Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | MID PENN BANCORP INC | ||
Entity Central Index Key | 879,635 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,226,717 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 65,382,799 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 12,329 | $ 8,869 |
Interest-bearing balances with other financial institutions | 955 | 1,013 |
Total cash and cash equivalents | 13,284 | 9,882 |
Interest-bearing time deposits with other financial institutions | 4,317 | 5,772 |
Available for sale investment securities | 135,721 | 141,634 |
Loans and leases, net of unearned interest | 739,191 | 571,533 |
Less: Allowance for loan and lease losses | (6,168) | (6,716) |
Net loans and leases | 733,023 | 564,817 |
Bank premises and equipment, net | 13,993 | 12,225 |
Restricted investment in bank stocks | 4,266 | 3,181 |
Foreclosed assets held for sale | 1,185 | 565 |
Accrued interest receivable | 3,813 | 3,058 |
Deferred income taxes | 1,821 | 2,125 |
Goodwill | 3,918 | 1,016 |
Core deposit and other intangibles, net | 665 | 187 |
Cash surrender value of life insurance | 12,516 | 8,575 |
Other assets | 3,202 | 2,620 |
Total Assets | 931,724 | 755,657 |
LIABILITIES & SHAREHOLDERS' EQUITY | ||
Deposits: Noninterest bearing demand | 103,721 | 60,613 |
Deposits: Interest bearing demand | 247,356 | 222,712 |
Deposits: Money Market | 208,386 | 197,418 |
Deposits: Savings | 56,731 | 32,394 |
Deposits: Time | 160,849 | 124,785 |
Total Deposits | 777,043 | 637,922 |
Short-term borrowings | 31,596 | 578 |
Long-term debt | 40,305 | 52,961 |
Subordinated debt | 7,500 | |
Accrued interest payable | 390 | 349 |
Other liabilities | 4,822 | 4,717 |
Total Liabilities | 861,656 | 696,527 |
Shareholders' Equity: | ||
Common stock, par value $1.00; authorized 10,000,000 shares; 4,226,717 shares issued and outstanding at December 31, 2015 and 3,497,829 at December 31, 2014 | 4,227 | 3,498 |
Additional paid-in capital | 40,559 | 29,902 |
Retained earnings | 23,470 | 19,217 |
Accumulated other comprehensive income (loss) | 1,812 | 1,513 |
Total Shareholders' Equity | 70,068 | 59,130 |
Total Liabilities and Shareholders' Equity | $ 931,724 | 755,657 |
Series B Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred stock | $ 5,000 | |
Series C Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred stock |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 4,226,717 | 3,497,829 |
Common Stock, Shares, Outstanding | 4,226,717 | 3,497,829 |
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 | 0 | 5,000 |
Preferred stock, shares outstanding | 0 | 5,000 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized | 1,750 | 1,750 |
Preferred Stock, dividend rate, non-cumulative, percentage | 1.00% | 1.00% |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred Stock, Redemption Amount | $ 1,750,000 | $ 1,750,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME | |||
Interest & fees on loans and leases | $ 32,840 | $ 26,905 | $ 26,305 |
Interest on interest-bearing balances | 44 | 41 | 109 |
Interest and dividends on investment securities: | |||
U.S. Treasury and government agencies | 1,222 | 1,346 | 591 |
State and political subdivision obligations, tax-exempt | 2,000 | 2,180 | 1,921 |
Other securities | 382 | 155 | 46 |
Interest on federal funds sold and securities purchased under agreements to resell | 2 | 11 | |
Total Interest Income | 36,490 | 30,627 | 28,983 |
INTEREST EXPENSE | |||
Interest on deposits | 3,889 | 3,852 | 4,436 |
Interest on short-term borrowings | 47 | 55 | 26 |
Interest on long-term debt | 671 | 520 | 595 |
Total Interest Expense | 4,607 | 4,427 | 5,057 |
Net Interest Income | 31,883 | 26,200 | 23,926 |
PROVISION FOR LOAN AND LEASE LOSSES | 1,065 | 1,617 | 1,685 |
Net Interest Income After Provision for Loan and Lease Losses | 30,818 | 24,583 | 22,241 |
NONINTEREST INCOME | |||
Income from fiduciary activities | 466 | 552 | 492 |
Service charges on deposits | 690 | 584 | 576 |
Net gain on sales of investment securities | 325 | 168 | 220 |
Earnings from cash surrender value of life insurance | 269 | 201 | 231 |
Mortgage banking income | 456 | 313 | 348 |
ATM debit card interchange income | 741 | 544 | 508 |
Merchant services income | 235 | 254 | 330 |
Gain on sales of SBA loans | 252 | 119 | |
Other income | 653 | 513 | 585 |
Total Noninterest Income | 4,087 | 3,248 | 3,290 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 14,043 | 10,879 | 10,788 |
Occupancy expense, net | 1,947 | 1,313 | 1,128 |
Equipment expense | 1,477 | 1,205 | 1,299 |
Pennsylvania Bank Shares tax expense | 408 | 365 | 464 |
FDIC Assessment | 613 | 542 | 486 |
Legal and professional fees | 588 | 516 | 705 |
Director fees and benefits expense | 363 | 377 | 319 |
Marketing and advertising expense | 533 | 308 | 253 |
Software licensing | 1,472 | 965 | 947 |
Telephone expense | 569 | 467 | 436 |
Loss (gain) on sale/write-down of foreclosed assets | 111 | 204 | (302) |
Amortization (accretion) of intangibles | 88 | 27 | 29 |
Loan collection costs | 306 | 288 | 214 |
Merger and acquisition expense | 762 | 573 | |
Other expenses | 3,453 | 2,639 | 2,625 |
Total Noninterest Expense | 26,733 | 20,668 | 19,391 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 8,172 | 7,163 | 6,140 |
Provision for income taxes | 1,644 | 1,462 | 1,201 |
NET INCOME | 6,528 | 5,701 | 4,939 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 6,038 | $ 5,351 | $ 4,616 |
PER COMMON SHARE DATA: | |||
Basic Earnings Per Common Share | $ 1.47 | $ 1.53 | $ 1.32 |
Diluted Earnings Per Common Share | 1.47 | 1.53 | 1.32 |
Cash Dividends | $ 0.44 | $ 0.45 | $ 0.25 |
Series A Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends and discount accretion | $ 14 | ||
Series B Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends | $ 473 | $ 350 | $ 309 |
Series C Preferred Stock [Member] | |||
NONINTEREST EXPENSE | |||
Preferred stock dividends | $ 17 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 6,528 | $ 5,701 | $ 4,939 | |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) arising during the period on available for sale securities, net of income taxes | 154 | 2,482 | (3,033) | |
Reclassification adjustment for net gain on sales of available for sale securities included in net income, net of income taxes | [1] | (215) | (111) | (145) |
Change in defined benefit plans, net of income taxes | [2] | 360 | 14 | 13 |
Total other comprehensive income (loss) | 299 | 2,385 | (3,165) | |
Total comprehensive income | $ 6,827 | $ 8,086 | $ 1,774 | |
[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] | 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 Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Income (Parenthetical) [Abstract] | |||
Unrealized gains arising during the period on available for sale securities, tax | $ 80 | $ 1,280 | $ (1,563) |
Reclassification adjustment for net gain on sales of available for sale securities included in net income, tax | (110) | (57) | (75) |
Change in defined benefit plans, tax | $ 185 | $ 7 | $ 7 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Series A Preferred Stock [Member]Preferred Stock [Member] | Series A Preferred Stock [Member]Retained Earnings [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member]Additional Paid-in Capital [Member] | Series B Preferred Stock [Member]Retained Earnings [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member]Preferred Stock [Member] | Series C Preferred Stock [Member]Retained Earnings [Member] | Series C Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2012 | $ 4,880 | $ 3,490 | $ 29,816 | $ 11,741 | $ 2,293 | $ 52,220 | ||||||||||
Net income | 4,939 | 4,939 | ||||||||||||||
Total other comprehensive income (loss), net of taxes | (3,165) | (3,165) | ||||||||||||||
Employee Stock Purchase Plan | 4 | 51 | 55 | |||||||||||||
Common stock dividends | (872) | (872) | ||||||||||||||
Preferred stock issuance | $ 120 | $ 120 | ||||||||||||||
Preferred stock issuance, costs | $ (14) | |||||||||||||||
Preferred stock dividends | $ (309) | $ (309) | ||||||||||||||
Amortization of warrant costs | $ (14) | |||||||||||||||
Warrant repurchase | (58) | (58) | ||||||||||||||
Balance at Dec. 31, 2013 | 5,000 | 3,494 | 29,853 | 15,441 | (872) | 52,916 | ||||||||||
Net income | 5,701 | 5,701 | ||||||||||||||
Total other comprehensive income (loss), net of taxes | 2,385 | 2,385 | ||||||||||||||
Employee Stock Purchase Plan | 4 | 49 | 53 | |||||||||||||
Common stock dividends | (1,575) | (1,575) | ||||||||||||||
Preferred stock dividends | $ (350) | (350) | ||||||||||||||
Balance at Dec. 31, 2014 | $ 5,000 | 3,498 | 29,902 | 19,217 | 1,513 | 59,130 | ||||||||||
Net income | 6,528 | 6,528 | ||||||||||||||
Total other comprehensive income (loss), net of taxes | 299 | 299 | ||||||||||||||
Employee Stock Purchase Plan | 4 | 62 | 66 | |||||||||||||
Common stock dividends | (1,785) | (1,785) | ||||||||||||||
Preferred stock issuance | $ 1,750 | $ 1,750 | ||||||||||||||
Preferred stock redemption | $ (5,000) | (5,000) | $ (1,750) | (1,750) | ||||||||||||
Preferred stock redemption premimum | (100) | (100) | ||||||||||||||
Preferred stock dividends | $ (373) | $ (373) | $ (17) | $ (17) | ||||||||||||
Common stock issued, acquisition related | 724 | 10,568 | 11,292 | |||||||||||||
Restricted stock compensation expense | 1 | 27 | 28 | |||||||||||||
Balance at Dec. 31, 2015 | $ 4,227 | $ 40,559 | $ 23,470 | $ 1,812 | $ 70,068 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Changes in Shareholder's Equity [Abstract] | |||
Stock issued during period, shares, employee stock purchase plans | 4,162 | 3,432 | 4,713 |
Stock issued during period, shares, acquisitions | 723,851 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||
Net Income | $ 6,528,000 | $ 5,701,000 | $ 4,939,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan and lease losses | 1,065,000 | 1,617,000 | 1,685,000 |
Depreciation | 1,485,000 | 1,235,000 | 1,250,000 |
Amortization of intangibles | 100,000 | 62,000 | 39,000 |
Net amortization of security premiums | 4,251,000 | 1,250,000 | 2,557,000 |
Gain on sales of investment securities | (325,000) | (168,000) | (220,000) |
Earnings on cash surrender value of life insurance | (269,000) | (201,000) | (231,000) |
SBA loans originated for sale | (3,484,000) | (1,168,000) | |
Proceeds from sales of SBA loans originated for sale | 3,736,000 | 1,287,000 | |
Gain on sale of SBA loans | (252,000) | (119,000) | |
Loss (gain) on disposal of property, plant, and equipment | 18,000 | (8,000) | |
Loss (gain) on sale / write-down of foreclosed assets | 111,000 | 204,000 | (302,000) |
Restricted stock compensation expense | 27,000 | ||
Deferred income tax expense (benefit) | 997,000 | (112,000) | 192,000 |
(Increase) decrease in accrued interest receivable | (367,000) | (354,000) | 189,000 |
Decrease (increase) in other assets | 333,000 | (547,000) | 500,000 |
Increase (decrease) in accrued interest payable | 9,000 | (44,000) | (227,000) |
(Decrease) increase in other liabilities | (771,000) | 9,000 | 319,000 |
Net Cash Provided By Operating Activities | 13,174,000 | 8,670,000 | 10,682,000 |
Investing Activities: | |||
Net decrease in interest-bearing time deposits with other financial institutions | 1,455,000 | 1,741,000 | 16,050,000 |
Proceeds from the maturity of investment securities | 11,940,000 | 13,585,000 | 37,101,000 |
Proceeds from the sale of investment securities | 37,142,000 | 13,729,000 | 15,118,000 |
Purchases of investment securities | (35,858,000) | (43,633,000) | (27,881,000) |
Net cash received from acquisition | 8,095,000 | ||
Purchases of restricted investment in bank stock | (576,000) | (212,000) | (466,000) |
Net increase in loans and leases | (60,043,000) | (27,170,000) | (65,896,000) |
Purchases of bank premises and equipment | (1,461,000) | (1,009,000) | (588,000) |
Proceeds from sale of foreclosed assets | 403,000 | 1,077,000 | 2,957,000 |
Net Cash Used In Investing Activities | (38,903,000) | (41,892,000) | (23,605,000) |
Financing Activities: | |||
Net increase (decrease) in time deposits | 15,883,000 | 29,792,000 | (17,331,000) |
Net increase (decrease) in short-term borrowings | 31,018,000 | (23,255,000) | 23,833,000 |
Common stock dividend paid | (1,785,000) | (1,575,000) | (872,000) |
Employee Stock Purchase Plan | 66,000 | 53,000 | 55,000 |
Warrant repurchase | (58,000) | ||
Long-term debt repayment | (16,226,000) | (184,000) | (14,365,000) |
Proceeds from long-term debt borrowings | 30,000,000 | 15,000,000 | |
Deferred financing fees paid for subordinated debt issuance | (85,000) | ||
Subordinated debt issuance | 7,500,000 | ||
Net Cash Provided By Financing Activities | 29,131,000 | 34,481,000 | 6,073,000 |
Net increase (decrease) in cash and cash equivalents | 3,402,000 | 1,259,000 | (6,850,000) |
Cash and cash equivalents, beginning of year | 9,882,000 | 8,623,000 | 15,473,000 |
Cash and cash equivalents, end of year | 13,284,000 | 9,882,000 | 8,623,000 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest paid | 4,566,000 | 4,471,000 | 5,284,000 |
Income taxes paid | 1,130,000 | 1,520,000 | 775,000 |
Supplemental Noncash Disclosures: | |||
Loan transfers to foreclosed assets held for sale | 1,135,000 | 881,000 | 2,777,000 |
Common stock issued to Phoenix shareholders | 11,292,000 | ||
Series B Preferred Stock [Member] | |||
Financing Activities: | |||
Preferred stock redemption | (5,000,000) | ||
Preferred stock issuance | 120,000 | ||
Preferred stock dividend paid | (473,000) | $ (350,000) | $ (309,000) |
Series C Preferred Stock [Member] | |||
Financing Activities: | |||
Preferred stock redemption | (1,750,000) | ||
Preferred stock dividend paid | $ (17,000) |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
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. The comparability of the financial condition of Mid Penn as of December 31, 2015 compared to December 31, 2014, and the results of operations for the year ended 2015 compared to 2014 and 2013, in general, have been impacted by the acquisition of Phoenix as further described in Note 4. For comparative purposes, the 2014 and 2013 balances have been reclassified to conform to the 2015 presentation. Such reclassifications had no impact on net income. |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
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, 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 20 retail banking properties located in eastern Cumberland, Dauphin, northwestern Lancaster, western Luzerne, southern Northumberland, and Schuylkill Counties. A decision was made to close Mid Penn Insurance Services, LLC, effective March 1, 2016 due to a lack of activity within the subsidiary. Mid Penn Insurance Services, LLC was an immaterial subsidiary of Mid Penn. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, the assessment of other-than-temporary impairment of investment securities, the valuation of the goodwill for impairment, and the valuation of assets acquired and liabilities assumed in business combinations. (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. Premiums and discounts on debt securities are amortized as an adjustment to interest income using the interest method. 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 $325,000 in 2015, $ 168,000 in 2014, and $ 220,000 in 2013. Mid Penn had no held to maturity securities in 2015 and 2014 . (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 is credited to income. 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. 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 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 liens, 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 $94,500 at December 31, 2015 and $60,000 at December 31, 2014. 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 collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures, including underwriting standards, changes in the mix and volume of loans originated, the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, 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 generally 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 or sooner when it is probable that Mid Penn will be unable to collect all contractual principal and interest due. This methodology assumes the borrower cannot or will not continue to make additional payments. At that time the loan would generally be considered collateral dependent as the DCF method would generally indicate no operating income available for evaluating the collateral position; therefore, most impaired loans are deemed to be collateral dependent. In addition, Mid Penn’s rating system assumes any loans classified as nonaccrual, included in the substandard rating, to be impaired, and most of these loans are considered collateral dependent; therefore, most 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 substandard 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. The remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. Commercial real estate loans 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. 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 collateral shortfall of the consumer loan is recommended for charge-off at this point. As noted above, Mid Penn assesses a specific allocation for commercial loans and commercial real estate loans. 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 as soon as practically possible of the credit being classified as substandard nonaccrual. 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 such time Mid Penn is in receipt of the updated valuation. The Asset Recovery department employs an electronic tracking system to monitor the receipt of and need for updated appraisals. To date, there have been no material 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 as soon as practically possible of the credit being placed on nonaccrual 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 12 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. Nonaccrual 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. Acquired Loans Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of the existing related allowance for loan losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under the Accounting Standard Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require Mid Penn to evaluate the need for an additional allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which Mid Penn will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. Loans acquired through business combinations that do meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, Mid Penn establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent if Mid Penn expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, Mid Penn may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. (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 Investments in Bank Stocks Restricted investments in bank stocks represent required investments in the common stock of correspondent banks. As a member of the FHLB and Atlantic Community Bankers Bank (“ACBB”), the Bank is required to own restricted stock investments in these correspondent banks, which is carried at cost. The total amount of these restricted stock investments was $4,266,000 December 31, 2015 and $3,181,000 at December 31, 2014. Total dividends received in 2015 and 2014 totaled $250,000 and $123,000 , respectively. (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. As of December 31, 2015, Mid Penn had $358,000 of residential real estate held in other real estate owned. There were no loans for which formal foreclosure proceedings were in process at December 31, 2015. (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 core deposit and other intangibles in the Consolidated Balance Sheets 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 $ 174,000 and $ 187 ,000 at December 31, 2015 and 2014, respectively. Amortization expense is reflected in the Consolidated Statements of Income in other income and was $24,000 , $36,000 , and $10,000 for the years 2015, 2014, and 2013, respectively. 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 $ 365,000 at December 31, 2015 and $408,000 at December 31, 2014, net of amortization, using the straight-line method and is reported in other assets on the Consolidated Balance Sheets. 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 2015, 2014 and 2013. (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 |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Mergers and Acquisitions [Abstract] | |
Mergers and Acquisitions | (4) Mergers and Acquisitions On March 1, 2015, Phoenix Bancorp, Inc. (“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 (“Miners”), a Pennsylvania-state chartered bank and wholly-owned subsidiary of Phoenix, merged with and into the Bank. As part of this transaction, Phoenix shareholders received either 3.167 shares of the Company’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 the Company’s common stock as settlement of such rights. As a result, the Company issued 723,851 shares of common stock with an acquisition date fair value of approximately $11,292,000 , based on the closing stock price of the Company’s common stock on February 27, 2015 of $15.60 , and cash of $2,949,000 . Including an insignificant amount of cash paid in lieu of fractional shares, the fair value of total consideration paid was $14,241,000 . 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 United States Treasury (“Treasury”) in connection with the Small Business Lending Fund and issued 1,750 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series C that had a $1,000 liquidation preference per share (the “SBLF Preferred Shares”), to the Treasury. The SBLF Preferred Shares qualified as Tier 1 capital and had terms and conditions identical to those shares of preferred stock issued by Phoenix to the Treasury. The assets and liabilities of Miners and Phoenix were recorded on the consolidated balance sheet at their estimated fair value as of March 1, 2015, and their results of operations have been included in the consolidated income statement since that date. Included in the purchase price was goodwill and a core deposit intangible of $2,902,000 and $578,000 , respectively. The core deposit intangible will be amortized over a ten -year period using a sum of the year’s digits basis. The goodwill is not taxable and will not be amortized, but will be measured annually for impairment or more frequently if circumstances require. Core deposit intangible amortization expense projected for the next five years beginning in 2016 is estimated to be $96,000 , $86,000 , $75,000 , $65,000 , and $54,000 per year, respectively, and $114,000 in total for years after 2020. The allocation of the purchase price is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 11,044 Investment securities 11,331 Loans 110,363 Goodwill 2,902 Core deposit and other intangibles 578 Other assets 7,489 Total assets acquired 143,707 Liabilities assumed: Deposits 123,238 FHLB borrowings 3,570 Other liabilities 908 Total liabilities assumed 127,716 Equity acquired: Preferred stock 1,750 Total equity acquired and liabilities assumed 129,466 Consideration paid $ 14,241 Cash paid $ 2,949 Fair value of common stock issued, including replacement equity awards 11,292 The following table summarizes the estimated fair value of the assets acquired and liabilities and equity assumed. (Dollars in thousands) Total purchase price $ 14,241 Net assets acquired: Cash and cash equivalents 11,044 Investment securities 11,331 Restricted stock 509 Loans 110,363 Bank owned life insurance 3,673 Premises and equipment 1,792 Deferred income taxes 503 Accrued interest receivable 388 Core deposit and other intangibles 578 Other assets 624 Deposits (123,238) FHLB borrowings (3,570) Accrued interest payable (32) Other liabilities (876) Preferred stock (1,750) 11,339 Goodwill $ 2,902 The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $112,816,000 . The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at March 1, 2015 $ 112,816 Market rate adjustment 270 Credit fair value adjustment on pools of homogeneous loans (1,461) Credit fair value adjustment on impaired loans (1,262) Fair value of purchased loans at March 1, 2015 $ 110,363 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the stated rates of the acquired loans. The credit adjustment made on pools of homogeneous loans represents the changes in credit quality of the underlying borrowers from the loan inception to the acquisition date. The credit adjustment on impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balance that has been deemed uncollectible based on our expectations of future cash flows for each respective loan. The information about the acquired Phoenix loans accounted for under ASC 310-30 as of March 1, 2015 is as follows: (Dollars in thousands) Contractually required principal and interest at acquisition $ 3,548 Contractual cash flows not expected to be collected (nonaccretable discount) (804) Expected cash flows at acquisition 2,744 Interest component of expected cash flows (accretable discount) (458) Fair value of acquired loans $ 2,286 The following table presents pro forma information as if the merger between Mid Penn and Phoenix had been completed on January 1, 2014. The pro forma information does not necessarily reflect the results of operations that would have occurred had Mid Penn merged with Phoenix at the beginning of 2014. Supplemental pro forma earnings for 2015 were adjusted to exclude $762,000 of merger related costs incurred for the year ended December 31, 2015; the results for the year ended December 31, 2014 were adjusted to include these charges. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies, or other factors. The pro forma data is intended for informational purposes and is not indicative of the future results of operations. (Dollars in thousands, except per share data) Years Ended December 31, 2015 2014 Net interest income after loan loss provision $ 31,454 $ 29,745 Noninterest income 4,152 4,131 Noninterest expense 27,817 26,846 Net income available to common shareholders 5,811 5,259 Net income per common share 1.38 1.25 The amount of total revenue, consisting of interest income plus noninterest income specifically related to Phoenix for the period beginning March 1, 2015, included in the consolidated statements of income of Mid Penn for the year ended December 31, 2015, was $4,244 ,000. The net income specifically related to Phoenix for the period beginning March 1, 2015, included in the consolidated statements of income of Mid Penn for the year ended December 31, 2015, was $747 ,000. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | (5) Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, net of taxes, are as follows: (Dollars in thousands) Unrealized Gain on Securities Defined Benefit Plan Liability Accumulated Other Comprehensive Income Balance - December 31, 2015 $ 1,565 $ 247 $ 1,812 Balance - December 31, 2014 $ 1,626 $ (113) $ 1,513 |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Bank Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Restrictions on Cash and Due from Bank Accounts [Abstract] | |
Restrictions on Cash and Due from Bank Accounts | (6) 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, 2015 and December 31, 2014 because the Bank had sufficient vault cash available. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities [Abstract] | |
Investment Securities | (7) 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. Mid Penn had no other-than-temporary impaired equity securities in 2015, 2014, and 2013. At December 31, 2015 and 2014, amortized cost, fair value, and unrealized gains and losses on investment securities are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value Available for sale securities: U.S. Treasury and U.S. government agencies $ 26,316 $ 729 $ 55 $ 26,990 Mortgage-backed U.S. government agencies 38,983 49 228 38,804 State and political subdivision obligations 64,780 1,914 77 66,617 Equity securities 3,271 82 43 3,310 $ 133,350 $ 2,774 $ 403 $ 135,721 (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2014 Cost Gains Losses Value 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 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 $ 130,298,000 at December 31, 2015, and $ 134,740,000 at December 31, 2014, were pledged primarily to secure public deposits. 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, 2015 and 2014. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized December 31, 2015 Securities Value Losses Securities Value Losses Securities Value Losses Available for sale securities: U.S. Treasury and U.S. government agencies 6 $ 6,259 $ 43 2 $ 1,383 $ 12 8 $ 7,642 $ 55 Mortgage-backed U.S. government agencies 13 12,759 124 11 6,282 104 24 19,041 228 State and political subdivision obligations 9 4,041 32 3 1,631 45 12 5,672 77 Equity securities 1 990 10 2 615 33 3 1,605 43 Total temporarily impaired available for sale securities 29 $ 24,049 $ 209 18 $ 9,911 $ 194 47 $ 33,960 $ 403 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized December 31, 2014 Securities Value Losses Securities Value Losses Securities Value Losses Available for sale securities: U.S. Treasury and U.S. government agencies 5 $ 6,059 $ 29 - $ - $ - 5 $ 6,059 $ 29 Mortgage-backed U.S. government agencies 15 9,511 62 5 4,416 115 20 13,927 177 State and political subdivision obligations 9 4,444 33 28 13,947 285 37 18,391 318 Equity securities 0 - - 2 583 23 2 583 23 Total temporarily impaired available for sale securities 29 $ 20,014 $ 124 35 $ 18,946 $ 423 64 $ 38,960 $ 547 Management evaluates securities for other-than-temporary impairment 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, 2015, Mid Penn had 44 debt securities and 3 equity securities with unrealized losses totaling $403,000 that depreciated 1.19% from their amortized cost basis. At December 31, 2015, the majority of the unrealized losses on securities in an unrealized loss position were attributed to mortgage-backed U.S. government agencies. 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. Mid Penn realized gross gains of $325,000 , $168,000 , and $220,000 on sales of securities available for sale during 2015, 2014, and 2013, respectively. Mid Penn realized no gross losses on the sales of securities available for sale during 2015, 2014, and 2013. 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, 2015. (Dollars in thousands) December 31, 2015 Amortized Fair Cost Value Due in 1 year or less $ 5,266 $ 5,351 Due after 1 year but within 5 years 31,508 32,519 Due after 5 years but within 10 years 51,069 52,500 Due after 10 years 3,253 3,237 91,096 93,607 Mortgage-backed securities 38,983 38,804 Equity securities 3,271 3,310 $ 133,350 $ 135,721 |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Allowance for Loan and Lease Losses [Abstract] | |
Loans and Allowance for Loan and Lease Losses | (8) Loans and Allowance for Loan and Lease Losses The classes of the loan portfolio, summarized by the aggregate pass rating, net of deferred fees and costs of ( $178,000 ) and ( $194,000 ) as of December 31, 2014 and 2014, respectively, and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2015 and 2014 are noted below: (Dollars in thousands) December 31, 2015 Pass Special Mention Substandard Doubtful Total Commercial and industrial $ 158,302 $ 1,289 $ 670 $ - $ 160,261 Commercial real estate 359,859 2,088 7,517 - 369,464 Commercial real estate - construction 65,665 2,403 - - 68,068 Lease financing 727 - - - 727 Residential mortgage 101,507 475 1,361 - 103,343 Home equity 32,928 261 222 - 33,411 Consumer 3,917 - - - 3,917 $ 722,905 $ 6,516 $ 9,770 $ - $ 739,191 (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 Impaired loans by loan portfolio class as of December 31, 2015 and 2014 are summarized as follows: December 31, 2015 December 31, 2014 (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: Commercial and industrial $ 14 $ 49 $ - $ 395 $ 430 $ - Commercial real estate: Commercial real estate 1,023 2,020 - 1,971 4,481 - Acquired with credit deterioration* 931 - - - - - Residential mortgage: Residential mortgage 1,329 1,434 - 1,146 1,286 - Acquired with credit deterioration* 400 - - - - - Home equity: Home equity 115 137 - 29 88 - With an allowance recorded: Commercial and industrial $ 113 $ 128 $ 51 $ 223 $ 231 $ 137 Commercial real estate 1,947 1,981 429 6,954 7,255 1,382 Residential mortgage 32 32 23 - - - Home equity - - - 211 213 115 Total: Commercial and industrial $ 127 $ 177 $ 51 $ 618 $ 661 $ 137 Commercial real estate 3,901 4,001 429 8,925 11,736 1,382 Residential mortgage 1,761 1,466 23 1,146 1,286 - Home equity 115 137 - 240 301 115 * Loans acquired with credit deterioration are presented net of credit fair value adjustment. Average recorded investment of impaired loans and related interest income recognized for the years ended December 31, 2015, 2014, and 2013 are summarized as follows: December 31, 2015 December 31, 2014 December 31, 2013 (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: Commercial and industrial $ 19 $ - $ 72 $ - $ 188 $ - Acquired with credit deterioration - 205 - - - - Commercial real estate: Commercial real estate 1,051 14 1,966 346 2,506 187 Acquired with credit deterioration 926 350 - - - - Residential mortgage: Residential mortgage 816 8 541 - 299 - Acquired with credit deterioration 400 - - - - - Home equity: Home equity 107 - 29 - 31 - Acquired with credit deterioration - 3 - - - - With an allowance recorded: Commercial and industrial $ 123 $ - $ 93 $ - $ 51 $ - Commercial real estate 1,721 - 6,823 - 4,349 - Residential mortgage 25 - - - 13 - Home equity - - 76 - 54 - Total: Commercial and industrial $ 142 $ 205 $ 165 $ - $ 239 $ - Commercial real estate 3,698 364 8,789 346 6,855 187 Residential mortgage 1,241 8 541 - 312 - Home equity 107 3 105 - 85 - Nonaccrual loans by loan portfolio class as of December 31, 2015 and 2014 are summarized as follows: (Dollars in thousands) 2015 2014 Commercial and industrial $ 66 $ 267 Commercial real estate 2,607 7,249 Residential mortgage 1,630 1,152 Home equity 115 239 $ 4,418 $ 8,907 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 $ 778,000 , $ 798,000 , and $ 861,000 , in the years ended December 31, 2015, 2014, and 2013, 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, 2015 and 2014 are summarized as follows: (Dollars in thousands) December 31, 2015 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: Commercial and industrial $ 55 $ 204 $ 66 $ 325 $ 159,936 $ 160,261 $ - Commercial real estate: Commercial real estate 211 608 1,456 2,275 366,263 368,538 - Acquired with credit deterioration 215 518 55 788 138 926 55 Commercial real estate - construction: Commercial real estate - construction - - - - 68,068 68,068 - Lease financing: Lease financing - - - - 727 727 - Residential mortgage: Residential mortgage 694 550 778 2,022 100,921 102,943 - Acquired with credit deterioration 12 - 222 234 166 400 - Home equity: Home equity - 50 23 73 33,338 33,411 - Consumer: Consumer 10 5 - 15 3,902 3,917 - Total $ 1,197 $ 1,935 $ 2,600 $ 5,732 $ 733,459 $ 739,191 $ 55 (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 $ - Activity in the allowance for loan and lease losses and recorded investment in loans receivable for the years ended December 31, 2015, 2014, and 2013, and as of December 31, 2015, 2014, and 2013 are as follows: (Dollars in thousands) December 31, 2015 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 $ 1,393 $ 3,925 $ 33 $ 2 $ 450 $ 653 $ 35 $ 225 $ 6,716 Charge-offs (130) (1,569) - - (35) (36) (14) - (1,784) Recoveries 12 75 - - 44 29 11 - 171 Provisions 118 1,121 120 (1) 75 (329) (20) (19) 1,065 Ending balance $ 1,393 $ 3,552 $ 153 $ 1 $ 534 $ 317 $ 12 $ 206 $ 6,168 Ending balance: individually evaluated for impairment $ 51 $ 429 $ - $ - $ 23 $ - $ - $ - $ 503 Ending balance: collectively evaluated for impairment $ 1,342 $ 3,123 $ 153 $ 1 $ 511 $ 317 $ 12 $ 206 $ 5,665 Loans receivable: Ending balance $ 160,261 $ 369,464 $ 68,068 $ 727 $ 103,343 $ 33,411 $ 3,917 $ - $ 739,191 Ending balance: individually evaluated for impairment $ 127 $ 2,970 $ - $ - $ 1,361 $ 115 $ - $ - $ 4,573 Ending balance: collectively evaluated for impairment $ 160,134 $ 365,563 $ 68,068 $ 727 $ 101,582 $ 33,296 $ 3,917 $ - $ 733,287 Ending balance: acquired with credit deterioration $ - $ 931 $ - $ - $ 400 $ - $ - $ - $ 1,331 (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 receivable: 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 receivable: 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 The recorded investments in troubled debt restructured loans at December 31, 2015 and 2014 are as follows: (Dollars in thousands) Pre-Modification Post-Modification December 31, 2015 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 40 $ 35 $ 15 Commercial real estate 3,634 3,117 2,235 Residential mortgage 733 727 555 $ 4,407 $ 3,879 $ 2,805 (Dollars in thousands) Pre-Modification Post-Modification December 31, 2014 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 At December 31, 2015, Mid Penn’s troubled debt restructured loans totaled $2,805,000 , of which four loans totaling $459,000 , represented accruing impaired loans in compliance with the terms of the modification. Of the $459,000, three are accruing impaired residential mortgages to unrelated borrowers totaling $64,000 and the other one is an accruing impaired commercial real estate loan for $395,000 . The remaining $2,346,000 , representing nine loans among four relationships, are nonaccrual impaired loans, and resulted in a collateral evaluation in accordance with the guidance on impaired loans. One large relationship accounts for $1,370,000 of the $2,346,000 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, 2015, there were no charge-offs associated with troubled debt restructured loans while under a forbearance agreement. As of December 31, 2015, 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 2015. One forbearance agreement was negotiated during 2008, nine forbearance agreements were negotiated during 2009, two were negotiated during 2013, and one was negotiated during 2014. 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 fourteen 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 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 , ten forbearance agreements were negotiated during 2009 , one was negotiated during 2010 , four were negotiated during 2013 , and four were negotiated during 2014 . 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 no loans modified in 2015 and four loans modified in 2014 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 December 31, 2014 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 The following table provides activity for the accretable yield of purchased impaired loans for the year ended December 31, 2015. (Dollars in thousands) Accretable yield, January 1, 2015 $ - Acquisition of impaired loans 458 Accretable yield amortized to interest income (280) Accretable yield, December 31, 2015 $ 178 The Bank has granted loans to certain of its executive officers, directors, and their related interests. The aggregate amount of these loans was $ 10,657,000 and $ 6,559,000 at December 31, 2015 and 2014, respectively. $2,096,000 of this increase is from the addition of Phoenix’s related party loans. During 2015, $ 5,441,000 of new loans and advances were extended and repayments totaled $ 3,440,000 . None of these loans were past due, in nonaccrual status, or restructured at December 31, 2015. |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Bank Premises and Equipment [Abstract] | |
Bank Premises and Equipment | (9) Bank Premises and Equipment At December 31, 2015 and 2014, bank premises and equipment are as follows: (Dollars in thousands) 2015 2014 Land $ 2,906 $ 2,712 Buildings 10,789 10,116 Furniture, fixtures, and equipment 8,742 7,236 Leasehold improvements 1,212 826 Construction in progress 18 497 23,667 21,387 Less accumulated depreciation (9,674) (9,162) $ 13,993 $ 12,225 Depreciation expense was $ 1,485,000 in 2015, $ 1,235,000 in 2014, and $ 1,250,000 in 2013. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | (10) Deposits At December 31, 2015 and 2014, time deposits amounted to $160,849,000 and $124,785,000 , respectively. Interest expense on such certificates of deposit amounted to $1,920,000 , $1,971,000 , and $2,568,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The aggregate amount of demand deposit overdrafts that were reclassified as loans were $567,000 at December 31, 2015, compared to $192,000 as of December 31, 2014 These time deposits at December 31, 2015, mature as follows: (Dollars in thousands) Time Deposits Less than $250,000 $250,000 or more Maturing in 2016 $ 62,867 $ 5,836 Maturing in 2017 36,958 2,654 Maturing in 2018 13,459 2,037 Maturing in 2019 17,014 3,201 Maturing in 2020 14,760 1,230 Maturing thereafter 833 - $ 145,891 $ 14,958 Brokered deposits included in the time deposit totals equaled $ 11,168,000, at December 31, 2015 and $ 4,462,000 at December 31, 2014. Included in the $11,168,000 is $6,221,000 in brokered certificates of deposit Mid Penn acquired from Phoenix. Deposits and other funds from related parties held by Mid Penn at December 31, 2015 and 2014 amounted to $ 17,163,000 and $ 9,987,000 , respectively. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Borrowings [Abstract] | |
Short-term Borrowings | (11) Short-term Borrowings Short-term borrowings generally have terms of less than a week. Mid Penn’s short-term borrowings consist of federal funds purchased totaling $31,596,000 with a rate of 0.40% at December 31, 2015 and $578,000 with a rate of 0.24% at December 31, 2014. The Bank also has short-term borrowing capacity from the FHLB up to the Bank’s unused borrowing capacity of $342,362,000 at December 31, 2015, upon satisfaction of any stock purchase requirements of the FHLB, and unused overnight lines of credit with correspondent banks amounting to $ 15,000,000 at December 31, 2015. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt [Abstract] | |
Long-term Debt | (12) 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. As of December 31, 2015 and 2014, the Bank had long-term debt in the amount of $40,305,000 and $52,961,000 , respectively, consisting of: (Dollars in thousands) At December 31, 2015 2014 Loans maturing in 2015 with rates ranging from 0.58% to 4.18% $ - $ 15,000 Loans maturing in 2016 with rates ranging from 0.54% to 1.08% 26,521 25,000 Loans maturing in 2017 at a rate of 3.03% 1,016 - Loan maturing in 2019 at a rate of 1.87% 10,000 10,000 Loan maturing in 2026 at a rate of 4.80% 2,703 2,892 Loan maturing in 2027 at a rate of 6.71% 65 69 $ 40,305 $ 52,961 The aggregate amounts due on long-term debt subsequent to December 31, 2015 are $ 26,724,000 (2016), $ 1,229,000 (2017), $ 223,000 (2018) , $10,235,000 (2019), $246,000 (2020), and $ 1,648,000 thereafter. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | (13) Subordinated Debt On December 9, 2015, Mid Penn sold $7,500,000 aggregate principal amount of its Notes due 2025. The Notes are treated as Tier 2 capital for regulatory capital purposes. The Notes bear interest at a rate of 5.15% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50% , provided that the interest rate applicable to the outstanding principal balance will at no times be less than 4.0% . Interest will be payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. The Notes will mature on December 9, 2025 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 9, 2020, and prior to December 9, 2025. Additionally, Mid Penn may redeem the Notes in whole at any time, or in part from time to time, upon at least 30 days’ notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended, in each case at 100% of the principal amount of the subordinated notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the Notes may not accelerate the maturity of the Notes, except upon Mid Penn’s or Mid Penn Bank, its principal banking subsidiary’s, bankruptcy, insolvency, liquidation, receivership or similar event. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | (14) 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 years ended December 31, 2015 or 2014. The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels: Fair value measurements at December 31, 2015 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2015 (Level 1) (Level 2) (Level 3) U.S. Treasury and U.S. government agencies $ 26,990 $ - $ 26,990 $ - Mortgage-backed U.S. government agencies 38,804 - 38,804 - State and political subdivision obligations 66,617 - 66,617 - Equity securities 3,310 1,240 2,070 - $ 135,721 $ 1,240 $ 134,481 $ - 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: December 31, 2014 (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 $ - 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, 2015 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2015 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,088 $ - $ - $ 2,088 Foreclosed Assets Held for Sale 453 - - 453 Mortgage Servicing Rights 174 - - 174 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: December 31, 2014 (Level 1) (Level 2) (Level 3) Impaired Loans $ 6,664 $ - $ - $ 6,664 Foreclosed Assets Held for Sale 142 - - 142 Mortgage Servicing Rights 187 - - 187 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 December 31, 2015 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,088 Appraisal of collateral (1) Appraisal adjustments (2) 11% - 60% 30% Foreclosed Assets Held for Sale 453 Appraisal of collateral (1), (3) Appraisal adjustments (2) 17% - 27% 26% Mortgage Servicing Rights 174 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 360% (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements December 31, 2014 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% (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 substandard nonaccrual to be impaired, and most of these loans are considered collateral dependent; therefore, most 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 as soon as practically possible of the credit being classified as substandard nonaccrual. 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 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 12 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 and Subordinated 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, 2015 and 2014. (Dollars in thousands) December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 13,284 $ 13,284 $ 9,882 $ 9,882 Interest-bearing time balances with other financial institutions 4,317 4,317 5,772 5,772 Available for sale investment securities 135,721 135,721 141,634 141,634 Net loans and leases 733,023 738,773 564,817 572,487 Restricted investment in bank stocks 4,266 4,266 3,181 3,181 Accrued interest receivable 3,813 3,813 3,058 3,058 Mortgage servicing rights 174 174 187 187 Financial liabilities: Deposits $ 777,043 $ 777,320 $ 637,922 $ 639,226 Short-term borrowings 31,596 31,596 578 578 Long-term debt 40,305 39,626 52,961 52,514 Subordinated debt 7,500 7,500 Accrued interest payable 390 390 349 349 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, 2015 and 2014. 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, short-term borrowings, and subordinated debt. 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 December 31, 2015 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 733,023 $ 738,773 $ - $ - $ 738,773 Financial instruments - liabilities Deposits $ 777,043 $ 777,320 $ - $ 777,320 $ - Long-term debt 40,305 39,626 - 39,626 - Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs December 31, 2014 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 - |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Postretirement Benefit Plans [Abstract] | |
Postretirement Benefit Plans | (15) 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 reimburse up to $5,000 in premiums for major medical insurance 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 will reimburse up to $5,000 in premiums for Medicare Advantage 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 $5,000 . (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, 2015, was $ 64,000 . 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, 2015 and 2014, and a statement of the funded status at December 31, 2015 and 2014. (Dollars in thousands) December 31, Change in benefit obligations: 2015 2014 Benefit obligations, January 1 $ 861 $ 836 Service cost 13 13 Interest cost 32 38 Actuarial gain (24) (26) Change in assumptions (4) 40 Change due to plan amendment (244) - Benefit payments (62) (40) Benefit obligations, December 31 $ 572 $ 861 Change in fair value of plan assets: Fair value of plan assets, January 1 $ - $ - Employer contributions 62 40 Benefit payments (62) (40) Fair value of plan assets, December 31 $ - $ - Funded status at year end $ (572) $ (861) Mid Penn has capped the benefit to future retirees under its post-retirement health benefit plan. Employees who had achieved ten years of service as of January 1, 2008 and subsequently retire after at least 20 years of service are eligible for reimbursement of major medical insurance premiums up to $5,000 , if the employee has not yet reached age 65. Upon becoming eligible for Medicare, Mid Penn will reimburse up to $5,000 in premiums for Medicare Advantage or a similar supplemental coverage. The maximum reimbursement period will not exceed five years regardless of retirement age and will end upon the participant obtaining other employment where major medical coverage is available or the participant’s death. The amount recognized in the consolidated balance sheet at December 31, 2015 and 2014, is as follows: (Dollars in thousands) 2015 2014 Accrued benefit liability $ 572 $ 861 The amounts recognized in accumulated other comprehensive income consist of: (Dollars in thousands) December 31, 2015 2014 Net gain, pretax $ (47) $ (19) Net prior service cost, pretax (244) - The accumulated benefit obligation for health and life insurance plans was $ 572,000 and $ 861,000 at December 31, 2015 and 2014, respectively. There will be no estimated prior service costs amortized from accumulated other comprehensive income into net periodic benefit cost during 2016. The components of net periodic postretirement benefit cost for 2015, 2014 and 2013 are as follows: (Dollars in thousands) 2015 2014 2013 Service cost $ 13 $ 13 $ 17 Interest cost 32 38 34 Amortization of prior service cost - (1) (1) Net periodic postretirement benefit cost $ 45 $ 50 $ 50 Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2015 and 2014 are as follows: Weighted-average assumptions: 2015 2014 Discount rate 4.25% 4.00% Rate of compensation increase 3.25% 3.00% Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are as follows: Weighted-average assumptions: 2015 2014 2013 Discount rate 4.00% 4.75% 4.00% Rate of compensation increase 3.00% 3.75% 3.00% Assumed health care cost trend rates at December 31, 2015, 2014 and 2013 are as follows: 2015 2014 2013 Health care cost trend rate assumed for next year 5.50% 6.50% 7.00% 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, 2015, 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 3 2 Mid Penn expects to contribute $66,000 to its life and health benefit Plans in 2016. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2016 to 12/31/2016 $ 66 1/1/2017 to 12/31/2017 57 1/1/2018 to 12/31/2018 60 1/1/2019 to 12/31/2019 64 1/1/2020 to 12/31/2020 44 1/1/2021 to 12/31/2025 195 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, 2015 and 2014 and a statement of the status at December 31, 2015 and 2014. This Plan is unfunded. (Dollars in thousands) December 31, Change in benefit obligations: 2015 2014 Benefit obligations, January 1 $ 1,186 $ 1,130 Service cost 33 33 Interest cost 45 51 Actuarial (gain) loss (8) (8) Change in assumptions (16) 69 Benefit payments (90) (89) Benefit obligations, December 31 $ 1,150 $ 1,186 Change in fair value of plan assets: Fair value of plan assets, January 1 $ - $ - Employer contributions 90 89 Benefit payments (90) (89) Fair value of plan assets, December 31 $ - $ - Funded status at year end $ (1,150) $ (1,186) Amounts recognized in the consolidated balance sheet at December 31, 2015 and 2014 are as follows: (Dollars in thousands) 2015 2014 Accrued benefit liability $ 1,150 $ 1,186 Amounts recognized in accumulated other comprehensive income consist of: (Dollars in thousands) December 31, 2015 2014 Net prior service cost, pretax $ 64 $ 86 Net loss, pretax 77 101 The accumulated benefit obligation for the retirement Plan was $ 1,150,000 at December 31, 2015 and $ 1,186,000 at December 31, 2014. The estimated prior service costs that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2016 is $ 21,525 . The components of net periodic retirement cost for 2015, 2014 and 2013 are as follows: (Dollars in thousands) 2015 2014 2013 Service cost $ 33 $ 33 $ 32 Interest cost 45 51 44 Amortization of prior-service cost 22 22 22 Net periodic retirement cost $ 100 $ 106 $ 98 Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2015 and 2014 are as follows: Weighted-average assumptions: 2015 2014 Discount rate 4.25% 4.00% Change in consumer price index 2.25% 2.00% Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are as follows: Weighted-average assumptions: 2015 2014 2013 Discount rate 4.00% 4.75% 4.00% Change in consumer price index 2.25% 2.75% 2.00% Mid Penn expects to contribute $93,000 to its retirement Plan in 2016. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2016 to 12/31/2016 $ 93 1/1/2017 to 12/31/2017 96 1/1/2018 to 12/31/2018 99 1/1/2019 to 12/31/2019 98 1/1/2020 to 12/31/2020 100 1/1/2021 to 12/31/2025 504 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 $ 3,764,000 and $ 3,689,000 at December 31, 2015 and 2014, respectively. |
Other Benefit Plans
Other Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Other Benefit Plans [Abstract] | |
Other Benefit Plans | (16) Other Benefit Plans (a) 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 $ 321,000 , $ 216,000 , and $ 129,000 for the years ending December 31, 2015, 2014, and 2013, respectively. (b) 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 2015 , 2014 , or 2013 . (c) 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 the Plan is a former executive officer. The Bank accrued a liability for the Plan of approximately $160,000 at December 31, 2015 and $ 177,000 at December 31, 2014. The expense related to the Plan was $9,000 in 2015, $6,000 in 2014, and $0 in 2013. 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, 2015 and 2014, the Bank accrued a liability of approximately $ 523,000 and $ 453,000 , respectively, for this Plan. The expense related to the Plan in 2015 and 2014 was $17,000 and $16,000 , respectively. Income of $11,000 was recorded in 2013. (d) 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, 2015 and 2014, the Bank accrued a liability of approximately $ 237,000 and $ 221,000 , respectively, for the Agreement. The expense related to the Agreement was $16,000 for 2015, $ 15,000 for 2014, and $ 14,000 for 2013. 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 $ 1,253,000 and $ 1,215,000 at December 31, 2015 and 2014, respectively. (e) Split Dollar Life Insurance Arrangements At December 31, 2015 and 2014, the Bank had Split Dollar Life Insurance arrangements with two former executives for which the aggregate collateral assignment and cash surrender values are approximately $ 1,806,000 and $ 1,776,000 , respectively. Mid Penn also acquired Phoenix’s Split Dollar Life Insurance arrangements in 2015 on select employees, which had aggregate cash surrender value of $3,749,000 at December 31, 2015. (f) 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, 2015 | |
Federal Income Taxes [Abstract] | |
Federal Income Taxes | (17) Federal Income Taxes The following temporary differences gave rise to the net deferred tax asset at December 31, 2015 and 2014. (Dollars in thousands) 2015 2014 Deferred tax assets: Allowance for loan and lease losses $ 2,097 $ 2,283 Loan fees 79 68 Deferred compensation 313 289 Benefit plans 586 696 Nonaccrual interest 554 955 Phoenix adjustments 1,166 - Other 170 111 4,965 4,402 Deferred tax liabilities: Depreciation (1,074) (801) Bond accretion (111) (106) Goodwill and intangibles (472) (264) Unrealized gain on securities (806) (837) Prepaid expenses (240) (266) Phoenix adjustments (428) - Other (13) (3) (3,144) (2,277) Deferred tax asset, net $ 1,821 $ 2,125 The Phoenix adjustments included in deferred tax assets consisted of a $409,000 general loan credit adjustment, $259,000 fixed asset mark, $204,000 specific loan credit adjustment, $103,000 net operating loss carry forward, $88,000 in disallowed charitable contributions, $63,000 for Phoenix’s Split Dollar Life Plan, and $40,000 in other deferred tax asset adjustments. The Phoenix adjustments included in deferred tax liabilities included a $166,000 core deposit intangible adjustment, $144,000 unearned discount and deferred loan fees adjustment, $68,000 general loan interest mark, and $50,000 reserve for loan losses method adjustment. In assessing the realizability of federal or state deferred tax assets, management considers whether it is more likely than not 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 income taxes consists of the following: (Dollars in thousands) 2015 2014 2013 Current $ 647 $ 1,574 $ 1,009 Deferred 997 (112) 192 Total provision for income taxes $ 1,644 $ 1,462 $ 1,201 A reconciliation of income tax at the statutory rate of 34% to Mid Penn's effective rate is as follows: (Dollars in thousands) 2015 2014 2013 Provision at the expected statutory rate $ 2,779 $ 2,435 $ 2,088 Effect of tax-exempt income (1,105) (1,086) (873) Effect of investment in life insurance (91) (68) (78) Nondeductible interest 37 42 40 Nondeductible merger and acquisition expense 34 163 - Other items (10) (24) 24 Provision for income taxes $ 1,644 $ 1,462 $ 1,201 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, 2015, 2014, or 2013. There were no amounts accrued for interest and penalties at December 31, 2015 or 2014. Mid Penn and its subsidiaries are subject to U.S. federal income tax and income tax for the state of Pennsylvania. With limited exceptions, Mid Penn is no longer subject to examination by taxing auth orities for years before 2012. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | (18) 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, 2015 and December 31, 2014, 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. The federal banking agencies have substantially amended the regulatory risk-based capital rules applicable to Mid Penn. The amendments implemented the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. The amended rules included new minimum risk -based capital and leverage ratios, which became effective in January 2015, with certain requirements to be phased in beginning in 2016, and refined the definition of what constitutes "capital" for purposes of calculating those ratios. The new minimum capital level requirements applicable to Mid Penn include: (i) a new common equity Tier I capital ratio of 4.5%; (ii) a Tier I capital ratio of 6.0% (increased from 4.0%); (iii) a total capital ratio of 8.0% (unchanged from current rules); and (iv) a Tier I leverage ratio of 4.0% for all institutions. The amended rules also establish a "capital conservation buffer" of 2.5% above the new regulatory minimum capital ratios, and would result in the following minimum ratios: (i) a common equity Tier I capital ratio of 7.0%; (ii) a Tier I capital ratio of 8.5%; and (iii) a total capital ratio of 10.5%. The new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations will establish a maximum percentage of eligible retained income that could be utilized for such actions. 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, 2015, $ 1,346,000 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, 2015, and December 31, 2014, 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, 2015: Tier 1 Capital (to Average Assets) $ 64,089 7.3% $ 35,098 4.0% $ N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 64,089 9.1% 31,731 4.5% N/A N/A Tier 1 Capital (to Risk Weighted Assets) 64,089 9.1% 42,308 6.0% N/A N/A Total Capital (to Risk Weighted Assets) 77,852 11.0% 56,410 8.0% N/A N/A Bank As of December 31, 2015: Tier 1 Capital (to Average Assets) $ 70,351 7.8% $ 36,245 4.0% $ 45,306 5.0% Common Equity Tier 1 Capital (to Risk Weighted Assets) 70,351 10.0% 31,698 4.5% 45,786 6.5% Tier 1 Capital (to Risk Weighted Assets) 70,351 10.0% 42,264 6.0% 56,352 8.0% Total Capital (to Risk Weighted Assets) 76,614 10.9% 56,352 8.0% 70,440 10.0% 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% |
Concentration of Risk and Off-B
Concentration of Risk and Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Risk and Off-Balance Sheet Risk [Abstract] | |
Concentration Risk and Off-Balance Sheet Risk | (19) 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, 2015 and 2014 for guarantees under letters of credit issued is not material. As of December 31, 2015, commitments to extend credit amounted to $ 157,338,000 and standby letters of credit amounted to $ 15,805,000 . 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 on a best efforts basis through the Mortgage Partnership Finance Program. The Program can be terminated by either the FHLB or Mid Penn, with our without cause, by giving notice to the other party. The FHLB has no obligation to commit to purchase any mortgage through, or from, Mid Penn. If Mid Penn fails to meet its commitment to deliver mortgages in an amount equal to, and prior to the expiration of a Delivery Commitment, a fee may be assessed. Mid Penn committed to fund and sell $10,000,000 from May 14, 2015 to May 13, 2016. As of December 31, 2015, $5,805,000 remained to be delivered on that commitment. Mid Penn committed to fund and sell $15,000,000 in qualifying residential mortgage loans to the FHLB from May 14, 2014 to May 13, 2015. As of December 31, 2014, $7,558,000 remained 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, 2015, 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 eastern Cumberland, Dauphin, northwestern Lancaster, western Luzerne, southern Northumberland, and western Schuylkill Counties. The Bank's highest concentrations of credit within the loan portfolio are in the areas of commercial real estate financing ( 48.1 %) as of December 31, 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (20) Commitments and Contingencies Operating Leases: Mid Penn entered into a non-cancelable operating lease agreement to lease approximately 2,500 square feet of retail banking space in the downtown Harrisburg area through July 2020 . This lease has an escalation clause increasing the annual base rent by 3.0% each year, which began August 1, 2015. Mid Penn also has a non-cancelable lease on a drive-up ATM site in Halifax, PA that runs through October 2018 . 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. 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. This lease has an escalation clause increasing the annual base rent by 2.0% each year. Mid Penn has a non-cancelable operating lease agreement with a related party to lease a retail banking property located on 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. This lease has an escalation clause increasing the annual base rent by 2.0% each year. Mid Penn also has a non-cancelable operating lease agreement to lease a retail banking property located on 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. Through the acquisition of Phoenix, Mid Penn assumed four additional operating leases. The first is a non-cancelable operating lease agreement to lease a retail banking property located on Main Street in Conyngham with the initial term extending through July 2020. Mid Penn has the option to renew this lease for three additional five -year terms. The second and third are non-cancelable operating lease agreements with a related party to lease approximately 6,000 square feet and an additional 3,000 square feet of office space on Route 61 South in Rockwood. The initial lease terms extend through March 2021 . Mid Penn has the option to renew these leases for two additional five -year terms. Both leases contain escalation clauses stating the annual rent payment is the greater of either the rent payment listed in the lease or the base rent increased by the change in the Consumer Price Index (“CPI”) during the year. The fourth is a non-cancelable operating lease agreement with a related party to lease a retail banking property located on South Lehigh Avenue in West Mahanoy Township with the initial term equal to the lessor’s amortization term for the lessor’s property development loan with Mid Penn. Mid Penn has the option to renew for two successive five -year terms. This lease has an escalation clause effective after the end of the lessor’s original loan amortization, which increases the annual base rate by the change in the CPI during the year. Minimum future rental payments under these operating leases as of December 31, 2015 are as follows: (Dollars in thousands) Lease Obligation Obligation to Related Parties 2016 715 319 2017 734 325 2018 745 329 2019 746 332 2020 438 335 thereafter 4,556 4,556 $ 7,934 $ 6,196 Rental expense in connection with leases in 2015, 2014, and 2013 were $ 627 ,000 , $ 15 1,000 , and $ 121,000 , respectively. Litigation: Mid Penn is subject to lawsuits and claims arising out of its normal conduct of 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, 2015 | |
Common Stock [Abstract] | |
Common Stock | (21) Common Stock Under Mid Penn’s amended and restated dividend reinvestment plan (“DRIP”), 330,750 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. Share-based compensation expense relating to restricted stock is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and benefits expense. As of December 31, 2015, 8,975 shares have been granted under the plan, which resulted in $27 ,000 in compensation expense in 2015, while there was no compensation expense in 2014 or 2013. On August 27, 2015, 875 of the granted shares vested. At December 31, 2015, there was $123,000 of unrecognized compensation cost related to all non-vested share-based compensation awards. This cost is expected to be recognized through July 2019. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Preferred Stock [Abstract] | |
Preferred Stock | (22) Preferred Stock Series B Preferred Stock Between September 26, 2012 and January 3, 2013, Mid Penn issued, via a private placement, 5,000 shares of its 7% Non-Cumulative Non-Voting Non-Convertible Perpetual Preferred Stock, Series B Preferred Stock, resulting in total gross proceeds of $ 5,000,000 . On December 9, 2015, Mid Penn, using a portion of the proceeds from the offering of the Notes, redeemed all of its issued and outstanding shares of Series B Preferred Stock at a price equal to $1,024.67 per share, which is equal to $1,020 per share plus an amount equal to declared but unpaid dividends on December 9, 2015, for a total redemption price of $5,123,000 . Small Business Lending Fund Preferred Shares On March 1, 2015, Mid Penn assumed all of the issued and outstanding shares 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 SBLF Preferred Shares that had a $1,000 liquidation preference per share, to the Treasury. The SBLF Preferred Shares qualified as Tier 1 capital and had terms and conditions identical to those shares of preferred stock issued by Phoenix to the Treasury. Mid Penn paid noncumulative dividends payable quarterly on January 1, April 1, July 1, and October 1. The dividend rate was 1.00% per annum for payment dates up to January 19, 2016. On December 15, 2015, Mid Penn, using a portion of the proceeds from the offering of the Notes, redeemed all of the outstanding shares of its SBLF Preferred Shares, which were held by the Treasury for an aggregate redemption price of $1,754,000 , including accrued but unpaid dividends. |
Parent Company Statements
Parent Company Statements | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Statements [Abstract] | |
Parent Company Statements | (23) Parent Company Statements CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2015 2014 ASSETS Cash and cash equivalents $ 564 $ 554 Equity investments 626 - Investment in subsidiaries 76,334 59,217 Other assets 100 - Total assets $ 77,624 $ 59,771 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt $ 7,500 $ - Other liabilities 56 641 Shareholders' equity 70,068 59,130 Total liabilities and shareholders' equity $ 77,624 $ 59,771 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) For Years Ended December 31, 2015 2014 2013 Income Dividends from subsidiaries $ 5,662 $ 2,325 $ 1,237 Other income 19 - - Total Income 5,681 2,325 1,237 Expense Other expenses (695) (716) (184) Total Expense (695) (716) (184) Income before income tax and equity in undistributed earnings (loss) of subsidiaries 4,986 1,609 1,053 Equity in undistributed earnings of subsidiaries 1,346 4,012 3,823 Income before income tax 6,332 5,621 4,876 Income tax benefit 196 80 63 Net income 6,528 5,701 4,939 Series A preferred stock dividends & discount accretion - - 14 Series B preferred stock dividends and redemption premium 473 350 309 Series C preferred stock dividends 17 Net income available to common shareholders $ 6,038 $ 5,351 $ 4,616 Comprehensive income $ 6,827 $ 8,086 $ 1,774 CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) For Years Ended December 31, 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,528 $ 5,701 $ 4,939 Equity in undistributed earnings of subsidiaries (1,346) (4,012) (3,823) (Increase) decrease in other assets (14) 8 3 (Decrease) increase in other liabilities (665) 292 334 Net cash provided by operating activities 4,503 1,989 1,453 CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid for acquisition (2,949) - - Net cash used in investing activities (2,949) - - CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (2,175) (1,925) (1,181) Series B preferred stock issuance, net of costs - - 120 Series B preferred stock redemption premium (100) - - Series B preferred stock redemption (5,000) - - Series C preferred stock redemption (1,750) - - Employee Stock Purchase Plan 66 53 55 Warrant repurchase - - (58) Deferred financing fees paid for subordinated debt issuance (85) - - Subordinated debt issuance 7,500 - - Net cash used in financing activities (1,544) (1,872) (1,064) Net increase in cash and cash equivalents 10 117 389 Cash and cash equivalents, beginning of year 554 437 48 Cash and cash equivalents, end of year $ 564 $ 554 $ 437 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (24) Recent Accounting Pronouncements ASU 2016-02: The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases . In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is also required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Mid Penn is evaluating the effects this Update will have on its consolidated financial statements. ASU 2016-01: The FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This Update requires equity investments to be measured at fair value with changes in fair value recognized in net income, excluding equity investments that are consolidated or accounted for under the equity method of accounting. The Update allows equity investments without readily determinable fair values to be measured at cost minus impairment, with a qualitative assessment required to identify impairment. The Update also requires public companies to use exit prices to measure the fair value of financial instruments, eliminates the disclosure requirements related to measurement assumptions for the fair value of instruments measured at amortized cost, and requires separate presentation of financials assets and liabilities based on form and measurement category. In addition, for liabilities measured a fair value under the fair value option, the changes in fair value due to changes in instrument-specific credit risk should be recognized in OCI. This Update is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Mid Penn is currently evaluating this Update to determine the impact on its consolidated financial statements. ASU 2014-09: The FASB issued ASU 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. In July 2015, the FASB approved a one-year delay of the effective date of the revenue recognition standard. The deferral would require public entities to apply the new revenue standard for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Public entities would be permitted to elect to early adopt for annual reporting periods beginning after December 15, 2016. Mid Penn is evaluating the effects this Update will have on its consolidated financial statements. ASU 2015-14: The FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The ASU defers the effective date of the new revenue recognition standard by one year. As such, it now takes effect for public entities in fiscal years beginning after December 15, 2017. All other entities have an additional year. However, early adoption is permitted for any entity that chooses to adopt the new standard as of the original effective date. Public business entities will adopt the standard for annual reporting periods beginning after December 15, 2017, including interim periods within that year. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. All other entities will adopt the standard for annual reporting periods beginning after December 15, 2018, and interim periods within annual reporting periods beginning after December 15, 2019. Early adoption is permitted as of either an annual reporting period beginning after December 15, 2016, including interim periods within that year, or an annual reporting period beginning after December 15, 2016 and interim periods within annual reporting periods beginning one year after the annual period in which an entity first applies the new standard. Mid Penn is evaluating the effects this Update will have on its consolidated financial statements. ASU 2015-03: The FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The ASU requires that debt issuance costs be reported in the balance sheet as a direct deduction from the face amount of the related liability, consistent with the presentation of debt discounts. Prior to the amendments, debt issuance costs were presented as a deferred charge (i.e., an asset) on the balance sheet. The ASU provides examples illustrating the balance sheet presentation of notes net of their related discounts and debt issuance costs. Further, the amendments require the amortization of debt issuance costs to be reported as interest expense. Similarly, debt issuance costs and any discount or premium are considered in the aggregate when determining the effective interest rate on the debt. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendments are effective for all other entities for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The amendments must be applied retrospectively. All entities have the option of adopting the new requirements as of an earlier date for financial statements that have not been previously issued. The adoption of this guidance is not expected to be material to the consolidated financial statements. ASU 2015-08: The FASB issued ASU 2015-08, Business Combinations (Topic 805): Pushdown Accounting—Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 (SEC Update). This ASU amends the FASB ASC pursuant to SEC Staff Accounting Bulletin (SAB) 115, which rescinds certain SEC guidance in order to conform with ASU 2014-17, Pushdown Accounting . ASU 2014-17 was issued in November 2014 and provides a reporting entity that is a business or nonprofit activity (an “acquiree”) the option to apply pushdown accounting to its separate financial statements when an acquirer obtains control of the acquiree. SAB 115 became effective November 21, 2014 upon issuance. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The amendments are effective for all other entities for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The amendments must be applied retrospectively. All entities have the option of adopting the new requirements as of an earlier date for financial statements that have not been previously issued. The adoption of this guidance was not material to the consolidated financial statements. ASU 2015-16: The FASB issued ASU 2015-16, Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments). The ASU requires adjustments to provisional amounts that are identified during the measurement period to be recognized in the reporting period in which the adjustment amounts are determined. This includes any effect on earnings of changes in depreciation, amortization, or other income effects as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, the amendments in the proposed Update would require an entity to disclose (either on the face of the income statement or in the notes) the nature and amount of measurement-period adjustments recognized in the current period, including separately the amounts in current-period income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The amendments in this Update should be applied prospectively to measurement-period adjustments that occur after the effective date of this Update. Mid Penn early adopted this guidance in 2015. The adoption of this guidance was not material to the consolidated financial statements. 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. The adoption of this guidance was not material to the consolidated financial statements. 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. The adoption of this guidance was not material to the consolidated financial statements. |
Summary of Quarterly Consolidat
Summary of Quarterly Consolidated Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014. (Dollars in thousands, except per share data) 2015 Quarter Ended March 31 June 30 September 30 December 31 Interest Income $ 8,158 $ 9,644 $ 9,339 $ 9,349 Interest Expense 1,120 1,158 1,150 1,179 Net Interest Income 7,038 8,486 8,189 8,170 Provision for Loan and Lease Losses 300 300 265 200 Net Interest Income After Provision for Loan Losses 6,738 8,186 7,924 7,970 Noninterest Income 949 1,093 1,085 960 Gain on sale / call of securities Noninterest Expense 6,640 6,642 6,569 6,882 Income Before Provision for Income Taxes 1,047 2,637 2,440 2,048 Provision for Income Taxes 84 593 546 421 Net Income 963 2,044 1,894 1,627 Series B Preferred Stock Dividends and Redemption Premium 87 88 88 210 Series C Preferred Stock Dividends - 4 4 9 Net Income Available to Common Shareholders $ 876 $ 1,952 $ 1,802 $ 1,408 Per Share Data: Basic Earnings Per Share $ 0.23 $ 0.46 $ 0.43 $ 0.35 Diluted Earnings Per Share 0.23 0.46 0.43 0.35 Cash Dividends 0.10 0.10 0.12 0.12 (Dollars in thousands, except per share data) 2014 Quarter Ended March 31 June 30 September 30 December 31 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 Gain on sale / call of securities 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 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
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, the assessment of other-than-temporary impairment of investment securities, the valuation of the goodwill for impairment, and the valuation of assets acquired and liabilities assumed in business combinations. |
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. Premiums and discounts on debt securities are amortized as an adjustment to interest income using the interest method. 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 $325,000 in 2015, $ 168,000 in 2014, and $ 220,000 in 2013. Mid Penn had no held to maturity securities in 2015 and 2014 . |
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 is credited to income. 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. 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 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 liens, 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 $94,500 at December 31, 2015 and $60,000 at December 31, 2014. 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 collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures, including underwriting standards, changes in the mix and volume of loans originated, the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, 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 generally 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 or sooner when it is probable that Mid Penn will be unable to collect all contractual principal and interest due. This methodology assumes the borrower cannot or will not continue to make additional payments. At that time the loan would generally be considered collateral dependent as the DCF method would generally indicate no operating income available for evaluating the collateral position; therefore, most impaired loans are deemed to be collateral dependent. In addition, Mid Penn’s rating system assumes any loans classified as nonaccrual, included in the substandard rating, to be impaired, and most of these loans are considered collateral dependent; therefore, most 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 substandard 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. The remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. Commercial real estate loans 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. 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 collateral shortfall of the consumer loan is recommended for charge-off at this point. As noted above, Mid Penn assesses a specific allocation for commercial loans and commercial real estate loans. 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 as soon as practically possible of the credit being classified as substandard nonaccrual. 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 such time Mid Penn is in receipt of the updated valuation. The Asset Recovery department employs an electronic tracking system to monitor the receipt of and need for updated appraisals. To date, there have been no material 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 as soon as practically possible of the credit being placed on nonaccrual 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 12 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. Nonaccrual 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. Acquired Loans Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of the existing related allowance for loan losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under the Accounting Standard Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require Mid Penn to evaluate the need for an additional allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which Mid Penn will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. Loans acquired through business combinations that do meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, Mid Penn establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent if Mid Penn expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, Mid Penn may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. |
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 Investments in Bank Stocks Restricted investments in bank stocks represent required investments in the common stock of correspondent banks. As a member of the FHLB and Atlantic Community Bankers Bank (“ACBB”), the Bank is required to own restricted stock investments in these correspondent banks, which is carried at cost. The total amount of these restricted stock investments was $4,266,000 December 31, 2015 and $3,181,000 at December 31, 2014. Total dividends received in 2015 and 2014 totaled $250,000 and $123,000 , respectively. |
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. As of December 31, 2015, Mid Penn had $358,000 of residential real estate held in other real estate owned. There were no loans for which formal foreclosure proceedings were in process at December 31, 2015. |
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 core deposit and other intangibles in the Consolidated Balance Sheets 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 $ 174,000 and $ 187 ,000 at December 31, 2015 and 2014, respectively. Amortization expense is reflected in the Consolidated Statements of Income in other income and was $24,000 , $36,000 , and $10,000 for the years 2015, 2014, and 2013, respectively. 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 $ 365,000 at December 31, 2015 and $408,000 at December 31, 2014, net of amortization, using the straight-line method and is reported in other assets on the Consolidated Balance Sheets. 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 2015, 2014 and 2013. |
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 basis 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 a ten -year period using a sum of the year’s digits basis. The core deposit intangible is subject to impairment testing whenever events or changes in circumstances indicate such testing. |
Goodwill | (m) Goodwill Goodwill is the excess of the purchase price over the fair value of assets acquired in connection with the 2004 and 2006 business acquisitions, as well as the 2015 Phoenix acquisition, 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 from its most recent testing, which was performed as of December 31, 2015 using a quantitative analysis. In addition, Mid Penn did not identify any impairment in 2014 or 2013 using a qualitative and qua ntitative analysis, respectively, 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, as well as select Miners Bank employees, which were acquired through the Phoenix acquisition. 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 had 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. |
Comprehensive Income | (s) Comprehensive Income Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income includes changes in unrealized gains and losses on securities available for sale arising during the period and reclassification adjustments for realized gains and losses on securities available for sale included in net income. Mid Penn has an unfunded noncontributory defined benefit Plan for directors and other postretirement benefit Plans covering full-time employees. These Plans utilize assumptions and methods to calculate the fair value of Plan assets and recognizing the overfunded and underfunded status of the Plans on its consolidated balance sheet. Gains and losses, prior service costs and credits are recognized in other comprehensive income, net of tax, until they are amortized, or immediately upon curtailment. |
Restricted stock | (t) Restricted Stock Mid Penn provides those persons who have a responsibility for its growth with additional incentives by allowing them to acquire an ownership interest in Mid Penn through the Restricted Stock Plan. The restricted stock is non-voting and non-participating until the granted shares vest. Once the shares vest, the recipient would have full voting rights and be entitled to any commons stock dividends. |
Earning Per Share | (u) 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) 2015 2014 2013 Net Income $ 6,528 $ 5,701 $ 4,939 Less: Accretion of Series A preferred stock discount - - 14 Dividends on Series B preferred stock 373 350 309 Redemption premium on Series B preferred stock 100 - - Dividends on Series C preferred stock 17 - - Net income available to common shareholders $ 6,038 $ 5,351 $ 4,616 Weighted average common shares outstanding 4,106,548 3,495,705 3,491,653 Basic earnings per common share $ 1.47 $ 1.53 $ 1.32 The computations of diluted earnings per common share follow: (Dollars in thousands, except per share data) 2015 2014 2013 Net income available to common stockholders $ 6,038 $ 5,351 $ 4,616 Weighted average number of common shares outstanding 4,106,548 3,495,705 3,491,653 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 4,106,548 3,495,705 3,491,653 Diluted earnings per common share $ 1.47 $ 1.53 $ 1.32 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net Income $ 6,528 $ 5,701 $ 4,939 Less: Accretion of Series A preferred stock discount - - 14 Dividends on Series B preferred stock 373 350 309 Redemption premium on Series B preferred stock 100 - - Dividends on Series C preferred stock 17 - - Net income available to common shareholders $ 6,038 $ 5,351 $ 4,616 Weighted average common shares outstanding 4,106,548 3,495,705 3,491,653 Basic earnings per common share $ 1.47 $ 1.53 $ 1.32 |
Diluted Earnings (Loss) Per Share | The computations of diluted earnings per common share follow: (Dollars in thousands, except per share data) 2015 2014 2013 Net income available to common stockholders $ 6,038 $ 5,351 $ 4,616 Weighted average number of common shares outstanding 4,106,548 3,495,705 3,491,653 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 4,106,548 3,495,705 3,491,653 Diluted earnings per common share $ 1.47 $ 1.53 $ 1.32 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Mergers and Acquisitions [Abstract] | |
Allocation of the Purchase Price | The allocation of the purchase price is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 11,044 Investment securities 11,331 Loans 110,363 Goodwill 2,902 Core deposit and other intangibles 578 Other assets 7,489 Total assets acquired 143,707 Liabilities assumed: Deposits 123,238 FHLB borrowings 3,570 Other liabilities 908 Total liabilities assumed 127,716 Equity acquired: Preferred stock 1,750 Total equity acquired and liabilities assumed 129,466 Consideration paid $ 14,241 Cash paid $ 2,949 Fair value of common stock issued, including replacement equity awards 11,292 |
Summary of the Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities and equity assumed. (Dollars in thousands) Total purchase price $ 14,241 Net assets acquired: Cash and cash equivalents 11,044 Investment securities 11,331 Restricted stock 509 Loans 110,363 Bank owned life insurance 3,673 Premises and equipment 1,792 Deferred income taxes 503 Accrued interest receivable 388 Core deposit and other intangibles 578 Other assets 624 Deposits (123,238) FHLB borrowings (3,570) Accrued interest payable (32) Other liabilities (876) Preferred stock (1,750) 11,339 Goodwill $ 2,902 |
Fair Value Adjustments Made to the Amortized Cost Basis, Presented at the Fair Value of Loans Acquired | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at March 1, 2015 $ 112,816 Market rate adjustment 270 Credit fair value adjustment on pools of homogeneous loans (1,461) Credit fair value adjustment on impaired loans (1,262) Fair value of purchased loans at March 1, 2015 $ 110,363 |
Fair Value of the Loans Acquired | The information about the acquired Phoenix loans accounted for under ASC 310-30 as of March 1, 2015 is as follows: (Dollars in thousands) Contractually required principal and interest at acquisition $ 3,548 Contractual cash flows not expected to be collected (nonaccretable discount) (804) Expected cash flows at acquisition 2,744 Interest component of expected cash flows (accretable discount) (458) Fair value of acquired loans $ 2,286 |
Pro Forma Information | The following table presents pro forma information as if the merger between Mid Penn and Phoenix had been completed on January 1, 2014. The pro forma information does not necessarily reflect the results of operations that would have occurred had Mid Penn merged with Phoenix at the beginning of 2014. Supplemental pro forma earnings for 2015 were adjusted to exclude $762,000 of merger related costs incurred for the year ended December 31, 2015; the results for the year ended December 31, 2014 were adjusted to include these charges. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies, or other factors. The pro forma data is intended for informational purposes and is not indicative of the future results of operations. (Dollars in thousands, except per share data) Years Ended December 31, 2015 2014 Net interest income after loan loss provision $ 31,454 $ 29,745 Noninterest income 4,152 4,131 Noninterest expense 27,817 26,846 Net income available to common shareholders 5,811 5,259 Net income per common share 1.38 1.25 |
Schedule of Balance Sheet relate to Business Combination | Assets, Liabilities, and Equity in Connection with Merger (Noncash): (Dollars in thousands) Assets Acquired: Securities $ 11,331 $ - $ - Loans 110,363 - - Restricted stock 509 - - Property and equipment 1,792 - - Deferred income taxes 503 Accrued interest receivable 388 - - Core deposit and other intangible assets 578 - - Bank-owned life insurance 3,673 - - Other assets 624 - - $ 129,761 $ - $ - Liabilities Assumed: Deposits $ 123,238 $ - $ - Accrued interest payable 32 - - Long-term debt 3,570 - - Other liabilities 876 - - $ 127,716 $ - $ - Equity Acquired: Preferred stock $ 1,750 $ - $ - |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive (Loss) Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of accumulated other comprehensive income, net of taxes, are as follows: (Dollars in thousands) Unrealized Gain on Securities Defined Benefit Plan Liability Accumulated Other Comprehensive Income Balance - December 31, 2015 $ 1,565 $ 247 $ 1,812 Balance - December 31, 2014 $ 1,626 $ (113) $ 1,513 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities [Abstract] | |
Unrealized Gain (Loss) on Investments | At December 31, 2015 and 2014, amortized cost, fair value, and unrealized gains and losses on investment securities are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2015 Cost Gains Losses Value Available for sale securities: U.S. Treasury and U.S. government agencies $ 26,316 $ 729 $ 55 $ 26,990 Mortgage-backed U.S. government agencies 38,983 49 228 38,804 State and political subdivision obligations 64,780 1,914 77 66,617 Equity securities 3,271 82 43 3,310 $ 133,350 $ 2,774 $ 403 $ 135,721 (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2014 Cost Gains Losses Value 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 |
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, 2015 and 2014. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized December 31, 2015 Securities Value Losses Securities Value Losses Securities Value Losses Available for sale securities: U.S. Treasury and U.S. government agencies 6 $ 6,259 $ 43 2 $ 1,383 $ 12 8 $ 7,642 $ 55 Mortgage-backed U.S. government agencies 13 12,759 124 11 6,282 104 24 19,041 228 State and political subdivision obligations 9 4,041 32 3 1,631 45 12 5,672 77 Equity securities 1 990 10 2 615 33 3 1,605 43 Total temporarily impaired available for sale securities 29 $ 24,049 $ 209 18 $ 9,911 $ 194 47 $ 33,960 $ 403 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number of Fair Unrealized Number of Fair Unrealized Number of Fair Unrealized December 31, 2014 Securities Value Losses Securities Value Losses Securities Value Losses Available for sale securities: U.S. Treasury and U.S. government agencies 5 $ 6,059 $ 29 - $ - $ - 5 $ 6,059 $ 29 Mortgage-backed U.S. government agencies 15 9,511 62 5 4,416 115 20 13,927 177 State and political subdivision obligations 9 4,444 33 28 13,947 285 37 18,391 318 Equity securities 0 - - 2 583 23 2 583 23 Total temporarily impaired available for sale securities 29 $ 20,014 $ 124 35 $ 18,946 $ 423 64 $ 38,960 $ 547 |
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, 2015. (Dollars in thousands) December 31, 2015 Amortized Fair Cost Value Due in 1 year or less $ 5,266 $ 5,351 Due after 1 year but within 5 years 31,508 32,519 Due after 5 years but within 10 years 51,069 52,500 Due after 10 years 3,253 3,237 91,096 93,607 Mortgage-backed securities 38,983 38,804 Equity securities 3,271 3,310 $ 133,350 $ 135,721 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, net of deferred fees and costs of ( $178,000 ) and ( $194,000 ) as of December 31, 2014 and 2014, respectively, and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2015 and 2014 are noted below: (Dollars in thousands) December 31, 2015 Pass Special Mention Substandard Doubtful Total Commercial and industrial $ 158,302 $ 1,289 $ 670 $ - $ 160,261 Commercial real estate 359,859 2,088 7,517 - 369,464 Commercial real estate - construction 65,665 2,403 - - 68,068 Lease financing 727 - - - 727 Residential mortgage 101,507 475 1,361 - 103,343 Home equity 32,928 261 222 - 33,411 Consumer 3,917 - - - 3,917 $ 722,905 $ 6,516 $ 9,770 $ - $ 739,191 (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 |
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class as of December 31, 2015 and 2014 are summarized as follows: December 31, 2015 December 31, 2014 (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: Commercial and industrial $ 14 $ 49 $ - $ 395 $ 430 $ - Commercial real estate: Commercial real estate 1,023 2,020 - 1,971 4,481 - Acquired with credit deterioration* 931 - - - - - Residential mortgage: Residential mortgage 1,329 1,434 - 1,146 1,286 - Acquired with credit deterioration* 400 - - - - - Home equity: Home equity 115 137 - 29 88 - With an allowance recorded: Commercial and industrial $ 113 $ 128 $ 51 $ 223 $ 231 $ 137 Commercial real estate 1,947 1,981 429 6,954 7,255 1,382 Residential mortgage 32 32 23 - - - Home equity - - - 211 213 115 Total: Commercial and industrial $ 127 $ 177 $ 51 $ 618 $ 661 $ 137 Commercial real estate 3,901 4,001 429 8,925 11,736 1,382 Residential mortgage 1,761 1,466 23 1,146 1,286 - Home equity 115 137 - 240 301 115 |
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, 2015, 2014, and 2013 are summarized as follows: December 31, 2015 December 31, 2014 December 31, 2013 (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: Commercial and industrial $ 19 $ - $ 72 $ - $ 188 $ - Acquired with credit deterioration - 205 - - - - Commercial real estate: Commercial real estate 1,051 14 1,966 346 2,506 187 Acquired with credit deterioration 926 350 - - - - Residential mortgage: Residential mortgage 816 8 541 - 299 - Acquired with credit deterioration 400 - - - - - Home equity: Home equity 107 - 29 - 31 - Acquired with credit deterioration - 3 - - - - With an allowance recorded: Commercial and industrial $ 123 $ - $ 93 $ - $ 51 $ - Commercial real estate 1,721 - 6,823 - 4,349 - Residential mortgage 25 - - - 13 - Home equity - - 76 - 54 - Total: Commercial and industrial $ 142 $ 205 $ 165 $ - $ 239 $ - Commercial real estate 3,698 364 8,789 346 6,855 187 Residential mortgage 1,241 8 541 - 312 - Home equity 107 3 105 - 85 - |
Non-accrual Loans by Classes of the Loan Portfolio | Nonaccrual loans by loan portfolio class as of December 31, 2015 and 2014 are summarized as follows: (Dollars in thousands) 2015 2014 Commercial and industrial $ 66 $ 267 Commercial real estate 2,607 7,249 Residential mortgage 1,630 1,152 Home equity 115 239 $ 4,418 $ 8,907 |
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of December 31, 2015 and 2014 are summarized as follows: (Dollars in thousands) December 31, 2015 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: Commercial and industrial $ 55 $ 204 $ 66 $ 325 $ 159,936 $ 160,261 $ - Commercial real estate: Commercial real estate 211 608 1,456 2,275 366,263 368,538 - Acquired with credit deterioration 215 518 55 788 138 926 55 Commercial real estate - construction: Commercial real estate - construction - - - - 68,068 68,068 - Lease financing: Lease financing - - - - 727 727 - Residential mortgage: Residential mortgage 694 550 778 2,022 100,921 102,943 - Acquired with credit deterioration 12 - 222 234 166 400 - Home equity: Home equity - 50 23 73 33,338 33,411 - Consumer: Consumer 10 5 - 15 3,902 3,917 - Total $ 1,197 $ 1,935 $ 2,600 $ 5,732 $ 733,459 $ 739,191 $ 55 (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 $ - |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | Activity in the allowance for loan and lease losses and recorded investment in loans receivable for the years ended December 31, 2015, 2014, and 2013, and as of December 31, 2015, 2014, and 2013 are as follows: (Dollars in thousands) December 31, 2015 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 $ 1,393 $ 3,925 $ 33 $ 2 $ 450 $ 653 $ 35 $ 225 $ 6,716 Charge-offs (130) (1,569) - - (35) (36) (14) - (1,784) Recoveries 12 75 - - 44 29 11 - 171 Provisions 118 1,121 120 (1) 75 (329) (20) (19) 1,065 Ending balance $ 1,393 $ 3,552 $ 153 $ 1 $ 534 $ 317 $ 12 $ 206 $ 6,168 Ending balance: individually evaluated for impairment $ 51 $ 429 $ - $ - $ 23 $ - $ - $ - $ 503 Ending balance: collectively evaluated for impairment $ 1,342 $ 3,123 $ 153 $ 1 $ 511 $ 317 $ 12 $ 206 $ 5,665 Loans receivable: Ending balance $ 160,261 $ 369,464 $ 68,068 $ 727 $ 103,343 $ 33,411 $ 3,917 $ - $ 739,191 Ending balance: individually evaluated for impairment $ 127 $ 2,970 $ - $ - $ 1,361 $ 115 $ - $ - $ 4,573 Ending balance: collectively evaluated for impairment $ 160,134 $ 365,563 $ 68,068 $ 727 $ 101,582 $ 33,296 $ 3,917 $ - $ 733,287 Ending balance: acquired with credit deterioration $ - $ 931 $ - $ - $ 400 $ - $ - $ - $ 1,331 (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 receivable: 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 receivable: 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 |
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at December 31, 2015 and 2014 are as follows: (Dollars in thousands) Pre-Modification Post-Modification December 31, 2015 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 40 $ 35 $ 15 Commercial real estate 3,634 3,117 2,235 Residential mortgage 733 727 555 $ 4,407 $ 3,879 $ 2,805 (Dollars in thousands) Pre-Modification Post-Modification December 31, 2014 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 |
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 December 31, 2014 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 |
Schedule of Accrection of Purchase Impaired Loan | The following table provides activity for the accretable yield of purchased impaired loans for the year ended December 31, 2015. (Dollars in thousands) Accretable yield, January 1, 2015 $ - Acquisition of impaired loans 458 Accretable yield amortized to interest income (280) Accretable yield, December 31, 2015 $ 178 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bank Premises and Equipment [Abstract] | |
Premises and Equipment | At December 31, 2015 and 2014, bank premises and equipment are as follows: (Dollars in thousands) 2015 2014 Land $ 2,906 $ 2,712 Buildings 10,789 10,116 Furniture, fixtures, and equipment 8,742 7,236 Leasehold improvements 1,212 826 Construction in progress 18 497 23,667 21,387 Less accumulated depreciation (9,674) (9,162) $ 13,993 $ 12,225 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Time Deposits By Maturity Date | These time deposits at December 31, 2015, mature as follows: (Dollars in thousands) Time Deposits Less than $250,000 $250,000 or more Maturing in 2016 $ 62,867 $ 5,836 Maturing in 2017 36,958 2,654 Maturing in 2018 13,459 2,037 Maturing in 2019 17,014 3,201 Maturing in 2020 14,760 1,230 Maturing thereafter 833 - $ 145,891 $ 14,958 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt [Abstract] | |
Long-term Debt by Maturity Date | As of December 31, 2015 and 2014, the Bank had long-term debt in the amount of $40,305,000 and $52,961,000 , respectively, consisting of: (Dollars in thousands) At December 31, 2015 2014 Loans maturing in 2015 with rates ranging from 0.58% to 4.18% $ - $ 15,000 Loans maturing in 2016 with rates ranging from 0.54% to 1.08% 26,521 25,000 Loans maturing in 2017 at a rate of 3.03% 1,016 - Loan maturing in 2019 at a rate of 1.87% 10,000 10,000 Loan maturing in 2026 at a rate of 4.80% 2,703 2,892 Loan maturing in 2027 at a rate of 6.71% 65 69 $ 40,305 $ 52,961 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels: Fair value measurements at December 31, 2015 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2015 (Level 1) (Level 2) (Level 3) U.S. Treasury and U.S. government agencies $ 26,990 $ - $ 26,990 $ - Mortgage-backed U.S. government agencies 38,804 - 38,804 - State and political subdivision obligations 66,617 - 66,617 - Equity securities 3,310 1,240 2,070 - $ 135,721 $ 1,240 $ 134,481 $ - 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: December 31, 2014 (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, 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, 2015 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2015 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,088 $ - $ - $ 2,088 Foreclosed Assets Held for Sale 453 - - 453 Mortgage Servicing Rights 174 - - 174 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: December 31, 2014 (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 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 December 31, 2015 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,088 Appraisal of collateral (1) Appraisal adjustments (2) 11% - 60% 30% Foreclosed Assets Held for Sale 453 Appraisal of collateral (1), (3) Appraisal adjustments (2) 17% - 27% 26% Mortgage Servicing Rights 174 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 360% (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements December 31, 2014 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% (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, 2015 and 2014. (Dollars in thousands) December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 13,284 $ 13,284 $ 9,882 $ 9,882 Interest-bearing time balances with other financial institutions 4,317 4,317 5,772 5,772 Available for sale investment securities 135,721 135,721 141,634 141,634 Net loans and leases 733,023 738,773 564,817 572,487 Restricted investment in bank stocks 4,266 4,266 3,181 3,181 Accrued interest receivable 3,813 3,813 3,058 3,058 Mortgage servicing rights 174 174 187 187 Financial liabilities: Deposits $ 777,043 $ 777,320 $ 637,922 $ 639,226 Short-term borrowings 31,596 31,596 578 578 Long-term debt 40,305 39,626 52,961 52,514 Subordinated debt 7,500 7,500 Accrued interest payable 390 390 349 349 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, 2015 and 2014. 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, short-term borrowings, and subordinated debt. 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 December 31, 2015 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 733,023 $ 738,773 $ - $ - $ 738,773 Financial instruments - liabilities Deposits $ 777,043 $ 777,320 $ - $ 777,320 $ - Long-term debt 40,305 39,626 - 39,626 - Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs December 31, 2014 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 - |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014, and a statement of the funded status at December 31, 2015 and 2014. (Dollars in thousands) December 31, Change in benefit obligations: 2015 2014 Benefit obligations, January 1 $ 861 $ 836 Service cost 13 13 Interest cost 32 38 Actuarial gain (24) (26) Change in assumptions (4) 40 Change due to plan amendment (244) - Benefit payments (62) (40) Benefit obligations, December 31 $ 572 $ 861 Change in fair value of plan assets: Fair value of plan assets, January 1 $ - $ - Employer contributions 62 40 Benefit payments (62) (40) Fair value of plan assets, December 31 $ - $ - Funded status at year end $ (572) $ (861) |
Schedule of Amounts Recognized in Balance Sheet | The amount recognized in the consolidated balance sheet at December 31, 2015 and 2014, is as follows: (Dollars in thousands) 2015 2014 Accrued benefit liability $ 572 $ 861 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts recognized in accumulated other comprehensive income consist of: (Dollars in thousands) December 31, 2015 2014 Net gain, pretax $ (47) $ (19) Net prior service cost, pretax (244) - |
Schedule of Net Periodic Benefit Costs | The components of net periodic postretirement benefit cost for 2015, 2014 and 2013 are as follows: (Dollars in thousands) 2015 2014 2013 Service cost $ 13 $ 13 $ 17 Interest cost 32 38 34 Amortization of prior service cost - (1) (1) Net periodic postretirement benefit cost $ 45 $ 50 $ 50 |
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2015 and 2014 are as follows: Weighted-average assumptions: 2015 2014 Discount rate 4.25% 4.00% Rate of compensation increase 3.25% 3.00% Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are as follows: Weighted-average assumptions: 2015 2014 2013 Discount rate 4.00% 4.75% 4.00% Rate of compensation increase 3.00% 3.75% 3.00% |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31, 2015, 2014 and 2013 are as follows: 2015 2014 2013 Health care cost trend rate assumed for next year 5.50% 6.50% 7.00% 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, 2015, 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 3 2 |
Schedule of Expected Benefit Payments | Mid Penn expects to contribute $66,000 to its life and health benefit Plans in 2016. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2016 to 12/31/2016 $ 66 1/1/2017 to 12/31/2017 57 1/1/2018 to 12/31/2018 60 1/1/2019 to 12/31/2019 64 1/1/2020 to 12/31/2020 44 1/1/2021 to 12/31/2025 195 |
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, 2015 and 2014 and a statement of the status at December 31, 2015 and 2014. This Plan is unfunded. (Dollars in thousands) December 31, Change in benefit obligations: 2015 2014 Benefit obligations, January 1 $ 1,186 $ 1,130 Service cost 33 33 Interest cost 45 51 Actuarial (gain) loss (8) (8) Change in assumptions (16) 69 Benefit payments (90) (89) Benefit obligations, December 31 $ 1,150 $ 1,186 Change in fair value of plan assets: Fair value of plan assets, January 1 $ - $ - Employer contributions 90 89 Benefit payments (90) (89) Fair value of plan assets, December 31 $ - $ - Funded status at year end $ (1,150) $ (1,186) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheet at December 31, 2015 and 2014 are as follows: (Dollars in thousands) 2015 2014 Accrued benefit liability $ 1,150 $ 1,186 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income consist of: (Dollars in thousands) December 31, 2015 2014 Net prior service cost, pretax $ 64 $ 86 Net loss, pretax 77 101 |
Schedule of Net Periodic Benefit Costs | The components of net periodic retirement cost for 2015, 2014 and 2013 are as follows: (Dollars in thousands) 2015 2014 2013 Service cost $ 33 $ 33 $ 32 Interest cost 45 51 44 Amortization of prior-service cost 22 22 22 Net periodic retirement cost $ 100 $ 106 $ 98 |
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31, 2015 and 2014 are as follows: Weighted-average assumptions: 2015 2014 Discount rate 4.25% 4.00% Change in consumer price index 2.25% 2.00% Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31, 2015, 2014 and 2013 are as follows: Weighted-average assumptions: 2015 2014 2013 Discount rate 4.00% 4.75% 4.00% Change in consumer price index 2.25% 2.75% 2.00% |
Schedule of Expected Benefit Payments | Mid Penn expects to contribute $93,000 to its retirement Plan in 2016. The following table shows the estimated benefit payments for future periods. (Dollars in thousands) 1/1/2016 to 12/31/2016 $ 93 1/1/2017 to 12/31/2017 96 1/1/2018 to 12/31/2018 99 1/1/2019 to 12/31/2019 98 1/1/2020 to 12/31/2020 100 1/1/2021 to 12/31/2025 504 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Federal Income Taxes [Abstract] | |
Net Deferred Tax Asset | The following temporary differences gave rise to the net deferred tax asset at December 31, 2015 and 2014. (Dollars in thousands) 2015 2014 Deferred tax assets: Allowance for loan and lease losses $ 2,097 $ 2,283 Loan fees 79 68 Deferred compensation 313 289 Benefit plans 586 696 Nonaccrual interest 554 955 Phoenix adjustments 1,166 - Other 170 111 4,965 4,402 Deferred tax liabilities: Depreciation (1,074) (801) Bond accretion (111) (106) Goodwill and intangibles (472) (264) Unrealized gain on securities (806) (837) Prepaid expenses (240) (266) Phoenix adjustments (428) - Other (13) (3) (3,144) (2,277) Deferred tax asset, net $ 1,821 $ 2,125 |
Provision for (Benefit from) Income Taxes | The provision for income taxes consists of the following: (Dollars in thousands) 2015 2014 2013 Current $ 647 $ 1,574 $ 1,009 Deferred 997 (112) 192 Total provision for income taxes $ 1,644 $ 1,462 $ 1,201 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax at the statutory rate of 34% to Mid Penn's effective rate is as follows: (Dollars in thousands) 2015 2014 2013 Provision at the expected statutory rate $ 2,779 $ 2,435 $ 2,088 Effect of tax-exempt income (1,105) (1,086) (873) Effect of investment in life insurance (91) (68) (78) Nondeductible interest 37 42 40 Nondeductible merger and acquisition expense 34 163 - Other items (10) (24) 24 Provision for income taxes $ 1,644 $ 1,462 $ 1,201 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, and December 31, 2014, 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, 2015: Tier 1 Capital (to Average Assets) $ 64,089 7.3% $ 35,098 4.0% $ N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 64,089 9.1% 31,731 4.5% N/A N/A Tier 1 Capital (to Risk Weighted Assets) 64,089 9.1% 42,308 6.0% N/A N/A Total Capital (to Risk Weighted Assets) 77,852 11.0% 56,410 8.0% N/A N/A Bank As of December 31, 2015: Tier 1 Capital (to Average Assets) $ 70,351 7.8% $ 36,245 4.0% $ 45,306 5.0% Common Equity Tier 1 Capital (to Risk Weighted Assets) 70,351 10.0% 31,698 4.5% 45,786 6.5% Tier 1 Capital (to Risk Weighted Assets) 70,351 10.0% 42,264 6.0% 56,352 8.0% Total Capital (to Risk Weighted Assets) 76,614 10.9% 56,352 8.0% 70,440 10.0% 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% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Minimum Future Rental Payments | Minimum future rental payments under these operating leases as of December 31, 2015 are as follows: (Dollars in thousands) Lease Obligation Obligation to Related Parties 2016 715 319 2017 734 325 2018 745 329 2019 746 332 2020 438 335 thereafter 4,556 4,556 $ 7,934 $ 6,196 |
Parent Company Statements (Tabl
Parent Company Statements (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2015 2014 ASSETS Cash and cash equivalents $ 564 $ 554 Equity investments 626 - Investment in subsidiaries 76,334 59,217 Other assets 100 - Total assets $ 77,624 $ 59,771 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt $ 7,500 $ - Other liabilities 56 641 Shareholders' equity 70,068 59,130 Total liabilities and shareholders' equity $ 77,624 $ 59,771 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) For Years Ended December 31, 2015 2014 2013 Income Dividends from subsidiaries $ 5,662 $ 2,325 $ 1,237 Other income 19 - - Total Income 5,681 2,325 1,237 Expense Other expenses (695) (716) (184) Total Expense (695) (716) (184) Income before income tax and equity in undistributed earnings (loss) of subsidiaries 4,986 1,609 1,053 Equity in undistributed earnings of subsidiaries 1,346 4,012 3,823 Income before income tax 6,332 5,621 4,876 Income tax benefit 196 80 63 Net income 6,528 5,701 4,939 Series A preferred stock dividends & discount accretion - - 14 Series B preferred stock dividends and redemption premium 473 350 309 Series C preferred stock dividends 17 Net income available to common shareholders $ 6,038 $ 5,351 $ 4,616 Comprehensive income $ 6,827 $ 8,086 $ 1,774 |
Condensed Statement of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) For Years Ended December 31, 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,528 $ 5,701 $ 4,939 Equity in undistributed earnings of subsidiaries (1,346) (4,012) (3,823) (Increase) decrease in other assets (14) 8 3 (Decrease) increase in other liabilities (665) 292 334 Net cash provided by operating activities 4,503 1,989 1,453 CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid for acquisition (2,949) - - Net cash used in investing activities (2,949) - - CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (2,175) (1,925) (1,181) Series B preferred stock issuance, net of costs - - 120 Series B preferred stock redemption premium (100) - - Series B preferred stock redemption (5,000) - - Series C preferred stock redemption (1,750) - - Employee Stock Purchase Plan 66 53 55 Warrant repurchase - - (58) Deferred financing fees paid for subordinated debt issuance (85) - - Subordinated debt issuance 7,500 - - Net cash used in financing activities (1,544) (1,872) (1,064) Net increase in cash and cash equivalents 10 117 389 Cash and cash equivalents, beginning of year 554 437 48 Cash and cash equivalents, end of year $ 564 $ 554 $ 437 |
Summary of Quarterly Consolid50
Summary of Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Quarterly Consolidated Financial Data [Abstract] | |
Quarterly Condensed Financials | The following table presents summarized quarterly financial data for 2015 and 2014. (Dollars in thousands, except per share data) 2015 Quarter Ended March 31 June 30 September 30 December 31 Interest Income $ 8,158 $ 9,644 $ 9,339 $ 9,349 Interest Expense 1,120 1,158 1,150 1,179 Net Interest Income 7,038 8,486 8,189 8,170 Provision for Loan and Lease Losses 300 300 265 200 Net Interest Income After Provision for Loan Losses 6,738 8,186 7,924 7,970 Noninterest Income 949 1,093 1,085 960 Gain on sale / call of securities Noninterest Expense 6,640 6,642 6,569 6,882 Income Before Provision for Income Taxes 1,047 2,637 2,440 2,048 Provision for Income Taxes 84 593 546 421 Net Income 963 2,044 1,894 1,627 Series B Preferred Stock Dividends and Redemption Premium 87 88 88 210 Series C Preferred Stock Dividends - 4 4 9 Net Income Available to Common Shareholders $ 876 $ 1,952 $ 1,802 $ 1,408 Per Share Data: Basic Earnings Per Share $ 0.23 $ 0.46 $ 0.43 $ 0.35 Diluted Earnings Per Share 0.23 0.46 0.43 0.35 Cash Dividends 0.10 0.10 0.12 0.12 (Dollars in thousands, except per share data) 2014 Quarter Ended March 31 June 30 September 30 December 31 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 Gain on sale / call of securities 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 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Basis of Presentation [Abstract] | |
Number of reportable segments | 1 |
Nature of Business (Narrative)
Nature of Business (Narrative) (Details) | Dec. 31, 2015store |
Nature of Business [Abstract] | |
Number of offices | 20 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Sale of Securities, Net | $ 325,000 | $ 168,000 | $ 220,000 |
Held-to-maturity Securities | 0 | 0 | |
Other securities | 382,000 | 155,000 | 46,000 |
Mortgage servicing rights | 174,000 | 187,000 | |
Mortgage servicing rights, amortization | 24,000 | 36,000 | 10,000 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 365,000 | 408,000 | |
Low Income Housing Tax Credit | $ 46,000 | 46,000 | 46,000 |
Core Deposit Intangible, Amortization Period | 10 years | ||
Goodwill, Impairment Loss | $ 0 | 0 | 0 |
Marketing and Advertising Expense | $ 533,000 | $ 308,000 | $ 253,000 |
Class of warrant or right, outstanding | 0 | 0 | 0 |
Residential real estate held in other real estate owned | $ 358,000 | ||
Foreclosure proceedings in process | $ 0 | ||
Commercial [Member] | |||
Loan Terms | 1 year | ||
Loan To Value Ratio | 80.00% | ||
Maximum [Member] | Residential 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 | $ 76,334,000 | $ 59,217,000 | |
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 | $ 94,500 | 60,000 | |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Other securities | 250,000 | 123,000 | |
Restricted investments | $ 4,266,000 | $ 3,181,000 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Basic Earnings (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 1,627 | $ 1,894 | $ 2,044 | $ 963 | $ 888 | $ 1,595 | $ 1,707 | $ 1,511 | $ 6,528 | $ 5,701 | $ 4,939 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 1,408 | $ 1,802 | $ 1,952 | $ 876 | $ 801 | $ 1,507 | $ 1,619 | $ 1,424 | $ 6,038 | $ 5,351 | $ 4,616 |
Weighted average common shares outstanding | 4,106,548 | 3,495,705 | 3,491,653 | ||||||||
Basic Earnings Per Common Share | $ 0.35 | $ 0.43 | $ 0.46 | $ 0.23 | $ 0.23 | $ 0.43 | $ 0.46 | $ 0.41 | $ 1.47 | $ 1.53 | $ 1.32 |
Series A Preferred Stock [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Less: Accretion on preferred stock discounts | $ 14 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dividends on preferred stock | $ 373 | $ 350 | $ 309 | ||||||||
Redemption premium on preferred stock | 100 | ||||||||||
Series C Preferred Stock [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Dividends on preferred stock | $ 17 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Diluted Earnings (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income available to common shareholders | $ 1,408 | $ 1,802 | $ 1,952 | $ 876 | $ 801 | $ 1,507 | $ 1,619 | $ 1,424 | $ 6,038 | $ 5,351 | $ 4,616 |
Weighted average common shares outstanding | 4,106,548 | 3,495,705 | 3,491,653 | ||||||||
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 | 4,106,548 | 3,495,705 | 3,491,653 | ||||||||
Diluted Earnings Per Common Share | $ 0.35 | $ 0.43 | $ 0.46 | $ 0.23 | $ 0.23 | $ 0.43 | $ 0.46 | $ 0.41 | $ 1.47 | $ 1.53 | $ 1.32 |
Mergers and Acquisitions (Narra
Mergers and Acquisitions (Narrative) (Details) | Mar. 01, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | Feb. 27, 2015$ / shares |
Business Acquisition [Line Items] | ||||||||||||||
Stock issued during period, shares, acquisitions | shares | 723,851 | |||||||||||||
Goodwill | $ 3,918,000 | $ 1,016,000 | $ 3,918,000 | $ 3,918,000 | $ 1,016,000 | |||||||||
Net Income (Loss) Attributable to Parent | $ 1,627,000 | $ 1,894,000 | $ 2,044,000 | $ 963,000 | $ 888,000 | $ 1,595,000 | $ 1,707,000 | $ 1,511,000 | $ 6,528,000 | $ 5,701,000 | $ 4,939,000 | |||
Core Deposits [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Preferred stock, shares issued | shares | 0 | 0 | 0 | 0 | 0 | |||||||||
Stock issued during period, shares, acquisitions | shares | 1,750 | |||||||||||||
Preferred stock, liquidation preference per share | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||
Phoenix Bancorp Incorporated [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Ratio of conversion of acquiree's shares to entity's shares | 3.167 | |||||||||||||
Per share price | $ / shares | $ 51.60 | $ 15.60 | ||||||||||||
Business acquisition, equity interest issued or issuable, value assigned | $ 11,292,000 | |||||||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 723,851 | |||||||||||||
Shares of acquirer ratio of common stock | 0.414 | |||||||||||||
Payments to acquire businesses, gross | $ 2,949,000 | |||||||||||||
Business combination, consideration transferred | $ 14,241,000 | |||||||||||||
Preferred stock, shares issued | shares | 1,750 | |||||||||||||
Goodwill | $ 2,902,000 | |||||||||||||
Business combination, acquired receivables, fair value | 112,816,000 | |||||||||||||
Business acquisition, transaction costs | $ 762,000 | $ 762,000 | ||||||||||||
Revenues | $ 4,244,000 | |||||||||||||
Net Income (Loss) Attributable to Parent | $ 747,000 | |||||||||||||
Phoenix Bancorp Incorporated [Member] | Core Deposits [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Finite-lived intangible assets acquired | 578,000 | |||||||||||||
Finite-lived intangible assets, amortization expense, next twelve months | 96,000 | |||||||||||||
Finite-lived intangible assets, amortization expense, year two | 86,000 | |||||||||||||
Finite-lived intangible assets, amortization expense, year three | 75,000 | |||||||||||||
Finite-lived intangible assets, amortization expense, year four | 65,000 | |||||||||||||
Finite-lived intangible assets, amortization expense, year five | 54,000 | |||||||||||||
Finite-lived intangible assets, amortization expense, after year five | $ 114,000 | |||||||||||||
Parent Company [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | $ 5,681,000 | 2,325,000 | 1,237,000 | |||||||||||
Net Income (Loss) Attributable to Parent | $ 6,528,000 | $ 5,701,000 | $ 4,939,000 |
Mergers and Acquisitions (Alloc
Mergers and Acquisitions (Allocation of the Purchase Price) (Details) - USD ($) | Mar. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Net assets acquired: | |||
Goodwill | $ 3,918,000 | $ 1,016,000 | |
Other assets | $ 4,317,000 | $ 5,772,000 | |
Phoenix Bancorp Incorporated [Member] | |||
Net assets acquired: | |||
Cash and cash equivalents | $ 11,044,000 | ||
Investment securities | 11,331,000 | ||
Loans | 110,363,000 | ||
Goodwill | 2,902,000 | ||
Core deposit and other intangibles | 578,000 | ||
Other assets | 7,489,000 | ||
Total net assets acquired | 143,707,000 | ||
Liabilities Assumed: | |||
Deposits | 123,238,000 | ||
FHLB borrowings | 3,570,000 | ||
Other liabilities | 908,000 | ||
Total liabilities assumed | 127,716,000 | ||
Preferred stock | 1,750,000 | ||
Total equity acquired and liabilities assumed | 129,466,000 | ||
Total purchase price | 14,241,000 | ||
Cash paid | 2,949,000 | ||
Fair value of common stock issued, including replacement equity awards | $ 11,292,000 |
Mergers and Acquisitions (Estim
Mergers and Acquisitions (Estimated Fair Value of Assets Acquired) (Details) - USD ($) | Mar. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Net assets acquired: | |||
Goodwill | $ 3,918,000 | $ 1,016,000 | |
Phoenix Bancorp Incorporated [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 14,241,000 | ||
Net assets acquired: | |||
Cash and cash equivalents | 11,044,000 | ||
Investment securities | 11,331,000 | ||
Restricted stock | 509,000 | ||
Loans | 110,363,000 | ||
Bank owned life insurance | 3,673,000 | ||
Premises and equipment | 1,792,000 | ||
Deferred income taxes | 503,000 | ||
Accrued interest receivable | 388,000 | ||
Core deposit and other intangibles | 578,000 | ||
Other assets | 624,000 | ||
Deposits | (123,238,000) | ||
FHLB borrowings | (3,570,000) | ||
Accrued interest payable | (32,000) | ||
Other liabilities, fair value | (876,000) | ||
Preferred stock | (1,750,000) | ||
Total net assets acquired, fair value | 11,339,000 | ||
Goodwill | $ 2,902,000 |
Mergers and Acquisitions (Fair
Mergers and Acquisitions (Fair Value Adjustments) (Details) - Phoenix Bancorp Incorporated [Member] $ in Thousands | 1 Months Ended |
Mar. 01, 2015USD ($) | |
Business Acquisition [Line Items] | |
Gross amortized cost basis | $ 112,816 |
Market rate adjustment | 270 |
Credit fair value adjustment on pools of homogeneous loans | (1,461) |
Credit fair value adjustment on impaired loans | (1,262) |
Fair value of purchased loans | $ 110,363 |
Mergers and Acquisitions (Fai60
Mergers and Acquisitions (Fair Value of Loans Acquired) (Details) - Phoenix Bancorp Incorporated [Member] $ in Thousands | Mar. 01, 2015USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 3,548 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (804) |
Expected cash flows at acquisition | 2,744 |
Interest component of expected cash flows (accretable discount) | (458) |
Fair value of acquired loans | $ 2,286 |
Mergers and Acquisitions (Pro F
Mergers and Acquisitions (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||||||||
Net interest income after loan loss provision | $ 7,970 | $ 7,924 | $ 8,186 | $ 6,738 | $ 6,233 | $ 6,149 | $ 6,476 | $ 5,725 | $ 30,818 | $ 24,583 | $ 22,241 |
Noninterest income | 960 | 1,085 | 1,093 | 949 | 839 | 741 | 774 | 894 | 4,087 | 3,248 | 3,290 |
Noninterest expense | $ 6,882 | $ 6,569 | $ 6,642 | $ 6,640 | $ 5,933 | $ 4,929 | $ 5,068 | $ 4,738 | 26,733 | 20,668 | $ 19,391 |
Phoenix Bancorp Incorporated [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net interest income after loan loss provision | 31,454 | 29,745 | |||||||||
Noninterest income | 4,152 | 4,131 | |||||||||
Noninterest expense | 27,817 | 26,846 | |||||||||
Net income available to common shareholders | $ 5,811 | $ 5,259 | |||||||||
Net income per common share | $ 1.38 | $ 1.25 |
Mergers and Acquisitions (Sched
Mergers and Acquisitions (Schedule of Balance Sheet related to Business Combination) (Details) - Phoenix Bancorp Incorporated [Member] $ in Thousands | Mar. 01, 2015USD ($) |
Net assets acquired: | |
Investment securities | $ 11,331 |
Loans | 110,363 |
Restricted stock | 509 |
Premises and equipment | 1,792 |
Deferred income taxes | 503 |
Accrued interest receivable | 388 |
Core deposit and other intangibles | 578 |
Bank owned life insurance | 3,673 |
Other assets | 624 |
Total assets acquired | 129,761 |
Liabilities Assumed: | |
Deposits | 123,238 |
Accrued interest payable | 32 |
Long-term debt | 3,570 |
Other liabilities | 876 |
Total liabilities assumed | 127,716 |
Preferred stock | $ 1,750 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive (Loss) Income (Accumulated Other Comprehensive Income, Net of Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive (Loss) Income [Abstract] | ||
Unrealized (Loss) Gains on Securities | $ 1,565 | $ 1,626 |
Defined Benefit Plan Liability | 247 | (113) |
Accumulated Other Comprehensive Income (Loss) | $ 1,812 | $ 1,513 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
Schedule of Investments [Line Items] | |||
Available-for-sale Securities Pledged as Collateral | $ 130,298,000 | $ 134,740,000 | |
Available-for-sale Securities, Gross Realized Gains | 325,000 | 168,000 | $ 220,000 |
Available-for-sale Securities, Gross Realized Losses | $ 0 | $ 0 | $ 0 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 47 | 64 | |
Available-for-sale, Securities in Unrealized Loss Positions, Depreciation Percentage | 1.19% | 1.40% | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 194,000 | $ 423,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 403,000 | $ 547,000 | |
Debt Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 44 | 62 | |
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 3 | 2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 33,000 | $ 23,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 43,000 | $ 23,000 | |
State and municipal [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 12 | 37 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 45,000 | $ 285,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 77,000 | $ 318,000 | |
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 | security | 24 | 20 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 104,000 | $ 115,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ 228,000 | $ 177,000 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 133,350 | $ 139,172 |
Unrealized Gains | 2,774 | 3,009 |
Unrealized Losses | 403 | 547 |
Available for sale Securities, Fair Value | 135,721 | 141,634 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 26,316 | 26,343 |
Unrealized Gains | 729 | 752 |
Unrealized Losses | 55 | 29 |
Available for sale Securities, Fair Value | 26,990 | 27,066 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 38,983 | 33,763 |
Unrealized Gains | 49 | 190 |
Unrealized Losses | 228 | 177 |
Available for sale Securities, Fair Value | 38,804 | 33,776 |
State and municipal [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 64,780 | 77,482 |
Unrealized Gains | 1,914 | 2,007 |
Unrealized Losses | 77 | 318 |
Available for sale Securities, Fair Value | 66,617 | 79,171 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 3,271 | 1,584 |
Unrealized Gains | 82 | 60 |
Unrealized Losses | 43 | 23 |
Available for sale Securities, Fair Value | $ 3,310 | $ 1,621 |
Investment Securities (Schedule
Investment Securities (Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | security | 29 | 29 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 18 | 35 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 47 | 64 |
Less than 12 Months: Fair Value | $ 24,049 | $ 20,014 |
Less than 12 Months: Unrealized Losses | 209 | 124 |
12 Months or More: Fair Value | 9,911 | 18,946 |
12 Months or More: Unrealized Losses | 194 | 423 |
Total: Fair Value | 33,960 | 38,960 |
Total: Unrealized Losses | $ 403 | $ 547 |
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, less than one year | security | 6 | 5 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 2 | |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 8 | 5 |
Less than 12 Months: Fair Value | $ 6,259 | $ 6,059 |
Less than 12 Months: Unrealized Losses | 43 | 29 |
12 Months or More: Fair Value | 1,383 | |
12 Months or More: Unrealized Losses | 12 | |
Total: Fair Value | 7,642 | 6,059 |
Total: Unrealized Losses | $ 55 | $ 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, less than one year | security | 13 | 15 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 11 | 5 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 24 | 20 |
Less than 12 Months: Fair Value | $ 12,759 | $ 9,511 |
Less than 12 Months: Unrealized Losses | 124 | 62 |
12 Months or More: Fair Value | 6,282 | 4,416 |
12 Months or More: Unrealized Losses | 104 | 115 |
Total: Fair Value | 19,041 | 13,927 |
Total: Unrealized Losses | $ 228 | $ 177 |
State and municipal [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | security | 9 | 9 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 3 | 28 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 12 | 37 |
Less than 12 Months: Fair Value | $ 4,041 | $ 4,444 |
Less than 12 Months: Unrealized Losses | 32 | 33 |
12 Months or More: Fair Value | 1,631 | 13,947 |
12 Months or More: Unrealized Losses | 45 | 285 |
Total: Fair Value | 5,672 | 18,391 |
Total: Unrealized Losses | $ 77 | $ 318 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, less than one year | security | 1 | 0 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 2 | 2 |
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions | security | 3 | 2 |
Less than 12 Months: Fair Value | $ 990 | |
Less than 12 Months: Unrealized Losses | 10 | |
12 Months or More: Fair Value | 615 | $ 583 |
12 Months or More: Unrealized Losses | 33 | 23 |
Total: Fair Value | 1,605 | 583 |
Total: Unrealized Losses | $ 43 | $ 23 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, Due in 1 year or less | $ 5,266 | |
Available for sale Securities, Amortized Cost, Due after 1 year but within 5 years | 31,508 | |
Available for sale Securities, Amortized Cost, Due after 5 years but within 10 years | 51,069 | |
Available for sale Securities, Amortized Cost, Due after 10 years | 3,253 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 91,096 | |
Equity Securities, Amortized Cost | 3,271 | |
Available-for-sale Securities, Amortized Cost Basis | 133,350 | $ 139,172 |
Available for sale Securities, Fair Value, Due in 1 year or less | 5,351 | |
Available for sale Securities, Fair Value, Due after 1 year but within 5 years | 32,519 | |
Available for sale Securities, Fair Value, Due after 5 years but within 10 years | 52,500 | |
Available for sale Securities, Fair Value, Due after 10 years | 3,237 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 93,607 | |
Equity Securities, Fair Value | 3,310 | |
Available for sale Securities, Fair Value | 135,721 | $ 141,634 |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale Securities without a Single Maturity Date, Amortized Cost | 38,983 | |
Available for sale securities without a Single Maturity Date, Fair Value | $ 38,804 |
Loans and Allowance for Loan 68
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) | 12 Months Ended | |||||
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | Dec. 31, 2013USD ($)contract | Dec. 31, 2010contract | Dec. 31, 2009contract | Dec. 31, 2008contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Deferred fees and costs, loans and lease receivables | $ 178,000 | $ 194,000 | ||||
Loans to certain executive officers, directors, and their related interests | 10,657,000 | 6,559,000 | ||||
Loans to certain executive officers, directors, and their related interests, new loans and advances | 5,441,000 | |||||
Loans to certain executive officers, directors, and their related interests, Repayments | 3,440,000 | |||||
Financing Receivable, Modifications, Recorded Investment | 2,805,000 | 8,746,000 | ||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | 87,000 | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 0 | |||||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 778,000 | $ 798,000 | $ 861,000 | |||
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | |||||
Loans and leases receivable, related parties, period increase (decrease) | 2,096,000 | |||||
Under Forbearance Agreement 2015 Period [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | contract | 1 | 2 | 9 | 1 | ||
Under Forbearance Agreement 2014 Period [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | contract | 4 | 4 | 1 | 10 | 1 | |
Four Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 459,000 | |||||
One Unrelated Borrower [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | contract | 1 | |||||
Six Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 2,035,000 | |||||
Financing Receivable, Modifications, Number of Contracts | contract | 6 | |||||
Three of Six Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 71,000 | |||||
Three Remaining Two Relationship Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 1,964,000 | |||||
Financing Receivable, Modifications, Number of Contracts | contract | 3 | |||||
Fourteen Loans Nine Related Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 6,711,000 | |||||
Two of Nine Relationships Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 4,680,000 | |||||
Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loan Terms | 1 year | |||||
Loan To Value Ratio | 80.00% | |||||
Maximum [Member] | Residential 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% | |||||
Nonaccruing [Member] | Nine Loans Four Related Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 2,346,000 | |||||
Financing Receivable, Modifications, Number of Contracts | contract | 9 | |||||
Nonaccruing [Member] | One Large Relationship [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 1,370,000 | |||||
Accruing [Member] | Four Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | contract | 4 | |||||
Accruing [Member] | Three Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Number of Contracts | contract | 3 | |||||
Accruing [Member] | Residential Portfolio [Member] | Three Unrelated Borrowers [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 64,000 | |||||
Accruing [Member] | Commercial [Member] | One Unrelated Borrower [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Modifications, Recorded Investment | $ 395,000 |
Loans and Allowance for Loan 69
Loans and Allowance for Loan and Lease Losses (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 739,191 | $ 571,533 | $ 546,462 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 369,464 | 297,357 | 292,774 |
Finance Leases Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 727 | 1,121 | 1,356 |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,917 | 3,021 | 4,690 |
Residential Mortgage [Member] | Residential Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 103,343 | 66,442 | 69,830 |
Construction Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 68,068 | 56,076 | 45,647 |
Home Equity Loan [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 33,411 | 28,506 | 26,321 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 722,905 | 551,026 | |
Pass [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 359,859 | 280,817 | |
Pass [Member] | Finance Leases Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 727 | 1,121 | |
Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 3,917 | 3,021 | |
Pass [Member] | Residential Mortgage [Member] | Residential Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 101,507 | 64,900 | |
Pass [Member] | Construction Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 65,665 | 55,834 | |
Pass [Member] | Home Equity Loan [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 32,928 | 28,167 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 6,516 | 6,145 | |
Special Mention [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 2,088 | 4,859 | |
Special Mention [Member] | Residential Mortgage [Member] | Residential Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 475 | 252 | |
Special Mention [Member] | Construction Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 2,403 | 242 | |
Special Mention [Member] | Home Equity Loan [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 261 | 138 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 9,770 | 14,362 | |
Substandard [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 7,517 | 11,681 | |
Substandard [Member] | Residential Mortgage [Member] | Residential Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,361 | 1,290 | |
Substandard [Member] | Home Equity Loan [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 222 | $ 201 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Finance Leases Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Residential Mortgage [Member] | Residential Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Construction Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Doubtful [Member] | Home Equity Loan [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | |||
Industrial Property [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 160,261 | $ 119,010 | $ 105,844 |
Industrial Property [Member] | Pass [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 158,302 | 117,166 | |
Industrial Property [Member] | Special Mention [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,289 | 654 | |
Industrial Property [Member] | Substandard [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 670 | $ 1,190 | |
Industrial Property [Member] | Doubtful [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount |
Loans and Allowance for Loan 70
Loans and Allowance for Loan and Lease Losses (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Recorded Investment | [1] | $ 400 | |
Commercial [Member] | Industrial Property [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Recorded Investment | 14 | $ 395 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 49 | 430 | |
Impaired Loans with Allowance: Recorded Investment | 113 | 223 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 128 | 231 | |
Impaired Loans with Allowance: Related Allowance | 51 | 137 | |
Impaired Loans: Total Recorded Investment | 127 | 618 | |
Impaired Loans: Total Unpaid Principal Balance | 177 | 661 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Recorded Investment | 1,023 | 1,971 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 2,020 | 4,481 | |
Impaired Loans with Allowance: Recorded Investment | 1,947 | 6,954 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 1,981 | 7,255 | |
Impaired Loans with Allowance: Related Allowance | 429 | 1,382 | |
Impaired Loans: Total Recorded Investment | 3,901 | 8,925 | |
Impaired Loans: Total Unpaid Principal Balance | 4,001 | 11,736 | |
Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Recorded Investment | [1] | 931 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Recorded Investment | 1,329 | 1,146 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,434 | 1,286 | |
Impaired Loans with Allowance: Recorded Investment | 32 | ||
Impaired Loans with Allowance: Unpaid Principal Balance | 32 | ||
Impaired Loans with Allowance: Related Allowance | 23 | ||
Impaired Loans: Total Recorded Investment | 1,761 | 1,146 | |
Impaired Loans: Total Unpaid Principal Balance | 1,466 | 1,286 | |
Consumer [Member] | Home Equity Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Recorded Investment | 115 | 29 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 137 | 88 | |
Impaired Loans with Allowance: Recorded Investment | 211 | ||
Impaired Loans with Allowance: Unpaid Principal Balance | 213 | ||
Impaired Loans with Allowance: Related Allowance | 115 | ||
Impaired Loans: Total Recorded Investment | 115 | 240 | |
Impaired Loans: Total Unpaid Principal Balance | $ 137 | $ 301 | |
[1] | Loans acquired with credit deterioration are presented net of credit fair value adjustment. |
Loans and Allowance for Loan 71
Loans and Allowance for Loan and Lease Losses (Average Recorded Investment of Impaired Loans And Related Interest Income By Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commercial [Member] | Industrial Property [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | $ 19 | $ 72 | $ 188 |
Impaired Loans with Allowance: Average Recorded Investment | 123 | 93 | 51 |
Impaired Financing Receivable, Average Recorded Investment, Total | 142 | 165 | 239 |
Impaired Financing Receivable, Interest Income Recognized, Total | 205 | ||
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 1,051 | 1,966 | 2,506 |
Impaired Loans with No Allowance: Interest Income Recognized | 14 | 346 | 187 |
Impaired Loans with Allowance: Average Recorded Investment | 1,721 | 6,823 | 4,349 |
Impaired Financing Receivable, Average Recorded Investment, Total | 3,698 | 8,789 | 6,855 |
Impaired Financing Receivable, Interest Income Recognized, Total | 364 | 346 | 187 |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 816 | 541 | 299 |
Impaired Loans with No Allowance: Interest Income Recognized | 8 | ||
Impaired Loans with Allowance: Average Recorded Investment | 25 | 13 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 1,241 | 541 | 312 |
Impaired Financing Receivable, Interest Income Recognized, Total | 8 | ||
Consumer [Member] | Home Equity Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 107 | 29 | 31 |
Impaired Loans with Allowance: Average Recorded Investment | 76 | 54 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 107 | $ 105 | $ 85 |
Impaired Financing Receivable, Interest Income Recognized, Total | 3 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial [Member] | Industrial Property [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Interest Income Recognized | 205 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 926 | ||
Impaired Loans with No Allowance: Interest Income Recognized | 350 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 400 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer [Member] | Home Equity Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Interest Income Recognized | $ 3 |
Loans and Allowance for Loan 72
Loans and Allowance for Loan and Lease Losses (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 4,418 | $ 8,907 |
Commercial [Member] | Industrial Property [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 66 | 267 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,607 | 7,249 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,630 | 1,152 |
Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 115 | $ 239 |
Loans and Allowance for Loan 73
Loans and Allowance for Loan and Lease Losses (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 5,732 | $ 9,580 | |
Financing Receivable, Recorded Investment, Current | 733,459 | 561,953 | |
Total Loans | 739,191 | $ 571,533 | $ 546,462 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 55 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,197 | $ 1,002 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,935 | 632 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,600 | 7,946 | |
Commercial [Member] | Industrial Property [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 325 | 549 | |
Financing Receivable, Recorded Investment, Current | 159,936 | 118,461 | |
Total Loans | $ 160,261 | $ 119,010 | 105,844 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial [Member] | Industrial Property [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 55 | $ 172 | |
Commercial [Member] | Industrial Property [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 204 | 290 | |
Commercial [Member] | Industrial Property [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 66 | 87 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,185 | ||
Financing Receivable, Recorded Investment, Current | 290,172 | ||
Total Loans | 369,464 | $ 297,357 | 292,774 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,275 | ||
Financing Receivable, Recorded Investment, Current | 366,263 | ||
Total Loans | $ 368,538 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 403 | ||
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 211 | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 197 | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 608 | ||
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6,585 | ||
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,456 | ||
Commercial Real Estate [Member] | Construction Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 68,068 | 56,076 | |
Total Loans | $ 68,068 | $ 56,076 | 45,647 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 788 | ||
Financing Receivable, Recorded Investment, Current | 138 | ||
Total Loans | 926 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 55 | ||
Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 215 | ||
Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 518 | ||
Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 55 | ||
Finance Leases Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 727 | $ 1,121 | |
Total Loans | $ 727 | $ 1,121 | 1,356 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 1,527 | ||
Financing Receivable, Recorded Investment, Current | 64,915 | ||
Total Loans | $ 103,343 | $ 66,442 | 69,830 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Residential Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,022 | ||
Financing Receivable, Recorded Investment, Current | 100,921 | ||
Total Loans | $ 102,943 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 328 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 694 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 82 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 550 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,117 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 778 | ||
Residential Portfolio [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 234 | ||
Financing Receivable, Recorded Investment, Current | 166 | ||
Total Loans | $ 400 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Residential Portfolio [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 12 | ||
Residential Portfolio [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 222 | ||
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 15 | 6 | |
Financing Receivable, Recorded Investment, Current | 3,902 | 3,015 | |
Total Loans | $ 3,917 | $ 3,021 | 4,690 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 10 | $ 6 | |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5 | ||
Consumer [Member] | Home Equity Loan [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 73 | 313 | |
Financing Receivable, Recorded Investment, Current | 33,338 | 28,193 | |
Total Loans | $ 33,411 | $ 28,506 | $ 26,321 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | |||
Consumer [Member] | Home Equity Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 93 | ||
Consumer [Member] | Home Equity Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 50 | 63 | |
Consumer [Member] | Home Equity Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 23 | $ 157 |
Loans and Allowance for Loan 74
Loans and Allowance for Loan and Lease Losses (Allowance For Loan Losses And Recorded Investment In Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | $ 6,716 | $ 6,317 | $ 6,716 | $ 6,317 | $ 5,509 | ||||||
Charge-offs | (1,784) | (1,328) | (1,473) | ||||||||
Recoveries | 171 | 110 | 596 | ||||||||
Provision for loan and lease losses | $ 200 | $ 265 | $ 300 | 300 | $ 400 | $ 395 | $ 275 | 547 | 1,065 | 1,617 | 1,685 |
Allowance for Loan Losses, Ending Balance | 6,168 | 6,716 | 6,168 | 6,716 | 6,317 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 503 | 1,634 | 503 | 1,634 | 1,933 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 5,665 | 5,082 | 5,665 | 5,082 | 4,384 | ||||||
Loans receivables, Ending Balance | 739,191 | 571,533 | 739,191 | 571,533 | 546,462 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 4,573 | 10,929 | 4,573 | 10,929 | 10,912 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 733,287 | 560,604 | 733,287 | 560,604 | 535,550 | ||||||
Commercial [Member] | Industrial Property [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 1,393 | 1,187 | 1,393 | 1,187 | 1,298 | ||||||
Charge-offs | (130) | (62) | (183) | ||||||||
Recoveries | 12 | 13 | 193 | ||||||||
Provision for loan and lease losses | 118 | 255 | (121) | ||||||||
Allowance for Loan Losses, Ending Balance | 1,393 | 1,393 | 1,393 | 1,393 | 1,187 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 51 | 137 | 51 | 137 | 42 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1,342 | 1,256 | 1,342 | 1,256 | 1,145 | ||||||
Loans receivables, Ending Balance | 160,261 | 119,010 | 160,261 | 119,010 | 105,844 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 127 | 618 | 127 | 618 | 300 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 160,134 | 118,392 | 160,134 | 118,392 | 105,544 | ||||||
Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 3,925 | 4,006 | 3,925 | 4,006 | 3,112 | ||||||
Charge-offs | (1,569) | (1,057) | (919) | ||||||||
Recoveries | 75 | 13 | 279 | ||||||||
Provision for loan and lease losses | 1,121 | 963 | 1,534 | ||||||||
Allowance for Loan Losses, Ending Balance | 3,552 | 3,925 | 3,552 | 3,925 | 4,006 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 429 | 1,382 | 429 | 1,382 | 1,860 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3,123 | 2,543 | 3,123 | 2,543 | 2,146 | ||||||
Loans receivables, Ending Balance | 369,464 | 297,357 | 369,464 | 297,357 | 292,774 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 2,970 | 8,925 | 2,970 | 8,925 | 10,245 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 365,563 | 288,432 | 365,563 | 288,432 | 282,529 | ||||||
Commercial Real Estate [Member] | Construction Loans [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 33 | 9 | 33 | 9 | 64 | ||||||
Charge-offs | (17) | ||||||||||
Recoveries | 7 | ||||||||||
Provision for loan and lease losses | 120 | 24 | (45) | ||||||||
Allowance for Loan Losses, Ending Balance | 153 | 33 | 153 | 33 | 9 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 153 | 33 | 153 | 33 | 9 | ||||||
Loans receivables, Ending Balance | 68,068 | 56,076 | 68,068 | 56,076 | 45,647 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 68,068 | 56,076 | 68,068 | 56,076 | 45,647 | ||||||
Finance Leases Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 2 | 2 | 1 | ||||||||
Recoveries | 2 | ||||||||||
Provision for loan and lease losses | (1) | 2 | (3) | ||||||||
Allowance for Loan Losses, Ending Balance | 1 | 2 | 1 | 2 | |||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1 | 2 | 1 | 2 | |||||||
Loans receivables, Ending Balance | 727 | 1,121 | 727 | 1,121 | 1,356 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 727 | 1,121 | 727 | 1,121 | 1,356 | ||||||
Residential Portfolio [Member] | Residential Mortgage [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 450 | 581 | 450 | 581 | 581 | ||||||
Charge-offs | (35) | (133) | (167) | ||||||||
Recoveries | 44 | 20 | 23 | ||||||||
Provision for loan and lease losses | 75 | (18) | 144 | ||||||||
Allowance for Loan Losses, Ending Balance | 534 | 450 | 534 | 450 | 581 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 23 | 23 | 25 | ||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 511 | 450 | 511 | 450 | 556 | ||||||
Loans receivables, Ending Balance | 103,343 | 66,442 | 103,343 | 66,442 | 69,830 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 1,361 | 1,146 | 1,361 | 1,146 | 291 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 101,582 | 65,296 | 101,582 | 65,296 | 69,539 | ||||||
Consumer [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 35 | 72 | 35 | 72 | 101 | ||||||
Charge-offs | (14) | (33) | (96) | ||||||||
Recoveries | 11 | 63 | 84 | ||||||||
Provision for loan and lease losses | (20) | (67) | (17) | ||||||||
Allowance for Loan Losses, Ending Balance | 12 | 35 | 12 | 35 | 72 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 12 | 35 | 12 | 35 | 72 | ||||||
Loans receivables, Ending Balance | 3,917 | 3,021 | 3,917 | 3,021 | 4,690 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 3,917 | 3,021 | 3,917 | 3,021 | 4,690 | ||||||
Consumer [Member] | Home Equity Loan [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | 653 | 441 | 653 | 441 | 343 | ||||||
Charge-offs | (36) | (43) | (91) | ||||||||
Recoveries | 29 | 1 | 8 | ||||||||
Provision for loan and lease losses | (329) | 254 | 181 | ||||||||
Allowance for Loan Losses, Ending Balance | 317 | 653 | 317 | 653 | 441 | ||||||
Allowance for loan losses: Ending balance: individually evaluated for impairment | 115 | 115 | 6 | ||||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 317 | 538 | 317 | 538 | 435 | ||||||
Loans receivables, Ending Balance | 33,411 | 28,506 | 33,411 | 28,506 | 26,321 | ||||||
Loans receivables: Ending balance: individually evaluated for impairment | 115 | 240 | 115 | 240 | 76 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 33,296 | 28,266 | 33,296 | 28,266 | 26,245 | ||||||
Unallocated [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan and lease losses, Beginning Balance | $ 225 | $ 21 | 225 | 21 | 9 | ||||||
Provision for loan and lease losses | (19) | 204 | 12 | ||||||||
Allowance for Loan Losses, Ending Balance | 206 | 225 | 206 | 225 | 21 | ||||||
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 206 | $ 225 | 206 | $ 225 | $ 21 | ||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,331 | 1,331 | |||||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loans receivables, Ending Balance | 926 | 926 | |||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 931 | 931 | |||||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Portfolio [Member] | Residential Mortgage [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loans receivables, Ending Balance | 400 | 400 | |||||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | $ 400 | $ 400 |
Loans and Allowance for Loan 75
Loans and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 4,407 | $ 12,182 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 3,879 | 10,382 |
Financing Receivable, Modifications, Recorded Investment | 2,805 | $ 8,746 |
Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | contract | 4 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,647 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,304 | |
Financing Receivable, Modifications, Recorded Investment | 1,259 | |
Commercial [Member] | Industrial Property [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 40 | 40 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 35 | 35 |
Financing Receivable, Modifications, Recorded Investment | 15 | 23 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 3,634 | 11,189 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 3,117 | 9,443 |
Financing Receivable, Modifications, Recorded Investment | 2,235 | $ 8,005 |
Commercial Real Estate [Member] | Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | contract | 2 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,057 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 757 | |
Financing Receivable, Modifications, Recorded Investment | 734 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 733 | 903 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 727 | 897 |
Financing Receivable, Modifications, Recorded Investment | $ 555 | $ 713 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | contract | 1 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 540 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 540 | |
Financing Receivable, Modifications, Recorded Investment | 520 | |
Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 50 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 7 | |
Financing Receivable, Modifications, Recorded Investment | $ 5 | |
Consumer [Member] | Home Equity Loan [Member] | Entity Loan Modification Program [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | contract | 1 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 50 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 7 | |
Financing Receivable, Modifications, Recorded Investment | $ 5 |
Loans and Allowance for Loan 76
Loans and Allowance for Loan and Lease Losses (Schedule of Accretion of Purchase Impaired Loan) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loans and Allowance for Loan and Lease Losses [Abstract] | |
Accretable yield, beginning balance | |
Acquisition of impaired loans | $ 458 |
Accretable yield amortized to interest income | (280) |
Accretable yield, ending balance | $ 178 |
Bank Premises and Equipment (Pr
Bank Premises and Equipment (Premises and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 23,667 | $ 21,387 | |
Less accumulated depreciation | (9,674) | (9,162) | |
Property, plant and equipment, net, total | 13,993 | 12,225 | |
Depreciation | 1,485 | 1,235 | $ 1,250 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,906 | 2,712 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 10,789 | 10,116 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,742 | 7,236 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,212 | 826 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 18 | $ 497 |
Deposits (Time Deposits By Matu
Deposits (Time Deposits By Maturity Date) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Time Deposits, Total | $ 160,849,000 | $ 124,785,000 | |
Interest Expense, Time Deposits | 1,920,000 | 1,971,000 | $ 2,568,000 |
Brokered Deposits | 11,168,000 | 4,462,000 | |
Related Party Deposit Liabilities | 17,163,000 | $ 9,987,000 | |
Time Deposits Less Than $250,000 [Member] | |||
Maturing in 2016 | 62,867,000 | ||
Maturing in 2017 | 36,958,000 | ||
Maturing in 2018 | 13,459,000 | ||
Maturing in 2019 | 17,014,000 | ||
Maturing in 2020 | 14,760,000 | ||
Maturing thereafter | 833,000 | ||
Time Deposits, Total | 145,891,000 | ||
Time Deposits $250,000 or More [Member] | |||
Maturing in 2016 | 5,836,000 | ||
Maturing in 2017 | 2,654,000 | ||
Maturing in 2018 | 2,037,000 | ||
Maturing in 2019 | 3,201,000 | ||
Maturing in 2020 | 1,230,000 | ||
Time Deposits, Total | 14,958,000 | ||
Phoenix Bancorp Incorporated [Member] | |||
Brokered Deposits | $ 6,221,000 |
Short-term Borrowings (Schedule
Short-term Borrowings (Schedule of Short-term Borrowings) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Short term borrowings | $ 31,596,000 | $ 578,000 |
Current borrowing avaliable | 342,362,000 | |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short term borrowings | $ 31,596,000 | $ 578,000 |
Short-term debt, weighted average interest rate | 0.40% | 0.24% |
Correspondent Banks [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 15,000,000 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt [Abstract] | ||
Long-term debt | $ 40,305 | $ 52,961 |
Long-Term Debt, Aggregate Amounts Due, 2016 | 26,724 | |
Long-Term Debt, Aggregate Amounts Due, 2017 | 1,229 | |
Long-Term Debt, Aggregate Amounts Due, 2018 | 223 | |
Long-Term Debt, Aggregate Amounts Due, 2019 | 10,235 | |
Long-Term Debt, Aggregate Amounts Due, 2020 | 246 | |
Long-Term Debt, Aggregate Amounts Due, Thereafter | $ 1,648 |
Long-term Debt (Long-term Debt
Long-term Debt (Long-term Debt by Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 40,305 | $ 52,961 |
Maturing in 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 15,000 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range from | 0.58% | 0.58% |
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 | $ 26,521 | $ 25,000 |
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 | 1.08% | 1.08% |
Maturing in 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,016 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 3.03% | |
Maturing In 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 10,000 | $ 10,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 1.87% | 1.87% |
Maturing in 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,703 | $ 2,892 |
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 | $ 65 | $ 69 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 6.71% | 6.71% |
Subordinated Debt (Narrative) (
Subordinated Debt (Narrative) (Details) - USD ($) | Dec. 09, 2015 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Subordinated debt issuance | $ 7,500,000 | |
Parent Company [Member] | ||
Debt Instrument [Line Items] | ||
Subordinated debt issuance | $ 7,500,000 | |
Notes due 2025 [Member] | Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Subordinated debt issuance | $ 7,500,000 | |
Debt instrument, interest rate, effective percentage | 5.15% | |
Debt instrument, description of variable rate basis | Notes bear interest at a rate of 5.15% per year for the first five years and then float at the Wall Street Journal's Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no times be less than 4.0% | |
Debt instrument, payment terms | Interest will be payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. | |
Debt instrument, maturity date | Dec. 9, 2025 | |
Debt instrument, redemption, description | Notes will mature on December 9, 2025 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 9, 2020, and prior to December 9, 2025. Additionally, Mid Penn may redeem the Notes in whole at any time, or in part from time to time, upon at least 30 days' notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended, in each case at 100% of the principal amount of the subordinated notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |
Notes due 2025 [Member] | Subordinated Debt [Member] | Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Minimum [Member] | Notes due 2025 [Member] | Subordinated Debt [Member] | Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 4.00% |
Fair Value Measurement (Assets
Fair Value Measurement (Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 135,721 | $ 141,634 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,240 | 561 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 134,481 | 141,073 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
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 | $ 26,990 | 27,066 |
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 | $ 26,990 | 27,066 |
U.S. Treasury and U.S. government agencies [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Mortgage-backed U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 38,804 | 33,776 |
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 | $ 38,804 | 33,776 |
Mortgage-backed U.S. Government Agencies [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 66,617 | 79,171 |
State and municipal [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 66,617 | 79,171 |
State and municipal [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 3,310 | 1,621 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,240 | 561 |
Equity Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 2,070 | $ 1,060 |
Equity Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities |
Fair Value Measurement (Fair Va
Fair Value Measurement (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,088 | $ 6,664 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 453 | 142 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 174 | 187 |
Level 1 [Member] | Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Level 1 [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 | ||
Level 1 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Level 2 [Member] | Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Level 2 [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 | ||
Level 2 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Level 3 [Member] | Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,088 | 6,664 |
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 | 453 | 142 |
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 | $ 174 | $ 187 |
Fair Value Measurement (Fair 85
Fair Value Measurement (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,088 | $ 6,664 |
Impaired Loan [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 2,088 | 6,664 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 453 | 142 |
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 | 453 | 142 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 174 | 187 |
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 | $ 174 | $ 187 |
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 | 11.00% | 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 | 17.00% | 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% | 210.00% |
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 | 60.00% | 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 | 27.00% | 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 | 30.00% | 32.00% |
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 | 26.00% | 27.00% |
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 | 360.00% | 353.00% |
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 | $ 2,088 | $ 6,664 |
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 | 453 | 142 |
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 | $ 174 | $ 187 |
Fair Value Measurement (Fair 86
Fair Value Measurement (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets: Cash and cash equivalents | $ 13,284 | $ 9,882 |
Financial Assets: Interest-bearing time balances with other financial institutions | 4,317 | 5,772 |
Available-for-sale Securities | 135,721 | 141,634 |
Financial Assets: Net loans and leases | 738,773 | 572,487 |
Financial Assets: Restricted investment in bank stocks | 4,266 | 3,181 |
Financial Assets: Accrued interest receivable | 3,813 | 3,058 |
Financial Assets: Mortgage servicing rights | 174 | 187 |
Financial Liabilities: Deposits | 777,320 | 639,226 |
Financial Liabilities: Short-term borrowings | 31,596 | 578 |
Financial Liabilities: Long-term debt | 39,626 | 52,514 |
Financial Liabilities: Subordinated debt | 7,500 | |
Financial Liabilities: Accrued interest payable | 390 | 349 |
Financial Assets: Cash and cash equivalents, Carrying Value | 13,284 | 9,882 |
Financial Assets: Interest bearing time balances with other financial institutions, Carrying Value | 4,317 | 5,772 |
Financial Assets: Net loans and leases, Carrying Value | 733,023 | 564,817 |
Financial Assets: Restricted investment in bank stocks, Carrying Value | 4,266 | 3,181 |
Financial Assets: Accrued interest receivable, Carrying Value | 3,813 | 3,058 |
Financial Assets: Mortgage Servicing Rights, Carrying Value | 174 | 187 |
Financial Liabilities: Deposits, Carrying Value | 777,043 | 637,922 |
Financial Liabilities: Short-term borrowings, Carrying Value | 31,596 | 578 |
Financial Liabilities: Long-term debt, Carrying Value | 40,305 | 52,961 |
Financial Liabilities: Subordinated debt, Carrying Value | 7,500 | |
Financial Liabilities: Accrued interest payable, Carrying Value | 390 | 349 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 1,240 | 561 |
Financial Assets: Net loans and leases | ||
Financial Liabilities: Deposits | ||
Financial Liabilities: Long-term debt | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 134,481 | 141,073 |
Financial Liabilities: Deposits | 777,320 | 639,226 |
Financial Liabilities: Long-term debt | $ 39,626 | 52,514 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | ||
Financial Assets: Net loans and leases | $ 738,773 | 572,487 |
Parent Company [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets: Cash and cash equivalents, Carrying Value | 564 | $ 554 |
Financial Liabilities: Subordinated debt, Carrying Value | $ 7,500 |
Postretirement Benefit Plans (N
Postretirement Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Postretirement benefit health insurance reimbursable premimum, maximum | $ 5,000 | |
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 $5,000 | |
Prior to age 65, life insurance maximum, coverage amount | $ 50,000 | |
Life insurance minimum amount coverage | 5,000 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | 572,000 | $ 861,000 |
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 | 64,000 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 1,150,000 | 1,186,000 |
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 | $ 3,764,000 | $ 3,689,000 |
Postretirement Benefit Plans 88
Postretirement Benefit Plans (Net Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Change in benefit obligations: | |||
Benefit obligations | $ 861 | $ 836 | |
Change in benefit obligations: Service cost | 13 | 13 | $ 17 |
Change in benefit obligations: Interest cost | 32 | 38 | 34 |
Change in benefit obligations: Actuarial (gain) loss | (24) | (26) | |
Change in benefit obligations: Change in assumptions | (4) | 40 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | (62) | $ (40) | |
Change in benefit obligations: Change due to plan amendment | (244) | ||
Benefit obligations | $ 572 | $ 861 | $ 836 |
Change in fair value of plan assets: | |||
Fair value of plan assets | |||
Change in fair value of plan assets: Employer contributions | $ 62 | $ 40 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | $ (62) | $ (40) | |
Fair value of plan assets | |||
Funded status at year end | $ (572) | $ (861) | |
Director's Retirement Plan [Member] | |||
Change in benefit obligations: | |||
Benefit obligations | 1,186 | 1,130 | |
Change in benefit obligations: Service cost | 33 | 33 | $ 32 |
Change in benefit obligations: Interest cost | 45 | 51 | 44 |
Change in benefit obligations: Actuarial (gain) loss | (8) | (8) | |
Change in benefit obligations: Change in assumptions | (16) | 69 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | (90) | (89) | |
Benefit obligations | $ 1,150 | $ 1,186 | $ 1,130 |
Change in fair value of plan assets: | |||
Fair value of plan assets | |||
Change in fair value of plan assets: Employer contributions | $ 90 | $ 89 | |
Change in benefit obligations/fair value of plan assets: Benefit payments | $ (90) | $ (89) | |
Fair value of plan assets | |||
Funded status at year end | $ (1,150) | $ (1,186) |
Postretirement Benefit Plans (A
Postretirement Benefit Plans (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ 572 | $ 861 |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ 1,150 | $ 1,186 |
Postretirement Benefit Plans 90
Postretirement Benefit Plans (Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Postretirement Health And Life Coverage [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net gain, pretax | $ (47) | $ (19) |
Net prior service cost, pretax | (244) | |
Director's Retirement Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net gain, pretax | 77 | 101 |
Net prior service cost, pretax | $ 64 | $ 86 |
Postretirement Benefit Plans 91
Postretirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $ 13 | $ 13 | $ 17 |
Interest Cost | 32 | 38 | 34 |
Amortization of prior service cost | (1) | (1) | |
Net periodic postretirement benefit cost | 45 | 50 | 50 |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 33 | 33 | 32 |
Interest Cost | 45 | 51 | 44 |
Amortization of prior service cost | 22 | 22 | 22 |
Net periodic postretirement benefit cost | $ 100 | $ 106 | $ 98 |
Postretirement Benefit Plans 92
Postretirement Benefit Plans (Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.25% | 4.00% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.25% | 3.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.00% | 4.75% | 4.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.75% | 3.00% |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.25% | 4.00% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Change In Consumer Price Index | 2.25% | 2.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.00% | 4.75% | 4.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Changes In Consumer Price Index | 2.25% | 2.75% | 2.00% |
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 5.50% | 6.50% | 7.00% |
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 | 2,016 | 2,016 | 2,016 |
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] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
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 | 3 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 2 |
Postretirement Benefit Plans 95
Postretirement Benefit Plans (Expected Benefit Payments) (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Postretirement Health And Life Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
1/1/2016 to 12/31/2016 | $ 66,000 |
1/1/2017 to 12/31/2017 | 57,000 |
1/1/2018 to 12/31/2018 | 60,000 |
1/1/2019 to 12/31/2019 | 64,000 |
1/1/2020 to 12/31/2020 | 44,000 |
1/1/2021 to 12/31/2025 | 195,000 |
Defined contribution plan, employer discretionary contribution amount | 66,000 |
Director's Retirement Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
1/1/2016 to 12/31/2016 | 93,000 |
1/1/2017 to 12/31/2017 | 96,000 |
1/1/2018 to 12/31/2018 | 99,000 |
1/1/2019 to 12/31/2019 | 98,000 |
1/1/2020 to 12/31/2020 | 100,000 |
1/1/2021 to 12/31/2025 | 504,000 |
Defined contribution plan, employer discretionary contribution amount | $ 93,000 |
Other Benefit Plans (Narrative)
Other Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 321,000 | 216,000 | 129,000 |
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 | 9,000 | 6,000 | 0 |
Deferred Compensation Arrangement with Individual, Recorded Liability | 160,000 | 177,000 | |
Salary Continuation Agreement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | 16,000 | 15,000 | 14,000 |
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 237,000 | 221,000 | |
Defined Benefit Plan, Maximum Coverage Period | 15 years | ||
Cash surrender value of bank owned life insurance | $ 1,253,000 | 1,215,000 | |
Split Dollar Life Insurance Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of bank owned life insurance | 1,806,000 | 1,776,000 | |
Director's Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | 17,000 | 16,000 | $ 11,000 |
Deferred Compensation Arrangement with Individual, Recorded Liability | 523,000 | 453,000 | |
Cash surrender value of bank owned life insurance | 3,764,000 | $ 3,689,000 | |
Phoenix Bancorp Incorporated [Member] | Split Dollar Life Insurance Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of bank owned life insurance | $ 3,749,000 |
Federal Income Taxes (Net Defer
Federal Income Taxes (Net Deferred Tax Asset) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Allowance for loan and lease losses | $ 2,097,000 | $ 2,283,000 |
Deferred Tax Assets, Loan Fees | 79,000 | 68,000 |
Deferred Tax Assets, Deferred Compensation | 313,000 | 289,000 |
Deferred Tax Assets, Benefit plans | 586,000 | 696,000 |
Deferred Tax Assets, Nonaccrual interest | 554,000 | 955,000 |
Deferred Tax Assets, Phoenix adjustments | 1,166,000 | |
Deferred Tax Assets, Other | 170,000 | 111,000 |
Deferred Tax Assets, Gross, Total | 4,965,000 | 4,402,000 |
Deferred Tax Liabilities, Depreciation | (1,074,000) | (801,000) |
Deferred Tax Liabilities, Bond accretion | (111,000) | (106,000) |
Deferred Tax Liabilities, Goodwill and intangibles | (472,000) | (264,000) |
Deferred Tax Liabilities, Unrealized gain on securities | (806,000) | (837,000) |
Deferred Tax Liabilities, Prepaid expenses | (240,000) | (266,000) |
Deferred Tax Liabilities, Phoenix adjustments | 428,000 | |
Deferred Tax Liabilities, Other | (13,000) | (3,000) |
Deferred Tax Liabilities, Gross, Total | (3,144,000) | (2,277,000) |
Deferred Tax Assets, Net, Total | 1,821,000 | $ 2,125,000 |
General Loan Credit Adjustment [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 409,000 | |
Fixed Asset Mark [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 259,000 | |
Specific Loan Credit Adjustment [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 204,000 | |
Net Operating Loss Carryforward Buisness Combination [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 103,000 | |
Disallowed Charitable Items [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 88,000 | |
Split Dollar Life Plan [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 63,000 | |
Other Deferred Tax Asset [Member] | ||
Deferred Tax Assets, Phoenix adjustments | 40,000 | |
Core Deposit Intangible Adjustment [Member] | ||
Deferred Tax Liabilities, Phoenix adjustments | 166,000 | |
Unearned Discount and Deferred Loan Fees Adjustment [Member] | ||
Deferred Tax Liabilities, Phoenix adjustments | 144,000 | |
General Loan Interest Mark [Member] | ||
Deferred Tax Liabilities, Phoenix adjustments | 68,000 | |
Reserve for Loan Losses Method Adjustment [Member] | ||
Deferred Tax Liabilities, Phoenix adjustments | $ 50,000 |
Federal Income Taxes (Schedule
Federal Income Taxes (Schedule of Current and Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Income Taxes [Abstract] | |||||||||||
Current Income Tax Expense (Benefit) | $ 647 | $ 1,574 | $ 1,009 | ||||||||
Deferred Income Tax Expense (Benefit) | 997 | (112) | 192 | ||||||||
Provision for income taxes | $ 421 | $ 546 | $ 593 | $ 84 | $ 251 | $ 366 | $ 475 | $ 370 | $ 1,644 | $ 1,462 | $ 1,201 |
Federal Income Taxes (Income Ta
Federal Income Taxes (Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Income Taxes [Abstract] | |||||||||||
Federal tax rate | 34.00% | 34.00% | 34.00% | ||||||||
Provision at the expected statutory rate | $ 2,779 | $ 2,435 | $ 2,088 | ||||||||
Effect of tax-exempt income | (1,105) | (1,086) | (873) | ||||||||
Effect of investment in life insurance | (91) | (68) | (78) | ||||||||
Nondeductible interest | 37 | 42 | 40 | ||||||||
Nondeductible merger and acquisition expense | 34 | 163 | |||||||||
Other items | (10) | (24) | 24 | ||||||||
Provision for income taxes | $ 421 | $ 546 | $ 593 | $ 84 | $ 251 | $ 366 | $ 475 | $ 370 | 1,644 | 1,462 | 1,201 |
Income Tax Examination, Penalties and Interest Expense | 0 | 0 | $ 0 | ||||||||
Income Tax Examination, Penalties and Interest Accrued | $ 0 | $ 0 | $ 0 | $ 0 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 1,346 | |
Corporation [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital (To Average Assets) | 64,089 | $ 56,560 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 64,089 | |
Tier 1 Capital (To Risk Weighted Assets) | 64,089 | 56,560 |
Total Capital (To Risk Weighted Assets) | $ 77,852 | $ 63,336 |
Tier 1 Capital (to Average Assets), Ratio | 7.30% | 7.40% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), ratio | 9.10% | |
Tier 1 Capital (To Risk Weighted Assets), Ratio | 9.10% | 10.10% |
Total Capital (To Risk Weighted Assets), Ratio | 11.00% | 11.40% |
Tier 1 Capital for Capital Adequacy (To Average Assets) | $ 35,098 | $ 30,429 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 31,731 | |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets) | 42,308 | 22,295 |
Total Capital for Capital Adequacy (To Risk Weighted Assets) | $ 56,410 | $ 44,590 |
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | 4.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), ratio | 4.50% | |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 6.00% | 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) | $ 70,351 | $ 56,647 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 70,351 | |
Tier 1 Capital (To Risk Weighted Assets) | 70,351 | 56,647 |
Total Capital (To Risk Weighted Assets) | $ 76,614 | $ 63,423 |
Tier 1 Capital (to Average Assets), Ratio | 7.80% | 7.50% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), ratio | 10.00% | |
Tier 1 Capital (To Risk Weighted Assets), Ratio | 10.00% | 10.20% |
Total Capital (To Risk Weighted Assets), Ratio | 10.90% | 11.40% |
Tier 1 Capital for Capital Adequacy (To Average Assets) | $ 36,245 | $ 30,360 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 31,698 | |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets) | 42,264 | 22,295 |
Total Capital for Capital Adequacy (To Risk Weighted Assets) | $ 56,352 | $ 44,590 |
Tier 1 Capital for Capital Adequacy (To Average Assets), Ratio | 4.00% | 4.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), ratio | 4.50% | |
Tier 1 Capital for Capital Adequacy (To Risk Weighted Assets), Ratio | 6.00% | 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) | $ 45,306 | $ 37,950 |
Common Equity Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | 45,786 | |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | 56,352 | 33,442 |
Total Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets) | $ 70,440 | $ 55,737 |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Average Assets), Ratio | 5.00% | 5.00% |
Common Equity Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets), ratio | 6.50% | |
Tier 1 Capital to be Well-Capitalized Under Prompt Corrective Action Provision (To Risk Weighted Assets), Ratio | 8.00% | 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 Of101
Concentration of Risk and Off-Balance Sheet Risk (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||
Commitments to extend credit | $ 157,338,000 | $ 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 | $ 10,000,000 | |
Mortgage loans commited amount to fund and sell, remaining | 5,805,000 | |
Standby Letters of Credit [Member] | ||
Concentration Risk [Line Items] | ||
Commitments to extend credit | $ 15,805,000 | 9,837,000 |
Benchmark - Loans Receivable, Net [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 48.10% | |
Residential Mortgage [Member] | Residential Portfolio [Member] | ||
Concentration Risk [Line Items] | ||
Mortgage loans commited amount to fund and sell | 15,000,000 | |
Mortgage loans commited amount to fund and sell, remaining | $ 7,558,000 |
Commitments and Contingencie102
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Mar. 01, 2015ft²contract | Nov. 30, 2014contract | Oct. 31, 2014contract | Aug. 31, 2014ft²contract | Dec. 31, 2015USD ($)ft²contract | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Operating leases, rent expense, net | $ | $ 627 | $ 151 | $ 121 | ||||
Office Space - Downtown Harrisburg Lease [Member] | |||||||
Lease expiration date | Jul. 31, 2020 | ||||||
Lease rent increase of annual base rent, percentage | 3.00% | ||||||
Area of real estate property | ft² | 2,500 | ||||||
Drive-Up ATM - Halifax Lease [Member] | |||||||
Lease expiration date | Oct. 31, 2018 | ||||||
Office Space - Derry Street Lease [Member] | |||||||
Lease expiration date | Nov. 1, 2014 | ||||||
Area of real estate property | ft² | 5,900 | ||||||
Number of renewal options for lease | 2 | ||||||
Renewal options period for lease | 3 years | ||||||
North Front Street Harrisburg [Member] | |||||||
Lease expiration date | Feb. 29, 2020 | ||||||
Lease rent increase of annual base rent, percentage | 2.00% | ||||||
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 | ft² | 2,350 | ||||||
North Front Street Harrisburg Two [Member] | |||||||
Area of real estate property | ft² | 7,000 | ||||||
Simpson Ferry Road Mechanicsburg [Member] | |||||||
Lease rent increase of annual base rent, percentage | 2.00% | ||||||
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 | ||||||
Conyngham Main Street [Member] | |||||||
Number of renewal options for lease | 3 | ||||||
Renewal options period for lease | 5 years | ||||||
Rockwood Route 61 South, Second and Third NonCancelable Lease [Member] | |||||||
Lease expiration date | Mar. 31, 2021 | ||||||
Number of renewal options for lease | 2 | ||||||
Renewal options period for lease | 5 years | ||||||
Rockwood Route 61 South [Member] | |||||||
Area of real estate property | ft² | 3,000 | ||||||
Second and Third NonCanelable Lease [Member] | |||||||
Area of real estate property | ft² | 6,000 | ||||||
South Lehigh Avenue West Mahanoy Township [Member] | |||||||
Number of renewal options for lease | 2 | ||||||
Renewal options period for lease | 5 years |
Commitments and Contingencie103
Commitments and Contingencies (Minimum Future Rental Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 319 |
2,017 | 325 |
2,018 | 329 |
2,019 | 332 |
2,020 | 335 |
thereafter | 4,556 |
Total Future Minimum Lease Payments | 6,196 |
Property Subject to Operating Lease [Member] | |
Operating Leased Assets [Line Items] | |
2,016 | 715 |
2,017 | 734 |
2,018 | 745 |
2,019 | 746 |
2,020 | 438 |
thereafter | 4,556 |
Total Future Minimum Lease Payments | $ 7,934 |
Common Stock (Details)
Common Stock (Details) - USD ($) $ in Thousands | Aug. 27, 2015 | Dec. 31, 2015 | Jun. 25, 2014 |
Class of Stock [Line Items] | |||
Restricted stock compensation expense | $ 27 | ||
Dividend Reinvestment Plan [Member] | |||
Class of Stock [Line Items] | |||
Shares authorized under the plan | 330,750 | ||
2014 Restricted Stock Plan [Member] | |||
Class of Stock [Line Items] | |||
Shares authorized under the plan | 100,000 | ||
Shares granted | 8,975 | ||
Restricted stock compensation expense | $ 27 | ||
Vested, shares | 875 |
Preferred Stock (Narrative) (De
Preferred Stock (Narrative) (Details) - USD ($) | Dec. 15, 2015 | Mar. 01, 2015 | Jan. 03, 2013 | Dec. 09, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Series B Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock issued during period, shares, new issues | 5,000 | |||||
Preferred stock, dividend rate, percentage | 7.00% | 7.00% | 7.00% | |||
Proceeds from stock issued in private placement | $ 5,000,000 | |||||
Preferred stock, redemption price | $ 1,024.67 | |||||
Preferred stock, redemption price, excluding dividends declared but unpaid | $ 1,020 | |||||
Payments for repurchase of preferred stock | $ 5,123,000 | $ 5,000,000 | ||||
Preferred stock, shares issued | 0 | 5,000 | ||||
Preferred stock, shares outstanding | 0 | 5,000 | ||||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 | ||||
Series C Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock issued during period, shares, new issues | 1,750 | |||||
Preferred stock, dividend rate, percentage | 1.00% | 1.00% | ||||
Payments for repurchase of preferred stock | $ 1,754,000 | $ 1,750,000 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 | $ 1,000 | |||
Preferred stock per annum dividend rate | 1.00% | |||||
Parent Company [Member] | Series B Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Payments for repurchase of preferred stock | $ 5,000,000 | |||||
Parent Company [Member] | Series C Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Payments for repurchase of preferred stock | $ 1,750,000 | |||||
Phoenix Bancorp Incorporated [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued | 1,750 | |||||
Preferred stock, shares outstanding | 1,750 |
Parent Company Statements (Cond
Parent Company Statements (Condensed Balance Sheets) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $ 13,284,000 | $ 9,882,000 | ||
Investment in subsidiaries | 365,000 | 408,000 | ||
Other assets | 3,202,000 | 2,620,000 | ||
Total Assets | 931,724,000 | 755,657,000 | ||
Subordinated debt | 7,500,000 | |||
Other liabilities | 4,822,000 | 4,717,000 | ||
Shareholders' Equity | 70,068,000 | 59,130,000 | $ 52,916,000 | $ 52,220,000 |
Total Liabilities & Shareholders' Equity | 931,724,000 | 755,657,000 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 564,000 | 554,000 | ||
Equity investments | 626,000 | |||
Investment in subsidiaries | 76,334,000 | 59,217,000 | ||
Other assets | 100,000 | |||
Total Assets | 77,624,000 | 59,771,000 | ||
Subordinated debt | 7,500,000 | |||
Other liabilities | 56,000 | 641,000 | ||
Shareholders' Equity | 70,068,000 | 59,130,000 | ||
Total Liabilities & Shareholders' Equity | $ 77,624,000 | $ 59,771,000 |
Parent Company Statements (C107
Parent Company Statements (Condensed Statement of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other expenses | $ (3,453) | $ (2,639) | $ (2,625) | ||||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiary | $ 2,048 | $ 2,440 | $ 2,637 | $ 1,047 | $ 1,139 | $ 1,961 | $ 2,182 | $ 1,881 | 8,172 | 7,163 | 6,140 |
Income tax benefit | (421) | (546) | (593) | (84) | (251) | (366) | (475) | (370) | (1,644) | (1,462) | (1,201) |
Net income | 1,627 | 1,894 | 2,044 | 963 | 888 | 1,595 | 1,707 | 1,511 | 6,528 | 5,701 | 4,939 |
Net income available to common shareholders | 1,408 | 1,802 | 1,952 | 876 | 801 | 1,507 | 1,619 | 1,424 | 6,038 | 5,351 | 4,616 |
Comprehensive income | 6,827 | 8,086 | 1,774 | ||||||||
Parent Company [Member] | |||||||||||
Dividends from subsidaries | 5,662 | 2,325 | 1,237 | ||||||||
Other Income | 19 | ||||||||||
Revenues | 5,681 | 2,325 | 1,237 | ||||||||
Other expenses | (695) | (716) | (184) | ||||||||
Total Expense | (695) | (716) | (184) | ||||||||
Income before income tax and equity in undistributed earnings (loss) of subsidiary | 4,986 | 1,609 | 1,053 | ||||||||
Equity in undistributed earnings (loss) of subsidiaries | 1,346 | 4,012 | 3,823 | ||||||||
Income before income taxes | 6,332 | 5,621 | 4,876 | ||||||||
Income tax benefit | 196 | 80 | 63 | ||||||||
Net income | 6,528 | 5,701 | 4,939 | ||||||||
Net income available to common shareholders | 6,038 | 5,351 | 4,616 | ||||||||
Comprehensive income | 6,827 | 8,086 | 1,774 | ||||||||
Series A Preferred Stock [Member] | |||||||||||
Preferred stock dividends and discount accretion | 14 | ||||||||||
Series A Preferred Stock [Member] | Parent Company [Member] | |||||||||||
Preferred stock dividends and discount accretion | 14 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Preferred stock dividends and discount accretion | 210 | 88 | 88 | $ 87 | $ 87 | $ 88 | $ 88 | $ 87 | |||
Preferred stock dividends | 473 | 350 | 309 | ||||||||
Series B Preferred Stock [Member] | Parent Company [Member] | |||||||||||
Preferred stock dividends | 473 | $ 350 | $ 309 | ||||||||
Series C Preferred Stock [Member] | |||||||||||
Preferred stock dividends | $ 9 | $ 4 | $ 4 | 17 | |||||||
Series C Preferred Stock [Member] | Parent Company [Member] | |||||||||||
Preferred stock dividends | $ 17 |
Parent Company Statements (C108
Parent Company Statements (Condensed Statement of Cash Flows) (Details) - USD ($) | Dec. 15, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 09, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Net income | $ 1,627,000 | $ 1,894,000 | $ 2,044,000 | $ 963,000 | $ 888,000 | $ 1,595,000 | $ 1,707,000 | $ 1,511,000 | $ 6,528,000 | $ 5,701,000 | $ 4,939,000 | ||
Decrease (increase) in other assets | 333,000 | (547,000) | 500,000 | ||||||||||
(Decrease) increase in other liabilities | (771,000) | 9,000 | 319,000 | ||||||||||
Net cash provided by operating activities | 13,174,000 | 8,670,000 | 10,682,000 | ||||||||||
Proceeds from the maturity of investment securities | 11,940,000 | 13,585,000 | 37,101,000 | ||||||||||
Net cash paid for acquisition | 8,095,000 | ||||||||||||
Purchases of investment securities | (35,858,000) | (43,633,000) | (27,881,000) | ||||||||||
Net Cash Used In Investing Activities | (38,903,000) | (41,892,000) | (23,605,000) | ||||||||||
Employee Stock Purchase Plan | 66,000 | 53,000 | 55,000 | ||||||||||
Warrant repurchase | (58,000) | ||||||||||||
Deferred financing fees paid for subordinated debt issuance | (85,000) | ||||||||||||
Subordinated debt issuance | 7,500,000 | ||||||||||||
Net cash used in financing activities | 29,131,000 | 34,481,000 | 6,073,000 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 3,402,000 | 1,259,000 | (6,850,000) | ||||||||||
Cash and cash equivalents, beginning of year | 9,882,000 | 8,623,000 | 9,882,000 | 8,623,000 | 15,473,000 | ||||||||
Cash and cash equivalents, end of year | 13,284,000 | 9,882,000 | 13,284,000 | 9,882,000 | 8,623,000 | ||||||||
Parent Company [Member] | |||||||||||||
Net income | 6,528,000 | 5,701,000 | 4,939,000 | ||||||||||
Equity in undistributed (earnings) loss of subsidiaries | (1,346,000) | (4,012,000) | (3,823,000) | ||||||||||
Decrease (increase) in other assets | (14,000) | 8,000 | 3,000 | ||||||||||
(Decrease) increase in other liabilities | (665,000) | 292,000 | 334,000 | ||||||||||
Net cash provided by operating activities | 4,503,000 | 1,989,000 | 1,453,000 | ||||||||||
Net cash paid for acquisition | (2,949,000) | ||||||||||||
Net Cash Used In Investing Activities | (2,949,000) | ||||||||||||
Dividends paid | (2,175,000) | (1,925,000) | (1,181,000) | ||||||||||
Employee Stock Purchase Plan | 66,000 | 53,000 | 55,000 | ||||||||||
Warrant repurchase | (58,000) | ||||||||||||
Deferred financing fees paid for subordinated debt issuance | (85,000) | ||||||||||||
Subordinated debt issuance | 7,500,000 | ||||||||||||
Net cash used in financing activities | (1,544,000) | (1,872,000) | (1,064,000) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 10,000 | 117,000 | 389,000 | ||||||||||
Cash and cash equivalents, beginning of year | $ 554,000 | $ 437,000 | 554,000 | 437,000 | 48,000 | ||||||||
Cash and cash equivalents, end of year | $ 564,000 | $ 554,000 | 564,000 | $ 554,000 | 437,000 | ||||||||
Series B Preferred Stock [Member] | |||||||||||||
Preferred stock redemption | $ (5,123,000) | (5,000,000) | |||||||||||
Series B Preferred Stock [Member] | Parent Company [Member] | |||||||||||||
Preferred stock redemption premium | (100,000) | ||||||||||||
Preferred stock redemption | (5,000,000) | ||||||||||||
Preferred stock issue | $ 120,000 | ||||||||||||
Series C Preferred Stock [Member] | |||||||||||||
Preferred stock redemption | $ (1,754,000) | (1,750,000) | |||||||||||
Series C Preferred Stock [Member] | Parent Company [Member] | |||||||||||||
Preferred stock redemption | $ (1,750,000) |
Summary of Quarterly Consoli109
Summary of Quarterly Consolidated Financial Data (Unaudited) (Quarterly Condensed Financials) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | $ 9,349 | $ 9,339 | $ 9,644 | $ 8,158 | $ 7,744 | $ 7,633 | $ 7,870 | $ 7,380 | $ 36,490 | $ 30,627 | $ 28,983 |
Interest Expense | 1,179 | 1,150 | 1,158 | 1,120 | 1,111 | 1,089 | 1,119 | 1,108 | 4,607 | 4,427 | 5,057 |
Net Interest Income | 8,170 | 8,189 | 8,486 | 7,038 | 6,633 | 6,544 | 6,751 | 6,272 | 31,883 | 26,200 | 23,926 |
Provision for Loan and Lease Losses | 200 | 265 | 300 | 300 | 400 | 395 | 275 | 547 | 1,065 | 1,617 | 1,685 |
Net Interest Income After Provision for Loan and Lease Losses | 7,970 | 7,924 | 8,186 | 6,738 | 6,233 | 6,149 | 6,476 | 5,725 | 30,818 | 24,583 | 22,241 |
Noninterest Income | 960 | 1,085 | 1,093 | 949 | 839 | 741 | 774 | 894 | 4,087 | 3,248 | 3,290 |
Noninterest Expense | 6,882 | 6,569 | 6,642 | 6,640 | 5,933 | 4,929 | 5,068 | 4,738 | 26,733 | 20,668 | 19,391 |
Income Before Provision for Income Taxes | 2,048 | 2,440 | 2,637 | 1,047 | 1,139 | 1,961 | 2,182 | 1,881 | 8,172 | 7,163 | 6,140 |
Provision for income taxes | 421 | 546 | 593 | 84 | 251 | 366 | 475 | 370 | 1,644 | 1,462 | 1,201 |
Net income | 1,627 | 1,894 | 2,044 | 963 | 888 | 1,595 | 1,707 | 1,511 | 6,528 | 5,701 | 4,939 |
Net income available to common shareholders | $ 1,408 | $ 1,802 | $ 1,952 | $ 876 | $ 801 | $ 1,507 | $ 1,619 | $ 1,424 | $ 6,038 | $ 5,351 | $ 4,616 |
Basic Earnings Per Common Share | $ 0.35 | $ 0.43 | $ 0.46 | $ 0.23 | $ 0.23 | $ 0.43 | $ 0.46 | $ 0.41 | $ 1.47 | $ 1.53 | $ 1.32 |
Diluted Earnings Per Common Share | 0.35 | 0.43 | 0.46 | 0.23 | 0.23 | 0.43 | 0.46 | 0.41 | 1.47 | 1.53 | 1.32 |
Cash Dividends | $ 0.12 | $ 0.12 | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.10 | $ 0.10 | $ 0.05 | $ 0.44 | $ 0.45 | $ 0.25 |
Series B Preferred Stock [Member] | |||||||||||
Preferred stock dividends and discount accretion | $ 210 | $ 88 | $ 88 | $ 87 | $ 87 | $ 88 | $ 88 | $ 87 | |||
Preferred stock dividends | $ 473 | $ 350 | $ 309 | ||||||||
Series C Preferred Stock [Member] | |||||||||||
Preferred stock dividends | $ 9 | $ 4 | $ 4 | $ 17 |