,259 | -6,850 | -2,368 |
Cash and cash equivalents, beginning of year | 8,623 | 15,473 | 17,841 |
Cash and cash equivalents, end of year | 9,882 | 8,623 | 15,473 |
Parent Company [Member] | |||
Net income | 5,701 | 4,939 | 4,951 |
Equity in undistributed (earnings) loss of subsidiaries | -4,012 | -3,823 | 1,538 |
(Increase) decrease in other assets | 8 | 3 | 40 |
Increase in other liabilities | 292 | 334 | 15 |
Net cash provided by operating activities | 1,989 | 1,453 | 6,544 |
Dividends paid | -1,925 | -1,181 | -1,432 |
Employee Stock Purchase Plan | 53 | 55 | 56 |
Warrant repurchase | -58 | ||
Net cash used in financing activities | -1,872 | -1,064 | -6,546 |
Net increase (decrease) in cash and cash equivalents | 117 | 389 | -2 |
Cash and cash equivalents, beginning of year | 437 | 48 | 50 |
Cash and cash equivalents, end of year | 554 | 437 | 48 |
Series A Preferred Stock [Member] | Parent Company [Member] | |||
Preferred stock repayment | -10,000 | ||
Series B Preferred Stock [Member] | Parent Company [Member] | |||
Preferred stock issue | $120 | $4,830 |
Subsequent_Event_Narrative_Det
Subsequent Event (Narrative) (Details) (USD $) | 0 Months Ended | ||
Mar. 01, 2015 | Feb. 27, 2015 | Dec. 31, 2012 | |
security | |||
Share price | $20.52 | ||
Subsequent Event [Member] | |||
Preferred stock, shares issued | 1,750 | ||
Subsequent Event [Member] | Phoenix Bancorp Incorporated [Member] | |||
Preferred stock, shares issued | 1,750 | ||
Shares of acquirer ratio of common stock | 3.167 | ||
Per share of acquirees common stock | $51.60 | ||
Share issued by entity in business combination, shares | 724,000 | ||
Share issued by entity in business combination, value | $11,294,000 | ||
Share price | $15.60 | ||
Payments to acquire businesses, gross | 2,949,000 | ||
Business combination, consideration transferred | $14,243,000 | ||
Subsequent Event [Member] | Series C Preferred Stock [Member] | |||
Preferred Stock, Liquidation Preference Per Share | $1,000 | ||
Subsequent Event [Member] | Contingent Convertible Preferred Stock [Member] | Phoenix Bancorp Incorporated [Member] | |||
Shares of acquirer ratio of common stock | 0.414 |
Summary_of_Quarterly_Consolida2
Summary of Quarterly Consolidated Financial Data (Unaudited) (Quarterly Condensed Financials) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Quarterly Consolidated Financial Data [Abstract] | |||||||||||
Interest Income | $7,744 | $7,633 | $7,870 | $7,380 | $7,295 | $7,633 | $7,153 | $6,902 | $30,627 | $28,983 | $30,366 |
Interest Expense | 1,111 | 1,089 | 1,119 | 1,108 | 1,116 | 1,192 | 1,306 | 1,443 | 4,427 | 5,057 | 7,125 |
Net Interest Income | 6,633 | 6,544 | 6,751 | 6,272 | 6,179 | 6,441 | 5,847 | 5,459 | 26,200 | 23,926 | 23,241 |
Provision for Loan and Lease Losses | 400 | 395 | 275 | 547 | 200 | 575 | 415 | 495 | 1,617 | 1,685 | 1,036 |
Net Interest Income After Provision for Loan and Lease Losses | 6,233 | 6,149 | 6,476 | 5,725 | 5,979 | 5,866 | 5,432 | 4,964 | 24,583 | 22,241 | 22,205 |
Noninterest Income | 839 | 741 | 774 | 894 | 794 | 808 | 838 | 850 | 3,248 | 3,290 | 3,683 |
Noninterest Expense | 5,933 | 4,929 | 5,068 | 4,738 | 4,996 | 4,746 | 4,612 | 5,037 | 20,668 | 19,391 | 19,693 |
Income Before Provision for Income Taxes | 1,139 | 1,961 | 2,182 | 1,881 | 1,777 | 1,928 | 1,658 | 777 | 7,163 | 6,140 | 6,195 |
Provision for income taxes | 251 | 366 | 475 | 370 | 377 | 440 | 292 | 92 | 1,462 | 1,201 | 1,244 |
Net income | 888 | 1,595 | 1,707 | 1,511 | 1,400 | 1,488 | 1,366 | 685 | 5,701 | 4,939 | 4,951 |
Preferred stock dividends and discount accretion | 87 | 88 | 88 | 87 | 87 | 88 | 87 | 61 | |||
Net income available to common shareholders | $801 | $1,507 | $1,619 | $1,424 | $1,313 | $1,400 | $1,279 | $624 | $5,351 | $4,616 | $4,437 |
Basic Earnings Per Common Share | $0.23 | $0.43 | $0.46 | $0.41 | $0.37 | $0.40 | $0.37 | $0.18 | $1.53 | $1.32 | $1.27 |
Diluted Earnings Per Common Share | $0.23 | $0.43 | $0.46 | $0.41 | $0.37 | $0.40 | $0.37 | $0.18 | $1.53 | $1.32 | $1.27 |
Cash Dividends | $0.20 | $0.10 | $0.10 | $0.05 | $0.15 | $0.05 | $0.05 | $0.45 | $0.25 | $0.25 |